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IT Optimism Grows

By Dennis McCafferty on 2010-03-19


The Business Confidence Index reported by the Computing Technology Industry Association (CompTIA) has turned positive for the first time since its launch in June 2009, with more tech execs conveying an optimistic view of the economy than a pessimistic one. IT professionals from about 300 U.S.-based companies were surveyed.
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1. Participants gave a 56 point "optimism rating" (on a scale of 1 to 100) about the U.S. economy, the IT industry and their own company's prospects.

2.Within the next six months, executives expect that optimism rating to increase to more than 60.

3. Over 75% have strong expectations for their own company's growth in 2010, compared to less than 60% in July.

4. Small/midsized companies are most optimistic about the tech industry, giving it a 71 optimism rating, vs a 68 for large companies and 63 for very small ones.

5. Over 33% say they will increase capital spending in the next six months; Less than 25% said so September.

6. Over 30% plan to increase staffing, up from less than 25% in September.

7. Fueling renewed confidence: improved stability and pent-up demand.

8. Positive signs: New orders for computers and electronic products grew by 3.7% in late 2009, much faster than the overall rate for durable goods.

9. IT services are expected to grow by 2.5%-5.5% - slightly faster than overall IT spending.

10. What customers want: - Security products and services - Healthcare solutions - "Green" IT - Virtualization products and services

11. Major trend: Social networking as a business tool, including Google Docs, OpenOffice and Zoho.

12. Other big trends: SaaS Mobile solutions Cloud computing

13. Need to improve for sustainable growth: -employment numbers - lending/credit climate -impact of public-sector debt

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