Forrester now says '09 US IT spend to drop 3.1 percent

Forrester Research is now predicting that U.S. IT spending will drop by 3.1 percent this year, shattering its previous projection of a 1.6 percent increase.

In revising its forecast, Forrester cited the drop in gross domestic product during recent quarters. However, Forrester is also predicting that IT spending will pick up late this year, and continue growing strongly in 2010.

Meanwhile, computer equipment sales will be hardest hit in 2009, with a 6.8 percent decline, followed by a 7 percent jump next year, Forrester said.

Telecommunications, videoconferencing and mobile technologies will also suffer, dropping by 7.8 percent, with a 4.8 percent rebound expected.

Software revenue will drop 0.4 percent this year, with steadier income streams such as maintenance fees and subscriptions balancing a drop in license sales. Forrester is predicting 6.3 percent growth in software during 2010.

IDG News Service

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