Curing A High Tech Hangover

It's the morning after for Corporate America--following a decade-long binge on information technology. Sobering up after spending nearly $900 billion in the service sector alone, companies are wondering what happened to the promised payoff. White-collar productivity, although rebounding a bit lately, is still below its late-1970s level, before all that treasure was spent on fancy computers and systems. Feeling betrayed by info-gurus who promised "killer apps"--computer applications that would give them strategic competitive advantages--ceos are holding down budgets for information technology. Frustrated at the lack of progress and by the high cost of the computer systems, a few are even turning over the management of their information systems to outsiders.

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