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Forrester Updates Outlook For Global And US IT Purchases In 2009
Global purchases of IT goods and services by businesses and governments in 2009 are projected to decline by 10.6 percent when measured in US dollars, compared with the 3 percent decrease previously projected at the beginning of the year by Forrester Research, Inc. The latest quarterly update of Forrester's IT spending outlook also projects a 5.1 percent decline in the US annual IT market, compared with the 3.1 percent decrease previously forecast. New data about large declines in business technology investment during the first quarter prompted Forrester to update its forecasts for technology spending. On a positive note, Forrester still expects growth in US IT investment to resume in Q4 2009, and 2010 is expected to bring a revival of IT buying in other markets as well.

Looking at the 2009 global IT spending outlook by sector, Forrester anticipates lower investment than previously expected across all categories. Forrester projects purchases of computer equipment to be down by 13.5 percent, communications equipment buying to drop by 12.4 percent, software spending to decline by 8.2 percent, and purchases of IT consulting and outsourcing services to be 8.6 percent lower.

IT Salaries Fall - Demand Down for IT Professionals
Janco released its 2009 Mid Year IT Salary Survey which shows that overall pay has declined for IT Professionals in the past 18 months. Janco also found that demand is down for IT Professionals. The most striking observations are:

  • Many companies have instituted hiring and spending freezes in addition to laying-off of staff. This has been augmented by extensive outsourcing, bonus reductions, and elimination of IT contractors -- which has decreased the demand for IT professionals and in some cases lowered wages, with higher priced positions being eliminated.
  • Layoffs have focused on middle management and IT support staff.
  • Many mid-sized enterprises have stopped hiring all together.
  • Companies are continuing to reduce the benefits provided to IT professionals. Though benefits such as health care are available, IT professionals are now paying a greater portion of that cost.
  • With outsourcing, lower bonuses, and the recent layoffs there has been a slight decrease in the mean compensation paid to IT professionals. In addition, with the fall in the Janco Benchmark it is shows that hiring "new staff" has significantly declined.
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