'No More Doubts: Tech Spending Slows Significantly'

Techtel's IT Spending Plans survey shows overall IT spending has fallen
dramatically over past 4 quarters

EMERYVILLE, Calif., July 31 /PRNewswire/ -- Techtel Corporation, a leading
market research firm in the SF Bay Area, today announced the results of its
2Q08 'IT Spending Plans' Survey, conducted among 552 IT buyers/influencers in
the U.S.
Findings:
Expectations of overall IT spending has fallen dramatically over the past
4 quarters. In 2Q08, only 3.9% more companies forecast an increase in
spending rather than a decrease over the next 6 months; that is down from
18.5% in 2Q07. See charts at http://www.techtel.com/news . Confirming this
trend, actual IT spending was less than expected for the first 6 months of
2008, the first time this measure has been in negative territory since it was
first tracked in 2Q04.
Interpretation:
Michael F Kelly, CEO of Techtel, remarked: "Tech's hesitation about future
demand is well-founded. U.S. IT spending is slowing and expected to continue
doing so. It appears we may enter a period of declining IT spending during the
second half of 2008." The slowdown trend is most pronounced in non-Service
related industries, and in companies with less than 250 employees. Three
times as many companies cited the economy as a reason for decreased spending
in 2Q08 (77%) as did in 2Q07 (26%). Full report (free) at
http://www.techtel.com/news .
Definitions:
Techtel's IT Spending survey is now in its 15th quarter of tracking IT
spending plans among US companies of all sizes and industries. Techtel
reports the results using '% of companies increasing' and '% of companies
decreasing' spending. These do not quantify the magnitude of the change, as
is sometimes attempted, but instead tracks the often more reliable 'direction
of the change.'
For free full downloadable report go to: http://www.techtel.com/news or
contact Michael F Kelly, CEO, Techtel Corporation at mkelly@techtel.com or
510-655-9414 x 201 for questions.
About Techtel
A leading systems-based market research firm, Techtel has tracked demand
for information technology solutions since 1984. In addition, Techtel's custom
research is considered to be among the most comprehensive available. Leading
companies rely on Techtel's research and advice to systematically measure and
improve their marketing effectiveness, marketing/sales and service efforts as
well as improve communications and company opinion.
Contact: Michael F Kelly, CEO
Techtel Corporation
(510) 655-9414 x201
mkelly@techtel.com

Copyright (C) 2008 by Techtel Corporation. All Rights Reserved

SOURCE Techtel Corporation

Michael F Kelly, CEO of Techtel Corporation, +1-510-655-9414, ext. 201,
mkelly@techtel.com