US Tech Market More Than Halfway Through Downturn
CAMBRIDGE, Mass.--(BUSINESS WIRE)--Jun. 30, 2009--
Global purchases of IT goods and services by businesses and governments
in 2009 are projected to decline by 10.6 percent when measured in US
dollars, compared with the 3 percent decrease previously projected
at the beginning of the year by Forrester
Research, Inc. (Nasdaq: FORR). The latest quarterly update of
Forrester’s IT spending outlook also projects a 5.1 percent decline in
the US annual IT market, compared with the 3.1 percent decrease
previously forecast.
New data about large declines in business technology investment during
the first quarter prompted Forrester to update its forecasts for
technology spending. On a positive note, Forrester still expects growth
in US IT investment to resume in Q4 2009, and 2010 is expected to bring
a revival of IT buying in other markets as well.
“While Q1 2009 saw a scary drop in purchases in the US tech market,
ironically that is good news for the long run and we expect to see a
stronger rebound sooner,” said Andrew
Bartels, Forrester Research vice president and principal analyst.
“The big drops are not precursors to further declines; rather, we think
they are evidence of a temporary pause in US tech purchases, which we
expect to start recovering in Q4 as businesses realize that they
overreacted in the first quarter.” He added, “We also expect that tech
markets in Europe and Asia will start to recover in the first half of
2010.”
Forrester uses several metrics to determine the health and size of the
US IT market quarterly and of the global IT market on an annual or
as-needed basis. The data in the new Forrester forecast report focuses
on IT purchasing — how much computer and communications equipment,
software, IT consulting and integration services, and IT outsourcing
that businesses and governments buy from technology vendors.
Looking at the 2009 global IT spending outlook by sector, Forrester
anticipates lower investment than previously expected across all
categories. Forrester projects purchases of computer equipment to be
down by 13.5 percent, communications equipment buying to drop by 12.4
percent, software spending to decline by 8.2 percent, and purchases of
IT consulting and outsourcing services to be 8.6 percent lower.
The report, “US
And Global IT Market Outlook: Q2 2009,” is currently available to
Forrester RoleView™ clients and can also be purchased directly at www.forrester.com/go?docid=48356.
The report is based on Forrester’s analysis of data from the U.S.
Department of Commerce, the Organisation for Economic Co-operation and
Development (OECD), and other sources. Forrester also analyzed the
financial reports of 49 large IT vendors.
About Forrester Research
Forrester Research, Inc. (Nasdaq: FORR) is an independent research
company that provides pragmatic and forward-thinking advice to global
leaders in business and technology. Forrester works with professionals
in 19 key roles at major companies providing proprietary research,
consumer insight, consulting, events, and peer-to-peer executive
programs. For more than 25 years, Forrester has been making IT,
marketing, and technology industry leaders successful every day. For
more information, visit www.forrester.com.
© 2009, Forrester Research, Inc. All rights reserved. Forrester and
RoleView are trademarks of Forrester Research, Inc.
Source: Forrester Research
Forrester Research, Inc.
Tracy Sullivan, +1 617-613-6023
Senior
Public Relations Specialist
press@forrester.com
