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IT Management Slideshow:
IT Spending To Increase in Government, Small Businesses

By Jeff Goldman on 2010-11-16


According to the October 2010 edition of the bimonthly CDW IT Monitor which tracks the direction and momentum of information technology spending in the US, the vast majority of companies and government organizations surveyed anticipate an increase in IT spending on both software and hardware in the coming year. Confidence is strongest in the local government sector, with 84 percent of local government IT decision makers planning to replace or install hardware within the next six months. Thomas E. Richards, CDW’s president and chief operating officer, says state and local government IT decision makers seem to understand the importance of spending money now in order to save money in the long run. “New technologies can help government agencies accomplish more even with reduced staff and reduce costs in key areas such as energy consumption,” he says. And while confidence among IT decision makers at large companies has shifted downwards over the past six months, the opposite is true for decision makers at small and medium sized businesses – 19 percent of small-business IT decision makers plan to replace or install software for a significant part of the organization within the next six months, a record high since the CDW IT Monitor’s launch in December of 2007. “Developments such as the recent passage of the Small Business Jobs Act of 2010 – with its tax benefits and provisions – could also be contributing to this stabilizing effect,” Richards says. The information in the October 2010 CDW IT Monitor comes from a survey of 1,079 IT decision makers conducted by independent polling firm Richard Day Research between October 1 and October 8, 2010.

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86 percent

86 percent of government IT decision makers plan to install or replace software within the next six months. That’s the highest figure since the launch of the CDW IT Monitor in December of 2007.

14 percent

14 percent of IT decision makers in the government sector expect to hire additional IT staff in the next six months, an increase of 3 percent over the previous CDW IT Monitor in August of 2010.

34 percent

34 percent of government IT decision makers anticipate budget increases over the next six months.

39 percent

39 percent of IT decision makers at small businesses expect to install or replace hardware within the next six months, an increase of 3 percent over the previous CDW IT Monitor.

5 percent

5 percent of small business IT decision makers expect to hire additional IT staff within the next six months, an increase of 3 percentage points since June of 2010.

1 in 4

One in four IT decision makers at medium-sized companies expect to hire additional IT staff within the next six months.

58 percent

58 percent of IT decision makers at medium-sized companies anticipate increased IT budgets over the next six months.

61 percent

At large corporations, 61 percent of IT decision makers expect to implement discretionary IT projects over the next six months, a drop of 7 percentage points from the previous CDW IT Monitor.

59 percent

59 percent of IT decision makers at large corporations anticipate improved company performance in the next six months, a drop of 7 percent from the previous CDW IT Monitor.

22 percent

22 percent of all corporate IT decision makers expect to hire additional IT staff within the next six months.

Government investment

CDW’s IT Growth Monitor, which measures IT investment expectations, increased by six points in the government sector to 69, its highest level since August 2008.

Steady growth

For all sectors, CDW’s IT Growth Monitor held steady at 72 for the sixth consecutive reading.

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