IT Shares Hit but Hope for Midterm Remains

The U.S. financial crisis is taking a toll on mergers and acquisitions and share prices in the technology sector, causing the tech-heavy Nasdaq to slump to a new 52-week low Thursday, but industry watchers have an underlying confidence in the midterm scenario for IT vendor revenue.

Analysts such as Andrew Bartels, vice president at Forrester, are still convinced that as long as Congress passes a financial-sector rescue package, IT will not suffer annual spending declines in 2008 or 2009.