Global IT Market: Been Down So Long It Looks Like Up to Me
by John Paczkowski
Posted on June 30, 2009 at 8:40 AM PT
First-quarter spending on information technology goods and services was worse than Forrester Research predicted at the beginning of the year. But it will grow no worse.
We’ve hit bottom. Finally.
In its latest “US and Global IT Market Outlook” report, Forrester (FORR) says information technology spending in 2009 will fall 10.6 percent in 2009. And while that’s far worse than the three percent decline the research outfit forecast at the beginning of the year, it’s also the nadir of this particular crisis, and we are at the beginning of a rebound that will gain momentum in 2010.
According to Forrester, anyway.
“While Q1 2009 saw a scary drop in purchases in the U.S. tech market, ironically that is good news for the long run and we expect to see a stronger rebound sooner,” Forrester analyst Andrew Bartels said in a statement. “The big drops are not precursors to further declines; rather, we think they are evidence of a temporary pause in U.S. tech purchases, which we expect to start recovering in Q4 as businesses realize that they overreacted in the first quarter.”
So after a year of gloom and doom, things are beginning to look up.
