From 11.5 percent in 2011, the growth rate of global IT spending will weaken at 5.5 percent next year. This is due to the current economic downturn in the US and Europe, based on the recent Forrester Research report “Global Tech Market Outlook for 2011 & 2012”.
Slower growth rates are predicted in the US and European countries in 2012. For instance, the US will likely post 6.4 percent, while a 12-percent growth rate is expected in the markets of Eastern Europe, Middle East, Africa, as well as Latin America. Andrew Bartels, Vice President and Principal Analyst of the global IT market research firm, said the global IT market will grow, though at a moderate pace as the financial crisis becomes a cause of worry.
Despite this forecast, India’s industry body Nasscom President Som Mittal said there are still no signals of reduced IT budgets from companies. Software exports to the US and Europe account for almost 90 percent of the IT industry’s $70 billion revenue.
2011 would post better IT market growth than 2012, thanks to the strong IT demand in the first two quarters of the year before the financial crisis kicked off in the middle of 2011. That resulted in slower growth in the last quarter.