Forrester predicts sustained IT growth for 2011

The global IT market is predicted to enjoy sustained growth and an accelerating shift into computing services, according to a new report from Forrester Research.

The analyst house estimates that the market will grow 7.1 per cent in 2011, down slightly from last year. However, the nature of the growth will change.

The market grew 7.2 per cent in 2010, but this was largely down to companies buying services and equipment after deferring such purchases in recent years. Growth rates in 2011 will represent new investment rather than replacements.

"2010 ended with debt worries and questions about the future of the euro in Europe, doubts about the strength of the US recovery, and worries about overheated economies and higher inflation in China and Latin America," said report author and Forrester principal analyst Andy Bartells.

"Despite these uncertainties, the global economy should continue to grow in 2011 and 2012, although with different areas of strength and weakness. Vendors will need a different playbook to succeed in this shifting tech market."

Growth will be fastest in Latin America and the eastern EMEA regions, with Asia Pacific and the US also strong and the EU bringing up the rear.

Software and services will be a big growth area as companies feel more comfortable about the long-term spending required to invest in these areas.

Sales of communications equipment are expected to be weaker to suppliers, but businesses are investing in unified communications.