Global business and government spending on IT products and services in US billions.
Worldwide tech spending will vary greatly depending on geography in 2013 and 2014, a Forrester report has found, and software sales of the mobile, cloud and smart app variety will lead the way, particularly in the US.
Software Market Tops Growth, Driven by Smart + Cloud Computing
As the image above shows, software overall will see the largest share of tech spending in 2013 and 2014, and it will be driven by companies' needs for smart and cloud computing, Forrester predicts. Within its defined segments, Forrester notes, process applications is the largest, but information management systems like analytics has been the fastest growing.
Forrester has begun breaking out its market for forecasts to include Saas software and smart process apps revenues. Saas applications like CRM and ePurchasing, desktop applications and security and application development categories will grow by 25% in both 2013 and 2014, the Mixed Outlook for the Global Tech Market in 2013 and 2014 report predicted.
Similarly, analytics and smart process applications like social business and collaboration tools will see double digit growth, a rate that is significantly faster than the overall software market.
IT Services Up, Hardware Stagnate
IT services like systems integration and consulting, and outsourcing and maintenance both will be up by 2014, but will take different routes to get there, Forrester predicted. Specifically, IT systems and integration services should grow by 6% and 7% in each of 2013 and 2014 respectively. That's because companies are starting to implement their new technologies they previously had been spending research dollars on.
Consulting and outsourcing, including maintenance, will be flat or down in 2013 before bouncing back in 2014. As for hardware, we've already seen some the lousy numbers for PC sales worldwide, and Forrester backs that data up here. Execpt for tablets, the computher hardware market will stagnate, and Forrester predicts governent and businesses will increase spending on tablets by 36% in 2013.