Spending Growth Slows, But No Panic
No Signs (Yet) of Panicked Cost-Cutting
Companies spend on IT to save money later. Instead of slashing projects, CIOs keep projects going. Instead of cutting staff or rushing to outsource, CIOs consider certain investments and cost-reducing practices as better ways to limit spending.
True, IT staff represents just 30 percent of IT budgets at large companies, but that is the result of a long-term shift in their IT cost structure toward outsourcing and services. It's allowed big companies to devote a larger share of their IT budget to projects and a smaller share to maintenance, than smaller firms can.