Global economic problems are impacting IT budgets. However, the IT industry will not see the dramatic reductions that were seen during the dot.com bust, says Gartner. At that time, budgets were slashed from mid double-digit growth to low single-digit growth.

"In a worst case scenario, our research indicates an IT spending increase of 2.3 per cent in 2009, down from our earlier projection of 5.8 per cent," said Peter Sondergaard, senior vice president at Gartner and global head of research.

"Developed economies, especially the United States and Western Europe, will be the worst affected, but emerging regions will not be immune. Europe will experience negative growth in 2009, the United States and Japan will be flat," he further added.

Gartner said the events of the past two weeks will have an impact on IT budgets in the fourth quarter, but it will not change 2008 substantially. The IT industry went through more dramatic reductions during, and after, the recession of 2001.