Recession 'will lead to technological change'

News Article - 24 May 2012
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The ongoing recession is likely to be an agent for technological change for businesses as changing the way they use IT will better enable them to control costs, one sector commentator has claimed.

John Gantz, chief research officer at IDC, said that such transformation always arose as a result of "some huge crisis", such as the current economic downturn, as organisations had no need to transform themselves when things were going well.

Speaking at the Intellect Annual Regent Conference 2009, he added: "What will happen now [is] the economic crisis will actually force companies to make technological changes [even though] it's easier to pull it off at a better time."

According to a recent study by Forrester Research, the 2009 decline has ended seven years of growth in global IT purchases; with technology purchases falling by six per cent in both 2001 and 2002.

Furthermore, computer equipment investment will see the biggest slowdown.

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