IT spending figures range from "bad to ghastly"

 

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Posted on 1 Jul 2009 at 17:52

Global purchases for IT goods and services is predicted to decline by 10.6% in 2009, substantially more than the 3% projected at the beginning of the year.

This is according to new research from Forrester, which claims that Q1 2009 tech market data ranged from "bad to ghastly".

It also said that computer and network equipment vendors had been especially badly hit as enterprises and telcos cut back on spending, with licensed software revenues and IT outsourcing also in a poor state.

However, there is light at the end of the tunnel, as Forrester analyst Andrew Bartels believes that the US tech market is more than halfway through the downturn, with the global IT market not far behind.

He claims that the horrendous results in the first half of 2009 were good in the sense that the market would hit bottom sooner. This set a low base from where positive growth could start.

"Vendors can start to look beyond the downturn and get prepared for a strong tech recovery on late 2009 and 2010," he says.

Author: Asavin Wattanajantra