Critical.
Authoritative.
Strategic.
Subscribe to CIO Magazine »

Study finds big rise in job cuts planned at IT shops

But the numbers could have been even worse, according to Computer Economics

Forty-six percent of North American IT shops are planning to cut positions this year, up from 24 percent last year, with one-quarter planning to slash staff by 10 percent or more, according to a newly released study by Computer Economics.

The findings indicate widespread doubt among IT executives that the recession will end soon.

Only 27 percent intend to increase headcount, and another 27 percent plan to keep staffing levels flat, the study also found.

The Irvine, California, research firm also found that the majority of IT budgets are either flat (17 percent) or decreasing this year (38 percent). Forty-five percent of respondents reported their budgets will grow this year.

Although dire, the numbers do not necessarily set a precedent.

In 2002, following the 2001 recession, only 36 percent of IT shops said budgets would increase, according to Computer Economics.

"This indicates that the current recession, though reportedly more severe than any since the Great Depression, is actually not as acute in terms of IT spending as the 2001 recession," the report states.

The difference is likely because the years prior to the 2001 recession were marked by rampant IT spending driven by the dot-com bubble and other factors, making the sector vulnerable to cuts, Computer Economics said.

Meanwhile, current economic woes are spread across other areas, such as real estate and banking.

IT cuts could also be worse if IT executives, apparently learning a lesson from the previous recession, had not held down spending growth in recent years, the firm added.

Computer Economics polled 202 North American IT executives in the first quarter of this year.

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

Comments

Post new comment

The content of this field is kept private and will not be shown publicly.
Users posting comments agree to the CIO comments policy.
Login or register to link comments to your user profile, or you may also post a comment without being logged in.
Related Coverage
Related Whitepapers
Latest Stories
Community Comments
Tags: Computer Economics, IT jobs, job cuts, jobs, research, surveys
Latest Blog Posts
Whitepapers
  • Reconciling Datacenter consolidation and security: It starts with an integrated approach
    There is no question that datacenter consolidation has gone mainstream. A recent IDG Research survey of IT managers found that three out of four organizations are in the midst of, or just completing, consolidation of multiple applications or systems onto a smaller number of servers. Improving performance and availability was the key driver of consolidation efforts for 85% of those surveyed.
    Learn more »
  • Blurring boundaries: The disappearing gap between work and home life
    Call it multi-tasking, life-splicing or bleisure but increasingly, fuelled by advances in technology, employees are blurring the boundaries between home and work. ‘Generation Standby’ employees, never truly ‘switched off’ and always ready to be called upon, are now enjoying, and expecting, greater levels of flexibility and mobility than ever before. Read on.
    Learn more »
  • Justifying Business Intelligence Applications
    This white paper explores the decision criteria used in a build vs. buy scenario when considering the Oracle BI Applications. The major benefits of the BI Applications will be discussed in the framework of an overall buy vs. build argument.
    Learn more »
All whitepapers
rhs_login_lockGet exclusive access to Invitation only events CIO, reports & analysis.
Recent comments