CompTIA IT Industry Business Confidence IndexSource: CompTIA
The CompTIA IT Industry Business Confidence Index for fourth quarter 2011 fell by 1.0 point to 51.9. This marks the third consecutive decline of the year. The Index today is at a lower point than the 2010 rating at this time.
Although still in net positive territory (>50), economic malaise has clearly set in. Looking ahead, IT industry executives predict a 1.9 gain in the index. This modest projection is lower than previous projections, which typically exceed 5 points.
Relative to the rating for the overall economy, executives are far more confident in the IT industry and their own firm. That's little solace though, given the widening gap of of sentiments regarding the economy and the IT industry.
The smallest of IT firms are most pessimistic. Firms of all sizes though see little change in the economic situation anytime soon.
Most IT firms expect to remain in a spending and investment holding pattern over the next six months. Spending increases are expected in some areas, such as spending on technology (33%), new products (31%) and marketing/advertising campaigns (26%). Areas with the biggest cut backs include capital expenditures (20% planning to decreasing spending) and business travel (27% planning decreases).
In the area of hiring, 45% of IT firms expect no changes, while 36% plan to add staff and 19% plan to cut staff.