Most IT industry firms expect their revenue to pick up over the next six months compared to the first half of 2010, according to the latest CompTIA IT Industry Business Confidence Index, which found 60 percent of respondents predicting significantly or moderately higher revenue in Q3 and Q4.
The Index, which tracks the state of the overall economy, the IT industry, and individual companies, had slipped 1.4 points from March to June. Now, though, the CompTIA survey panel predicts the Index will pick up 5.4 points by the end of 2010.
“IT industry executives remain relatively confident about the tech sector and about their firm’s prospects, but concern over the health of the U.S. economy persists,” said Tim Herbert, vice president, research, CompTIA. “In some ways the results point to a ‘two steps forward, one step back’ mentality, where positive news and momentum are followed by unexpected bad news and a renewed sense of negativity about economic conditions.”
Despite ongoing concerns about the economy, the report found some confidence that employment rates may be stabilizing, as 37 percent of IT firm respondents indicated plans to accelerate hiring in Q3 and Q4, marking a 7 point jump from the last report. But a number of IT firms are still facing hiring constraints. Of these, 47 percent feel they are fully staffed, but want to hire more IT staff to expand their business; on the other side, 53 percent of these firms report being understaffed by 5 to 20 percent.
“Among those planning to add staff, the top positions to fill include programmers, developers, support staff and help desk, sales staff, project managers and network engineers,” Herbert noted.
Theres a growing sense of faith in macro-economic conditions too, as respondents from larger businesses expressed significantly less concern about weak consumer demand, a stalled recovery, or access to credit and capital than they did six months ago. Breaking these concerns down, fear of a stalled recovery dropped from 58 to 46 percent for the period; weak consumer demand, from 56 to 40 percent; and access to credit and capital, from 41 to 26 percent. For smaller businesses, though, these issues are more pressing, as many continue to have difficulty securing credit and capital.