Global IT Spending Shows Less Growth, Forrester Says - InformationWeek
IoT
IoT
Cloud // Infrastructure as a Service
News
7/15/2013
11:33 AM
Connect Directly
Twitter
LinkedIn
Google+
RSS
E-Mail
50%
50%
RELATED EVENTS
Out of the Black Box: Selling Security to your C-suite
Jul 20, 2017
To maximize the return on cloud security investments, CISOs need a seat at the table. Unfortunatel ...Read More>>

Global IT Spending Shows Less Growth, Forrester Says

Improvements in United States, Brazil, Japan and India will be offset by struggles in Europe and China.

Technology spending in the U.S. will grow 5.9% during the remainder of 2013, according to a new report from Forrester Research. Canadian, Japanese, Australian and Indian tech markets also will grow. But only smaller markets in Latin America and Eastern Europe, the Middle East and Africa (EEMEA) will surpass the U.S. Globally, tech spending will slow down, especially in Europe and China, said the report.

In January, Forrester predicted a global tech market growth of 5.4% in local currencies and 3.3% in U.S. dollars. It predicted modest growth in the U.S., recession in Japan, a second half end to the European recession and improving economies in pockets of Asia, Latin America and the EEMEA. Halfway through 2013, the forecast for global tech has changed. For the remainder of the year, Forrester predicts it will grow just 2.3% growth in U.S. dollars and 4.6% in local currencies.

Despite lower government spending, U.S. tech has grown due to increased stock prices, a stronger housing sector and increased employment growth, which facilitated consumer spending. Europe avoided a Euro collapse but continues to struggle through recession. In Asia, China has shown a decrease in consumer spending and property values while Japan has experienced an economic boost.

[ Are old-fashioned attitudes holding IT back? Read Why IT Spending Is Stuck In A Vicious Circle. ]

Global tech spending is anticipated to reach $2,069 billion, with software showing the most growth. Forrester predicted that business and government purchases of software will grow by 3.3% in U.S. dollars and 5.7% in local currencies for the remainder of 2013. 2014 will show 6.2% growth.

The 3.3% increase in software purchases might not seem like much, but software will lead tech categories in 2013 progress. Software innovations include software-as-a-service (SaaS) and platform-as-a-service (PaaS) products and predictive analytics, big data and mobile apps, and app stores. As software progresses, IT consulting and systems integration services that assist with the selection, implementation and usage of software will also increase, with 3.1% growth in 2013.

Forrester predicts that computer equipment will also experience innovation throughout 2013, though not as much. Tablets will play a key role in hardware growth from 2.5% in 2013 to 5.1% in 2014. Communications equipment will show the least growth, with 0.2% in 2013, but is predicted to increase to 5.2% in 2014. IT outsourcing and hardware maintenance will decrease throughout the next year. The outlook for tech demand is expected to be brighter for 2014. The increased strength of the U.S. economy, European recovery, and continued progress of Asian markets such as China, India and Japan will lead to global growth of 6.5% in local currencies and 5.6% in U.S. dollars. For Western and Central Europe, Forrester predicts 2014 growth will be 3.9% in euros and 3.1% in U.S. dollars.

Throughout the world, increased spending on cloud, mobile and smart computing technologies will make up for decreased business and government spending. In both strong and weak economies, new technologies are expected to drive tech markets into a prosperous 2014.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
IT Strategies to Conquer the Cloud
Chances are your organization is adopting cloud computing in one way or another -- or in multiple ways. Understanding the skills you need and how cloud affects IT operations and networking will help you adapt.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of November 6, 2016. We'll be talking with the InformationWeek.com editors and correspondents who brought you the top stories of the week to get the "story behind the story."
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll