Forrester says IT recovery is underway
By siliconindia   |   Monday, 12 April 2010, 15:24 IST   |    1 Comments
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Forrester says IT recovery is underway
New York: A report on information technology tells that tech recovery has begun in U.S. and around the world - with Q4 2009 IT market indicators showing an end to declines, and setting the stage for stronger growth in 2010. In their quarterly research report titled 'U.S. And Global IT Market Outlook: Q1 2010', Forrester Research forecasts the tech market will grow by 7.7 percent as measured in $, to nearly $1.6 trillion. This is slightly lower than Forrester's previous forecast of a 8.1 percent growth. That's because the Greek financial crisis weakened the euro and strengthened the U.S. dollar. Forrester Research now expects information-technology spending in the U.S. to grow by 8.4 percent this year, to $550 billion and in the global market at $1574 Billion in 2010. That is up from its January forecast, of a 6.6 percent increase compared with 2009. Spending on computer equipment and software will be strong this year, with percentage growth in the double digits for both sectors, Forrester predicts. Many businesses had put off replacements and upgrades during the economic downturn. Information-technology consulting services and communications equipment will each grow by about 7 percent. IT outsourcing will see slower growth, just fewer than 4 percent, though it had been the only sector to grow last year. A recent earnings report from business software company Oracle confirms Forrester's outlook. For the fiscal third quarter that ended in February, the company posted a 17 percent revenue increase, to $6.4 billion, a sign that large companies are steadily boosting their technology spending. "On an industry basis, U.S. manufacturers, financial services firms, utilities, and healthcare will see the strongest growth in 2010. And on a global basis, the U.S. and Asia Pacific will be standout regions in local currency terms, while the Western and Central Europe expanding at the slowest rate among the regions," said Andrew Bartels, Vice President, Forrester.

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