The first days of New Year showed positive results for IT industry as Semiconductor Industry Association reported a growth in global sales. Worldwide semiconductor revenue reached $22.6 billion in November, an 8.5% increase from a year ago and a 3.7% gain from a month earlier. That news helped rally tech stocks today, which finished the day with across-the-board gains.

However, some market analysts, including market researcher Computer Electronics include in their forecasts a generous dose of caution. In a survey of 139 IT executives at US companies, conducted by Computer Electronics 29 percent of those surveyed cut their budgets in the last three month, but only 16 percent plan to make cuts in 2010. Also, while 52% of those surveyed expect to increase IT spending next year, their budgets will only increase by about 2%, which is less than the rebound from the previous downturn.

Frank Scavo, president of Computer Electronics emphasized that IT spending will be better in 2010 compared to last year, as many IT executives think that recession is behind and look forward to a period of stability. However, Mr.Scavo thinks that IT executives will hold back on spending in the first part of the year to ensure they have ability to cut budget if economy limps. Therefore the slight increases planned for first part of 2010 does not fully restore budgets to where they were in 2007 and 2008. "There is still a lot caution that the recovery may be shallow and there may be a risk of a double dip recession," Scavo said.