According to Forrester, a research company, dealing with business and technology, the purchases of IT goods have proved just another prey to the global economic recession encompassing 2008-2009, thanks to the diving interest of business segments and governments worldwide.
More clearly, the purchases of IT goods and services is set to experience a drop of almost 3 percent this year. In other words, this frightening loss of $1.66 trillion marks the end of a continuous growth in this field which carried on for last seven consecutive years.
More importantly, the ongoing market recession had least effect on IT purchases in 2008 as this business segment had touched a hike in its sales up to 8 percent. However, such a slump in the IT goods sales is not something new. The market had seen such a decline of 6 percent, way back in 2001 and 2002 too.
The report is based on the ability of purchasing things such as communication equipments,IT consulting and integration services, computers, software etc by the governments and business segments, globally.
Moreover, the research agency predicts a definite revival in the situation, but not before the beginning of the second half of 2009 and a complete escape from the losses in 2010. “For IT vendor strategists, the global IT market will be a gloomy one in 2009, with prospects of improvement in 2010,” says Andrew Bartels, Forrester Research vice president and principal analyst.
Ironically, such slump is only obvious when we evaluate the market of IT goods purchases in terms of US dollars. The conditions are not that much gloomy in respect of regional and local currencies worldwide.
If the IT goods purchases evaluated in local currencies, the loss of 3 percent will turn into a profit of 1.6 percent, globally. More specifically, for the combine of the Middle East, Eastern Europe and Africa, the market shows a growth of 5 percent, while Western and Central Europe will notice a high of 1.3 percent. Asia pacific too expects a growth of 3 percent.
Though such a situation brings a sigh of relief for non-US businessmen, the current currency fluctuation has brought a double jeopardy for the US businessmen. "The fact that 2009 IT purchases growth is so much weaker in U.S. dollars than in local currencies means U.S. vendors with significant overseas business will feel a double dose of pain, as both the economic environment and currency market will work against them for much of 2009,"Andrew Bartels says.