Tech Spending Looks Up in Asia, E.Europe

    Date: 11/26/04 (Offshore Programming)    Keywords: software, technology

    Tech Spending Looks Up in Asia, E.Europe

    WASHINGTON (Reuters) - Spending in Eastern Europe and Asia is expected to lead a recovery in the global technology market over the next three years, according to an industry report released Tuesday.
    After years of sluggish growth, technology spending is expected to climb steadily through 2007 as China, Poland and other countries in the developing world invest heavily in hardware, software, networking equipment and services, according to a study commissioned by World Information Technology and Services Alliance, an industry trade group.

    Total spending should hit $3.2 trillion in 2007, up from $2.1 trillion in 2001, the report said.

    Spending in Asia and the Pacific Rim is expected to grow quickest at 9.3 percent annually, while spending will increase in Europe, the Middle East and Africa at a rate of 8.9 percent per year.

    Technology markets in North and South America will grow at a 6.7 percent annual clip, according to the report.

    In the face of higher growth elsewhere, the Western Hemisphere is expected to account for 44 percent of the market, down from 46 percent in 2003, the report said.

    As developing countries jump in the tech game their influence is expected to grow accordingly, the report said.

    "Although the dominance of the developed world (in technology) is not likely to change soon, the developing world can no longer be ignored or considered irrelevant," the report said.

    The report was produced using data provided by consulting firm Global Insight Inc.

    The U.S.-based World Information Technology and Services Alliance is a group of 65 technology trade groups from around the world.


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