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Will this year’s IT budget shrink?

There is a debate about how the ‘new financial reality’ will affect IT. Logic might dictate that IT spending will decline in line with spending across the enterprise but it appears from these recent news stories, that this is not necessarily the case; and with good reason.

IT can deliver significant savings through streamlining processes. It is this mindset that is prompting a movement toward outsourcing, argues research consultancy Kable in their report Change to sustain public sector ICT spend. The desire to structurally reform public services offers further opportunities to utilise IT in creative ways.

Gareth Morgan essentially agrees with Kable in his Computing article,
Shrinking economy pushes IT focus back to cost saving. IT needs to demonstrate that it delivers value to the business and will focus on projects that are critical to the business strategy. Given that making efficiency savings is critical to most businesses, IT is well positioned to deliver savings in time and resources.

In a different article, Outlook brightens for SME IT spending, Morgan notes that 2010 spending on IT in enterprises rose ‘strongly’, with a more modest rise in SMEs. He also reports Gartner’s assertion that IT budgets will rise by 5% this year.

So it’s not all doom and gloom for IT. Properly positioned, IT can deliver value to the business by increasing efficiency. So, in short, this means doing what we all always strive to do; perhaps shouting about it a bit more…!

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