Recession freezes IT budgets

It was inevitable. The global economic decline--fueled by the housing crisis, the failure of financial institutions, the lack of credit availability and the stock market meltdown--will be taking its toll on IT.

In June, the Society for Information Management polled more than 300 IT executives about their plans for IT spending in 2009 and found that 44 percent planned for bigger budgets and 43 percent intended to increase staffing.

But a more recent tally from the CIO Executive Board revealed a far different picture. The late September survey of some 50 CIOs showed that more than half have put nonessential projects on hold and about one-fourth have decided to freeze IT hiring. And 61 percent admitted they were re-evaluating their 2009 budgets. That reevaluation is unlikely to result in good news.

For more on the state of IT budgets:
- check out this CIO.com article

Related Article:
Capital budgeting insights