Feeds

Batten down hatches, analyst tells IT bosses

Two sets of books are better than one

Build a business case: developing custom apps

Gartner has said business leaders should create two IT budgets for the coming year, as it warned of ongoing economic doom and gloom.

The tech analyst firm reckoned that, given the fall out from the recent credit crunch that has continued to shake the financial world, it was important for firms to have a back-up plan in place.

Gartner said a cost-cutting IT budget should be drawn up by senior decision makers alongside existing budgets already determined for the year ahead.

That way, if businesses feel the pinch from an economic slowdown, bosses can put Plan B into action.

Gartner vice president Ken McGee described the "recession budget" idea as being "plain good management".

Analysts said the belt-tightening budget should target an IT spending drop of at least 10 per cent below the top rate spending levels dished out in 2007.

Meanwhile, predictions within the financial sector continued to point to a sustained downturn for the world economy following on from August's sub-prime credit crisis in the US.

Bank of England Governor Mervyn King said today the credit crunch looked set to dig its nails in for longer than had been initially foreseen back in the summer.

Speaking on the BBC's File on 4 programme on Radio 4, King said:

"I think most people expect that we have several more months to get through before the banks have revealed all the losses that have occurred, and have taken measures to finance their obligations that result from that, but we're going in the right direction."

He added: "What I would say is that the situation now is, in my view, different from that in August, though it's not without risk."

In the interview he also shifted blame for the recent Northern Rock crisis, which prompted the first emergency cash run on a UK bank for more than 140 years, to chancellor Alistair Darling for not supporting a takeover bid.

The Bank of England is expected to make its decision about interest rates, which are currently set at 5.75 per cent, on Thursday. ®

7 Elements of Radically Simple OS Migration

More from The Register

next story
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?