Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News

      Vendors Become a Main Target of IT Cuts

      By
      Matthew Hicks
      -
      December 14, 2001
      Share
      Facebook
      Twitter
      Linkedin

        Corporate IT executives are planning even deeper cuts in their 2002 budgets and are trying to squeeze better pricing out of technology vendors to meet that goal, according to survey data compiled this week from Meta Group Inc.

        Sixty-two percent of IT executives surveyed this month by Meta Group said that they plan to further cut their 2002 IT spending plans by the end of this year, Howard Rubin, an executive vice president and research fellow at Meta Group, told eWEEK on Thursday. In the worst case, 27 percent plan to slash between 15 percent and 20 percent more from their spending plans. The other 35 percent plan on cutting less than 15 percent more. Only 38 percent planned to make no additional changes to next years IT budgets.

        The news should be doubly worrisome for tech vendors because companies are doing more than just dropping IT projects or staff. Theyre also working to renegotiate contracts with key vendors to lower the cost of the technology they already have in place, Rubin said.

        The majority of IT executives, 54 percent, are seeking to renegotiate a third or more of their contracts, and another 36 percent are attempting to rework less than a third of their contracts. Only 10 percent are leaving their vendor contracts untouched, Rubin said.

        “The data has shown that as things got bad this year, about 55 percent of companies cut staff,” Rubin said. “Staff is easy, so then they had to save more money, so they put initiatives on hold–like [enterprise resource planning] and [customer relationship management]. After you do the easy things, where do you go next? Where else you can get a fast hit is to call your vendors.”

        The most recent findings from Meta Group, based in Stamford, Conn., are based on weekly surveys of a portion of its database of 10,000 companies worldwide. The results come after the IT market research company in late October announced that it expects corporate IT spending to fall in 2002 for the first time ever. Its projection at that time was for a 2 percent to 5 percent drop in IT spending as a percentage of revenue in 2002 compared with 2001. That has worsened to 11 percent, Rubin said.

        “Its almost like last-minute stock selling,” Rubin said. “Were seeing end-of-the-year adjustments in IT spending.”

        Matthew Hicks
        As an online reporter for eWEEK.com, Matt Hicks covers the fast-changing developments in Internet technologies. His coverage includes the growing field of Web conferencing software and services. With eight years as a business and technology journalist, Matt has gained insight into the market strategies of IT vendors as well as the needs of enterprise IT managers. He joined Ziff Davis in 1999 as a staff writer for the former Strategies section of eWEEK, where he wrote in-depth features about corporate strategies for e-business and enterprise software. In 2002, he moved to the News department at the magazine as a senior writer specializing in coverage of database software and enterprise networking. Later that year Matt started a yearlong fellowship in Washington, DC, after being awarded an American Political Science Association Congressional Fellowship for Journalist. As a fellow, he spent nine months working on policy issues, including technology policy, in for a Member of the U.S. House of Representatives. He rejoined Ziff Davis in August 2003 as a reporter dedicated to online coverage for eWEEK.com. Along with Web conferencing, he follows search engines, Web browsers, speech technology and the Internet domain-naming system.

        MOST POPULAR ARTICLES

        Android

        Samsung Galaxy XCover Pro: Durability for Tough...

        Chris Preimesberger - December 5, 2020 0
        Have you ever dropped your phone, winced and felt the pain as it hit the sidewalk? Either the screen splintered like a windshield being...
        Read more
        Cloud

        Why Data Security Will Face Even Harsher...

        Chris Preimesberger - December 1, 2020 0
        Who would know more about details of the hacking process than an actual former career hacker? And who wants to understand all they can...
        Read more
        Cybersecurity

        Visa’s Michael Jabbara on Cybersecurity and Digital...

        James Maguire - May 17, 2022 0
        I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
        Read more
        Cybersecurity

        How Veritas Is Shining a Light Into...

        eWEEK EDITORS - September 25, 2020 0
        Protecting data has always been one of the most important tasks in all of IT, yet as more companies become data companies at the...
        Read more
        Cloud

        Yotascale CEO Asim Razzaq on Controlling Multicloud...

        James Maguire - May 5, 2022 0
        Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
        Read more
        Logo

        eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

        Facebook
        Linkedin
        RSS
        Twitter
        Youtube

        Advertisers

        Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

        Advertise with Us

        Menu

        • About eWeek
        • Subscribe to our Newsletter
        • Latest News

        Our Brands

        • Privacy Policy
        • Terms
        • About
        • Contact
        • Advertise
        • Sitemap
        • California – Do Not Sell My Information

        Property of TechnologyAdvice.
        © 2021 TechnologyAdvice. All Rights Reserved

        Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

        ×