IT spending curb does not effect co-sourcers
Europe is more confident than the US that IT spending will continue as the impending recession looms. Recent figures from Forrester Research show that Europe is less likely to temper its IT spending than US businesses.
950+ IT directors were included in the research, with 49% of US-based directors stating that they have cut their budgets for IT, whereas the European percentage was considerably lower at 31%.
However, of those questioned, 70 per cent of respondents plan to renegotiate costs with suppliers, with co-sourcing proving popular. One in five IT directors is planning to move telecoms and network management outside internal IT departments.
This statistic comes as no surprise to Twin Systems plc Managing Director, Steve Songaila : “We saw a similar trend for our services during the recession in the early 1990s. Because our managed services are measurable, defined and provided at a fixed fee, therefore, reducing in-house overheads, an economic slowdown inevitably leads to enhancement in technology strategy and the requirement of streamlined effort and cost.”
Principal Forrester Research analyst John C McCarthy stated that : "This is not an across-the-board spending slowdown. The impact of the economy on IT budgets varies widely by industry and geography.”
“With regard to the services sector, the slowdown has firms being more selective in choosing vendors, and examining spending plans more thoroughly. The demand for enterprise IT services has not dropped significantly."
To find out how your business could reduce its financial outgoings and improve the quality of service provided to your users, talk to Steve on 0845 3131 483 or e-mail steve@twinsystems.com.