Global crisis made IT firms focus on efficiency: MS CEO

By Lee Youkyung
SEOUL, Nov. 2 (Yonhap) -- Steve Ballmer, head of U.S. software giant Microsoft
Corp., said Monday the global credit crunch forced corporations to cut spending
on information technology and thus reshaped the role of IT firms.
He said IT firms are now keen on developing products that will help their
corporate customers achieve a "new level of efficiency" even under a tight
budget, required in the new economic environment the financial crisis has brought
forth.
"The pressure is to reduce IT spending, but increase IT impact," Ballmer told a
gathering of business leaders here in the South Korean capital.
The Microsoft CEO said that he did not foresee a return to familiar spending on
IT in the near future.
"While we'll see growth, we will not see recovery," he said, adding that
corporations are expected to cut their IT spending by half in the coming years.
Spending on IT products and services account for about half of capital
expenditure for enterprises in developed countries, according to Ballmer.
These new pressure of having to achieve efficiency with less budget is where IT
firms should chime in, he said.
"Our mission is to help you do more with less," he said.
ylee@yna.co.kr
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