July 1, 2009
Tech Market Has Presumably Seen The Worst
Forrester Research reported on Tuesday that the United States technology market is on the brink of a turnaround to a more uphill climb, after faring so poorly in the first quarter of this year.
However, the research firm made revisions to its initial forecast for 2009, and now anticipates the U.S. technology market to retreat by 5 percent this year. March predictions were estimated for a 3 percent drop in spending on technology products and services.
The decline is attributed largely to the nations' recession in general, and also the lack of investments, particularly technology investments, made by businesses.
"The good news is that it is in the past. We are not going into a terrible terrible downturn," Forrester analyst Andrew Bartels told the Associated Press.
The U.S. tech sector is expected to bottom-out in the third quarter and then steadily climb its way to recovery by the fourth quarter, the research firm said.
Although the tech economy has suffered in every sector by the recession, Forrester supposes growth will prevail next year. U.S. spending on communications equipment is expected to drop by 11 percent in 2009, as businesses are opting not to spend on network equipment, mobile gadgets and video conferencing technology. But, Forrester believes telecom spending will increase 7 percent in 2010, pulling the market back up.
Forrester also said the market will endure a 10 percent decline in spending on computer products this year, but in 2010, it will rise almost 12 percent. Even with these indications of progress, spending in 2010 still does not come close to spending in 2007, in terms of billions of dollars.
Outsourcing is the lone technology sector perceived to see growth in 2009 "“ and even that is estimated for a mere 2 percent.
The U.S. tech market is doing considerably better than the collective global market. A deteriorating worldwide economy and currency fluctuations, specifically the strengthening dollar, are big contributors for this.
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