Threat of war impacts on IT spending

The fear of war in Iraq is impacting on IT spending, according to NettResults/Eurocom. In its survey of senior executives in technology companies, 60% ranked a war among the top three threats to recovery in the IT market.

  • E-Mail
By  Neil Denslow Published  March 11, 2003

The fear of war in Iraq is impacting on IT spending in the EMEA region, according to NettResults/Eurocom. In its survey of senior executives in technology companies, 60% ranked a war in Iraq among the top three most serious threats to recovery in the IT market — 26% ranked it as the number one threat.

“The survey finds that a war in Iraq is seen as second only to a slowdown in the global or US economy as the major threat to recovery in the IT market. If it happens then this emphasises the importance of a short war not only from a humanitarian point of view but on economic grounds as well,” comments Nick Leighton, managing director, NettResults. “If the war is lengthy to the extent that it starts to impact on the US or global economy then the tech industry will suffer a double blow because of the overall importance of the US market to the tech sector.”

Tom Burgess, CEO & founder of the Eurocom PR Network adds that “our survey did not identify whether technology executives were for or against a war and it is significant that it included Middle East owned companies as well as US subsidiaries. There seems little doubt, however, that nervousness and uncertainty over the Iraq situation is delaying business decision making and is seen as a barrier to recovery although not the main one.”

The most cited probable impedance on an IT recovery was a slowdown in the global economy, which was the number one choice for 36% of respondents. A slowdown in the US economy (28%) was second, with an Iraqi War (26%) third. Other factor cited in the survey included a decline in the telecommunications market; fear of another major terrorist attack and another high profile corporate fraud or accounting scandal.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code