IT spending to slow in Western Europe, study finds

Organizations around the world are experiencing the constricting effect of the down economy on their IT budgets and businesses in Western Europe are no exception. According to a study by IDC, fewer companies are expecting to expand their IT budgets in 2012, while many are anticipating a stagnant year for investing in cloud computing, virtualization and other innovative technologies.

Roughly 590 organizations throughout six regions of Western Europe were polled in the IDC study and 17 percent of them actually believe their IT budget will decline in 2012. However, 43 percent of survey respondents said they increased their IT spending in 2011, while 40 percent said they plan to do the same in 2012. Still, only 25 percent of these companies will raise their IT budget by 5 percent or more, the research revealed.

"Western European organizations are huddling toward the middle in their IT budgets for 2012; their plans are tending more toward stasis," said report author Douglas Hayward. "This will be a conservative year in which discretionary spend will be held to a minimum for most organizations."

Nevertheless, organizations may allocate their budgets to technologies like virtualization to help them save money in the future, as these services can combine internal resources and reduce costs.

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