As the holiday season approaches, confidence among IT decision makers has made its greatest leap of the past 18 months. Fueled by IT investment expectations and emerging signs of good news about hiring, IT confidence has returned to levels last seen before the start of the financial crisis in August 2008.
“However, some uncertainty lingers as potential federal legislation remains under debate. It will be interesting to see how confidence levels behave as these developments continue to take shape.”
According to the latest CDW IT Monitor, almost half (48 percent) of corporate IT decision makers anticipate budget increases in the next six months, rising nine percentage points since October. In addition, more than three quarters (76 percent) of both corporate and government IT decision makers expect to replace or install new software in the next six months, the highest reading on record for the IT Monitor. The overall IT Growth Monitor, which measures anticipated IT investment, rose four points from 63 to 67, the largest gain in the past 18 months.
“There are a number of dynamics in the marketplace that, when combined, create a greater sense of optimism—especially during a time of the year when people traditionally feel more hopeful,” said Thomas E. Richards, president and chief operating officer, CDW. “However, some uncertainty lingers as potential federal legislation remains under debate. It will be interesting to see how confidence levels behave as these developments continue to take shape."
Initial positive signs are also beginning to emerge for the IT job market. Twenty-two percent of corporate IT decision makers plan to hire additional staff in the next six months, an increase of 10 percentage points since October. Also, within the large business sector, 34 percent expect staffing increases, up 18 percentage points since the last IT Monitor.
The overall CDW IT Monitor index score increased two points from October to stand at 72, the highest reading since before the 2008 collapse of the financial markets, a strong supporting indicator of returning confidence and improved sentiment in the IT industry.
Additional findings from the December CDW IT Monitor:
Implementation of Discretionary Spending in the Next Six Months
Large Businesses (1,000+ employees) 62%
Medium-Size Businesses (100-999 employees) 47%
Small Businesses (1-99 employees) 17%
Federal Government 49%
State Government 39%
Local Government 28%
Expect to Purchase NewHardware/Software in the Next Six Months
78% (no change) 72% (- 7%)
71% (+ 1%) 77% (+ 2%)
86% (+ 2%) 89% (+ 3%)
The CDW IT Monitor is based on an online survey of at least 1,000 IT decision makers from businesses of all sizes and all sectors of government. The overall IT Monitor score is composed of two sub-indices – the IT Growth Monitor, which measures future IT expectations, and the IT Value Monitor, which measures the value of IT in achieving organizational objectives. For more information about the mindset of IT decision makers please visit www.cdwitmonitor.com.