The U.S. economic downturn is having a direct
impact on decision-making by Canadian Information Technology (IT) leaders this
year, says a study conducted by Info-Tech Research Group on behalf of the Canadian Advanced Technology Alliance (CATAAlliance). Almost 60 per cent of IT executives surveyed are concerned about the 2008 U.S. economy and are taking action to adapt, the survey says, including delaying capital expenditures and looking at ways to grow company revenues.
“It’s interesting to see that only 20 per cent of these senior Canadian IT executives believe there is a likelihood of a recession hitting Canada this
year, while more than 70 per cent think the U.S. will fall into recession,” said Davin Juusola, vice-president Research and Development with Info-Tech Research Group. “However, about half of those surveyed are nonetheless concerned about the Canadian economy and are taking steps to mitigate the impact of the U.S. economic downturn.”
Those measures by Canadian IT executives include:
– cost-cutting, with 33 per cent reducing overhead and 24 per cent delaying capital spending;
– expanding their company’s revenue base, with 31 per cent enhancing product or service offerings and 30 per cent expanding their business
outside North America.
“It appears that Canadian IT executives view the U.S. economic challenges as an early warning signal of potentially tough times to come for Canadians, and are ensuring that they do the right things to compensate,” said John Reid,
The CATAAlliance study was conducted by Info-Tech Research Group in January, surveying senior executives in Canadian enterprises.