European IT budgets are growing at a steady rate of 3.9 per cent per year, despite the uncertainty of economic conditions worldwide, according to Gartner research.

A survey of 1000 chief information officers (CIOs) found that global budgets remained at the forecast growth of 3.1 per cent during the first quarter of 2008, while the US average slipped slightly to 2.3 per cent.

Only one in four CIOs cut their spending in the first three months of the year.

Companies making early budget reductions may simply be playing safe at the start of the financial year, said Mark McDonald, head of research for Gartner executive programmes.

“The first quarter should be the toughest in terms of budget changes as executives are cautious at the start of the year," he said.

"CIOs are managing their budgets differently than in the past, on a greater business basis and that is showing up in the results of this first quarter study."

One in three CIOs have put a contingency plan in place to prepare for a potential future shift in budget. But of those with arrangements in place, only half expect to use them.

“Given economic conditions, CIOs should be prepared and have a contingency plan for both increases or decreases in the next 90 days, by the end of the second quarter of 2008,” said McDonald.

The future of IT budgets will be further discussed at the Gartner Symposium, due to take place in Las Vegas at the start of April.