Tech Market Spending Will Drop By 3.1 Percent in U.S. Dollars in 2015, Forrester Forecasts

ForresterLogoForrester Research forecasts that the strong dollar will drop global tech markets by 3.1 percent in 2015 (as measured in US dollars) — even though most countries will see the market grow by 3 percent or more in their own currencies. This raises challenges and opportunities for both chief information officers (CIOs) and technology vendors.

At the midyear point in 2015, CIOs in most countries were operating in tech markets with moderate growth of around 4 percent in local currencies, a bit weaker than Forrester projected in January 2015.

However, U.S. tech vendors with significant overseas sales are experiencing declines in their revenues, thanks to the strong dollar. As a result, the global tech markets measured in US dollars will drop by 3.1 percent this year.

This dichotomy presents both challenges and opportunities for CIOs. Those in the US and other countries with above-average growth rates can push for budget increases of 5 percent or more.

In other countries, more caution will be warranted, but the strong dollar will present opportunities to buy U.S. software and other products at cheaper prices.

The report also identified that, while the tech market has seen better days, the strongest categories include software and services, circling back to the focus on business technology (BT) — which accounts for a third of global tech purchases — and the need to win, serve, and retain customers.

Further, $363 billion, which is 54 percent of global new project purchases, will be allocated to new BT goods and services, including the fast-growing mobile, cloud, and analytics technologies that represent the agenda.

(For more information visit https://www.forrester.com).