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Tech Research Firms May Ride Out Slump
Downturn notwithstanding, 2008 could be a good year for tech research consultancies like Gartner and Forrester, according to analysis by sector specialist Outsell. VP and Lead Analyst Louise Garnett says the firm is forecasting 9-10% revenue growth for the sector over the year.
In addition to strong Q1 reports from the public companies in the sector, which Outsell calls the ITTRRS market (IT & Telecom Research, Reports & Services), the analyst talked to private companies and found them 'echoing the same strong but cautious growth.' It also looks for 'bellwether' indicators such as drops in report sales or gains in custom revenue at the expense of continuous, both of which are said to indicate possible recession, but says neither is manifest so far.
From ongoing conversations with others in the Top 15 firms in the sector, Outsell says 'Our sense for the first quarter from both the public companies as well as the private is that no one is reporting a down market. Most are reporting more cautious buyers but business is still doing well in spite of economic concerns.'
The high tech sector that the ITTRRS companies serve also continues to do well, says Outsell, although the firm notes that 'the overall information market typically lags a down economy by approximately three months'. According to Garnett: 'The next quarter will be the proving ground for the year but the signs thus far are for a year of solid but cautious growth.'
Colorado-based Outsell provides research and advice for the information, publishing and education industries and is online at www.outsellinc.com .
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