GO
Loading...

Look for a Tech Sector Rebound: Gartner Research

Monday, 19 Oct 2009 | 10:55 AM ET

The technology sector will start to rebound in the fourth quarter, said Peter Sondergaard, head of research at Gartner.

Tech in 2010
Peter Sondergaard, head of research at Gartner, tells CNBC which areas of technology will likely come out on top in 2010.

(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:

  Price   Change %Change
ACN
---
CRM
---
EMC
---
HPQ
---
IBM
---
EMCI
---

Featured

Contact Technology

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More
  • Matt Hunter is the senior technology editor at CNBC.com.

  • Cadie Thompson is a tech reporter for the Enterprise Team for CNBC.com.

  • Working from Los Angeles, Boorstin is CNBC's media and entertainment reporter and editor of CNBC.com's Media Money section.

  • Jon Fortt is an on-air editor. He covers the companies, start-ups, and trends that are driving innovation in the industry.

  • Lipton is CNBC's technology correspondent, working from CNBC's Silicon Valley bureau.

  • Mark is CNBC's Silicon Valley/San Francisco Bureau Chief covering technology and digital media.