Forrester Research has revised its 2009 technology spending projections with expectations that U.S. IT spending will fall 5.1 percent in 2009 with global outlays to drop 11 percent. Forrester’s revision is a cut from the 3.1 percent decline expected in its March report. Forrester analyst Andrew Bartels writes in a report (Techmeme): The deeper decline is due to the deeper US recession, with the June 2009 consensus of forecasts for 2009 US real GDP growth shifting down to -2.8% from the March 2009 consensus of -2.2%. However, the bigger factor is the big drops in business investment generally — and IT investment in particular — in Q1 2009, which is also likely for Q2 2009. The good news: Forrester reckons that IT spending will bottom in the third quarter. Overall, Bartels notes that the credit crunch has walloped IT spending. If your ROI calculations include high-interest capital those tech projects don’t look so hot. Bartels writes: Companies large and small have been shut out of credit markets; even those that still have access to bank loans, markets for commercial paper, or corporate bonds often have had to pay much higher interest rates. US businesses have been hoarding cash and cutting capital… Read full this story
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