During the promotion of the new Windows 7, Microsoft CEO Steve Ballmer shares his view that corporate spending on information technology will not return to levels seen in the years before the global economic slowdown.  Though there have been progress, IT spending has been hard-struck by the recession.

The following are excerpts from Steve Ballmer’s meeting withSouth Korean executives in Seoul, South Korea during a promotion of Windows 7 OS.

“The economy went thru a set of changes on a global basis over the course of the last year which are, I think is fair to say, once in a lifetime. With capital more scarce, we know IT budgets are more scarce, there is going to be pressure in businesses to drive for a new level of efficiency.

So it’s important that we’re not saying we just had a crisis and we are going to have a recovery. We are going to live in what we like to call the new normal. The new normal will be a more scarce environment than we saw a year, two years, three years ago. While we will see growth, we will not see recovery.”

A sign of this growth but not recovery is the discretionary spending on IT by some companies. Discretionary spending projects are small-sized projects with small budgets, completed over six to twelve months.

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  1. “Global crisis is hitting IT spending — Microsoft chief.” 3 November 2009. Manila Bulletin. Accessed 3 November 2009. Link Here.
  2. “IT spending won’t fully recover: Microsoft CEO” 2 November 2009. Economic Times of India. Accessed 2 November 2009. Link Here.
  3. “IT industry starts to see discretionary spending: iGate.” 29 October 2009. Economic Times of India. Accessed 2 November 2009. Link Here


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