Forrester: IT Improving But Signs of Slow-Down

Posted on December 12, 2005

InfoWorld reports on a new Forrester study that finds the IT industry is currently growing but that there are also signs of a slow-down and a possible "mild" downturn in 2007.
"Any suggestion that information technology is yesterday's news, doesn't matter, or has lost its edge as an economic driver is just plain wrong," Miller said. "In fact, major trends indicate the opposite is true."

But Forrester officials said there are some signs of a slow-down ahead. Early reports have chief executive officers (CIOs) confidence measures down in the last quarter of this year, and large U.S. companies are projecting only small budget increases for 2006, Forrester said. The U.S. tech industry could see a "mild" downturn in 2007 after an up-and-down 2006, said George Colony, Forrester's chairman and chief executive officer.

The tech industry has "clearly recovered" from the recession of 2001-02, Colony said.

The two organizations didn't release in-depth details of the guts of the index during a press conference, but they noted that there's been steady improvement since 2003.
There are many IT workers who have seen little if any salary increase over the past few years that would argue with Forrester's report.