CompTIA Survey Technology Leaders More Confident

CompTIA Survey Technology Leaders More Confident

CompTIA Survey: Technology Leaders More ConfidentBy Jessica Davis

IT Executive Confidence on the Rise (But Will Spending Rise with It?)

As 2010 arrived, so did hope for an economic recovery. CompTIA’s December survey of IT executives shows that their confidence increased significantly – the biggest ever in the short history of the survey — keeping in mind that CompTIA only began conducting this survey in June 2009. Here are some of the factors CompTIA says are at play that will determine if that confidence will turn into a full fledged recovery.

Several Macroeconomic Factors Have Improved:

CompTIA points out that while US gross domestic product increased by 2.2 percent in Q3, that was lower than expected. However, research firm Macroeconomic Advisers is forecasting Q4 GDP growth of 5.4 percent.

But Plenty of Uncertainty Remains:

High unemployment is causing concern over lower consumer spending, which makes up two-thirds of the economy.A tight credit and lending environment continues.Public-sector debt is causing concern for many.

Yet IT Industry Confidence is on the Rise

CompTIA’s IT Industry Business Confidence index saw its largest jump in December, and IT executives predict that spending will rise by 2 percent to 4 percent in 2010.

Services Even Brighter

IT executives predicted that IT services spending would grow by 2.5 percent to 5.5 percent in 2010.

IT Hiring to Recover?

IT executives responding to the CompTIA survey swung more towards hiring than not with 17 percent saying they would decrease staffing, 52 percent saying staffing would remain the same and 31 percent saying that staffing levels would increase in the next six months.

Technology Spending on the Rise

IT executives also forecast higher levels of IT spending with 40 percent saying they planned to increase spending (compared to 30 percent in June). Just 13 percent said they plan to cut technology spending (compared to 17 percent in June and 19 percent in September).

What Keeps You Up at Night?

IT executives said the biggest threat to business over the next 6 months:• 58 percent said a stalled recovery• 56 percent said weak consumer demand• 44 percent said lack of confidence/paralysis• 41 percent said access to credit/capital• 31 percent government regulation• 29 percent weak corporate demand• 29 percent competition from overseas firms• 26 percent weak export market• 24 percent domestic competition• 23 percent channel squeezed by decreasing margin• 22 percent labor prices/availability of talent

Hot Areas for IT Investment In Next 2 Years

•Security software or services•Healthcare IT• Green IT• Virtualization• Storage• Backup and Business Continuity• Business intelligence software or services• Unified communications• Managed services• SAAS

Trends Coming to an Enterprise Near You

IT executives were also asked to rate several trends. The following slides reveal what they said.

Use of Social Networking to Sell/Market Products

49 percent said it was an accelerating trend 38 percent said it was rapidly accelerating

Use of Alternative Productivity Apps, Such as Zoho

54 percent said it was an accelerating trend28 percent it was rapidly accelerating

Telework/Virtual Office

50 percent said it was accelerating 28 percent said it was rapidly accelerating

Outsourcing to Offshore Companies

39 percent said it was accelerating23 percent said it was rapidly accelerating

Private Cloud Deployment/Utilization

48 percent said it was accelerating22 percent said it was rapidly accelerating

Consumer Technology Influencing the Enterprise

54 percent said it was accelerating and 21 percent said it was rapidly accelerating

M&A Activity/Industry Consolidation

54 percent said it was accelerating 14 percent said it was rapidly accelerating