Dear client,

The past few weeks have been a time of great concern for business and technology leaders around the world as the unprecedented events surrounding the global financial crisis continue to play out. The impact has now spread far beyond the financial markets. This has led to economic uncertainty turning into likely recession for several countries around the world, affecting many of the organizations we serve.

But despite global economic problems, we do not believe the IT industry will see the dramatic reductions of the post-dot.com era—when budgets diminished from mid-double-digit to low-single-digit growth. Unlike the last recession in 2001, IT is now deeply embedded within the enterprise. IT is the single most effective approach to improving business performance, whether the challenge is growing revenue, becoming more cost-effective, or serving new customers and retaining existing ones.

Looking ahead, our research indicates that—in the worst-case scenario—IT spending will increase 2.3% in 2009. Our survey of more than 400 CIOs in the past three weeks found that enterprise IT budgets for 2009 range from flat to 3.3% growth. These projections are down from 2008, but although the brakes will certainly be applied, we will not come to a halt. However, there’s no question that the age of conspicuous consumption is now over, and the age of conspicuous frugality has just begun.

So what does this mean for you, your team and your organization, and how do you successfully navigate such an extraordinary operating environment? We suggest you take full advantage of the resources and services already available to you by following this five-step approach:

First
Take full advantage of Gartner cost-cutting research highlighted on the new “Economy” section of gartner.com. There you will find more than 70 pieces of published research that provide specific, actionable advice on how to reduce overall IT spending.

Second
Have us review your current budgets and actual spending reports to help you identify new areas for saving IT costs. Benchmarking your organization against best-in-class peers can be very helpful in identifying, sizing, prioritizing and quickly seizing opportunities.

Third
Despite challenging economic times, many of you are still going to make five-, six- and seven-digit purchases of hardware, software and services in 2009. Don’t make a single purchase without first having Gartner verify whether the prices, terms and conditions being offered to you are the best ones prevailing in the market.

Fourth
Act locally, but think globally. Business growth is not declining at the same rate across geographies. In fact, some countries and regions are still expected to grow at fairly robust rates. Divert resources to those regions of your global business where your offices, customers and suppliers are growing fast.

Finally
Don’t wait for signs of a return to growth to begin planning for business growth. A downturn can be the perfect time to undertake projects that warrant priority because of their impact on future growth.

Gartner has successfully advised clients for nearly 30 years, through both good times and bad. We know this economic climate won’t be easy for any of our clients, but the independent insight and actionable advice from our analysts and consultants can help you, your IT organization and your enterprise deliver greater business value at lower cost.

I encourage you to ask your account representative to show you how to take full advantage of the resources and services already available to you and your team, starting with the wealth of advice on gartner.com/economy. If you are unsure who to contact,
please click here.

Gene Hall
CEO, Gartner