1. Analysis & Outlook
Global Technology Market 2014 – IT spending worldwide expected to be better
Forrester Research predicts global technology market will grow by 6.2% to $2.22 trillion in
2014, fueled by an improving economy and growing interest in areas such as mobility and cloud
computing and the market is dominated by United States followed by Europe that is slowly
recovering from recession and even BRIC countries (Brazil, Russia, India and China) too are
recovering from sluggish economic growth and Latin America and Eastern Europe, the Middle
East, and Africa are expected to do well.The report forecasts technology spending is expected to
grow in Brazil (11.6%), Mexico (10.1%), at 11.6% and 10.1%, China and India are also expected
to grow 7.7 % each.
According to Forrester analysts growth will pick up pace in 2015 and forecasted to grow by
8.1%.“Tech Twelve country(Canada, the US, Denmark, Finland, the Netherlands, Sweden,
Switzerland, the UK, Israel, Australia, Singapore, and New Zealand) CIOs can be more
aggressive in their budget plans. Businesses and governments in these countries are eager to
embrace new technologies and feel competitive pressure to do so given the pace of adoption by
competitors in their own and similar countries,” the report said.
Software will account for the largest share of tech spending in 2014, at $568 billion, followed by
IT outsourcing at $442 billion, IT consulting and integration services at $421 billion, computer
equipment with $416 billion and communications equipment at $373 billion, according to
Forrester's report. CIOs will focus their biggest spending increases on software, where growth
globally will be 7.1% (in local currency terms) in 2014 and 10.2% in 2015. Analytics,
applications and software-as-a-service (SaaS) applications are expected to see the fastest growth
of any IT spending category. IT consulting and implementation services will also raise in line
with higher software spending, according to Forrester Research.
Forrester Analysts led by Andrew Bartels expect hardware sales to trailbehind software but the
tablet market is expected to perform well dragged by slow and modest growth in laptops and
PCs. The report also notes that spending on technology such as software as a service, mobile
devices and tablets, platform-as-a-service (PaaS); smart computing and big data, real-time
predictive analyticsand big data tools will grow in 2014. IT outsourcing will be one of the
weaker segments in 2014 and it will pick up in 2015, according to the report. Global technology
market had seen a tough demand conditions in the past two years and the growth rates had been
low which is expected to slightly pick up in 2014 and analysts predict a good growth in 2015.
Economic and political instability in many countries across the globe are also a major concern
for the technology market growth. Indian market will also see sluggish growth as there is
General elections this year and political instability is major concern for the economy.