RSSBusiness spending to be slower than expected
I guess it depends on what you were expecting, though, doesn't it? I wasn't expecting all that much, as I've been watching my portfolio yo-yo and seen the market, a market comprised largely of the captains of industry, react fearfully to almost every bit of economic data coming down the pipe. Gartner wasn't expecting all that much, either, a 4.1 percent increase, but they have now downgraded that to 2.9 percent instead. I suppose one of the benefits of having low expectations is that even when they get lower, there really isn't room for them to get a lot lower.
It's hard not to be glum, but it also means there is a continuing opportunity in IT organizations, now that they find they aren't going to be showered with money during a full-blown recovery that isn't going to happen immediately, to seek and find a legitimate new normal. Hard as it may seem to credit, many organizations have been scrimping and saving, chopping headcount, making things run on a shoestring, for the past two years instead of genuinely looking at radical opportunities to restructure and permanently reduce headcounts and costs. Indeed, I have been predicting, entirely inaccurately as it happens, that this would happen prior to the recovery, that as a recovery, it wouldn't look like previous IT industry bounces because organizations wouldn't need to hire and spend as they had in the past to realize normal operations and new efficiencies.
They're getting to that point, but it's been slower than I would have thought. On the other hand, the recovery is pretty slow, too. So maybe we'll get there yet.
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