Xerox boss says credit crisis could crunch IT budgets

Yes, no, maybe. Can you repeat the question?

He told The Register: "There is nervousness everywhere, particularly in the Anglo-US markets, but it's equally important to say that many parts of the world are enjoying record booms, notably China, Russia, the Middle East, Eastern Europe and India."

Brazier added: "Businesses whose outlook on life depends on the Anglo-US view will misunderstand what's going on because the world is changing."

"Those companies that are well-exposed to the East will do well, and I suspect that the likes of Xerox and Dell are simply not there yet."

In the UK, Brazier reckoned there was "no serious evidence" that the tech biz was about to hit the buffers.

Perhaps supporting his view for the year ahead, the CBI said today that despite some financial service sectors such as banks and insurance firms beginning to feel the credit pinch, investment in IT had in fact risen for the final quarter of 2007.

The CBI said that a two-year run of continuing growth had been brought to a halt, with 44 per cent of UK financial services firms surveyed saying that business volumes had fallen during the last quarter.

"After two years of strong growth there has been a clear turnaround within the financial services sector," said Ian McCafferty, CBI chief economic adviser.

"The credit squeeze has delivered a sharp shock to business volumes over the past three months, and it seems that difficulties are likely to persist for some time yet."

But the survey, which was carried out in association with Pricewaterhouse Coopers LLP, found that the financial sectors had continued to invest heavily in their IT infrastructure, with plans at their strongest since September 1997. ®