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Profits across the US technology sector are surprisingly high, according to research firm Forrester

“Surprisingly strong” financial results this year “have delayed, not cancelled” a recession in the US technology market, according to a report by Forrester Research. The firm predicts a slowdown in the early part of 2009, followed by a “buying surge” into the later months of the year.

“The subsequent 2010 recovery will be broad-based, benefiting all sectors of the tech market with the exception of IT outsourcing,” claims Forrester analyst Andrew Bartels.

According to Bartels, there will be a bounce back in investment in computer equipment, with the subdued 2008 growth rate of 2.8% to 6.8% in 2010.

“Just as CIOs’ first actions in a slowdown are to defer capital investment in servers and personal computers, by the start of 2009 they will need to start reinvesting to replace worn out and old equipment,” he says, but added that growth in server virtualisation, cloud computing and software-as-a-service (SaaS) tools could reduce the demand for servers and higher-powered PCs.

Forrester also predicts the growth in outsourcing market will slow (to 5%), as companies “focus more on getting their hands on new, emerging technologies rather than outsourcing these technologies”.