Canadian Economy Viewed More Optimistically But Heeding U.S. Warning
LONDON, ON, Feb. 22 /CNW/ - 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 (CATAAlliance). 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 Davin Juusola, vice-president Research and Development with Info-Tech
Research Group. "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 John Reid,
The CATAAlliance study was conducted by Info-Tech Research Group in
January, surveying senior executives in Canadian enterprises.
About Info-Tech Research Group
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.
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.
For further information:
For further information: For interviews with Info-Tech Research Group,
contact Info-Tech's PR team: Shelley Grandy at (905) 866-2656; Mandy
Merryweather at 1-888-670-8889 Ext. 2936 or Andrew George at 1-888-670-8889
Ext. 2957; For CATAAlliance comment, please contact John Reid, President,
(613) 236-6550 or firstname.lastname@example.org