Quickly: Forrester predicts a technology slowdown lasting three to four quarters, driven by an expected mild recession.
Forrester uses its extensive primary research with consumers, large companies, and vendors to continually forecast tech spending and the health of the overall economy. Here's what we're seeing.
The financial services sector (investment banks, regional banks, local banks, mutual fund companies, hedge funds, securities firms, credit card issuers, etc.) represents about 18% of the US IT market. The Wall Street portion (Citibank, JP Morgan Chase, Bank of America,Lehman Brothers, Goldman Sachs, et al.) is approximately a third of that, or about 6% of total U.S. IT spending. The troubled firms (Lehman, Merrill, Bear Stearns, AIG, Fannie, Freddie) represent only 2% of IT spending -- this is the portion most in danger of being cut.
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