Does 2012 spell doom and gloom for the tech sector?

Are we heading for another recession? Is it going to be an even tougher year in the tech market? Simon Brew takes a look…

You don't need us to fill you with dire warnings of just how unpleasant the UK's financial climate is likely to be in the months ahead. It seems compulsory, if you're publishing a serious newspaper, to sternly stroke your chin and warn of an absence of cash just around the corner on a regular basis.

But is the IT sector immune to this, or is 2012 set to spell more misery for firms that have only just scrambled back to life after the financial meltdown of 2008? Let's take a look.

How bad it got

The base facts are well known. The UK economy is teetering on the edge of a double-dip recession. Zero growth, or worse, has been predicted. Green shoots of recovery? It's as if they've been sprayed with weed killer.

Advertisement
Advertisement - Article continues below

Retail in general got through December courtesy of good weather and aggressive price cuts, albeit with margins further squeezed. Online retailers fared a lot better, but, as Shopnow retail expert Ellen Flood commented, "Trading statements being released by the high street giants are mixed, while some stores who managed to limp into the new year have already faced administration". The Christmas period, which was supposed to lift businesses out of a rut, didn't have quite the desired effect.

But is the story quite so gloomy in IT? Believe figures from Gartner, and the answer's very much no. The firm's Worldwide IT Spending Forecast predicted that global IT spending would rise by 4.8% to $2,058bn this year, with growth of more than 6% every subsequent year through to 2015. Those figures excluded telecoms services, too, which themselves will enjoy modest further growth.

Featured Resources

The IT Pro guide to Windows 10 migration

Everything you need to know for a successful transition

Download now

Managing security risk and compliance in a challenging landscape

How key technology partners grow with your organisation

Download now

Software-defined storage for dummies

Control storage costs, eliminate storage bottlenecks and solve storage management challenges

Download now

6 best practices for escaping ransomware

A complete guide to tackling ransomware attacks

Download now
Advertisement

Most Popular

Visit/cloud/microsoft-azure/354230/microsoft-not-amazon-is-going-to-win-the-cloud-wars
Microsoft Azure

Microsoft, not Amazon, is going to win the cloud wars

30 Nov 2019
Visit/mobile/mobile-phones/354273/pablo-escobars-brother-launches-budget-foldable-phone
Mobile Phones

Pablo Escobar's brother launches budget foldable phone

4 Dec 2019
Visit/network-internet/wifi-hotspots/354283/industrial-wi-fi-6-trial-reveals-blistering-speeds
wifi & hotspots

Industrial Wi-Fi 6 trial reveals blistering speeds

5 Dec 2019
Visit/hardware/354237/five-signs-that-its-time-to-retire-it-kit
Sponsored

Five signs that it’s time to retire IT kit

29 Nov 2019