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US Execs Cutting Budgets

FRAMINGHAM, Mass. -- With talk of recession dominating business discussions in the United States and worldwide, senior IT executives in the U.S. are already feeling a negative effect on their budgets for new projects in 2008. The impact of a slowing economy was confirmed in recent IDC interviews with 27 CIOs and senior IT leaders.

"These in-depth interviews show a significant shift towards cost reduction rather than revenue generation as a driver for IT investment. Being able to deliver IT services more efficiently, as a response to the economic downturn and to recent mergers and acquisitions, is setting today's IT agenda. Responding to compliance and industry structural changes, such as the popularity of generics in the pharmaceuticals industry, are also key factors in deciding which IT projects get funded and which get deferred," said Henry Morris, senior vice president of Software and Services Research at IDC.

IDC