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IT Channel Businesses Remain Confident in Q2 Despite Some Concerns

Building ConfidenceBuilding Confidence

The IT industry business confidence index edged up 1.1 points, reaching 61.3 (out of 100) in the second quarter of 2014.

Sleepless NightsSleepless Nights

Price-sensitive customers who are holding back on spending are keeping 49% of respondents up at night. Other big concerns include government regulation and/or gridlock in Washington, D.C., (40%), and unexpected factors such as financial and international crises (35%).

Small Company TroublesSmall Company Troubles

Access to credit/capital is still cited as a big concern among the smallest channel companies, according to 33% of respondents, versus 15% of respondents overall.

Disruptive SignalsDisruptive Signals

A significant challenge among IT channel companies is disruptive technologies and business models; 23% of respondents cite this as a concern, up from 15% in the fourth quarter of 2013.


33% of respondents said their companies are understaffed: 6% said they are understaffed by 20%; 5% said they are short-staffed by 15%; 12% said they are down 10%; and 10% said they understaffed by 5%.


Half the respondents said they deal with understaffing by requiring workers to put in more hours on the job. Other strategies include redeploying staff from lower-priority projects to higher-priority ones (32%), and hiring more contract or temp workers (27%).

Who is Hiring?Who is Hiring?

52% of respondents said they have job openings. However, large and midsize companies have the greatest needs, with 76% and 75% of respondents reporting job openings, respectively.

Only Techies Need ApplyOnly Techies Need Apply

Most IT job roles/skill sets needed are for technical positions. Indeed, 48% of respondents said they are looking to hire technicians or IT support/service, followed by application developers (39%), cloud expertise (33%), network engineers (29%) and security expertise (28%).

Hiring ChallengesHiring Challenges

57% of respondents indicate challenges in hiring technical workers, versus 26% for nontechnical workers.

Recruiting StrategiesRecruiting Strategies

An equal percentage (68%) of respondents use soft recruiting (such as employee referrals) and post job openings at company Websites. And 61% said they post job openings to job boards, while 50% recruit via social networks. Other tactics include using a recruiter (47%) and visiting job fairs or university career events (30%).