More IT Budget Cuts, Layoffs Expected in First Half of 2009

An increasing number of IT workers expect to see budgets and staff cuts during the first half of 2009 as earlier plans for growth give way to current economic realities.

The number of IT professionals expecting to see budget and head-count cuts grew significantly between October and December, CDW reports, as more large-business decision-makers turn to cost-cutting measures for 2009.


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Results recently released by CDW show that 19 percent of corporate IT decision-makers are anticipating budget cuts in the first half of 2009, an increase of eight percentage points since October. Data reported in this release of the CDW IT Monitor is based on a survey of 1,059 IT decision-makers conducted from November 10 to November 17 by Richard Day Research.

The results also show that 11 percent of corporate IT decision-makers are expecting staffing decreases in the next six months, compared to the five percent who reported the same expectation in October.

Specifically, 30 percent of those polled in the government sector say they are preparing for budget cuts. This figure includes 38 percent of state IT decision-makers, representing an increase of eight percentage points; and 19 percent of federal IT professionals, a number that grew by seven percentage points since October.

Yet the news for IT in 2009 isn't entirely bad, CDW says. The results show that 84 percent of large and 77 percent of midsize businesses plan to purchase new hardware in 2009, and 87 percent of large businesses and 78 percent of midsize ones intend to invest in software.

"Despite market changes, many organizations continue to recognize the value of IT as a strategic investment," said Mark Gambill, a vice president at CDW, in a statement.

This story, "More IT Budget Cuts, Layoffs Expected in First Half of 2009" was originally published by Network World.

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