IT Market Poised For Recovery, Says IDC
The global IT market has hit the bottom and is poised for recovery in 2002, according to a new report from IDC. The rebound is attributed to strengthening economic conditions in the United States.
However, IDC warns that IT spending growth will remain ‘muted’ by comparison with previous years’ figures before staging a ‘full recovery’ in 2003. Worldwide IT spending growth, which was flat in 2001, is projected to rise to 4.7% in 2002 and to 9.6% in 2003.
| IT Spending Growth Forecasts (%) | |||
| 2001 | 2002 | 2003 | |
| US | -3.5 | 3.7 | 8.8 |
| Western Europe | n/a | 6.2 | n/a |
| Asia Pacific | n/a | 4.7 | n/a |
| Worldwide | 0.0 | 4.7 | 9.6 |
| Source: IDC, May 2002 | |||
The IT sector has been hard hit by the fall-out of the dotcom boom, which has forced tough comparisons with the period of technological surge that accompanied it. However: “The ingredients for a technology rebound are falling into place,” according to Kevin White, research manager of IDCÂÂ’s Global IT Economic Outlook program.
“Recent data releases point to a faster-than-expected recovery in the United States economy. As business conditions firm we expect to see companies re-launch IT projects that were deferred in 2001,” says White.