NYTimes writes on “the tech rebound that isn’t quite” as companies try and do more with less:
Long gone is the irrational optimism of the 90’s and the notion that technology alone can transform a business. Today, corporate executives regard technology as simply a tool though a crucial one, if used wisely. But it is also a costly tool: Information technology accounts for nearly 60 percent of all business equipment investment. So there is plenty of incentive to restrain spending.
Technology is still a big corporate expense, but technology budgets have flattened out, if not fallen, at most companies.
There is quite some discussion related to HBR’s article by Nicholas Carr entitled “IT Doesn’t Matter”.
All the more reason for IT companies to look at emerging markets like India for growth – but these markets need lower-priced solutions.