IT plays an integral and ubiquitous role in business operations and represents, on average across industries, 6% of revenue. So during times of financial pressure or economic downturn, the IT budget will undergo significant scrutiny in efforts to reduce company expenditures.
A recent survey conducted by the Canadian Advanced Technology Alliance (CATA), in collaboration with Info-Tech Research Group, explored the impact of the North American economic downturn on IT budgets. Based on responses from 136 organizations across North America, two key findings are of interest:
- Close to 70% of organizations expect that a recession in the United States is very likely.
- More than 40% of organizations expect a budget reduction, combining the responses for:
- Budget reduction between 3% and 10%.
- Budget reduction of more than 10%.
