Crisis no 'dot com bust' says Gartner

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Crisis no 'dot com bust' says Gartner

Microscope contributor

Speaking at this week’s Gartner Symposium/ITxpo in the US, analysts have said that although the economic crisis is going to impact IT budgets next year, the scale of the slowdown will not match that seen when the dot coms went belly-up six years ago.

“In a worst case scenario our research indicates an IT spending increase of 2.3% in 2009, down from our earlier prediction of 5.8%,” said Gartner senior vice president and global research head Peter Sondergaard.

Gartner predicted that the European channel would see negative growth next year, while the US would remain flat.

Sondergaard claimed that the dramatic events of the past two weeks, which in the UK culminated in a massive government-led bailout at the weekend, would hurt IT budgets during Q4, however it would not completely screw up the 2008 numbers.

He added that the lessons learned after the dot com crash also stood IT directors in good stead, and backing up the Chartered Management Institute, which yesterday called for firm leadership in the business community, said that IT executives and managers needed to become more agile.

“What they [CEOs] want now most of all is … leadership that can guide us through simultaneous cost control and expansion at the same time,”said Sondergaard.


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