According to Forrester Research, declines in the tech sector will arrest during Q3 2002 and an upturn will begin in 2003. However, double-digit rises will not be visible until 2004 when growth will reach around 12%.
“Forrester estimates that 12% of the IT sector’s volume in 2000 represented overspending, which amounts to a hefty $62 billion,” said Bruce D. Temkin, group director at Forrester. “As buyers absorb their excess technology purchases, these ‘bubble’ expenditures will drag the recovery down over the next two years.”
Forrester forecasts that budgets will remain flat in 2002 and, as such, the sector will only experience 2.2% growth next year. During 2003, internet investment will increase, once again boosting the tech market and enabling growth to begin again.
