After a challenging 2009, the technology sector will see a recovery in 2010 as businesses and governments in the U.S. and around the globe begin spending again on information technology, according to a new report by Forrester Research.
After declining 8.2 percent in 2009, U.S. IT spending will grow 6.6 percent in 2010 to $568 billion. Global IT spending, which fell 8.9 percent last year, will increase 8.1 percent in 2010 to more than $1.6 trillion. Software and computer hardware will see the most growth.
"The technology downturn of 2008 and 2009 is unofficially over," said Andrew Bartels, Forrester Research vice president and principal analyst.
"All the pieces are in place for a 2010 tech spending rebound. In the US, the tech recovery will be much stronger than the overall economic recovery, with technology spending growing at more than twice the rate of gross domestic product (GDP) this year."
Global purchases of computer equipment will be up 8.2 percent, communications equipment buying will increase 7.6 percent, software spending will rise 9.7 percent, purchases of IT consulting and systems integration services will grow by 6.8 percent, and IT outsourcing services will be 7.1 percent higher.
On a regional basis, the strongest growth in 2010 will be in Western and Central Europe, where tech purchases will increase by 11.2 percent. IT purchases in Canada will grow by 9.9 percent, Asia Pacific by 7.8 percent, and Latin America by 7.7 percent. The weakest market will be Eastern Europe, the Middle East, and Africa, increasing just 2.4 percent.
"We are entering a new six- to seven-year cycle of IT growth and innovation that Forrester calls Smart Computing," said Bartels. "New technologies of awareness married to advanced business intelligence analytics make computing smart."
"Smart Computing rests on new foundation technologies such as service-oriented architecture, server and storage virtualization, cloud computing, and unified communications. 2010 marks the beginning of this next phase of technology advancement."