IDC: IT Execs Cutting Budgets, Consolidating Assets

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Many American companies are reducing information technology spending, according to a new survey of IT leaders conducted by IDC, with more than half the information chiefs citing the economy as the reason.

"[Our] interviews show a significant shift towards cost reduction rather than revenue generation as a driver for IT investment," said Henry Morris, senior vice president of software and services research at IDC. "Being able to deliver IT services more efficiently, as a response to the economic downturn and to recent mergers and acquisitions, is setting today's IT agenda.

Responding to compliance and industry structural changes, such as the popularity of generics in the pharmaceuticals industry, are also key factors in deciding which IT projects get funded and which get deferred."

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Most of the technology leaders interviewed by IDC, 70%, were working in large public companies. The remainder were working in private industry. The survey did not include IT leaders working in the public sector and education.

Other findings from the IDC survey:

Nearly 70% of the IT execs said that funding is being more centrally managed, in part for better control and efficiency.
Infrastructure improvement—including application consolidation, data center consolidation and virtualization—was most frequently mentioned as a priority for delivering lower cost, higher performance IT.
Almost all those surveyed were engaged in some form of application modernization.

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