IT budgets won't recover, says IDC

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IT budgets will not recover to their pre-recession levels, according to an analyst.

Speaking at a Microsoft event today in London, IDC analyst Chris Ingle said budgets that decrease during a recession tend not to improve by the time the next economic downturn rolls around.

"IT budgets won't recover within five years, if at all," he said. That means that businesses need to consider long-term cost cutting measures. "Short term measures to reduce costs haven't yet worked or aren't working," he claimed. "Companies that have cut IT staff need to do something more radical to achieve the cost cuts they're aiming for."

Businesses should look to automation, virtualisation, or cloud computing to help manage costs in the long term, Ingle said.

Despite reports by some that the economy is improving, businesses should still be wary, Ingle warned.

"You still need to prepare for contractions in business, still need to prepare for uncertainty in business," he said.