Look for a Tech Sector Rebound: Gartner Research
By: The technology sector will start to rebound in the fourth quarter, said Peter Sondergaard, head of research at Gartner.
(See the accompanying video for the complete interview.)
Although IT spending dropped 5.2 percent in 2009, he said, the market is expected to rise 3.3 percent to $3.3 trillion in 2010.
“This will go down as the worst year for IT, but we’re already seeing the recovery,” he said.
Although the sector's worst performer, hardware has seen a drop of nearly 17 percent this year, tech's best performers will be software and service, said Sondergaard.
“What you’re going to see is technology providers, for example, such as Salesforce.com , in the software space, EMC with virtualization environments, and also providers in the services space such as Accentureand really the large bellwether organizations such as HP and IBM start to gradually recover at the end of the first quarter next year,” he said.
Consumer spending on PCs in China and Korea has prompted investments in PCs for home usage. And the smart phone market is also expected to lead some level of recovery next year, he said.
Meanwhile, vertical industries such as health care, utilities and the public sector are prompting economic growth as well.
“Government sort of becomes the emerging market of 2010,” he said.
More Technology News on CNBC.com:
- Kindle Holds Lead as e-Reader Field Gets Crowded
- Fake Security Software in Millions of PCs: Symantec
