IT spending in the midst of the Asian economic downturn: a Singapore perspective

The Asian economic downturn has severely affected the revenue and profitability of companies operating in Asia. This has in turn caused a significant number of companies to reduce their spending on IT, particularly in the countries that have been most affected by the downturn. While IT spending is an immediate and visible effect of the downturn, less visible changes in managerial attitudes towards IT, and approaches to controlling IT spending are likely to have longer term implications to the IT capabilities of companies in the region. In this paper, we examine these issues in the Singapore context, paying particular attention to how companies plan to control and reduce IT infrastructure spending. We found that in the participating firms, managers appear to pay more attention to the links between business strategy and IT after the downturn. We also found that deferring investments in physical infrastructure and outsourcing were the main approaches to IT cost reduction. q 1999 Elsevier Science B.V. All rights reserved.