Forrester: US Will Drive IT Spending in 2014
The recovery of the U.S. economy is still slow, but is ahead of those from Europe and Japan, according to a Forrester analyst.The United States will lead the way in a global technology market that will see 5.5 percent growth in 2014, though it will still take a year for the market to see strong growth, according to a Forrester Research analyst. While the market growth this year will be better than in 2013, it will still be slow compared with what vendors saw in the 1990s and 2000s, and it is still facing challenges in regions that are recovering at different rates, Forrester analyst Andrew Bartels wrote in a post on the Forrester blog site. A key will be what happens in the United States, which Bartels said holds a 40 percent share of the global IT market. The growth rate in the United States will be about 6.3 percent, according to Forrester. Only smaller tech markets such as Eastern Europe, the Middle East and Africa will grow faster that the United States. "Despite self-inflicted wounds from austerity zealots in the US Congress, the US economy has continued to expand at a steady (albeit modest) rate," Bartels wrote. "In contrast, Western and Central Europe is just starting to recover from its debt crisis and related economic slump, Japan is experiencing a modest expansion after years of deflation, and Brazil, China, India, and Russia are going through a period of sluggish and uneven growth."
Another trend will be the fast growth—7.1 percent—in the software market, according to Bartels. Software will be the fastest growing sector, followed by IT consulting and systems integration services (at 6.6 percent). Again, the United States—which purchases almost 50 percent of all the software in the world—will lead the drive, he wrote. Tablets will continue to see strong growth.