Economists have also pointed out the fear of a double-dip recession, with the US still reeling on a jobless rate of 9.4% in December 2010 and the EU struggling to return to growth. Infosys COO, S D Shibulal, said, It is important to view that we are operating in a volatile environment and it is going to impact on our secular trends. Budgets are getting closed marginally up though. Forrester Research on Thursday said the global IT market will grow by 7.1% in 2011, down just a tad from 7.2% growth in 2010. The high budget deficits and debt-to-GDP ratios in Italy, Spain, Belgium, Greece, Ireland, and Portugal are going to laggard the overall technology investments.
Currency volatility is going to remain major concern for the tech industry. The dollar movement can distort the expected spend trends in local currencies. The biggest impact of looking at the global IT market on a currency-adjusted basis is on the rates of growth, Andrew Bartels, principal analyst with Forrester Research said.