Every industry will be sitting on the edge of their seat as the federal government's automatic budget cuts – better known as the sequester – are felt across the IT channel. With billions of dollars in slashed spending and hundreds of thousands of jobs disappearing, the worse case scenario seems to be getting more dire by the day.
When we separate the facts from the "sky-is-falling" headlines, what will the real consequences be – especially in the IT world? In a recent ComputerWorld article, Patrick Thibodeau examined how the sequester could affect IT spending in the government and public sectors.
"In January, Forrester forecasted a 7.5 percent increase in U.S. tech spending for this year, but that was on the assumption that the sequester would be resolved by Congress," wrote Thibodeau. "[Forrester Research analyst Andrew] Bartels now expects the federal cuts to reduce the tech spending forecast by about 1 percent."
When it comes to dollar amounts, Forrester has dropped its 2013 projections for business and government purchases of technology goods and services $12 billion since its initial prediction in January. Also, there will be a reduction of federal grants to state governments and institutions, which will further reduce the amount of technology spending.
While those numbers do not do much to ease the minds of IT Principals, here is something that does – Thibodeau predicts this event will accelerate many cost saving plans that companies already have in place, like sharing of services, IT consolidation and increased use of the cloud.
This also means that IT Principals will find themselves in need of reliable talent and resources sooner than expected. A trusted VAR or MSP can become an invaluable partner during this times, helping any company stay afloat.