The improving economy will lead to organisations spending more on software and IT services according to analyst Forrester.
In a new Forrester paper, A Better But Still Subpar Global Tech Market In 2014 And 2015, analyst Andrew Bartels wrote that the improving global economy will generate cash flow to support the purchases of new mobile, cloud, and smart technologies that are transforming business.
Spending growth is being led by new technologies such as SaaS, mobile devices and tablets, analytics and big data, and smart process applications.
According to Forrester, software and IT consulting and systems integration services will have the fastest growth in 2014 and 2015. Forrester estimated that purchases of software by business and government will grow by 7.8% in 2014 and 11.4% in 2015.
Spending on IT consultancy was the highest in 2013, since 2010, and will continue to grow by 6.8% in 2015 according to Forrester. Software, which grew by only 2.1% in 2010, is expected to grow 10.2%, Forrester estimated.
Overall, Forrester estimated that the global technology market will grow by 5% to 6% in 2014. The report also said 2015 will be a stronger year but IT purchases will lag behind economic growth rates.
The Northern European countries of the Nordics and the UK, which spend the most on technology relative to their economy, will see IT spending increases of 3% or more in 2014 and 5% or more in 2015, Forrester predicted.