Gartner research vice president John-David Lovelock, has updated an earlier forecast and he now expects spending on IT and Telecom to decline. The Gartner Worldwide IT Spending Forecast provides information on major technology trends across the hardware, software, IT services and telecom markets.
While most of the forecast in this report calls for budget cuts, it also calls for spending more for mobile data. It sounds simple, increase spending in some areas and cut other areas. In practice telecom budgets are resistant to change.
Cutting the budget for fixed services is complex. Once it has been determined that a service can be cut or capacity reduced, it is necessary to determine if Minimum Annual Revenue Commitments (MARCs) prevent organizations from making cuts without any penalties. In some cases a MARC may need to be renegotiated or cuts with one provider may need to be shifted to another that has no MARC issues. After it has been determined that the services can be disconnected or changed without any penalties, the next step is critical. Changes need to be reflected in service order requests with carriers. Organizations need to verify that the changes are actually reflected on invoices and expenses are declining.
Navigating these changes require TEM programs to enable enterprises to cut the budget strategically and increase areas that are critical to employees.