IT Hiring, Spending Prospects Drop: CDW ReportBy Channel Insider Staff | Posted 2011-10-19 Email Print
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While the spending forecast looks lower for IT hardware, the report noted increases in software spending and more optimism in small business and healthcare IT.
The latest CDW IT Monitor revealed lower expectations for budget increases and hiring, along with a drop in overall hardware spending. However, the report noted increases in software spending and a more optimistic outlook in key sectors, including small business and healthcare IT, brought balance to the broader IT sentiment. While the latest wave of the CDW IT Monitor noted numerous fluctuations among sectors and industries surveyed, the comprehensive figures indicate that, on the whole, IT sentiment is holding steady. The Six Month Growth Outlook, which measures long-term anticipated investment, decreased one point from June to 67 and was unchanged from one year ago.
Despite ongoing economic uncertainties, the overall outlook remains relatively stable, said Neal Campbell, senior vice president and chief marketing officer of CDW. This shows that while IT decision-makers are evaluating and scrutinizing their investments, they are still spending, especially in areas such as software and security."
Investments in IT solutions remain a priority in both corporate and government, according to the report, but the weak budget outlooks did impact spending potential in the next six months. In the IT solutions category, security now tops the list of IT decision-makers' priorities. Fifty-nine percent of those IT decision-makers who are spending more on solutions this month will spend on security.
Hardware and software investments over the next six months are expected to increase for state and federal government. According to the latest CDW IT Monitor, hardware investments at the state level will increase one percentage point to 84 percent and five percentage points at the federal level to 90 percent. The six-month outlook for software climbed five percentage points for government organizations at the state and federal levels, reaching 82 percent and 91 percent respectively.
While six-month anticipated hardware spending dropped among medium and large-size businesses, 87 percent of medium and 90 percent of large-size businesses are still committed to hardware investments. On the software front, demand over the next six months slipped four percentage points for medium-size businesses to 84 percent, while investments at large-size businesses held steady at 91 percent.
In the corporate sector, 22 percent of small business IT decision-makers predict budget increases in the next six months, gaining three percentage points from June. Additionally, small businesses anticipate more near term spending and are expecting to increase software investments by six percentage points and solutions investments by five percentage points over the next six months.
Despite eight and 10 percentage point budget declines at the state and federal levels of government respectively, 29 percent of local government IT decision-makers foresee budget increases in the next six months, up seven percentage points from June. Local government is less bullish on long-term hardware and software spending, but expects to increase both one-month and six-month spending levels in IT solutions by four percentage points over June.
To read the original eWeek article, click here: IT Hiring, Budget Increase Prospects Slide: CDW Report