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…

So then: given the state of those numbers, is there still space for worry in the market? Inevitably, yes.

The Challenges

Firstly, Gartner, six days into 2012, revised its growth figures downwards, which did little to stem fears of a New Year hangover. There will still be spending gains across IT, but Gartner has moved its number for overall growth nearly a full percentage point down. Furthermore, there's continued uncertainty in many markets include Europe that means it'd be folly to rule out a further reduction in that forecast as the year moves on. It is, after all, a forecast at heart, and given circumstances show little immediate sign of improving, it's a figure that may yet get revised downwards again.

On top of that, as buoyant as some of the figures are, the problem here is that Gartner's research is based on worldwide spend, and inevitably, it's fast-growing, emerging markets not the UK, then that are shouldering most of the rise.

Advertisement - Article continues below
Advertisement - Article continues below

According to numbers from Ovum, for example, it's economies in the Asia-Pacific area that are set to grow the fastest in the retail banking technology sector, with Western Europe experiencing the lowest levels of growth. That's a story replicated across other areas of the market, too.

For sizeable firms with a global reach, the burgeoning markets are clearly very good news. But for small and medium sized business, that is looking for opportunities in already-mature geographic markets, it's more troubling. Certainly, Europe-centric businesses are facing some hefty challenges, and the IT sector offers no exception.

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

Most Popular

identity and access management (IAM)

44 million Microsoft customers found using compromised passwords

6 Dec 2019
Microsoft Azure

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

30 Nov 2019
Microsoft Windows

This exploit could give users free Windows 7 updates beyond 2020

9 Dec 2019

Five signs that it’s time to retire IT kit

29 Nov 2019