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IT spending is down: Now what?

Analyst firm IDC has predicted a significant slowdown in worldwide IT spending in 2009. The newly revised estimate brings IT spending at 2.6% growth in 2009, down from IDC’s earlier projection of 5.9% growth. In the United States alone, the August growth estimation for IT spending was 4.2%. Recently, the percentage was adjusted to 0.9% spending growth.

Everyone knows spending is down and budgets are tight, but the question remaining is: What now?

At the AMR Research Business Technology Conference 2008, held earlier this week, emphasis was placed on saving money and not just making money. Throughout the year, analysts have warned that companies would be putting the brakes on IT spending as the economy dipped towards a recession. Now that we’re here, what can we do?

Go for green IT: Make the move towards virtualization, for instance. It reduces the number of necessary servers, which saves on power and cooling — thus saving you money.

Get SaaS-y: It’s a way to grow quickly and inexpensively.

Hold on to your good employees: Good employees will weather the storm along with you, and replacing highly skilled employees later on is costly. On that note, manage your employees well so they want to stay.

Look to the future: The recession will lift. Maintain your IT innovation so you’ll be ahead of the game when it does.

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