Two-thirds of European firms will either cut IT spending or leave it unchanged in 2002, but nevertheless expect their budgets to be 13% higher in three years, according to a new report from Forrester Research.
Almost three-quarters (72%) said they had encountered new, specific pressure to reduce IT costs; one in four respondents had delayed projects and and one in five are now canceling projects, says Forrester. Of those that had decreased their budgets, the top two reasons were the overall economic downturn and weak individual company performance.
Despite this, companies are still relying on technology for growth, says the report. The future spending plans of 75% of respondents were to increase IT budgets by 2005; furthermore, almost half expect to increase head count by an average of 43%.
