According to a new report by Forrester Research, Inc. the technology sector will see a recovery in 2010 as businesses and governments in the US and around the world begin spending again on information technology. After declining 8.2 percent in 2009, US IT spending will grow 6.6 percent in 2010 to $568 billion. Global IT spending, which dropped 8.9 percent last year, will rise 8.1 percent in 2010 to more than $1.6 trillion.
The technology downturn of 2008 and 2009 is unofficially over
“All the pieces are in place for a 2010 tech spending rebound. In the US, the tech recovery will be much stronger than the overall economic recovery, with technology spending growing at more than twice the rate of gross domestic product (GDP) this year.” (Andrew Bartels, Forrester Research)
On a regional basis, Europe will be the strongest performing region. Measured in US dollars, the strongest growth in 2010 will be in Western and Central Europe, where tech purchases will rise by 11.2 percent, boosted by the dollar’s decline against the euro. IT purchases in Canada will grow by 9.9 percent, Asia Pacific by 7.8 percent, and Latin America by 7.7 percent. The weakest market will be Eastern Europe, the Middle East, and Africa, rising by just 2.4 percent. When measured against local currency, however, the US will actually post the strongest growth of all the regional tech markets.
New technologies will boost the growth
At the beginning of 2010 the market is supposed to slightly recover. By the end of 2010 Forrester predicts exponential growth.
“We are entering a new six- to seven-year cycle of IT growth and innovation that Forrester calls Smart Computing,” said Bartels.
This growth of the IT industry is being driven by new technologies such as service-oriented architecture, server and storage virtualization, cloud computing, and unified communications.
We feel a similar trend
Based on our sales funnel and the amount of clients we are talking to we feel a similar trend which started in the 4th quarter of 2009. The future looks bright! We are curious whether or not our forecast “The 5 major IT outsourcing trends in 2010” will appear to be right.