IT Budget 2009: It's the Economy, Stupid
The economy and Wall Street rumblings are casting a pall over IT budgets, but there could be light at the end of next year.As the economy goes, so goes IT. Right now, the lackluster economy-made darker by the recent collapse of Lehman Brothers and the acquisition of one-time powerhouse Merrill Lynch by Bank of America-is casting a pall over 2009 IT budget planning. Even so, some experts say the second half of 2009 could see a return to brighter days. "We're going to play it by ear until next year," said Jim Michael, associate director of IT services for California State University and vice president of SHARE, an association of IT professionals. "How soon will we feel the effects of recovery? The state budget might not recover as quickly as private industry. It's definitely wait and see."
The current doldrums in IT spending began in 2008 following a strong year in 2007. "2009 and 2008 are going to be one and the same; we've tapered down from 2006-2007," said Paul Tinnirello, CIO of a company in the insurance information business. Robert Rosen, CIO of the National Institute of Arthritis and Musculoskeletal and Skin Diseases and an eWEEK Corporate Partner, took a similar view: "At the very best, [our budget] will be flat. With the cost of living, it's effectively a cut."