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Economic downturn seeps into IT departments

The economic slowdown is continuing to stamp its mark in the IT sector as many large companies continue to downsize their budgets in a bid to save costs, reports say.

Despite online threats posed by hackers intent on causing online security headaches for many organisations, over 40 per cent of financial services firms, utilities and telecommunications organisations are cutting back on IT spending.

According to a study by Forrester Research, this year has seen some 43 per cent of large US and European businesses cut their overall spending on technology products and services.

Various methods are being used to initiate the cut-backs with some planning to negotiate lower rates for IT services as others opt to put discretionary spending on hold.

Some 950 tech managers from high profile organisations across Europe and North America participated in the study, which painted a gloomy picture showing almost half (49 per cent) of US firms had shrunk their budgets.

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