The tech recession is over. That's according to the latest study by research firm Forrester, which predicts that world-wide technology spending will jump 8.1 percent in 2010 to over 1.6 trillion dollars, following an 8.9-percent decline last year.
Western and central Europe are expected to see the strongest growth, with spending on technology set to rise 11.2 percent. Canada will see a 9.9-percent spending boost, while Asia Pacific will experience a 7.8-percent rise, followed by Latin America with 7.7- percent growth.
US growth will be pegged at 6.6 percent while Eastern Europe, Africa and the Middle East will grow just 2.4 percent. "The technology downturn of 2008 and 2009 is unofficially over," said Forrester principal analyst Andrew Bartels in a statement. "All the pieces are in place for a 2010 tech spending rebound.
"In the US, the tech recovery will be much stronger than the overall economic recovery, with technology spending growing at more than twice the rate of Gross Domestic Product this year."
Software will see world-wide growth of 9.7 percent, largely fuelled by demand for Microsoft's new operating system Windows 7. Spending on computer hardware will grow by 8.2 percent, while outlays on communications equipment will grow 7.6 percent, the study predicted.
Sales of IT outsourcing services will climb 7.1 percent while consulting and integration service revenues will increase 6.8 percent, Forrester said. The research firm had other good news for the tech sector: The upturn is likely to be protracted, lasting six or seven years, as companies and consumers adopt "smart computing" - a combination of new technologies, cloud computing and advanced communications. "2010 marks the beginning of this next phase of technology advancement," said Bartels.
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