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CompTIA IT Industry Business Confidence Index Slips for Second Consecutive Quarter

Jul 20, 2016

Downers Grove, Ill. – The CompTIA IT Industry Business Confidence Index fell in Q3, the second consecutive quarter of decline for the measurement of business sentiment among the country’s information technology (IT) executives.

The Q3 index declined 1.4 points to 61.7 on a 100-point scale. In Q2 the index fell by 0.9 points. A total of 257 U.S. technology companies participated in the survey, conducted in early July.

The index is based on IT executives’ opinions of the U.S economy, the IT industry and their own company. All three components fell in Q3, with the self-assessment experiencing a slightly higher rate of decline (-2.1 percent).

“Despite the positive momentum in metrics such as IT sector hiring and revenue growth in many categories, a rebound in business confidence failed to materialize,” noted Tim Herbert, senior vice president, research and market intelligence, CompTIA. “The data indicates the smallest of IT firms – those with fewer than 10 employees, continue to exhibit higher levels of sensitivity to volatility or market disruptions.”

The CompTIA IT Industry Business Confidence Index has recorded a negative reading in Q3 in every year since its debut in 2009, declining, on average, by 1.5 points. By comparison, the Q4 index had averaged gains of 2.3 points.

“Among smaller solution providers a summertime slowdown is a common, because many smaller business clients take their foot off the gas in the summer,” said Amy Kardel chairwoman of the CompTIA Board of Directors and co-founder of IT service provider Clever Ducks in San Luis Obispo, Calif.

“Knowing this trend, solution providers can plan ahead to avoid a revenue dip by looking to schedule projects during the quieter months and thus even out revenue,” Kardel continued. “One peer I know books a lot of work for the school district during the summer because they can only work on their systems while classes are not in session.”

Customer buying patterns impact business confidence. Tech company executives surveyed for the Q3 report said:

  • 49 percent of their customers are increasingly shifting to new models, such as cloud computing and open source.
  • 30 percent of customers are increasingly opting for less expensive or smaller purchases.
  • 24 percent of customers are increasingly postponing purchases or taking a wait-and-see approach.

In the Q3 survey 71 percent of companies said that they are on target or ahead of their revenue goals for 2016. That’s down slightly from Q2, when 75 percent of companies were on track or ahead of goals.

The CompTIA IT Industry Business Confidence Index for Q3 report is available at no charge with a simple registration.Visit CompTIA Insight & Tools.

About CompTIA
The Computing Technology Industry Association (CompTIA) is a non-profit trade association serving as the voice of the information technology industry. With approximately 2,000 member companies, 3,000 academic and training partners, 80,000 registered users and more than two million IT certifications issued, CompTIA is dedicated to advancing industry growth through educational programs, market research, networking events, professional certifications and public policy advocacy. To learn more, visit CompTIA online, Facebook, LinkedIn and Twitter.

Steven Ostrowski