Stronger IT Budget Expectations Fuel Emerging Pockets of Optimism in IT Job Market
VERNON HILLS, Ill. – July 29, 2010 – Despite fears in some circles of a potential “double-dip” recession, many IT decision makers appear optimistic about IT hiring heading into the second half of the year. CDW’s IT Monitor, which has been tracking IT sentiment since the beginning of the recession, reveals stronger IT budget expectations over the next six months and a renewed confidence in the IT job market for the first time in 2010.
According to the latest CDW IT Monitor, almost half (48 percent) of IT decision makers in the private and public sectors anticipate increased IT budgets in the next six months, up 10 percentage points from this time last year. Along with increased optimism regarding IT budgets, IT hiring expectations are also on the rise—37 percent of IT decision makers at large companies anticipate hiring additional IT staff in the second half of 2010, up eleven percentage points since June 2009. Similarly, 29 percent of IT decision makers in the federal government sector expect to hire additional IT staff, up nine percentage points since April 2010.
“Despite recent economic volatility, many IT decision makers have remained cautiously optimistic about budgets and anticipated IT investment,” said Thomas E. Richards, president and COO of CDW. “As we head into the second half of the year, that optimism is beginning to extend to IT hiring expectations in some sectors. While this positive IT job outlook is still emerging and hasn’t yet translated across all sectors of the IT marketplace, it remains an encouraging indicator of future growth.”
The overall CDW IT Monitor index score held steady at 72 for the fourth consecutive reading as confidence levels continue to vary between different sectors of the IT marketplace. Large businesses remain the most confident with an IT Monitor score of 79, while small businesses lag behind with an overall score of 62. For more information about the sentiment of IT decision makers, please visit www.cdwitmonitor.com.
In addition to increased optimism about IT staffing, IT decision makers also anticipate greater investment in hardware and software for the second half of 2010. According to the data, almost three in four (74 percent) of IT decision makers expect to replace or install software for the second half of the year, up five percentage points from June 2009. Overall, 68 percent of IT decision makers plan to install or replace hardware in the second half of 2010.
“Under constant pressure to increase operational efficiency, many IT decision makers appear to be planning to enhance business performance and save money through strategic IT investment,” added Richards.
Additional findings from the June CDW IT Monitor:
|IT Budget Will Increase (Next Six Months)||Jun 09||Apr 10||Jun 10|
|Small Business (1-99 employees)||21%||27%||24%|
|Medium-Size Businesses (100-999 employees)||50%||59%||55%|
|Large Businesses (1,000+ employees)||51%||63%||67%|
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 1,070 IT decision makers conducted between May 21 and May 27, 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 points for government.
CDW is a leading provider of technology solutions for business, government and education. Ranked No. 41 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 the twelve months trailing June 30, 2010, the company generated sales of $8.1 billion. For more information, visit CDW.com.