As shown on the left, Forrester expects the global tech economy to continue growing at fast rates. This is another signal to CEOs of all stripes that they should push to make their businesses increasingly digital and aligned with technology markets. Yes, Jeff Bezos sells books and Tony Hsieh sells shoes, but their advanced technologies give them enhanced growth and higher capitalization values for their companies…
Why is tech so healthy? It’s a different story depending on where you sit. In the “Tech Twelve” (Canada, the US, Denmark, Finland, the Netherlands, Sweden, Switzerland, the UK, Israel, Australia, Singapore, and New Zealand), the early adoption of fourth wave systems like smart computing, app Internet, and cloud computing is fueling growth. In these countries, tech is driving GDP. But in the BRIC countries (Brazil, Russia, India, and China) the reverse story holds. Strong GDP growth is stimulating and necessitating higher tech spending.
CIOs tell us that both hardware and software spend is driving this growth. 35% of technology decision-makers will spend more on hardware this year than they did in 2010, while 34% will spend more on software. Our forecasts predict that computer equipment and IT consulting and systems integration services will be the leading categories of tech growth. Close behind are software and IT outsourcing services.
What’s your theory on why tech is doing so well? I’d love to get your thoughts.