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CompTIA: Small IT Firms Wary of Economic Outlook

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Most IT companies remain confident about their industry, but small firms are harboring concerns, according to a new study.

The CompTIA IT Industry Business Confidence Index, which updates every quarter, found that most IT executives expect very little change in business conditions over the next six months.

CompTIA's Tim HerbertThe out-of-100 business confidence score for the 257 tech companies surveyed remains at 61.7 in the fourth quarter of 2016. Their opinions of the U.S. economy and the state of the IT industry also stayed largely unchanged.

But the study also found that IT firms with fewer than 100 employees were likely to have a less favorable opinion about the economy and about the prospects of their own businesses.

“The smallest of technology firms have a slightly more bearish view of the economy and the outlook for their business,” said Tim Herbert, CompTIA’s senior vice president of research and market intelligence. “This typically stems from being more sensitive to fluctuations in the economy or their customer base.”{ad}

The top three fears concerning growth were that existing customers might cut back on their budgets, new competing IT firms might arise, and that they won’t be able to acquire enough filled skilled labor. Traumatic global economic events and government regulation rounded out the top five.

“Beyond the usual concerns over customers cutting-back on spending, tech-industry executives express a growing concern over new forms of competition and new types of competitors entering their space,” Herbert said.

The study also reported that 74 percent of IT companies say they are on track with their revenue goals — a slight uptick from 71 percent last quarter. The survey included an even mix of company sizes, with 19 percent being MSPs, 17 percent solutions providers, 13 percent consultants and 13 percent distributors.

CompTIA’s Carolyn April talked to Channel Partners last month about pain points channel companies are experiencing.


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