Gartner and Goldman Sachs U.S. IT Spending Confidence Survey Indicates Weak Sentiment and Flat Spending Through 2002.Business & Technology Editors Symposium/ITxpo 2002 STAMFORD, Conn.--(BUSINESS WIRE)--May 22, 2002 Survey Names Technology Sectors to Capture Preset preset Cardiac pacing A parameter of a pacemaker that is programmed permanently when manufactured Spending for Balance of 2002 Gartner, Inc. (NYSE NYSE See: New York Stock Exchange :IT and ITB ITB Invitation To Bid ITB In The Beginning ITB Internationale Tourismusbörse (German) ITB In The Business (aka in the business service industry) ITB Intrathecal Baclofen Therapy ) and The Goldman Sachs The Goldman Sachs Group, Inc., or simply Goldman Sachs (NYSE: GS) is one of the world's largest global investment banks. Goldman Sachs was founded in 1869, and is headquartered in the Lower Manhattan area of New York City at 85 Broad Street. Group, Inc. (NYSE:GS) today released their IT Spending Confidence Survey, a leading indicator Leading Indicator A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators are used to predict changes in the economy, but are not always accurate. of technology spending levels and intent. The survey was conducted among 369 of the 1,800 attendees at Gartner Symposium/ITxpo in early May 2002. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the survey, technology budgets owned and executed by IT departments for U.S. businesses will remain flat throughout the balance of 2002, with technology spending dropping by 0.4 percent. The results are in line with a previous Gartner IT spending survey conducted in the fall that reported an anticipated 1.5 percent rise in technology spending for the balance of 2002. Despite the weak sentiment demonstrated in this survey, Gartner analysts expect that fourth quarter capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. activities will rise and the total technology spending for 2002 will likely result in a 1.5 percent increase. Eighty-nine percent of respondents anticipate a modest recovery for the world economy by the end of 2002, but that is not influencing their spending intentions for the balance of the year. The spending obstinacy Obstinacy Obtuseness (See DIMWITTEDNESS.) Oddness (See ECCENTRICITY.) Oldness (See AGE, OLD. is reflected by 78 percent of respondents saying that they would not change their technology spending intent regardless of immediate changes in the broader economy. The Gartner and Goldman Sachs survey revealed that massive price-cutting among technology vendors has slowed, but pricing pressure is still present. When asked if the buyer's ability to command favorable pricing terms with vendors has increased, decreased or remained the same, 50 percent of respondents reported that the ability has increased, 41 percent said it has remained the same, and only 9 percent consider their influence on lowering costs decreasing. "Our clients are telling us that they are married to predictable budget forecasting this year," said Al Case, Gartner senior vice president and co-creator of the survey. "Solutions not already built into these bare-bones technology spending plans have little hope of a demand rebound anytime this year." The Gartner and Goldman Sachs IT Spending Confidence Survey indicates the technology sectors that are likely to enjoy better growth in 2002. Vendors in the arenas of security, storage, Internet project initiatives, other Web-based applications and PDAs are the likeliest to attract most of the preset technology spending in 2002. Mainframes, contract labor services, and data center outsourcing are low on priority lists. Web services (1) Loosely, any online service delivered over the Web. Such usage appears in articles from non-technical sources, but not in IT-oriented publications, because definition #2 below describes the correct use of the term. , captured under "other Web-based applications," are gaining traction, with 63 percent of respondents indicating that they plan to implement Web services within the next 24 months. For more information about the Gartner and Goldman Sachs survey, call Lois O'Rielly at 203-316-3485 or visit www.gartner.com. About Goldman Sachs Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a wide range of services worldwide to a substantial and diversified client base that includes corporations, financial institutions, governments and high net worth individuals. Founded in 1869, it is one of the oldest and largest investment banking firms. The firm is headquartered in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and maintains offices in London, Frankfurt, Tokyo, Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. and other major financial centers around the world. About Gartner, Inc. Gartner, Inc. is a research and advisory firm that helps more than 11,000 clients understand technology and drive business growth. Gartner's divisions are Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner, Inc. is headquartered in Stamford, Conn. and has 4,300 associates, including 1,200 research analysts and consultants, in more than 90 locations worldwide. The company achieved fiscal 2001 revenues of $952 million. For more information, visit www.gartner.com. |
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