Global tech spending to dip in 2011, US fares better
Global technology spending would slow in 2012 as concerns over worsening economic conditions in both the United States and Europe increase, technology researcher Forrester Inc. said in its outlook for the coming year.
But there is good news for Indian technology firms. The growth in the US for technology products and solutions, the main market for Indian software companies, would be marginally slower to 6.4% next year as against 7% growth in 2011.
In 2011, the $ 2 trillion technology spend – including that on software, hardware and related services, is expected to grow by 11.5%.
Forrester now predicts that the growth will slow by half to 5.5% in 2012.
Technology spending across geographies had increased last year, the first since the US recession of 2007, due to pent up demand for replace old computers and servers and upgrading to newer software to increase productivity and efficiency.
“The US and European economies are dancing on the edge of a recession but haven’t yet fallen,” said Andrew Bartels Vice President and Principal Analyst at Forrester. “As a result, the outlook for the global market for business and government purchases of technology goods and services will see slowing, though still positive growth, in 2012.”
Incidentally, the Asia Pacific market, which includes India and China, is expected to grow higher in 2012 than the current year. Indian IT purchase will increase by 9%, whereas China’s technology spending will jump by 12%. The current year growth is hovering around 6.5%-6.7% for both the large nations.
The Asia Pacific region contributes to 11% or $ 215 billion of IT purchases globally.
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