6-8% in 2004: IDC
Jan. 04, 2004
By Erwin Lemuel G. Oliva
INQ7.net
INFORMATION technology spending will grow by 6 to 8 percent in 2004 due
to a more optimistic US market and pent-up demand after years of
austerity, research firm International Data Corp (IDC) said.
In its "IDC Predictions 2004: New IT Growth Wave, New Game Plan" report,
the research firm labeled 2004 as a year of "technology resurrection."
In 2004, consumer spending on technology will become stronger, offshore
IT outsourcing will continue, and the wireless technology adoption (mainly
due to mobile phone technology boom worldwide) will flourish, IDC added.
Indeed, the rosy picture for 2004 has boosted the technology-dominated
stocks in Nasdaq. The Nasdaq composite index went past 2,000 points at
the end of 2003 and closed at 33.34 or 1.7 percent at 2,006.48 -- the
highest in nearly two years, reports indicated.
IDC indicated that the improvement of the US economy in the recent weeks
has contributed to a more positive outlook for IT spending in 2004.
This optimism, IDC noted, will drive IT spending and generate better
prospects for enterprises that are considered the biggest spenders in IT.
IDC, however, said that a better spending environment will not mean more
jobs for the high tech industry specifically in the US.
The movement of IT jobs offshore will persist in 2004 and in the coming
years. IDC predicted that the value of IT services provided to US
businesses from offshore labor will double to 16 billion dollars next year
and further shoot up to 46 billion dollars by 2007.
