There will be a strong recovery in demand for IT product and services in 2010 with the US IT market -- the world's largest -- set to grow by 8.4 per cent, research firm Forrester has said.
The tech recovery has begun in the US and around the world with Q4 (2009).
IT market indicators are showing an end to declines, and setting the stage for stronger growth in 2010.
Forrester expects the US IT market to grow by 8.4 per cent and the global IT market (in dollars) by 7.7 per cent, the IT market outlook by the firm said.
With the end of the downturn, the report said, 'not just spending, tech innovation cycle will also resurface in 2010, helping to drive tech investment growth.'
The US and Asia Pacific will be standout regions in local currency terms while the Western and Central Europe expanding at the slowest rate among the regions, it said.
"On an industry basis, US manufacturers, financial services firms, utilities, and healthcare will see the strongest growth in 2010," the report said.
In his quarterly research report titled 'US and Global IT Market Outlook: Q1 2010', Forrester's Vice-President Andrew Bartels estimates the business and government purchases of IT goods and services in the US to touch $550 billion and in the global market at $1,574 billion in 2010.
Forrester said that with nominal GDP and tech investment turning positive year-over-year in the US, its 2010 tech recovery will be much stronger than the economic recovery. Forrester advised technology vendors to emphasise on lower costs and then shift to growth.
"With growth prospects still uncertain, CIOs in early 2010 are most likely to get funding approval for IT investments and projects with demonstrated cost-cutting potential.
However, by the summer of 2010, the focus of CIOs will start to shift -- from technologies that lower costs and improve IT and business efficiency -- to ones that can help the business grow," Bartels said.
