05 Mar 2009
Investment in software and IT services by UK retailers will decline by 5.9 per cent this year, the equivalent of £2.77bn, according to research.
The study by analysts Pierre Audoin Consultants and TechMarketView indicates that even though IT transformation projects are taking place in retail, businesses in the sector will “slash or freeze their budgets for new applications software and IT project services, as they shelve expansion plans and focus on cost control”.
Retail is being hit harder than other sectors, says the survey, with overall UK investment in software and IT services expected to fall by one per cent in 2009.
Large technology-led transformations underway in retail include the programme being carried out at Marks & Spencer. Other companies such as Tesco are also channeling investment to areas such as web shopping to boost sales.
“Dwindling consumer confidence coupled with the crisis in the financial markets has seen the disappearance of some of the country’s largest and best-known retail groups, which has led us to forecast that this sector will be one of the toughest for UK software and IT services players in the medium term,” said Nick Mayes, senior consultant at Pierre Audoin.
According to separate research from analyst Gartner, overall technology spend worldwide is expected to reach $2.7 trillion in 2009, a 0.5 per cent increase from 2008, as businesses remain uncertain about the depth and duration of the recession, and projects are deferred or cancelled as a consequence.
While retailers grapple with the reality of having to decrease their spending they remain up beat with options. They have been in a growth mode globally for the last 10 years and unfortunately have not ever seen a liquidity crisis of this magnitude to contend with. Retailers today are looking at innovative ways of increasing their bottom line by extending their pos investment thru the purchase of certifed pre-owned systems. Capital Expenditures are under attack and so are their maintenance programs. They have options and it will be the ones that remain nimble and execute that will be the best performers
Posted by: Frank F. Muscarello 05 Mar 2009
Have your say on this article
Newsletters
Latest stories from Management
Latest videos
You may also like
Management jobs
Technology Patent Wars
Case studies from large organisations across all sectors
... And rich media, and flexible working, and peaks in traffic ...
Upcoming Events
Join us for this Computing web seminar, in which the Head of BI at the Co-operative Group Nick Colebourn will be explaining just how he reigned in the Group’s sprawling database estate and how significant savings were realised and data quality improved as a result.
Date: 31 May 2012
Time: 11:00 AM
Live June 13th 11:00am: Register now. During this web seminar we will be looking at the sorts of incidents that can bring data centres grinding to a halt and what can be done about them.
Date: 13 Jun 2012
Time: 11:00 am
Receive the latest jobs direct to your inbox
Are you being paid what you are worth?
