04 November, 2008

IT Industry Overview and Business Outlook for 2009

Peter Sondergaard (head of research)
CEOs are looking for agile leadership (we've been here before, remember 2001).

The average budget growth for 2009 will be 0 to 2.3%, the worst case would be -2.5% (because of financial services and the public sector). The reasons why it should not dive: IT must be kept running and multi-years programs can't all be stopped.

The IT market (vendors and providers) will be most affected in Europe (-0.8 to 2.8% growth).

Focus for 2009: cost optimization, virtualization, IT modernization (will represent 30% of all projects by 2010, because of obsolete applications and departing skills), green IT, workforce, SOA & BPM, multi-sourcing.

Top 10 disruptive "technologies" (more on this later during the week). Massive shift will occur in IT (there is a "reinvention" cycle every 10 years).

Top 10 Recommendations:

10. Change leadership
9. Mothball business
8. Project prioritization
7. Investment shutdown
6. Leverage offshore
5. Outsource commodity
4. Consolidate
3. Curtail data centre expansion
2. Renegotiate
1. People!

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