Friday, September 12, 2008

I Mastubate My Sister

IT budgets are small

About 40 percent of large companies have cut their budgets, according to Forrester for IT purposes in the current year. The reason is the generally poor economy mainly from the U.S., which is also reflected on the global economy. So the U.S. market research firm Forrester Research. The study involved 950 IT managers in part from the U.S. and Europe that their spending on IT services both its strategy and priorities were questioned.

The study clearly shows that the budgets of big companies have declined in view of the already slowing global economy. 43 percent, almost half of companies said they this. 24 percent have investments on hold, and only 28 percent claimed that the crisis had so far had no impact on their IT budgets. The reduction in the budget with the result that the pressure on the service provider. Most of the companies (70 percent) plan to push the prices of its suppliers. Others (about 16 percent) have already put into action.

was hardest hit, the financial industry. The reason for this lies in the real estate crisis in the first place in the U.S. but also in the UK and Spain. In the financial sector, almost half (49 percent) surveyed by Forrester Financial Services has already reduced its budget. In the entertainment industry (media, entertainment, leisure), this value is at least 39 percent. It is also not surprising that the IT departments in Europe is better off than those behind the Atlantic. 31 percent against 49 percent in the U.S. who were forced to reduce their IT spending. The survey did not take place before the end of June, a very current picture could look even different.

Nevertheless, a growing preference for outsourcing and offshoring does not. The outsourcing to external service from abroad will increase. So will almost half (45 percent) of large companies increasingly outsource the operation of applications and almost as many (43 percent) do outsource infrastructure. As many said they wanted services (eg software development) to buy more offshore. Furthermore, a mega-trend towards the outsourcing of network management and the construction of converged (voice and data on a network) telecommunications infrastructure.

Only nine percent of large companies admitted offshore capacity Today, wherever and whenever it is used. But that number will increase even further: 14 percent say they want to obtain more in low-income countries and 19 Percent want to drive pilot experiments in this direction.

Over half (52 percent) of respondents said the biggest challenge in outsourcing lies in the fact that the savings did not meet the expectations, 40 percent were dissatisfied with the quality of services provided and deplored the inability of suppliers, adjust contracts to reflect new business requirements.

Source: Inside IT

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