Forrester: 2010 IT spending still looks strong

Despite weakness in Central Europe, overall the picture looks good

Despite fears caused by the European debt crisis, spending on technology products and services is set to continue growing around the world, although the pace of growth in Europe overall will be lower, Forrester Research said in a report released Tuesday.

U.S. IT goods and services spending will jump 9.9 percent in 2010 to US$564 billion, compared to 7.8 percent growth worldwide to $1.58 trillion, Forrester said.

Canada will experience the highest IT spending growth this year with a 16.2 percent rise, according to Forrester. IT spending in Latin America is set to grow 15.4 percent, followed by Asia-Pacific with 11 percent. Eastern Europe, the Middle East and Africa will see a 10.5 percent uptick.

But IT spending in Western and Central Europe is set to drop by 0.7 percent due to the debt crisis and weak euro.

The US 2010 forecast represents a 1.5 percent increase over one Forrester gave in April, while the global growth rate remained roughly the same as the previous forecast of 7.7 percent.

Growth is being spurred partly by the fact that the U.S., and to a lesser extent, other nations, are entering an innovation cycle marked by adoption of new technologies, Forrester said.

And at least some companies are showing an appetite for signing large deals. Hewlett-Packard announced Tuesday that its Enterprise Services division had signed a $2 billion, multiyear contract renewal with longtime client General Motors.

Forrester's report excluded telecommunications services, as reliable forecasting data is not yet available, it stated.

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris's e-mail address is Chris_Kanaracus@idg.com

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