Forrester has dropped its global technology spending forecast in its midyear outlook. In January, Forrester forecasted a 3,3% (US dollars) increase in its tech spending forecast; in its latest forecast, Forrester has brought the forecast down to 2,3%.
Why the drop? The January forecast assumed modest growth in the US and a recession in Japan, but both regions have grown more than initially forecasted. However, the deteriorating markets in Europe and China, combined with mixed results in Latin America — where, for example, Mexico has grown less than predicted — has brought the forecast down.
“Software — especially for analytical and collaborative applications and for software-as-a-service products — continues to be a bright spot, with 3,3% dollar growth and 5,7% in local-currency terms,” says Andrew Bartels, author of the report.
“Apart from enterprise purchases of tablets, hardware — both computer equipment and communications equipment — will be weak. IT services will be mixed, with slightly stronger demand for IT consulting and systems integration services than for IT outsourcing and hardware maintenance.”