Gartner warns CIOs on double-dip recession risk
Analyst remains positive on economic outlook, but says contingency plans must be put in place in order to ensure that companies can deal with any downturn
CIOs must prepare for a second global recession within the next 12 to 18 months, analyst firm Gartner has warned.
Pointing to the risk of nations defaulting on debt, continuing high unemployment and little sign of an increase in consumer and business spending, vice president and Gartner fellow Ken McGee said that CIOs must begin planning for another recession if they are ensure that their companies will survive any downturn.
He was keen to stress that the economic situation remained positive, but said that any CIO that failed to implement contingency planning would have no excuses for being unprepared, unlike when the last recession struck.
"Just the potential for a second business downturn should be sufficient to compel CIOs to plan for another business downturn," warned McGee. He said that CIOs were in a unique position to be able to tackle double-dip recession, but conceded that few will plan for that eventuality.
"As questions, or even doubts, grow about the ability for economies to recover, CIOs in 2010 have one advantage over their predecessors. For the first time in the history of the IT industry, more than 90% of CIOs today possess extremely recent and practical experience dealing with a recession," McGee said.
"In light of this fact, we strongly urge these recession-hardened CIOs to leverage their recently acquired and economic battle-scarred experiences by proactively preparing their entire enterprises should another economic downturn occur within the next 12 to 18 months."