Executives View Canadian Economy More Optimistically While Heeding U.S. Warning Signs, says CATAAlliance and Info-Tech Research Group Survey
OTTAWA, February 21, 2008 - The U.S. economic downturn is having a direct impact on decision-making by Canadian Information Technology (IT) leaders this year, says a study conducted by Info-Tech Research Group on behalf of the Canadian Advanced Technology Alliance (CATA). Almost 60 per cent of IT executives surveyed are concerned about the 2008 U.S. economy and are taking action to adapt, the survey says, including delaying capital expenditures and looking at ways to grow company revenues.
"It's interesting to see that only 20 per cent of these senior Canadian IT executives believe there is a likelihood of a recession hitting Canada this year, while more than 70 per cent think the U.S. will fall into recession," said CATAAlliance President, John Reid . "However, about half of those surveyed are nonetheless concerned about the Canadian economy and are taking steps to mitigate the impact of the U.S. economic downturn."
Those measures by Canadian IT executives include:
- cost-cutting, with 33 per cent reducing overhead and 24 per cent delaying capital spending;
- expanding their company's revenue base, with 31 per cent enhancing product or service offerings and 30 per cent expanding their business outside North America.
"It appears that Canadian IT executives view the U.S. economic challenges as an early warning signal of potentially tough times to come for Canadians, and are ensuring that they do the right things to compensate," said Davin Juusola, Vice-President Research and Development with Info-Tech Research Group.
The CATAAlliance study was conducted by Info-Tech Research Group in January, surveying senior executives in Canadian enterprises. CATA is the largest high-tech association in Canada , matching businesses with opportunities across almost every sector to encourage collaboration. Reaching out from Canada , CATAAlliance members are connected with investment and partnership opportunities with major global companies. As 80 per cent are exporters, CATA’s members are the arrow-head for global growth.
With a paid membership of over 21,000 worldwide, Info-Tech Research Group (www.infotech.com) is the global leader in providing tactical, practical Information Technology research and analysis. Info-Tech has a ten-year history of delivering quality research and is one of North America 's fastest growing full-service IT analyst firms.
Vice-President R&D, Info-Tech Research Group
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