The news is somewhat gloomy when compared with the insatiable growth rates in IT spending of more than 20 percent in 1999 and 2000.
The report states: IT overall will be a drag on the economy through 2002, not the engine of growth that it was in the 1990s. IT vendors -- especially those selling computer and telecom hardware -- will continue to struggle with weak demand until the second half of 2002 at the earliest.
Giga says that the great majority of companies will be much more conservative and cautious about their IT investments next year, focusing on using their existing IT systems more effectively and making them more secure -- and avoiding large-ticket capital investments whenever possible.
In addition, Companies can find great opportunities to acquire technology products and services at lower prices in 2002, but they need to pay careful attention to the viability of the vendor, says Andrew Bartels, VP of research at Giga and author of the report.
Jo Maitland, Senior Editor, Byte and Switch