2010 IT spending still looks strong, Forrester says

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% in 2010 to $564 billion, compared to 7.8% growth worldwide to $1.58 trillion, Forrester said.

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

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

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

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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