A new forecast made by Forrester Research has reduced the expected growth rate in information technology spending in 2009 in US to around 1.6 percent, as against 6.1 percent growth which it had earlier predicted, primarily owing to ongoing economic turmoil.
Interestingly in September this year, Forrester had already revised its forecasts for IT spending growth for 2009, and notified that the growth would decline to 6.1 percent, as compared to previous predictions of 10 percent growth.
Andrew Bartels, VP Forrester Research, notified in the report, “Our U.S. tech market forecast now assumes that the...decline in U.S. real GDP in (the third quarter of) 2008 will accelerate in (the fourth quarter of) 2008 and the first half of 2009, before a weak recovery starts in the half”.
In addition, the report further predicted continued reductions in purchases of computer equipments in the final quarter of 2008, and first half of the next year, with nominal or no growth in purchases of IT services and communications equipments.
The research firm predicts the end of technology spending recession in the third quarter of 2009, with a notable surge in almost all sectors, and forecasts that the IT spending will be around 8 percent in 2010.
Besides, Bartels mentioned that the declines in tech purchases would not be as deep as it was during 2001 and 2002 technological downturn.