Gartner: IT spend to slow next year

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The economic turmoil taking out banks and insurers will eventually hit spending in the IT sector, Gartner has predicted.

Although the sector will see less growth, the damage won’t be as bad as during the the dot com bust, the analyst firm explained.

The worst case scenario would see spending increase by 2.3 per cent, compared to previous expectations of 5.8 per cent, according to Peter Sondergaard, Gartner’s global head of research. The effects of the banking crash will start to show in the fourth quarter of this year, but most IT spending decreases follow those in the economy at large by some two quarters, Gartner said.

“Developed economies, especially the United States and Western Europe, will be the worst affected, but emerging regions will not be immune. Europe will experience negative growth in 2009, the United States and Japan will be flat,” he said.

Despite the market turmoil, the IT industry is stronger than some because of lessons learned following the recession of 2001. Indeed, companies now see IT as an area to focus on during tough times, rather than a spot to start cutting.

“We learned that in tumultuous times, CEOs want their executives and managers to be advisors and counselors, not just great implementers of directions given to them,” Sondergaard said. “What they want now most of all is agile leadership. Leadership that can guide us through simultaneous cost control and expansion at the same time.”

A seperate report released today suggested IT execs are concerned about losing their jobs because of the economic situation.

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