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CompTIA IT Industry Business Confidence Index Holds Steady for Q3

24 Jul, 2013


Downers Grove, IL- July 2013– The CompTIA IT Industry Business Confidence Index held steady in Q3, coming in at 57.9 on a 100-point scale compared to a 58.0 reading in Q2. The Index is a measurement of technology business sentiment produced for the past five years by CompTIA, the leading non-profit association for the information technology (IT) industry.

The forward-looking component of the Index projects a gain of 2.7 percentage points over the next two quarters.
Of the Index’s three components, assessment of the overall U.S. economy continues to lag: 48.3 vs. 62.0 for the overall IT industry and 62.7 for respondents’ own company.

“While the ratings for the IT industry have held up well, the Index’s economy component continues to be hampered by stubbornly high unemployment, softness in certain industry sectors, overseas volatility and the unknown effects of Federal Reserve monetary policy,” said Tim Herbert, vice president for research and market intelligence, CompTIA.

At the midpoint of 2013, the smallest IT firms (fewer than 10 employees) voiced the most concern about business prospects. Forty percent of micro IT firms reported lagging revenue during the first half of the year, compared to 17 percent reporting revenue tracking ahead of goals.

Across technology companies of all sizes, 23 percent are tracking revenue ahead of goals for 2013. Firms in the 10-99 employee range were the most bullish (30 percent), followed by medium companies (21 percent) and large businesses (20 percent).

The Q3 Index also reveals IT industry executives are concerned about price sensitive customers who may be hesitant to spend. Nearly half of the firms surveyed (48 percent) cited this as a concern over the next six months.

“CompTIA research consistently shows strong demand in many areas of IT hardware, software and services, so customer interest is there, but the confidence to make the investment may not always follow,” Herbert explained.

Additionally, IT executives express relatively high levels of concern over downward margin pressure (32 percent of companies surveyed); unexpected shocks, such as a natural disaster or spike in oil prices (32 percent); and government regulation (31 percent).
On the investment front, IT companies expect to boost spending over the next six months in two key areas: new products or business lines and staffing in technical positions, such as network engineers and app developers.

“These two areas of investment often go hand-in-hand,” Herbert noted. “Expanding into a new product category, such as big data, typically requires an investment in human capital as well, which may occur through new hires or training for existing staff.”

CompTIA’s IT Industry Business Confidence Index is comprised of three metrics: opinions of the U.S. economy, opinions of the IT industry and opinions of one’s company. Q3 data is based on an online survey of 308 IT companies conducted in early July. The full report is available at no cost to CompTIA members. Visit CompTIA.org or contact http://research@comptia.org for details.

About CompTIA
CompTIA is the voice of the world’s information technology (IT) industry. Its members are the companies at the forefront of innovation; and the professionals responsible for maximizing the benefits organizations receive from their investments in technology. CompTIA is dedicated to advancing industry growth through its educational programs, market research, networking events, professional certifications, and public policy advocacy. Visit http://www.comptia.org/home.aspx




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