As information technology managers work to cope with post-terrorist attack uncertainty, many are being forced to more tightly control spending and have moved to short-term management tactics. "Many IT managers in our focus groups are declaring that long-term strategies are on hold for the next two quarters and decision making has moved down to the tactical level," says Michael Erbschloe, vice president of research for Computer Economics, a California research firm.

"IT managers are looking at spending in all areas and working to control costs," says Erbschloe. The biggest expenditure in an IT budget is for personnel, which in 2001 comprises 37.2 percent of a typical IT budget compared to 30 percent for the prior three-year period and 31.2 percent for the prior decade, according to the 11th annual Computer Economics Information Systems and E-Business Spending study.

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