We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
80,259 News Articles

Guns before better IT

But consumer spending may get through the flak

The Ministry of Defence is pulling the plug on expensive IT projects as it redirects funds into the essentials of the Afghan war — guns, bombs and basic logistics.

This is a cruel blow to computer companies, already hit by a dramatic downturn in civilian spending, that were hoping for a war bonus from bumper defence spending.

But industry observers said that computer companies who can would do well to concentrate their efforts on the high street, where consumer spending remains buoyant.

Most recently, the MoD canned a supply chain project from US software house Indus that was intended to make acquiring spare parts cheaper.

The cancellation wiped about six percent off Indus' annual turnover at a time when it has already suffered seven consecutive loss-making quarters and had three former executives sued by the US Securities and Exchange Commission for fraudulent accounting.


IDG UK Sites

Best Christmas 2014 UK tech deals, Boxing Day 2014 UK tech deals & January sales 2015 UK tech...

IDG UK Sites

LED vs Halogen: Why now could be the right time to invest in LED bulbs

IDG UK Sites

Christmas' best ads: See great festive spots studios have created to promote themselves and clients

IDG UK Sites

Why Apple shouldn't be blamed for exploitation in China and Indonesia