Jeffrey W. Hunter
Director

2009 has seen technology usage exiting its worst year ever, and IT spending is on pace to decline by more than an estimated five percent and Enterprise IT spending will struggle even more with spending down near seven percent.

However there is a silver lining in the dark clouds of 2009 for UK companies looking to the US for market expansion. There are four reasons for a better outlook:

1. Budgets have been forestalled for a long time by the uncertain market creating pent up demand soon to be unleashed by the recovery.
2. IT Hardware is aging and hasn't been replaced.
3. Software systems have been left to limp along with minor updates.
4. There is a shift from Capital to Operational Expenditures meaning companies are trying to spend wisely.

The good news is that it is anticipated that the IT industry will return to growth with 2010 IT spending forecast to total $3.3 trillion, a 3.3 percent increase from 2009.  According to Gartner Analysts, while we won't see revenues returning to 2008 levels until 2012, the tide is beginning to turn as pent up demand for upgrades across the board surges.

As an exporter coming to the US, you have the distinct advantage of a favorable exchange rate.  This gives you a leg up with pricing.  Companies are trying to figure out how to do more with less.  If your product helps companies save money, now is the time to be looking at the US market.  Sales Direct is here to help.

Recommended Research Resources

If you are looking to find out more details about the US software/technology market trends, you should consider some of the following resources:

• The Gartner Group (www.gartner.com) - especially if you are selling into the enterprise software/technology sectors, Gartner provides very significant (albeit costly) research. If you intend to compete in the enterprise market you should consider working with Gartner to get positioned in their "Magic Quadrant". Find out more about the Magic Quadrant.
• Forrester Research (www.forrester.com) - Great industry summaries and vertical segment reviews.
• Data Monitor (www.marketresearch.com) - Great company for low-priced reports. One recent report - Software trends in the US is a good one.
• The US Census Bureau (www.census.gov) - great source of general statistics across many different factors in the us. View the US Census Bureau Statistical Abstract of the US. Additionally, you might want to consider the Economic Census available on the Bureau.
• The US Business Census (www.census.gov/econ/census/) - has the latest business information (2007 census, 5 yr business measures, etc).
• ABI Research (www.abiresearch.com) - is a good source for a broad set of research, especially in the wireless arenas.