Global IT Spending Will Rebound in 2010: Forrester

by CXOtoday Staff    Jan 13, 2010

Global spending on information technology (IT) will rebound this year, rising more than 6% to top $1.6 trillion dollars, predicts Forrester Research s latest report.

"The technology downturn of 2008 and 2009 is unofficially over," Forrester Vice President and Principal Analyst Andrew Bartels said in a release. "All the pieces are in place for a 2010 tech spending rebound."

The health of the technology industry will improve faster than the overall economy in the United States with IT spending growing at double the rate of the country’s gross domestic product, according to Forrester. IT purchasing in the US this year is predicted to climb 6.6% to $568 billion.

Europe is expected to be the stage for the strongest technology spending, with purchases boosted to 11.2% due in part to the Euro’s strength against the US dollar.

IT purchasing is predicted to grow 9.9% in Canada, 7.8% in the Asia-Pacific Region, and by 7.7% in Latin America. The weakest growth will be about 2.4% in Eastern Europe, Africa, and the Middle East, according to Forrester.

The industry tracker said that global purchases of computer gear will rise 8.2% while spending on software will increase 9.7%. "We are entering a new six- to seven-year cycle of IT growth and innovation," said Bartels.

Global spending on IT was down 8.9% in 2009, according to Forrester.