Many large companies have reduced their IT spending this year, according to market researcher Forrester.
The research shows that 43 per cent of large businesses in Europe and the US surveyed have cut overall spending on technological products and services.
The financial services sector has been particularly hard hit, with 49 per cent reporting budget cuts, closely followed by the utilities and telecommunications industries.
In contrast, the media and entertainment industries are faring better with only 39 per cent reporting a reduction in spending.
The research also suggests that US companies are more likely to cut spending than their European counterparts, with nearly half of US respondents saying that they have already cut budgets, compared to 38 per cent of Canadian companies and 28 per cent of those in Germany.
Additionally, 70 per cent of those surveyed intended to negotiate lower rates with IT service suppliers.
“This is not an across-the-board spending slowdown; the impact of the economy on IT budgets varies widely by industry and geography,” said Forrester’s vice president John C. McCarthy. “With regard to the services sector, the slowdown has firms renegotiating rates, being more selective in choosing vendors, and examining spending plans more thoroughly, but they are still expecting to pay more for services. The demand for enterprise IT services has not dropped significantly.”