IT spend contraction worse than the dot bomb crash

In 2001 the combination of an over invested stock market combined with a terror attack on American soil caused the greatest IT spending crash in the industry’s short history.  The need to cut costs made the industry more global and the US centric spending never fully recovered.

New data ranks the current world IT spending shrink as worse than what we suffered in 2001.

Based on current economic conditions and the word that Forrester is getting from the IT departments, Forrester is now saying that global IT spending for hardware, software, and services by companies and governments will drop by 10.6 percent to $1.53 trillion. In 2008, Forrester reckons that IT spending rose by 8 per cent to just over $1.7 trillion globally, and this year was slated to be bad, but not as bad as the IT budget downdraft in the wake of the dot-com, Y2K, and ERP booms in 2001 and 2002, when IT spending fell 6 per cent in both years. (The Register)