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Euro Crisis Derails IT Spending, Growth

by: Sarah Joson

Friday, June 22, 2012 | Outsourcing News |

A study done by consultancy firm Forrester Research indicates that IT spending in Europe will decrease and possibly come to a standstill due to the weak economy and currency of the region.

IT spending to decrease as recession is imminent for some parts of Europe

Andrew Bartels, author of the report and Analyst at Forrester, said there is a possibility that recession is imminent for some parts of Europe. The worst thing that could happen would be the collapse of the euro currency. Bartels added that even if European officials exert additional effort to avert worst-case scenarios, it will be long before the region can recover and can only result to a 0.3 percent growth this year.

Moreover, he said IT leaders should base budgets according to the dull 2012 predictions, map out contingency plans in case of an economic emergency and collapse of the euro, and hope that all will be better in 2013.

Also in the report, technology is used differently in European countries, with regions like Greece, Italy, and other southern countries using less of it, in contrast to Denmark and Sweden.


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