Business & Economics
IT Industry Growth Outlook and Key Trends to Watch in 2014
IT industry executives express slightly more confidence in business conditions heading into 2014, as confirmed by CompTIA’s IT Industry Business Confidence Index. The index increased 2.1 points over last quarter, the largest gain in over a year.
The economy component of the index, while still substantially lagging the IT industry component, reached its highest point in the history of the CompTIA IT Industry Business Confidence Index. This improvement reflects strengthening economic fundamentals; although, it must be acknowledged past optimism has not always translated to sustained growth.
For 2014, CompTIA’s consensus forecast projects a worldwide IT industry growth rate of 3.4%, with upside potential of 5.9%. The forecast for the U.S. comes in at 3.0%, with upside potential of 5.4%. The 2014 forecast remains roughly on par with the forecast issued for 2013.
IT services and software show the most growth potential for the upcoming year, according to the CompTIA consensus industry forecast. The hardware category is projected to grow at a slightly lower rate, due partially to more intense margin pressure.
On the employment front, 41% of IT companies plan increased investments in staffing in technical positions this year, compared to 15% that plan staffing decreases. Among non-technical positions, 32% of firms plan increases and 16% decreases. The data suggests medium-sized IT firms will be the most aggressive in hiring for both technical and non-technical positions.
CompTIA views 2014 as a year of momentum and continuation, as incremental advancements in several areas make their marks on the producers and consumers of technology. A small sampling from a dozen trends to watch over the year:
- Macro Trend – Technology becomes a core competency for more businesses.
- Technology Trend – Software’s appetite is not satisfied.
- IT Channel Trend – Back to basics: Reinvesting in technical expertise.
See the report for additional trends and insights. CompTIA’s IT Industry Outlook 2014 study consisted of an online survey fielded to IT industry executives and professionals in the U.S. during late December 2013. It was conducted as part of CompTIA’s quarterly IT Industry Business Confidence Index. A total of 525 IT industry companies participated in the survey. The full report is available at no cost to CompTIA members. Visit www.comptia.org/research or contact firstname.lastname@example.org for details.
CompTIA members can read the full report here.