spectacular downfall of twin Wall Street stalwarts Lehman Brothers and Merrill
Lynch bodes ill for IT spending at all Wall Street companies, Bartels said.
"Wall Street firms will have major cutbacks to their business. With
consolidations going on, they may consolidate IT systems as well," he said.
the impact should be confined to Wall Street and won't spread to other areas of
the economy, said Bartels, who added that, overall, the dip in Wall Street IT
spending won't greatly change the overall IT budget picture: "The financial
services industry comprises only 8 percent to 10 percent of IT budgets; Wall
Street might be 2 percent to 3 percent."
how much IT pros are hunkering down is open to debate, however.
we're in a recession, it's not being reflected in IT budgets. There's not a
panic setting in," said Jerry Luftman, associate dean and distinguished
professor at Stevens Institute of Technology and vice president for academic
affairs for SIM (Society for
Information Management), an organization if IT executives.
manages SIM's annual survey of its
membership, which found that 80 percent of members expect their IT budget to
increase or stay the same in 2009.
Luftman said, survey respondents tend to be optimistic about the coming year and
that actual spending tends to be lower. "Eighty percent will probably turn out
to be a little closer to 75 percent," said Luftman.
last year's SIM survey, 78.4
percent of respondents said their IT budgets would remain the same or increase.
The actual figure, reported in this year's survey, was 75 percent, according to
Luftman. The results of the latest survey will be published at the
organization's SIMposium conference, which will be held in Orlando, Fla., in November.
the economic fear that we're hearing about, companies are not panicking,"
Luftman said. The reason, he said, is IT people have made significant progress
in tying technology to their organization's business mission. As a result, IT is
not so frequently looked at as merely an expense to be cut. "IT people are much
more engaged with their business partners now. Budgets aren't getting sliced,
and hiring isn't falling off so much," he said.