The Tech Market in 2018
According to Forrester, the growth in purchases of technology software, hardware, and services by European businesses and government measured in Euros will increase by 2.2 percent in 2018, while for the USA they will face a growth ratio of 4.8% in 2017 and 5.2% in 2018.
Highlight of the European Tech Market
In the European Tech Market businesses would increase software spend by 2.5 percent in 2017 and 3.5 percent in 2018, and Tech consulting and systems integration services will increase by 2.8 percent and 2.2 percent, respectively. Sectors like communications equipment, telecom services, and tech outsourcing will face a comparatively lower growth of 1% or less in both cases. Computer equipment purchases will grow by 3% in 2018.
Technologies involved in helping businesses and government succeed, serve, and retain customers will gain more attention further as economic growth accelerators. Software products- CRM, eCommerce, contact centers, and customer data analytics, services- mobile strategies, digital marketing, customer data analysis, and CRM implementations, and selected hardware products- Internet of Things sensors and digital signage will make up for the European Technology market and grow at the rate of 6% to 7%, three or more times faster than the overall tech market. BT spending growth will be particularly strong in the Nordic countries; moderate in France, Germany, Spain, the Benelux countries, and the UK; and weaker in Italy, and Switzerland where growth is slowest.
With European economies poised for modest growth, and the prospects of better growth with the right policies, European CIOs should make room in their tech budgets to fund their agenda for winning, serving, and retaining customers, and its technologies to help grow their organizations’ revenues.
Highlight of the US Tech Market
The Business Technology spending in US will rise twice as fast as IT spending. It will grow by 9% in 2017 and 8.4% in 2018, in comparison to IT spending which will increase by 2.7% in 2017 and 3.5% in 2018. Cloud platform services will grow at rates of 25% to 30%. Cloud application (e.g., SaaS) subscription fees will exceed license and maintenance fees, ultimately driving overall software spending growth.
Spending on tech consulting services and on tech staff will raise at 6% or higher rates, as firms add internal and external resources to support their adoption of cloud solutions, analytics and big data, and mobile. However, the cloud’s positive impact on the software, services, and staff parts of US tech budgets continues to be mitigated by its cannibalizing effect on computer hardware and traditional tech outsourcing spending.
What does this mean for your B2B Business?
Along with all the changes triggered by new technologies and platforms such as cloud and mobility, the end customer is changing as well. The end customer today is quite likely to be the chief marketing officer, for example.
The end customer today often knows a lot about the technology they want to buy and possesses a fair amount of leverage in terms of price transparency and deal negotiation. The end customer knows that long-term contracts for managed services don’t follow the more open-ended commitments that cloud-based solutions often entail. As a result, how channel firms interact and appeal to end customers will need to adapt.
Prepare for 2018
Overall growth in the worldwide technology market points to a modest improvement next year. B2B businesses like yours are already gearing up to showcase their solutions, services, and products. Today, the success of your business relies greatly on how well you understand the clients’ point of view.
We at Span Global Services believe the same. Even after setting early sales goals, businesses’ fail to reach buyers on time. This occurs mainly due to lack of in-depth information about the buyers’ journey and decision-making process. Thereby this is the best time for your B2B business to roll out multichannel marketing campaigns and drive targeted Email marketing campaigns across the technology industry.
We help your marketing and sales teams to understand the typical buyer challenges, business processes, previous challenges, pain points and current solutions of a new prospect or an existing client in the technology industry. Our deep-rooted experience in data and data-driven marketing solutions helps sales teams to strategize the right solution at the right time and build a long-term relationship with your B2B Clients/customers.