IT Spending Down (but not out) in 2009

As reported in Redmondmag.com, a new study released by Computer Economics suggests IT departments do anticipate major cuts in 2009, despite the downturn. However, a third anticipate cuts in travel and expenses. The executive summary, which is available here, says the research is based on surveys of 200 IT professionals, and it the 19th annual production.

However, they performed all the surveys in the first quarter of 2008, as would be expected of a survey of this scale. As a consequence, these results are probably out of date, as the economy has deteriorated even further since September 2008. Several technology and software providers posted disturbing surprises. Sun posted a loss of $1.68 billion. In October 2008 both Intel and SAP announced mediocre results, but suggested future sales would slow as a result of the downturn. Forrester reported overall tech spending growth may slow to 3-4%, if current trends continue through 2010. This is disappointing compared to previous projections, but IT spending appears to be holding up relatively well compared with other sectors.

I will keep my eyes on tech spending as more data becomes available.

Four Day Workweek

I found this CNET article interesting. The benefits of a four-by-ten workweek include lower energy costs, higher retention, higher morale, and higher productivity. It might also improve commute times.

A past study showed changing the lighting improved productivity, albeit temporarily. Reverting it back had the same affect. Productivity improves temporarily because employees feel management cares about their concerns. The affects of the four-by-ten workweek may be termporary as well.

I see resistance from managers who would say “we are already getting ten hours per day out of the employees, so wouldn’t this simply cut off 20% of our productivity?” This one is harder to address, except that productivity drops with number of hours worked. Productivity is hard to measure, but number of hours worked is easy, so managers often opt for the latter as a proxy of productivity. Most execs would continue to work five or six (or seven) days per week anyway.

From an IT perspective, I see this having a positive affect on Change Management and Release Management–longer change windows on the weekend for changes, upgrades, and rollouts. We might expect higher success rates, but to my knowledge this has never been studied.