IT Industry Business Confidence Continues to Strengthen

Tech companies preparing for growth despite lingering economic concerns, CompTIA study finds

Oakbrook Terrace, IL — September 28, 2009 — The IT industry is beginning to look up, as the CompTIA IT Industry Business Confidence Index increased 3.3 points in August to 52.3, suggesting that companies in the tech industry are beginning to prepare for growth despite lingering concerns about the economy.

The index, an aggregation of three confidence measures, is based on the collective opinions of 200 technology companies. The latest survey found that 48 percent of companies in the study expect to increase investments in research and development and other new revenue generating initiatives, while nearly one-third expect to increase spending on technology.

"The data suggests that companies have begun to reset expectations with an eye towards an improved economic landscape," explained Tim Herbert, CompTIA vice president of market research.

Additionally, staffing levels may start to see some improvement as IT firms anticipate renewed demand for their products. Fifty-three percent of IT companies in the study expect to hold staffing levels constant, while 29 percent expect to increase hiring over the next six months.

Looking ahead, the CompTIA IT Industry Business Confidence is expected to continue its upward trend. Sixty-seven percent of firms rate the outlook for the IT industry positively, compared to 55 percent today.

Despite cautious optimism, the survey reveals a number of concerns among IT companies, most notably the concern over the possibility of weak demand by certain segments of consumers and corporations.

The companies surveyed for the index are U.S.-based organizations, ranging from IT solution providers, VARs, hardware/software firms and others. The most recent iteration of the survey was fielded via an online survey form during the last week of August 2009.

The full report is available to CompTIA members.

Below, CompTIA CEO Todd Thibodeaux speaks about the future of the IT industry and CompTIA's role in advancing the IT industry in his opening address at CompTIA Breakaway 2009, the organization's annual conference.