Recession nerves slow up IT spending

Companies will hold off IT spending as they wait to see how the world economy holds up in the first half of next year, according to a report from Morgan Stanley Dean Witter.

By Ben King, 21 December 2000 16:49

NEWS Next year's IT budgets will grow, but slowly, according to the annual survey of chief information officers conducted by the US investment banking group. The report suggests that companies' spending on information technology will grow by an average 8.1 per cent, down by a third from last year's figure of 12 per cent. Spending will be heavier in the second half of the year. 14 per cent of companies reign back early spending as they 'monitor the economy', and 12 per cent have already cut budgets. The report identified a worsening shortage of IT personnel, with 0.8 million IT positions in the US remaining unfilled, up from 0.7million last year. Morgan Stanley Dean Witter interviewed 150 CIOs from Fortune 1000 companies for the survey.

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