Of Credit Crunches, Housing Busts, and IT BudgetsOf Credit Crunches, Housing Busts, and IT Budgets

Are you in the process of setting your 2008 IT budget? Are you having any fun yet?Depending upon your company's financials and the state of the economy, this time of year -- when IT budgets get set -- can be either painful or a pleasure.

Thanks to this year's credit crisis and housing market bust, most IT managers are probably not having that good of a time. information's John Soat quotes a statement sent out by Credit Suisse analysts Jason Maynard and Bryan McGrath:

"Most large corporations are in the middle of their 2008 budget-setting process. We have interviewed a number of U.S.-based CIOs over the past few weeks and the preliminary feedback is that 2008 IT budgets are being tempered, especially in the financial services sector. The uncertainty surrounding the macro economy seems to be causing some pressure on growth for new capital expenditures. Most industry analysts are forecasting mid-single-digit growth for IT spending, with software expected to do a few points better. At the very least we think that spending will be second-half weighted, as companies play wait-and-see with the economy in the new year."

Soat follows up the quote with some relevant questions: "Does that sound familiar? Is anxiety from the housing crash and credit crunch affecting your organization's IT spending plans? What other factors are bringing weight to bear for or against spending on technology next year: the surging (or falling) stock market, the presidential election, the fear of inflation (or recession), the war in Iraq, the increasing price of oil?"

But I have a few more. Assuming your IT department is feeling the pinch, what are your plans? What are you going to cut? What projects are you not going to even consider anymore? What are you going to push to implement on matter how hard you have to fight for it?

In light of that last question. I'll add Soat's last question: "Finally, what's your involvement in the IT budget process: Active participant, outside voice, or silent partner?"

That makes all the difference.