Citigroup not to cut IT spend next year

BANGALORE: Global financial services giant Citigroup Inc will not cut its IT spend which currently stands at eight per cent of the company's total revenue and would invest the same the next year too, a top official said.

Citigroup Inc Global Technology Head Jagdish Rao said the company spent eight per cent of its global revenues on IT and it would remain the same next year.

"We are one of the largest consumers of IT", he said at a press conference here, while announcing the sale of company's 100 per cent subsidiary Citi Techology Services to Wipro for USD 127 million.

Speaking about the IT spend of companies world over, he said in these times of recessionary environment, expenses on things like new application development is under pressure, while IT expenses for running institutions would continue remain "mandatory".

Also present there Wipro Joint CEO IT Business and Member of the Board Girish S Paranjpe said the industry has been "slammed too much", but the dynamic and enterprising segment would be the first to recover from downturn the next year.