Home : Server : News

Credit crunch could hit banks' IT budgets

The CBI believes that IT spending will fall in the UK financial sector.

By Matthew Sparkes, 1 Apr 2008 at 11:44

As the credit crunch hits the UK financial sector, IT spending will fall and jobs will be lost, according to the Confederation of British Industry (CBI).

The group said the industry will be forced to shed over 10,000 workers in the country by June and cut back dramatically on IT budgets, as the crunch continues to bite into profits.

"Plans for capital investment in the year ahead are very weak, with plans for spending on IT flat," said a statement from the CBI.

"We can expect further tough times in the financial sector, and as this feeds through into the wider economy it will inevitably be felt through slower economic growth this year and next," said Ian McCafferty, chief economic adviser at the CBI.

Email to a friend

Print this page

Social Bookmark this article: What is this?

Be the first to comment on this article

You need to Login or Register to comment.

Latest Server Features

Top 10 tips for green IT

We run down the top 10 ways to cut energy use and green up your business technology.

More Server Features

Latest Server Reviews

Boston 3000GP - AMD Shanghai Server

Rating:

This system from Boston is the first we've seen to feature AMD's Shanghai processor. Does it deliver on its power saving promise?

More Server Reviews

Latest News Videos in Server

Video: Steve Murphy, Hitachi Data Systems

Play

IT PRO speaks to Steve Murphy, UK Managing Director of storage technology specialist Hitachi Data Systems.

Blogs

Linux Has Been Tick Boxed

Want more background on today's hottest IT trends?

Visit IT PRO's white paper library for more on virtualisation, encryption and other topics.

Register for IT PRO

You'll get exclusive member benefits including free white papers, downloads, Webinars and weekly newsletters full of the latest IT PRO news, reviews, insight and expertise.