'Economic slowdown to end by October-December'

Last Updated: Mon, Apr 06, 2009 12:13 hrs

New Delhi: A majority of chief information officers (CIOs) of companies in India expect the economic slowdown to end by October-December 2009, a survey conducted by market intelligence IT consulting major IDC India showed Monday.

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The survey, titled 'Identifying Opportunities in the Current Economic Scenario', was conducted among 467 CIOs from mid-sized and large enterprises across 18 industry verticals in February-March 2009, IDC said.

About 66 per cent of the CIOs felt that the slowdown would end by the October-December quarter.

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"The IDC CIO survey provides pointers to IT vendors for strategising their business agenda in the mid-term to effectively ride out the economic slowdown and stay focused on their priorities," IDC India country manager Kapil Dev Singh said.

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The study found that enterprises were cutting back on new projects and focusing on the maintenance of existing IT set-ups. Of the total planned IT expenditure for 2009, companies plan to spend 20 per cent on new purchases and reserve the balance for managing the existing set-up.

The CIOs added that green technologies like virtualisation and unified communications (UC), and other sectors like business intelligence (BI) and data warehousing (DW), software-as-a-service (SaaS) and open source were the emerging investment priorities in 2009.

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According to IDC, the investments in personal computers, servers and computer peripherals are expected to decrease 20-40 per cent in 2009, compared to last year.

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"IT services vendors are likely to be the least impacted if they focus on providing services like infrastructure management, business transformation and business continuity," it added.

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