Technology market researcher IDC predicted that global IT spending from small firms is likely to grow by 5.5 per cent to $629.3 billion (£420 billion) from 2010 to 2014.
However, the organisation noted that this rise is less that it has previously forecast and said small companies' IT expenditure will not return to 2008's levels until 2011, despite a $17.4 billion increase being predicted for 2010 alone.
Ray Boggs, vice president of small/medium business and home office research at IDC, claimed that small businesses lost their ability and willingness to spend on IT because of the 'devastating' effect of the economic downturn.
'Small businesses will not follow the past pattern and return to pre-recession spending levels more quickly than midsize firms. Instead, SMBs of all sizes will remain cautious with their IT spending,' he commented.
Recently Patrick O'Brien, a senior analyst at Ovum, claimed that a growing number of businesses will attempt to cut costs in the economic recovery by using IT outsourcing.
However, the organisation noted that this rise is less that it has previously forecast and said small companies' IT expenditure will not return to 2008's levels until 2011, despite a $17.4 billion increase being predicted for 2010 alone.
Ray Boggs, vice president of small/medium business and home office research at IDC, claimed that small businesses lost their ability and willingness to spend on IT because of the 'devastating' effect of the economic downturn.
'Small businesses will not follow the past pattern and return to pre-recession spending levels more quickly than midsize firms. Instead, SMBs of all sizes will remain cautious with their IT spending,' he commented.
Recently Patrick O'Brien, a senior analyst at Ovum, claimed that a growing number of businesses will attempt to cut costs in the economic recovery by using IT outsourcing.
