Gartner urges IT organizations to cut costs now

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Gartner urges IT organizations to cut costs now

Market research firm advised its clients not to wait until a recession is officially announced to cut their spending. Instead, “action is required” now, the company said, as “economic factors in the United States have deteriorated” to justify the preparation of cost cutting.

“Last October we published research recommending that organizations should prepare two IT budgets for 2008, the first reflecting guidance already provided by senior decision makers and a second ‘backup’ budget assuming the need to cut costs in response to the arrival of a business slowdown,” said Ken McGee, vice-president and Gartner Fellow. “Since that time the factors we based the research on – such as GDP growth projections and expert predictions for the likelihood of a recession – have worsened to a degree that convinces us it is now time for clients to prepare for cutting IT costs.”

Gartner said that as recession fears increase, those responsible for IT budgets can expect to receive mandates from senior executives to cut IT costs as part of an enterprise-wide cost-cutting program.