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IT Execs Are Modestly Bullish on 2010 Print E-mail
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Tuesday, 26 January 2010

By Michael Eggebrecht

Executives at IT companies are feeling more confident about the strength of the technology industry, according to CompTIA.

In December, the non-profit trade association surveyed executives at 300 IT companies to generate its third IT Industry Business Confidence Index. Out of a possible 100 points, the index was at 56.6 points, up from 50.3 in September. The first index, based on a July survey, was closer to 49 points.

In the latest survey, 34 percent of respondents said they plan to increase capital expenditures in the next six months, compared to 24 percent in September. Thirty-one percent plan to hire more staff; in September, that number stood at 24 percent.

Over the next six months, CompTIA predicts that the IT index will climb another 6.5 points, to 63.1 – the first time the index has moved into the positive range.

In a statement, Tim Herbert, VP of research at CompTIA noted that while improving macro-economic indicators have lent support to IT executives’ bullish sentiments, “some big unknowns still loom, such as unemployment, the impact of public sector debt and the tight lending and credit market. Until these factors start to turn around, exuberance about an economic recovery will rightfully be tempered.”

The IT executives predicted that global IT spending will grow between 2 percent and 4 percent this year, with the U.S. market lagging slightly. IT services was the area in which respondents saw the most potential growth -- 2.5 percent to 5.5 percent. Also cited as leading IT opportunities were security products and services, healthcare IT, green technologies and virtualization.

Last week, research firm Gartner estimated that worldwide IT spending will climb 4.6 percent this year, though it predicted that the U.S. market would grow 2.5 percent. Gartner also identified IT services as the biggest expected gainer this year, with 5.6 percent growth; software followed at 4.9 percent.

Other findings from the CompTIA survey: Seventy-five percent of respondents think that the influence of consumer tech on the enterprise will continue to accelerate; 80 percent said businesses will increasingly use SaaS business applications; and 78 percent said that the reliance on telecommuting and virtual offices will grow in 2010.




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