Spending rebound predicted

The global economic slowdown put the brakes on significant amounts of IT spending. But recent reports from Framingham, Mass.-based research company International Data Corp. indicate a rebound is on the way as early as 2002. The reports, including “After the Crash: Where Do We Go from Here” and “Global IT Economic Outlook, 2001,” paint a picture of an economy – and IT budgets – ready for growth in the coming months. According to IDC analyst Kevin White, the reasons are simple: Fundamental IT drivers – the desire for additional productivity gains and the continued emergence of the Internet – will force companies to implement new technologies.

Those needs, combined with renewed economic momentum derived from interest rate cuts and signs of stability in the stock market, will begin to affect IT spending during the coming year. White also pointed to projections for future e-commerce spending – worldwide growth from US$350 billion in 2000 to US$5 trillion by 2005 – as signs that IT spending can’t stay flat for long.

“We’re not anticipating that there’s going to be an overnight recovery,” White cautions. But at least it appears that better times are on the way.

Would you recommend this article?

Share

Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.


Jim Love, Chief Content Officer, IT World Canada

Featured Download

Featured Articles

Cybersecurity in 2024: Priorities and challenges for Canadian organizations 

By Derek Manky As predictions for 2024 point to the continued expansion...

Survey shows generative AI is a top priority for Canadian corporate leaders.

Leaders are devoting significant budget to generative AI for 2024 Canadian corporate...

Related Tech News

Tech Jobs

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.

Tech Companies Hiring Right Now