National Monitor
VERNON HILLS, Ill. – Dec. 21, 2009 – As the holiday season approaches, confidence among IT decision makers has made its greatest leap of the past 18 months. Fueled by IT investment expectations and emerging signs of good news about hiring, IT confidence has returned to levels last seen before the start of the financial crisis in August 2008.
According to the latest CDW IT Monitor, almost half (48 percent) of corporate IT decision makers anticipate budget increases in the next six months, rising nine percentage points since October. In addition, more than three quarters (76 percent) of both corporate and government IT decision makers expect to replace or install new software in the next six months, the highest reading on record for the IT Monitor. The overall IT Growth Monitor, which measures anticipated IT investment, rose four points from 63 to 67, the largest gain in the past 18 months.
“There are a number of dynamics in the marketplace that, when combined, create a greater sense of optimism—especially during a time of the year when people traditionally feel more hopeful,” said Thomas E. Richards, president and chief operating officer, CDW. “However, some uncertainty lingers as potential federal legislation remains under debate. It will be interesting to see how confidence levels behave as these developments continue to take shape."
Initial positive signs are also beginning to emerge for the IT job market. Twenty-two percent of corporate IT decision makers plan to hire additional staff in the next six months, an increase of 10 percentage points since October. Also, within the large business sector, 34 percent expect staffing increases, up 18 percentage points since the last IT Monitor.
The overall CDW IT Monitor index score increased two points from October to stand at 72, the highest reading since before the 2008 collapse of the financial markets, a strong supporting indicator of returning confidence and improved sentiment in the IT industry.
Additional findings from the December CDW IT Monitor:
| Implementation of Discretionary Spending in the Next Six Months | |
| Large Businesses (1,000+ employees) |
62% |
| Medium-Size Businesses (100-999 employees) |
47% |
| Small Businesses (1-99 employees) |
17% |
| Federal Government | 49% |
| State Government | 39% |
| Local Government | 28% |
| Expect to Purchase New Hardware/Software in the Next Six Months | Hardware* | Software* |
| Local Government | 78% ( no change) |
72% ( 7%) |
| State Government | 71% ( 1%) |
77% ( 2%) |
| Federal Government | 86% ( 2%) |
89% ( 3%) |
*Compared to October 2009 data
The CDW IT Monitor is based on an online survey of at least 1,000 IT decision makers from businesses of all sizes and all sectors of government. The overall IT Monitor score is composed of two sub-indices – the IT Growth Monitor, which measures future IT expectations, and the IT Value Monitor, which measures the value of IT in achieving organizational objectives. For more information about the mindset of IT decision makers please visit www.cdwitmonitor.com.
About the CDW IT Monitor
The CDW IT Monitor was created by CDW Corporation, and research and analysis is conducted by independent polling firm Richard Day Research of Evanston, Ill. Decision makers are invited from two large national panels of IT decision makers built and maintained by E-Rewards and Survey Sampling International. Data reported in this release are based on a survey of 1,047 IT decision makers conducted between Nov. 17 and Nov. 24, 2009.
At the center of the CDW IT Monitor is an index number, which registered an initial benchmark reading of 69 in December 2007. Results are calculated on a scale of 0-100, with 100 indicating the highest level of confidence. Future readings of the CDW IT Monitor will continue to yield comparisons to previous scores, allowing for an interpretation of the direction of sentiment in the IT marketplace. The next CDW IT Monitor will be released in February 2010.
Data are weighted to ensure that CDW IT Monitor calculations closely represent the overall population of corporate and government employers in terms of size, based on the number of employees. Corporate data are weighted according to U.S. Economic Census data, and government data are weighted according to data from the U.S. Census Bureau’s annual survey of government employment. The margin of sampling error for a survey based on this many interviews is approximately +/-4 percentage points for the business sector, and +/-6 percentage points for government.
About CDW
CDW is a leading provider of technology solutions for business, government and education. Ranked No. 41 on Forbes' list of America's Largest Private Companies, CDW features dedicated account managers who help customers choose the right technology products and services to meet their needs. The company's technology specialists offer expertise in designing customized solutions, while its advanced technology engineers can assist customers with the implementation and long-term management of those solutions. Areas of focus include notebooks, desktops, printers, servers and storage, unified communications, security, wireless, power and cooling, networking, software licensing and mobility solutions.
CDW was founded in 1984 and as of September 30, 2009 employed approximately 6,250 coworkers. In 2008, the company generated sales of $8.1 billion. For more information, visit CDW.com.
