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Goldman cuts global IT spending estimate for 2009

NEW YORK (AP) — Goldman Sachs cut its global IT spending forecast for 2009 on Tuesday, citing bleak trends in key economic indicators and a sharp focus on cost-cutting among business managers.

In a research note Tuesday, Goldman analyst Sarah Friar estimated information technology spending will drop 9 percent in 2009, based on figures for gross domestic product, capital spending and corporate profits as well as a recent survey of chief information officers. That’s down from a previously estimated decline of 4 percent.

The picture looks worse in developed countries, where New York-based Goldman’s estimate calls for a 12 percent decline. Emerging markets are expected to see a less severe decline of 3 percent.

Goldman’s survey of CIOs found cost-cutting topped their list of priorities. Almost 80 percent of respondents said it was a high priority for them, up from 40 percent in a mid-2008 survey.
The report adds to a raft of gloomy indicators for the tech industry. Closely watched forecasts from research firms IDC and Gartner Inc. projected last week that global personal computer shipments and unit sales will fall in 2009 after years of steady growth.

Source: Yahoo Finance
Related: Gartner Inc