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 forecasted — 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. 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,” blogs Andrew Bartels, the author of the report.