Budget losers: Hardware, consultants, Vista, ERP
- TAGS:budgets, crm, disaster recovery, economy, erp, IT spending, Microsoft office, SOA, Vista
- IT TOPICS:Applications, Careers, Data Center, Desktop Apps, Enterprise Apps, Hardware, Management, Mobile, Networking, Storage, Web Apps, Windows
Note to CIOs: Keep an eye on the revenue line. A Goldman Sachs report indicates that if your company's revenue takes a hit, so will your IT budget.
With 65% of respondents indicating that their IT budget is generally keeping pace with total company revenues and/or expenses, it is clear that shrinking revenue poses the biggest risk to IT budgets -- a risk that is increasingly likely, given the worsening macro backdrop.
That's from a March 9 report by analysts at Goldman Sachs Group Inc. It's based on a survey of 100 IT executives at multinational Fortune 1000 companies.
So where will the IT cost-cutting happen? The survey indicates that these are the most likely targets over the next 12 months:
- Computer hardware (personal systems, servers and storage)
- Third-party professional services
- Software licensing
- Communications and networking equipment
- Internal staffing
And when it comes to software projects, the hit list is topped by:
- Microsoft Vista upgrades
- ERP software projects or upgrades
- Microsoft Office upgrades
- Application integration / SOA projects
- Disaster recovery / business continuance planning
- Customer relationship management (CRM) implementations
- Operations management projects or upgrades
- Mobile computing / remote access projects
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Base: Survey panel of 100 IT executives at multinational Fortune 1000 companies
Source: Goldman Sachs IT Spending Survey, March 9, 2008, Goldman Sachs Group Inc., New York
Related:
More signs of a bad start to 2008 for IT spending
IT is underfunded, relative to corporate growth
Why CIOs should monitor economic trends
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