IT growth expected, if Washington fosters stability
Computerworld - JPMorgan, Forrester and IDC all recently lowered their IT spending forecasts for the year. Gartner did so in June.
Analysts don't agree on the extent of the problem, but most broadly blame Europe and a slowdown in China, along with a stronger U.S. dollar. The catchword is uncertainty.
JPMorgan warns that uncertainty related to U.S. government spending, both before and after the November elections, could weigh heavily on the IT sector.
Forrester is more blunt. The U.S. is experiencing an improving housing market, growth in the auto industry, low interest rates and lower energy prices. These forces could set the stage for stronger economic growth, "if politicians don't blow it," argues Forrester analyst Andrew Bartels in a new report.
Washington must set policies that lead to stabilization, analysts said.
For now, most analysts agree that there will be some IT spending growth, but it may not be as strong as they once expected. Forrester recently lowered its forecast to 1.3% from a January prediction of 5.4%. IDC is the most bullish, forecasting 6% growth. It notes that software spending is particularly strong.
But JPMorgan warned that up to 40% of the growth is at risk if spending slows as a result of economic turmoil.
This version of this story was originally published in Computerworld's print edition. It was adapted from an article that appeared earlier on Computerworld.com.
Read more about Government/Industries in Computerworld's Government/Industries Topic Center.
- Big Data, Big Mess: Sound Risk Intelligence Through Complete Context This paper examines the insecurity of the small businesses in the supply chain and offers tips to close those backdoors into the enterprise.
- Using Cyber Insurance and Cybercrime Data to Limit Your Business Risk This paper examines the challenges of understanding cyber risks, the importance of having the right cyber risk intelligence, and how to use this...
- 5 Tips to Secure Small Business Backdoors in the Enterprise Supply Chain This paper examines the insecurity of the small businesses in the supply chain and offers tips to close those backdoors into the enterprise.
- Confront consumerization with convergence Virtualization expert Elias Khnaser spotlights the security, compliance, and governance issues that arise when enterprise users "consumerize" with shadow IT and public cloud...
- NSS Labs & Cisco Present: Evaluating Leading Breach Detection Systems Today's constantly evolving advanced malware and APTs can evade point-in-time defenses to penetrate networks. Security professionals must evolve their strategy in lockstep to...
- Will the Real Endpoint Threat Detection and Response Please Stand Up? This webinar explores new technologies & process for protecting endpoints from advanced attackers as well as the innovations that are pushing the envelope... All Government/Industries White Papers | Webcasts