More Sober Outlook on Future Business Climate from Firms in Canada, UK and US
OAKBROOK TERRACE, Ill.–(BUSINESS WIRE)–Information technology (IT) companies in China and India are notably more bullish on prospects for business growth in the next six months than their counterparts in the United States, United Kingdom and Canada, according to a new survey from CompTIA, the leading trade association for the global IT industry.
The CompTIA IT Industry International Business Confidence Index finds that business confidence trends are well above the global average among IT companies in China (77 on a 100-point scale) and India (76). Among other countries, Canadian sentiment falls roughly at the average (64), while business confidence among IT companies in the United States and United Kingdom lags slightly behind the global average.
Confirming the strengthening economies in many parts of the world, the overall index recorded a jump of nearly nine points in March 2010 since the previous reading in October 2009. Looking ahead, IT companies expect further improvements, reflected in their six-month confidence forecast of 68, up nearly 4 points over the March 2010 reading.
“The IT industry held up relatively well during the global economic downturn,” said Tim Herbert, vice president, research, CompTIA. “This research is another sign the IT industry is well positioned to out-perform many other industry sectors over the next year.”
The CompTIA IT Industry International Business Confidence Index also reveals that after a period of cutting or maintaining costs, a number of IT companies are looking to invest in their business.
“Nearly two-thirds expect to increase spending over the next six months on revenue-generating initiatives such as research and development; while 58 percent expect to increase spending on technology,” Herbert noted.
Though unemployment has been persistently high in many countries, the CompTIA survey data suggests hiring may start to pick up. Among all IT companies surveyed, 42 percent expect to increase hiring in the next six months, with companies in China and India having the highest expectations for staffing increases. But as a sign of the still fragile recovery, 13 percent of all respondents indicate they expect to cut staff in the next six months.
Global IT industry growth is forecast to range from flat under the most pessimistic scenario to an increase of 4.5 percent under the most optimistic scenario. Firms are slightly most bullish on IT services growth, followed by software and hardware. Firms in India see the most upside to global IT industry growth at 5.5 percent, while Canadian firms express the most concern.
Perceived threats to economic growth vary by country, the CompTIA survey indicates. U.S. IT companies are relatively more concerned about weak consumer demand, while firms in the UK voice concern about weak corporate demand. China is concerned about exports and India about domestic competition. Canadian companies believe a general lack of confidence could inhibit growth in their market.
The CompTIA IT Industry International Business Confidence Index is based on an online survey of more than 850 IT companies in more than 70 countries conducted in March. The full report is available at no cost to CompTIA members who can access the report at www.CompTIA.org or by contacting firstname.lastname@example.org.
CompTIA is the voice of the world’s information technology (IT) industry. Its members are the companies at the forefront of innovation; and the professionals responsible for maximizing the benefits organizations receive from their investments in technology. CompTIA is dedicated to advancing industry growth through its educational programs, market research, networking events, professional certifications, and public policy advocacy. For more information, visit www.comptia.org or follow CompTIA on Twitter at http://www.twitter.com/comptia.