IDC said spending on technology by global corporations slumped 4.1 percent a year ago while in 2000 it registered a growth of 10.4 percent.

"The recent development in the US economy gives us a positive outlook," said Traci Gere, IDC's group vice president services.

"There was rapid growth during the current quarter and that itself is an engine for growth (for technology spending)," Gere told delgates at an outsourcing conference of India's premier IT event, BangaloreIT.com.

US economic growth in the third quarter hit a 19-year high of 7.2 percent, fuelled by consumers opening wallets fattened by tax rebates.

It was stunning evidence the economy was bouncing back from the technology sector collapse of the late 1990s, the September 11 attacks and the impact of the Iraq war.

"There is much more optimism across all sectors including hardware, software and services now," Gere said.

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