How Confident Are Your IT Vendors?By Susan Nunziata | Posted 07-13-2010
How Confident Are Your IT Vendors?
Business confidence among IT hardware and service providers dipped slightly in Q2 2010, according to the Quarterly IT Industry Business Confidence Index report from CompTIA. CompTIA is a non-profit trade organization for manufacturers, distributors, resellers, and educational institutions involved in the delivery of IT products and services to the enterprise. More than two thirds of respondents (64 percent) expect no change in the cost of the goods or services sold, while 28 percent expect the cost of goods to increase and eight percent expect these costs to decrease.
The CompTIA IT Industry Business Confidence Index is an aggregation of three metrics: opinions of the U.S. economy, opinions of the IT industry and opinions of one's company. The study was fielded via an online survey to a sample of 306 U.S. information technology companies during mid June 2010.
Just 18 percent of respondents expect their revenue to be much better in second-half 2010 than it was in the first half of the year, while 43 percent anticipate somewhat better revenues in that time period. Almost a third (31 percent) expect revenues to stay the same in second-half 2010 as they were in the first two quarters, while 8 percent expect revenues to be worse in the second half than they were in the first half of the year.
Overall, the CompTIA IT Industry Business Confidence Index slipped 1.4 points in June 2010 compared to the March 2010 reading. All three index components --overall economy, IT industry and individual company -- fell slightly.
Outlook For 2nd Half
Despite the slow and unsteady economic recovery, respondents expect the Business Confidence Index to increase 5.4 points over the next six months. In second-half 2010, 52 percent of respondents expect to increase the number of new revenue-generating and/or R&D initiatives at their organizations, while 35% plan to increase technology spending.
Employment Picture Brightens
Intent to increase staffing levels jumped seven points in the latest CompTIA IT Industry Business Confidence Index, translating to 37 percent of respondents expecting to increase hiring over the next six months. More than half of respondents (52 percent) are still in a hiring holding pattern. Of these, 47 percent say they are fully staffed but would like to add new employees in order to expand their business, while 53 percent say they are understaffed by between 5 percent and 20 percent. Only 11% of respondents plan to reduce staffing levels in the next six months.
Where Will The Jobs Be?
Among the 37 percent of respondents who do expect to hire staff in second-half 2010, following are the top five positions they'll be looking to fill:
- IT programmers, application developers, etc
- IT support staff/helpdesk
- Sales staff
- Project managers
- Network engineers/integrators
More About This Survey
About This Survey
The study was fielded by CompTIA in the first two weeks of June. The 306 respondents include software vendors, developers, ISVs, IT service/support/repair professsionals, IT and business consulting organizations, IT hardware vendors, value-added resellers, systems/network integrators, IT training/education providers, and telecommunications or communications service providers.