Businesses to boost technology investment during 2010

14 January 2010

Financial companies and governments from across the world will increase their IT spending during 2010 following a “dismal performance” within the sector in 2009, a new survey has revealed.

Findings from a study by Forrester predicted that global IT investment will rise by 8.1 per cent to reach more than $1.6 trillion this year.

Technology spending in the US will grow by 6.6 per cent to $568 billion following a decline of 8.2 per cent in 2009.

Last year, worldwide investment in the sector fell by 8.9 per cent.

Andrew Bartels, Forrester Research vice-president and principal analyst, said: “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 this year.”

He added that the new year marks the start of a new cycle of Smart Computing growth, which will be based on server and storage virtualisation, unified communications and cloud computing.

Hardware and software will be the biggest areas of expansion with investment in communications equipment and consulting and systems integration services all expected to increase.

Forrester’s study predicted that Europe will be the geographic region expected to see the largest amount of growth in 2010.

By Jim Ottewill

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