IT Pro is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more

Tech leaders positive despite US economic woes

Latest figures suggest sluggish spending on consumer and enterprise IT in the US, but leading technology companies are still bullish about the prospects for the market going into 2008.

Investment in IT may be slipping down the list of spending priorities for US businesses, as economic realities hit home, yet leading technology industry leaders remain confident about the prospects for the industry.

The reason for such confidence is simple - overseas growth fuelled in part by the UK and Europe, but mostly by emerging markets such as China.

Following a Lehman Brothers investor event late last week, some technology industry executives said overseas growth could counter reduced sales in the US.

Networking giant Cisco alarmed the stock market last month when chief executive John Chambers said the company was seeing "dramatic decreases" in orders from US financial and manufacturing companies.

But this week, Cisco chief financial officer Dennis Powell said what he hears from other executives is not too bad.

"If you ask them what's happening with their business and what do they see, they see it as being solid," Powell added.

Those comments come on the heels of a report from research firm IDC that forecast global technology spending growth would slow in 2008. IDC sees spending growth between 5.5 per cent and six per cent next year compared with seven per cent in 2007.

In the US, spending growth will fall to between three and four per cent next year, compared to 6.6 per cent this year.

However, IDC forecasts that technology spending in Brazil, Russia, India and China and nine other emerging countries, including Poland and Mexico, is set to grow 16 per cent in 2008.

"It's maybe a tad softer from a few weeks ago or a month ago, but not nearly enough to offset the strength we see in the other parts of the world," said William Humes, chief financial officer of Ingram Micro, the world's largest computer products distributor, while speaking at the Lehman Brothers event.

Featured Resources

Big data for finance

How to leverage big data analytics and AI in the finance sector

Free Download

Ten critical factors for cloud analytics success

Cloud-native, intelligent, and automated data management strategies to accelerate time to value and ROI

Free Download

Remove barriers and reconnect with your customers

The $260 billion dollar friction problem businesses don't know they have

Free Download

The future of work is already here. Now’s the time to secure it.

Robust security to protect and enable your business

Free Download

Most Popular

How to secure your hybrid workforce
Advertisement Feature

How to secure your hybrid workforce

23 Sep 2022
What your hybrid workforce needs from their laptops
Advertisement Feature

What your hybrid workforce needs from their laptops

21 Sep 2022
Why collaboration is key to digital transformation
Sponsored

Why collaboration is key to digital transformation

13 Sep 2022