Bangalore: Technology spending by Indian firms will grow by 5.5% in 2009, a drop by more than half, as it faces the impact of slowing local economy and a global economic downturn, technology researcher Gartner Inc said on Thursday.
Indian firms saw a 13% increase in IT budgets in 2008 and a 16% jump a year ago.
Gartner, in its 2009 CIO agenda survey, said global technology spending in the current year would grow a modest half a percent, due to gloomy economic conditions, which is expected to improve by end of 2010.
Flat IT budgets were found across enterprises in North America and Europe, with slight increases in Latin America and a slight decrease in Asia/Pacific, it said..The CIOs surveyed represent more than $138 billion in corporate and public-sector IT spending, encompassing 1,527 enterprises across 48 countries and 30 industries.
“CIO’s in India need to recognize that IT’s contribution to their enterprise extends beyond just cutting costs. They must have confidence in their ability to use IT to significantly increase business performance,” said Peter Sondergaard, global head of research at Gartner.