After a dismal performance in 2009, the technology sector will see a recovery in 2010 as businesses and governments in the US and around the world begin spending again on information technology, according to a new report by technology research firm Forrester Research.
Global IT spending, which dropped 8.9 per cent last year, will rise 8.1 per cent in 2010 to more than $1.6 trillion, and US IT spending, after declining 8.2 per cent in 2009, will grow 6.6 per cent in 2010 to $568 billion.
Software and computer hardware will see the greatest growth, Forrester said and forecast a new multi-year cycle of technology investment growth and innovation defined by 'smart computing'.
''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.''
Forrester said that hardware and software would lead the charge in the sector growth. Measured in US dollars, global purchases of computer equipment will be up 8.2 per cent, communications equipment buying will rise by 7.6 per cent, software spending will increase by 9.7 per cent, purchases of IT consulting and systems integration services will grow by 6.8 per cent, and IT outsourcing services will be 7.1 per cent higher.
This growth was similarly echoed today by India's leading software provider Infosys, which raised its annual sales forecast on an improving global economy led by the US and the financial services sector. (See: Infosys beats estimates, raises annual forecast)