Forrester also beleives the global IT market is not far behind. The very weak Q1 results in both the US and the global market, and likely similarly poor results in Q2, mean that 2009 growth forecasts are lower than before, with the US IT market now expected to shrink by 5% in 2009 and the global IT market to drop by 11% in US dollars.

Computer and network equipment vendors have been especially hard hit, with licensed software revenues and IT outsourcing also weak. However, the weak results in the first half of 2009 also mean that the market will hit bottom sooner, setting a low base from which positive year-over-year growth will start to occur in Q4 2009 and into 2010. Vendors can start to look beyond the downturn and get prepared for a strong tech recovery in late 2009 and 2010.

Image source: Asteel