TechnologyAccounting SoftwareHewlett Packard COO makes gloomy IT forecast

Hewlett Packard COO makes gloomy IT forecast

IT spending is to remain flat until the end of the year, according to new Hewlett-Packard chief operating officer Michael Capellas, dousing hopes that the second half of the year would see recovery.

Speaking in Singapore ahead of this week’s CommunicAsia trade fair, former Compaq head Capellas echoed statements made recently by HP boss Carly Fiorina in redressing previously held optimism about global IT spend in the second half of 2002.

‘Spending is obviously soft, I don’t think it comes as a surprise to anybody,’ he said, according to the South China Morning Post.

‘We’re bumping along the bottom, and we do see pockets of improved activity around the world, but there’s no indication of a sustained recovery for the rest of the year.’

He did confirm that Singapore would remain the Asia-Pacific headquarters of the HP group but would not be drawn to comment on controversial job cuts expected globally.

Singapore has 6000 staff and HP is looking to cut 15,000 worldwide to help it reach a target saving of $3bn by 2004.

Capellas said that internet technologies would drive the next IT spending boom, with content distribution, audio and visual applications benefitting.

‘The next curve of Internet usage will have little to do with e-commerce, but the explosion of digital content,’ he said.

Related Articles

5 key tech innovations helping accountants transform their businesses

Accounting Software 5 key tech innovations helping accountants transform their businesses

3w Heather Darnell, Founder of Ask the BOSS
Finance and the tech foundation: what’s needed to deliver impactful business insights?

Accounting Software Finance and the tech foundation: what’s needed to deliver impactful business insights?

3m Workday | Sponsored
Best accounting software for businesses in the UK

Accounting Software Best accounting software for businesses in the UK

3m Accountancy Age, Reporters
Making sense of enterprise tech concepts for finance teams

Accounting Software Making sense of enterprise tech concepts for finance teams

4m Workday | Sponsored
Open Banking: what you need to know

Accounting Software Open Banking: what you need to know

4m Edward Berks, Xero
Accountancy in the digital age: Flexibility, agility, efficiency

Accounting Software Accountancy in the digital age: Flexibility, agility, efficiency

6m Pegasus Software | Sponsored
Sage purchases Intacct in its largest ever acquisition

Accounting Software Sage purchases Intacct in its largest ever acquisition

10m Alia Shoaib, Reporter
5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

10m Alia Shoaib, Reporter