IT statistics shows that the global technology market has slowed down within the last decade, as compared to the massive boost it experienced in the late 1990s. And although rapid growth of the IT market is not expected any time soon, the recent forecast by a research company Forrester predicts stable modest growth in 2014 and 2015, as compared with 2013.
According to the forecast, improving economies in the USA and other parts of the world will have a positive influence on the tech market, increasing the spending on new mobile, cloud, and software technologies for businesses. On the other hand, because of the economic uncertainty and conservative IT purchasing practices, the growth of the market will not exceed 7%.
Information technologies purchases are expected to grow at 5.5% in 2014, which is slightly better than the 4.3% global growth in 2013. 2015 will be better still, with the predicted growth rate of 6.9%. The forecast expects the overall value of the global technology market to reach $2.22 trillion (which includes hardware, software, and IT services). It is worth noting that hardware sales will be doing worse than software, with only the tablet market forecasted to perform well.
The USA is predicted to remain the leader in the industry, followed by Latin America, Eastern Europe, China, and India. While the US market is expected to grow at 6.3% in 2014, the growth forecast for Brazil and Mexico is 11.6% and 10.1% respectively. Tech markets of China and India are predicted to grow at 7.7% each.
The US market growth, according to Forrester, is directly related to software market growth, the United States being the leading provider and buyer of software, including mobile apps, analytics tools, and software-as-a-service solutions. SaaS is one of the strongest performers in the market: its annual growth has been over 20%, and it’s expected to continue growing at this rate.
It is safe to assume that the large share of the IT market in Eastern Europe, Latin America, and Asia belongs to IT outsourcing, represented by companies that offer project outsourcing and dedicated offshore development for the US and Western European businesses. Both outsourcing models have proven effective, though more companies are choosing to set up their own offshore development center due to more transparency in tracking the project and better cooperation of the in-house and the offshore team. Even though the spending on IT outsourcing, according to the forecast, will grow slower than the technical market in general, the tendency remains positive.
The global tech market is growing slowly, but steadily, and Forrester mentions it’s a good time to invest in the tech industry: “Make purchases now, before prices start to rise.” With that in mind, 2014 seems to be the right time for investing in an offshore development center in one of the leading tech regions.
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