The global IT market is set for a strong recovery this year on signs of a revival in tech spending in the US and other developed countries after over a year of gloom and doom, a study by Forrester Research has revealed.
“Tech recovery has begun in the US and world markets, as evident from an end to declines in the last quarter of 2009. We expect the IT market in the US to grow by 8.4 percent and other markets by 7.7 per cent in dollar terms in 2010,” Forrester’s vice president Andrew Bartels said, quoting the ‘US and global IT market outlook’ report.
With the US market accounting for over 60 per cent of the Indian software exports, Indian IT bellwethers such as TCS, Infosys, Wipro, HCL and hundreds of small and medium firms will benefit from a tech revival in North America.
“Purchase of IT goods and services by businesses and the US government is estimated to touch $550 billion, and $1.6 trillion in the global market, indicating a robust growth even in the Asia Pacific region, while western and central Europe will witness albeit a slower growth,” Bartels pointed out.
The US information and communications technology (ICT) market is projected to be $741 billion, with signs of strong rebound in the telecom sector.
Post-downturn, the innovation cycle is set to resurface and drive technology investment growth, which was interrupted by the global economic recession since second half of 2008 after smart computing technologies fuelled spending in 2007 and early 2008.
Though the GDP (gross domestic product) growth in the US is expected to be nominal, an upturn in tech spending will enable the IT market recover faster than a battered economy.