By Jo Best, 30 June 2009 16:54
NEWS
Global spending on IT could drop by 10 per cent this year, according to analysts.
The figure, from Forrester, is a drastic increase to the researcher's earlier prediction that worldwide IT spending in 2009 would fall by around three per cent year-on-year.
European IT expenditure is set to fall by eight per cent this year, according to Forrester.
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The plummeting spend will be felt across all areas of tech, with hardware suffering the most - equipment purchases will be down 13.5 per cent year-on-year - while outsourcing will be comparatively better off with a 8.6 per cent fall.
Andrew Bartels, Forrester Research VP and principal analyst, said the first signs of a market revival will be seen later this year.
"While Q1 2009 saw a scary drop in purchases in the US tech market, ironically that is good news for the long run and we expect to see a stronger rebound sooner.
"The big drops are not precursors to further declines; rather, we think they are evidence of a temporary pause in US tech purchases, which we expect to start recovering in Q4 as businesses realise that they overreacted in the first quarter," he said in a statement.
European and Asian markets will rebound in the first half of next year, Bartels predicted.
