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Gartner: The Future Of Retail IT Is Mixed

Written by Evan Schuman
December 18th, 2008
In a sharply down economy, retail IT budgets are going to go on a roller coaster ride in the need for greater efficiency. And given how small a percentage of corporate spending is typically represented by the IT capital expenditure budget, IT will probably feel less of the pain than many other divisions.

But—you just knew there was going to be a but—a new Gartner report predicts that it may not be all happy news. As IT spending is slightly insolated and spending in other departments gets gutted, "IT spend as a percentage of retail revenue will go up," said Gartner Research VP Hung LeHong. "In some ways, that will backfire on the IT group" as they'll then become a bigger target for cost-cutters.

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Posted in IT Strategy/Industry, Premium Content
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One Comment | Read Gartner: The Future Of Retail IT Is Mixed

  1. Paula Rosenblum Says:
    December 18th, 2008 at 10:29 am

    I’m surprised there was no discussion of gain-sharing as a third alternative (to SaaS vs. behind the firewall buying)…gain-sharing requires the least up-front capital expenditures and gives everyone involved “skin in the game”.

    I am hearing this popping up here and there from my vendor clients.

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