Recession fears hit IT

A survey by Baseline in the fourth quarter of 2007 found that 46 percent of respondents believe their companies would cut IT spending and staff if a recession hit. And the survey also found that one-third believe their job would be in jeopardy in the event of an economic downturn. This does not bode well for the IT community. "Companies will do what they have to do to maintain cash flow and profitability," says John von Stein, the chief information officer of The Options Clearing Corp. in Chicago. "IT typically is an area where a delay in projects and initiatives allows the company to spend money later-or not at all-if the business value is no longer there to justify the project."

The survey found other bad signs popping up, too. The respondents believe that more work will be outsourced to Asia and Latin America. But the news isn't all bad. More than 70 percent of respondents believe that more work will shift to the Internet if energy prices keep rising. Stay tuned. This issue is definitely growing and will compel IT executives to use technology to help save unnecessary costs.

For more about the IT world and recession:
- See this Baseline article