Many IT analysts have said that they believe IT spending will grow despite the troubles of many high profile financial institutions like AIG and Lehman Brothers expressing recession fears.
Traditionally, financial institutes have been some of the biggest drivers in the IT industry, as many major banks and insurance firms spend billons of pounds a year to maintain and upgrade their IT infrastructure.
This may scare a lot of technology vendors as they see the demise of the financial market fall before them with the likes of Lehman Brothers declaring bankruptcy and AIG scrambling to secure billions of pounds of capital.
However, many analysts have said that it will not lead to the fall in the IT industry. Gartner research has found that spending in 2009 may slow down but it will not fall into negative growth. Although the financial market appears to be in ruins companies still need to upgrade and maintain their IT to stay competitive within the market and therefore it is believed that they will continue to spend. Even Lehman Brothers as they were falling into bankruptcy were still spending on IT.
However, there are concerns that IT workers in the finance industry will see redundancies as mergers and further possible bankruptcies take place.
Traditionally, financial institutes have been some of the biggest drivers in the IT industry, as many major banks and insurance firms spend billons of pounds a year to maintain and upgrade their IT infrastructure.
This may scare a lot of technology vendors as they see the demise of the financial market fall before them with the likes of Lehman Brothers declaring bankruptcy and AIG scrambling to secure billions of pounds of capital.
However, many analysts have said that it will not lead to the fall in the IT industry. Gartner research has found that spending in 2009 may slow down but it will not fall into negative growth. Although the financial market appears to be in ruins companies still need to upgrade and maintain their IT to stay competitive within the market and therefore it is believed that they will continue to spend. Even Lehman Brothers as they were falling into bankruptcy were still spending on IT.
However, there are concerns that IT workers in the finance industry will see redundancies as mergers and further possible bankruptcies take place.
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