IT departments still under the cosh

Some 28 per cent of companies expect significant cuts in their IT budgets

Pressure to reduce cost and budgets as well as delayed projects are still common features of many technology departments, according to a survey on IT infrastructure plans carried out by the National Computing Centre (NCC).

Some 28 of the 100 companies surveyed said their budgets had suffered " significant" cuts. Conversely, 21 only had to make limited cuts and 19 did not experience cost reductions at all.

As a consequence of reduced budgets, 38 of those polled said they are delaying hardware upgrades, while 33 are postponing software refreshes and 29 are putting network infrastructure updates on hold.

Some 33 of the businesses surveyed expect their technology spending to be slashed even further, while 47 anticipate financial resources will remain the same, with only 13 out of the 100 expecting to see an increase in their IT budget.

Use of virtualisation is still important for mitigating such financial constraints, with 55 respondents citing the technology as important.

According to the NCC study, server virtualisation is the most popular way of delivering cost reduction as well as environmental benefits.

Choosing whether or not to use offshoring opportunities for IT provision is increasingly important in cash-strapped companies. Some 29 of the firms polled by the NCC are using offshore locations, with an additional two in the planning stage and another two evaluating the option.

However, offshoring has not been considered by 24 of the companies surveyed, while seven have ruled it out.