Economic slowdown to end by October-December: Survey

April 6th, 2009 - 6:56 pm ICT by IANS  

New Delhi, April 6 (IANS) A majority of chief information officers (CIOs) of companies in India expect the economic slowdown to end by October-December 2009, a survey conducted by market intelligence IT consulting major IDC India showed Monday.
The survey, titled ‘Identifying Opportunities in the Current Economic Scenario’, was conducted among 467 CIOs from mid-sized and large enterprises across 18 industry verticals in February-March 2009, IDC said.

About 66 percent of the CIOs felt that the slowdown would end by the October-December quarter.

“The IDC CIO survey provides pointers to IT vendors for strategising their business agenda in the mid-term to effectively ride out the economic slowdown and stay focused on their priorities,” IDC India country manager Kapil Dev Singh said.

The study found that enterprises were cutting back on new projects and focusing on the maintenance of existing IT set-ups. Of the total planned IT expenditure for 2009, companies plan to spend 20 percent on new purchases and reserve the balance for managing the existing set-up.

The CIOs added that green technologies like virtualisation and unified communications (UC), and other sectors like business intelligence (BI) and data warehousing (DW), software-as-a-service (SaaS) and open source were the emerging investment priorities in 2009.

According to IDC, the investments in personal computers, servers and computer peripherals are expected to decrease 20-40 percent in 2009, compared to last year.

“IT services vendors are likely to be the least impacted if they focus on providing services like infrastructure management, business transformation and business continuity,” it added.

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