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