IT Spending Outlook Begins to Improve Among Local Government IT Decision Makers
VERNON HILLS, Ill. – November 11, 2010 – Although state and local governments have felt a financial squeeze in the aftermath of the recession, the outlook for information technology investment in the public sector is improving. The CDW IT Monitor, which has been tracking IT sentiment since the beginning of the recession in 2007, reveals local government organizations anticipate greater IT investment in hardware and software heading into 2011.
According to the CDW IT Monitor, a bimonthly indicator that tracks the direction and momentum of the U.S. IT marketplace, 86 percent of government IT decision makers anticipate replacing or installing software in the next six months – an increase of nine percentage points since August 2010 and a record high since the launch of the IT Monitor in December 2007.
Despite a challenging fiscal environment, confidence is strongest among IT decision makers in the local government segment. Eighty-four percent of local government IT decision makers plan to replace or install hardware in the next six months, an increase of 14 percentage points since the August IT Monitor. In addition, 85 percent of IT decision makers at local government agencies are planning to replace or install software in the next six months, up 10 percentage points since August 2010.
“Many state and local government IT decision makers appear to be prepared to spend money in order to save money in the long run. Newer technologies can help government agencies accomplish more even with reduced staff and reduce costs in key areas such as energy consumption,” said Thomas E. Richards, president and chief operating officer, CDW.
The IT Growth Monitor, which measures IT investment expectations, increased six points in the government sector to 69, the highest level since August 2008. The overall CDW IT Monitor index score held steady at 72 for the sixth consecutive reading. For more information about the sentiment of IT decision makers, please visit www.cdwitmonitor.com.
In the private sector, the recent uptick in confidence among IT decision makers at small businesses first seen in the August IT Monitor held steady. Almost one in five (19 percent) expect to replace or install software for a significant part of the organization in the next six months—a record high since the inception of the IT Monitor in December 2007. In addition, 39 percent of IT decision makers at small businesses expect to replace or install new hardware over the next six months, up 3 percentage points since August and the second consecutive gain for this measure since this year’s low point in June 2010 (34 percent).
“The uptick in confidence among small businesses that we first saw in August has remained steady in this wave of the IT Monitor,” added Richards. “Developments such as the recent passage of the Small Business Jobs Act of 2010 – with its tax benefits and lending provisions – could also be contributing to this stabilizing effect.”
Additional findings from the CDW IT Monitor:
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About the CDW IT Monitor
The CDW IT Monitor was created by CDW and research and analysis is conducted by independent polling firm Richard Day Research of Evanston, Ill. Decision makers are invited from two large national panels of IT decision makers built and maintained by E-Rewards and Survey Sampling International. Data reported in this release are based on a survey of 1,079 IT decision makers conducted between October 1 and October 8, 2010.
At the center of the CDW IT Monitor is an index number, which registered an initial benchmark reading of 69 in December 2007. Results are calculated on a scale of 0-100, with 100 indicating the highest level of confidence. Future readings of the CDW IT Monitor will continue to yield comparisons to previous scores, allowing for an interpretation of the direction of sentiment in the IT marketplace.
Data are weighted to ensure that CDW IT Monitor calculations closely represent the overall population of corporate and government employers in terms of size, based on the number of employees. Corporate data are weighted according to U.S. Economic Census data, and government data are weighted according to data from the U.S. Census Bureau’s annual survey of government employment. The margin of sampling error for a survey based on this many interviews is approximately ±4 percentage points for the business sector, and ±6 percentage.
CDW is a leading provider of technology solutions for business, government, education and healthcare. Ranked No. 38 on Forbes’ list of America’s Largest Private Companies, CDW features dedicated account managers who help customers choose the right technology products and services to meet their needs. The company’s technology specialists offer expertise in designing customized solutions, while its advanced technology engineers can assist customers with the implementation and long-term management of those solutions. Areas of focus include notebooks, desktops, printers, servers and storage, unified communications, security, wireless, power and cooling, networking, software licensing and mobility solutions. CDW was founded in 1984 and employs approximately 6,150 coworkers. In 2009, the company generated sales of approximately $7.2 billion. For more information, visit CDW.com.