Software as a service ‘saved’ the year of the ICT segment – Digital Convergence

The economic downturn is not preventing the ICT sector to grow worldwide. Forrester’s report, for the first time included telecom services – indicates that the segment is expected to reach US $ 2.9 trillion in 2016, which will mean an increase from 4% to 5%

This growth. However, warns consultancy, is based on the expectation that the US economy will continue to grow and European and Japanese economies will present a revival in the next two years. About Brazil, the consultancy says that growth will remain, but well below expectations.

Find out which are the major trends for the biennium 2016/2017 for advice.

1. Moderate global growth will remain below 5%

The strong dollar will persist in 2016, resulting in lower growth rates in dollars. However, Forrester predicts that the dollar lost his breath in 2017, so the consulting projects growth of 4.9% in US dollars.

2. US IT market will grow by 5%. Brazil grows little

The biggest technology market by far remains the United States. For this reason, the sector in the country will jump above the global average, with expected rate of 5.1% in 2016 and 5.9% in 2017. Forrester believes in rapid growth of the IT market in India, Mexico, Sweden, China , Poland and Israel, with 6% or more in 2016, while Canada, Australia, South Korea and most other European countries will grow more slowly. Japan, Brazil and South Africa will grow very little, while the Russian technology spending will shrink.

3. Business Technology (BT) will act as an engine of growth in growing markets

In 2016 and 2017, spending on what Forrester calls Technology business – or technologies that help businesses gain , serve and retain customers – will account for more than half of total spending on new projects in 2016 and 2017.

In countries with growing industry, business and technology leaders will invest heavily in new projects that support this agenda. Meanwhile, spending on traditional information technology will continue to dominate the total expenditure of technology, especially in emerging markets. The consultancy forecasts that investment in BT reach US $ 827 billion worldwide by 2017.

4. Cloud adoption and analytics result in rapid expansion of software and services

Software as a Service (SaaS) will push the global software market in the next two years, with the focused adoption of CRM tools for human capital management, ePurchasing, financial management and analytics. According to the consultancy, technology managers and business leaders will invest heavily in analysis in the form of BI applications, cognitive-analytical solutions and embedded applications. Software in these areas will pull spending on consulting and system services to maximize the value and security of these systems.

* With information from Forrester