After a period of strong growth in 2015, Forrester predicts no boom or bust for tech spending in Canada. In a new report, Forrester forecasts that Canadian tech spending will hit $93 billion in 2016, an increase of only 3.3% compared with 5% in the previous year. This trend of decreasing growth will continue in 2017, with only 3.1%.
“A striking characteristic of the current tech market in Canada is that its growth path deviated so widely from the growth path for the Canadian economy,” writes Andrew Bartels, vice president and principal analyst at Forrester, who authored the report. “In general, tech market growth tracks nominal GDP growth — but Canada did not follow this pattern.”
For the first time, Forrester’s forecast includes telecom services, which will reach C$22 billion in 2016 — the largest share of the tech market. Tech consulting is shortly behind with C$21 billion in 2016 — up 4% from 2015. And while business technology (BT) purchases are smaller than IT purchases in absolute value terms, they are growing at a much faster rate: Forrester expects to see a 7.4% jump in Canadian BT purchases in 2016 and 8.9% in 2017.
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