Tuesday, August 03, 2010

Strong IT Spending Growth Predictions from Forrester Assures IT Sales & Marketing Success?

George Colony, CEO of Forrester, in Forrester's most recent earnings conference call, indicates that: "As we move beyond mid-year, Forrester continues to predict growth in the IT market both here and abroad."

This is good news for IT vendors, who were predicting that perhaps the issues in Europe or US unemployment would put a damper on growth in the second half of 2010.

Forrester indicates to the contrary, with analyst forecast for a tech spending increase of 9.9% in the U.S. for the full year 2010, and 7.8% globally.

Growth is expected to be led by computer equipment and software spending, growing a dramatic 19.4% and 10.5% respectively.

The areas of slower growth include: IT services at 6.4%, Asia Pacific at 7.8%, and Western and Central Europe at 4.1%.

The growth figures predict a good time for most IT sales and marketing teams, however, not all analysts are predicting such expansive growth and good times. Both Gartner and IDC lag in their IT spending predictions by 4-5% less than Forrester's estimates -  so why such a difference?

Evidence points to Gartner and IDC looking more at formal budgets vs. actual spending, with Forrester highlighting high discretionary spending. This means that IT decision makers will be lobbying for incremental projects, making the case and getting approval for the most worthy investments. Based on the discretionary spending opportunity, the successful vendors in 2010/2011 will work proactively with prospects to uncover needs, and have strong business cases ready to capture the ad-hoc spending increases.

The full transcript is available via SeekingAlpha at: http://seekingalpha.com/article/217395-forrester-research-inc-q2-2010-earnings-call-transcript?

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