CompTIA IT Industry Business Confidence Index Dips Slightly in Q2
Index remains firmly in positive territory
DOWNERS GROVE, Ill., April 28, 2016 /PRNewswire-USNewswire/ -- The CompTIA IT Industry Business Confidence Index took a slight step back in Q2, but remains in relatively healthy territory for 2016. The Q2 index fell 0.9 points to 63.1 on a 100-point scale.
The index is based on IT executives' opinions of the U.S. economy, the information technology (IT) industry and their own company. It has been published by CompTIA, the nonprofit association for the technology industry, since 2009.
Of the three components in the index, the IT industry rating experienced the sharpest decline in Q2, falling 1.9 points. But industry executives voice a modest degree of optimism about improving business conditions over the next two quarters.
Despite the tempered Q2 sentiment, 75 percent of IT companies surveyed say they are on target or tracking ahead of company revenue goals for 2016.
"Improving consultative sales efforts and reaching new customers are the two factors executives say will have the biggest impact on their ability to maintain or build on their current revenue pace for the remainder of the year," noted Tim Herbert, senior vice president, research and market intelligence, CompTIA.
The biggest potential inhibitor to growth is price-sensitive customers reluctant to spend on technology. It was cited by 45 percent of executives surveyed.
"Price sensitivity can be a factor with customers, but our experience is that when we can demonstrate how to use technology to help them improve their bottom line and solve vexing business problems, customers are willing to invest in new solutions," said Amy Kardel, co-founder of Clever Ducks, an IT consulting and services firm located in San Luis Obispo, Calif. and chairwoman of the CompTIA Board of Directors.
The CompTIA IT Industry Business Confidence Index for Q2 reveals that many technology companies continue to face challenges in hiring tech workers. A net 72 percent of companies rate the hiring environment as challenging; and 21 percent say they've canceled or postponed projects because of understaffing.
Just under half of the companies surveyed (47 percent) report being understaffed to some degree. Another 30 percent say they are full staffed but hope to hire workers to fuel expansion.
The CompTIA IT Industry Business Confidence Index for Q2 is based on an online survey of executives at 277 U.S. technology companies. The survey was conducted in early April 2016. To download the full report visit www.comptia.org/resources/comptia-it-business-confidence-index-q2-2016.
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SOURCE CompTIA
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