Spending on technology is expected to fall in the next year in both Europe and the US as a result of the continuing economic uncertainty.
The latest quarterly poll of CIOs from UBS indicates that confidence remains very shaky with IT budgets expected to fall by 1.3% on average.
In the last poll things had looked brighter with IT budgets set to grow by 0.5% but that confidence has melted away as governments across Europe struggle to bring down deficits and make savage cuts in the public sector.
As a result a third of those quizzed in Europe said there had been project delays and cancellations as a result of problems in the euro zone.
Where there was spending it tended to be planned for servers and storage with companies looking to build datacentres to cope with their multiplying data demands.