Press Release

CANNES, France., November 5, 2007 View All Press Releases

Gartner Advises IT Leaders to Prepare Two IT Budgets for 2008

Flexibility and Agility Required to Respond to Fast Changing Economic Conditions

Chief information officers (CIOs) should create two IT budgets for 2008, Gartner advised today.  Speaking at Gartner’s Symposium/ITxpo in Cannes, France, analysts warned that due to the recent turmoil in credit markets around the world and continued uncertainty surrounding the future economic climate, companies need to plan for all eventualities.   

Gartner advises CIOs to create two separate budgets; the first should reflect the guidance already provided by senior decision makers but this should be supplemented by a second ‘back-up’ budget that assumes the need to cut costs in response to the arrival of a business slowdown. 

“Although the financial outlook for 2008 remains far from certain, waiting for a clear economic trend to appear prior to taking action is not a prudent option,” said Ken McGee, vice-president and Gartner fellow.  “There is already sufficient concern about the possibility of a business slowdown for next year from enough credible and independent sources to suggest that preparing a backup cost-cutting IT budget now is just plain good management.”

According to Gartner, CIOs need to have a ‘recession budget’ and business plan ready for immediate implementation long before being asked to reduce costs.  To be meaningful, Gartner recommends that such plans should target a decrease in IT spending of at least 10 per cent below the highest annualised IT spending run rate levels attained in 2007. 

CIOs and IT managers who play their part in preserving as much enterprise profitability as possible will benefit the wider organisation.  “Creating a responsible alternative recession IT budget now will demonstrate the type of innovative and forward thinking that senior executives expect to see from their staff,” said Mr McGee.  “It will also show the kind of flexibility and agility needed to respond to fast-changing economic and business conditions.”

Mr McGee said that rather than viewing the possibility of a significant business slowdown or recession with trepidation, organisations should use it as an opportunity to create a solution that will enable the enterprise to react with speed and certainty if the worst economic concerns come to pass. 

About Gartner Symposium/ITxpo
Symposium/ITxpo is the industry’s largest and most strategic conference for senior IT and business professions. More than 6,000 senior business and IT strategists from virtually all major industries will gather to gain the latest advice on the biggest challenge: driving profits and performance with IT. Gartner's annual Symposium/ITxpo events are key components of attendees’ annual planning efforts. They rely on Gartner Symposium/ITxpo to gain insight into how their organizations can use IT to address business challenges and improve operational efficiency. Additional information is available at

About Gartner

Gartner, Inc. (NYSE: IT), is the world's leading research and advisory company and a member of the S&P 500. We equip business leaders with indispensable insights, advice and tools to achieve their mission-critical priorities and build the successful organizations of tomorrow.

Our unmatched combination of expert-led, practitioner-sourced and data-driven research steers clients toward the right decisions on the issues that matter most. We're trusted as an objective resource and critical partner by more than 15,000 organizations in more than 100 countries—across all major functions, in every industry and enterprise size.

To learn more about how we help decision makers fuel the future of business, visit

Comments or opinions expressed on this blog are those of the individual contributors only, and do not necessarily represent the views of Gartner, Inc. or its management. Readers may copy and redistribute blog postings on other blogs, or otherwise for private, non-commercial or journalistic purposes. This content may not be used for any other purposes in any other formats or media. The content on this blog is provided on an "as-is" basis. Gartner shall not be liable for any damages whatsoever arising out of the content or use of this blog.