Everybody knows you cut back on IT purchases during a recession. But exactly when companies will start to open their wallets again may open some eyes.
We’re more than 14 months into a recession, according to many economists. No doubt you’ve been approached to find out when that new upgrade can finally be put through.
Think about sharing a little history lesson on IT spending in recession times. It may be the reality check many folks need.
Turns out even in the year following a recession, most companies take a very cautious approach. So cautious, in fact, that they spend even less on IT once the “tough times” are over!
Look at last recession
Take the recession of 2001 for example.
According to the folks at Computer Economics, the annual growth in investment in IT equipment and software was negative 2%. No shock.
What may surprise some: In 2002, after the general economic recession had ended, the IT spending growth rate dropped to negative 5%. It wasn’t until a year later (2003) that tech spending rebounded to a positive 6%.
Just this little dose of perspective can go a long way towards managing expectations.
