Re-evaluating IT Spending Estimates for 2016
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Re-evaluating IT Spending Estimates for 2016
A crucial aspect of the TEKsystems report is a significant decline in the number of IT organizations reporting they have confidence in their ability to launch new projects. -
State of IT Budgets
At the midyear mark, 48% of IT organizations report an increase in budget, vs. 37% that forecast an increase six months earlier. At the same time, only 12% expected a decline. In reality, 25% are now reporting a decline in spending. Of those reporting an increase, 17% say that increase exceeded 10% of the forecasted budget. -
State of IT Confidence
At the midyear mark, 81% reported they are confident in their ability to meet demands on IT. That's up 13 points from 68% six months earlier, but only 20% say they are now extremely confident, vs. 31% late last year. -
Core IT vs. Business Demands
A full 87% say they are confident in their ability to meet core IT needs, up 12 points from the 75% reported late last year. Three-quarters (75%) also say they are confident in their ability to meet business demands, up 15 points from the 60% reported six months earlier. -
New IT Initiatives Remain a Challenge
Only 39% are confident in their ability to launch a new initiative, a 15% drop from the 54% who said they were confident in their ability at the beginning of the year. Only 5% say they are extremely confident when it comes to new IT initiatives. -
Technologies With Biggest 2016 Impact
Security continues to be a key IT priority; 45% cited IT security as having the biggest impact in the first half. Mobility (16%) and cloud computing (8%) came in second and third, followed by data center consolidation, ERP applications and virtualization/software-defined networking, all tied at 6%. -
Biggest Areas of Talent Shortage
IT architects now hold the top slot at 52%, usurping programmers that had been previously cited to be the top talent issue, cited by 65%. In reality, developers fell to second place, at 51%, followed by project managers (43%), software engineers (40%) and big data analytics specialists (39%). -
Hiring Full-Time Employees
Nearly half (48%) say the hiring of full-time employees increased, vs. 43% that forecast it would increase. Another 16% said hiring of full-time employees declined. -
Reliance on Contractors
33% said reliance on contingent employees increased, vs. 41% who said they expected this to increase at the beginning of the year. Only 5% said hiring of contingent employees rose more than 10%.
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Why Metrics Matter to the Channel At the midyear mark, IT spending estimates for 2016 are generally higher than they were at the end of last year, but fewer IT organizations are confident in their ability to launch new projects, according to a report from TEKsystems, a staffing specialist and IT solution provider. The survey of more than 300 IT leaders follows an IT budget forecast that TEKsystems released in late 2015. For the channel, the most interesting finding could be the significant decline in the number of IT organizations reporting confidence in their ability to launch new projects. Spending on IT security eclipses almost all other priorities. From the solution provider's perspective, the most interesting aspect of this report is a significant decline in the number of IT organizations reporting they have confidence in their ability to launch new projects. IT organizations face increasing pressure to focus on projects relevant to the business. Solution providers should first identify those opportunities and then help instill the IT organization with the confidence needed to successfully implement those projects.