A significant number of companies in the United States and Europe are cutting their information technology (IT) budgets this year due to the economic slowdown, according to a survey by industry analyst Forrester Research. Forty-three percent of businesses surveyed say they have already cut their overall IT spending in 2008, while 24 percent of companies say they have put discretionary spending on hold. "This is not a across-the-board spending slowdown; the impact of the economy on IT budgets varies widely by industry and geography," says John C. McCarthy, Forrester Research's vice president and principal analyst. Firms in the financial services, utilities, and telecommunications sectors are being hit hardest, according to the survey, while those in the media, entertainment, and leisure industries are feeling the impact less severely. U.S. companies are being hit harder than those in Europe, although the survey authors point out that the results were tabulated prior to the current deterioration of economic conditions in European nations. Forrester reports that nearly 950 senior IT managers in the United States and Europe were surveyed for the results.
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