December 30, 2009, 12:00 AM

48% of I.T. decision makers plan a budget increase

48% of corporate information technology decision makers say they plan to boost their budgets over the next six months, according to a new report from CDW.

48% of corporate information technology decision makers say they plan to boost their budgets over the next six months, according to the latest CDW Corp. I.T. Monitor research report conducted by independent polling firm Richard Day Research. That’s a nine percentage point rise since October, CDW says.

Additionally, 76% of both corporate and government I.T. decision makers expect to replace or install new software in the next six months. The I.T. Growth Monitor index, which measures anticipated I.T. investment in both sectors, rose four points from 63 to 67, the largest gain in the past 18 months.

The December CDW I.T. Monitor is based on an online survey of 1,047 I.T. decision makers conducted between Nov. 17 and Nov. 24. The overall I.T. Monitor score combines the I.T. Growth Monitor, which measures future I.T. expectations, and the I.T. Value Monitor, which measures the value of I.T. in achieving organizational objectives. Index results are calculated on a scale of 0-100, with 100 indicating the highest level of confidence.

“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,” says Thomas E. Richards, president and chief operating officer, CDW. CDW, No. 8 in the Internet Retailer Top 500 Guide (a PDF version of the company’s financial and operating profile can be ordered by clicking on its name).

The report also uncovered a glimmer of hope for the I.T. job market. 22% percent of corporate I.T. decision makers plan to hire additional staff in the next six months, an increase of 10 percentage points since October. And 34% of businesses with 1,000 or more employees expect I.T. staffing increases, up 18 percentage points since October.

The overall CDW I.T. Monitor index score increased two points from October to stand at 72, the highest reading since before the recession of 2008.

The following are additional findings in the report specific to corporations.

  • 46% said I.T. problems have never disrupted customer needs in the last six months, 8% said problems impacted customers one day, 29% said two to five days, and the remaining 17% said six days or more.
  • 44% were very satisfied with their I.T. purchases in the last six months, 40% were somewhat satisfied, 14% neutral, 2% somewhat dissatisfied and none were very dissatisfied.
  • 42% said I.T. investment helps improve financial performance a lot, 28% said it helps a little, 26% were neutral and 4% said it hurts a little.
  • 10% plan to increase their I.T. budgets in the next six months by a lot, 38% by a little, 42% will keep budgets the same, 7% will drop them a little and 3% will drop them a lot.
  • 28% plan to purchase new hardware in the next six months for a significant part of their organization, 39% for a minor part and 33% do not plan to purchase hardware.
  • 36% plan to purchase new software in the next six months for a significant part of their organization, 40% for a minor part and the rest do not plan to purchase software.
  • 22% plan to hire additional I.T. staff in the next six months, 71% plan to keep current staff and the remaining 7% plan to reduce staff.

The next CDW I.T. Monitor will be released in February. Data is weighted to ensure that the research closely represents the overall population of corporate and government employers in terms of size, based on the number of employees.

 

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