Large firms cut IT spending

More than 40 per cent of large businesses in the US and Western Europe have cut their IT budgets this year, according to a Forrester report previewed in the Financial Times.

It found 43% of companies have already cut their overall IT budgets in 2008, while 24% have put discretionary IT spending on hold because of the credit crunch.

Although the overall figures indicate a reduction in IT spending, the report highlighted wide differences between countries, sectors and types of IT spending, with financial services, construction and auto being the worst hit.

While almost half of US corporations have already clawed back their IT spending only 28% of their German counterparts have done so.