The reports pouring in from international technology research agencies point towards a resurgence of Indian IT industry after its subdued performance for the last two years due to global economic slowdown. It is expected that during 2010, IT outlays are set to increase in the US and other major economies, which is good news for Indian IT exporters. The forecast is based on the positive trends seen for Q4 2009.
Global research agencies Gartner and Forrester Research have come up with similar predictions. While Gartner forecasts a 5.3% rise in global IT expenditure, Forrester is a bit more optimistic with 7.7% growth. Forrester expects the US IT purchases to grow by 8.4% and that of Asia-Pacific region by 8.3%.
Though currency fluctuation is still a concern for Indian IT companies and can end up taking away the sheen of the dollar earned, Forrester forecasts an increase that will more than compensate for declining dollar values.
Various US sectors such as finance and insurance, manufacturing, healthcare and utilities and telecommunications are expected to make a strong come back after below-par performance last year. Forrester has raised the hope of Indian IT exporters by predicting that these sectors will spend 17% of their IT budget on outsourcing.
Both research agencies anticipate that preference will be given to projects offering low-cost benefits, as the focus will be on cost-optimization. However, the spotlight would shift to growth in the latter part of the year.
“With growth prospects still uncertain, CIOs in early 2010 are most likely to get funding approval for IT investments and projects with demonstrated cost-cutting potential. However, by the summer of 2010, the focus of CIOs will start to shift – from technologies that lower costs and improve IT and business efficiency – to ones that can help the business grow,” opines Andrew Bartels, V-P, Forrester, in his quarterly report.
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