Globally, IT budgets are consistent with last year despite the uncertain economic climate, according to figures released by Gartner.

A survey carried out by the firm questioned 1,000 chief investment officers (CIOs) and found that 62 per cent reported no change in their IT budgets.

Aimed at finding what effect the economic downturn is having on IT budgets, the study suggests that IT is not the cost-cutting area it has been in the past.

However, Gartner warned that there could be IT budget cuts later this year if the economic situation gets worse.

Mark McDonald, group vice president and head of research for Gartner Executive Programs, said: "Given economic conditions, CIOs should be prepared and have a contingency plan for both increases or decreases in the next 90 days by the end of the second quarter of 2008."

Of those questioned, 72 per cent reported a decline of ten per cent or less and Mr McDonald indicated that this was "caution rather than wholesale cutting".

Last week researchers at BIW Technologies suggested that the software-as-a-service sector can expect to double its annual revenues in the UK to £2.5 billion by 2011.



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