Are CIOs Bullish for a Trump Economy?

Donald Trump

Are IT decision makers breathing a sigh of relief after the election of Donald Trump?

Janco Associates’ latest round of interviews with CIOs indicates that IT job creation still lags behind pre-2012 numbers, but many of the executives say they are planning to invest more in technology.

IT Hiring ChartMany cite the recent election of the Republican nominee, who has vowed to lower corporate taxes. Janco CEO Victor Janulaitis says the CIOs interviewed after the election were more optimistic than those who were interviewed before it.

“The recent election has resulted in a new perspective of growth in the use of technology. If as the new administration says, taxes will go down, infrastructure spending will go up, and jobs will be kept in the U.S., then productivity will be the key,” Janulaitis said. “With the amount of spending that is proposed there will be need to get more ‘stuff done’ with U.S.-based resources. The only option will be IT technology as a driver of infrastructure improvement.”

Janco interviewed 118 CIOs – 76 of them before the election – and concluded that that 2016 IT job growth will finish at the same level as it was in 2012.

“It is too early to tell what the total impact will be on IT job creation in 2017. With all of the propose incentives from tax cuts for businesses, ‘buy American,’ improved trade deals, and immigration reform, we could be in for an economic boom,” he said. {ad}

Future Hiring plansThe majority of respondents have budged for slower 2017 growth as well, but especially those interviewed before Nov. 8.

“Few of these C-level executives were comfortable with the overall direction of the economy and prospects for new IT jobs,” he said. “This also is reflected in acquisitions for new equipment and major application developments and implementations.  Many of these executives were hedging their bets and forecasting flat to lower budgets for the new year.”

We have examined how Trump’s economic agenda might impact technology companies. In addition to lobbying for a lower corporate tax, he has also advocated tariffs for companies that hire and produce outside of the U.S.

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