Global Tech Market Expected to Recover in 2010

The U.S. tech market projected to recover in fourth quarter of 2009 (Q409), followed by the global tech market improving in 2010. According to the latest Q309 Forrester Research 'U.S. and Global IT Market Outlook,' the Q209 was another down quarter in the U.S. and other markets as expected.

Research firm Forrester continues to look ahead to a strong recovery in the U.S. IT market, with 7.7 percent growth, led by IT consulting services (up 11.4 percent), software (up 9.3 percent), and computer equipment (up 8.3 percent). Communications equipment will be slower to come back, but will still increase by 3.6 percent and the IT outsourcing will rise by 4.5 percent. For this latest outlook, Forrester analyzed data on IT investment and economic growth reported by the U.S. Department of Commerce and incorporated its data in its own proprietary forecasting model for U.S. IT spending. Forrester also analyzed the financial reports of 49 IT vendors to identify quarterly trends for different technologies in the U.S.
The outlook notes that the growing revisions to U.S. IT investment data in 2007 and 2008 by the U.S. Department of Commerce raised the base periods for measuring 2009 growth, making the 2009 declines even greater than before. "Those revisions confirmed Forrester's position that a tech boom was starting to take shape in 2008, before being rudely interrupted by the September financial crisis," says Andrew Bartels, Vice President and Principal Analyst, Forrester Research.

With revitalization in sight, Bartels advice to tech vendors is to stop the cost cutting. "Despite the deeper-than-expected cuts in tech purchases in the first half of 2009, the stage is set for a revival of the U.S. tech market starting in Q4 2009 and gaining strength in 2010. So, now is the time for tech vendors to step up sales and marketing, and get ready to take advantage of the rebound in tech buying," adds Bartels.