IT budgets hit by credit crunch

 

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By Matthew Sparkes

Posted on 1 Apr 2008 at 11:09

IT spending will be cut and jobs lost as a credit crunch hits the UK financial sector, claims the Confederation of British Industry (CBI).

According to the group, the industry will be forced to shed over 10,000 workers in the country by June and cut back dramatically on IT budgets, as the crunch continues to bite into profits.

"Plans for capital investment in the year ahead are very weak, with plans for spending on IT flat," says a statement from the CBI.

"We can expect further tough times in the financial sector, and as this feeds through into the wider economy it will inevitably be felt through slower economic growth this year and next," says Ian McCafferty, chief economic adviser at the CBI.