Slight Uptick in State Government IT Sentiment, Survey Finds

CDW’s bimonthly measure of the U.S. IT marketplace finds a small uptick in positivity from state government IT decision-makers, but a slowing of the federal IT market.

by / September 15, 2010

More IT decision-makers at the state level are expecting an increase in IT budgets during the next six months, and more of them are satisfied by their organization’s recent IT purchases, according to newly released polling Wednesday, Sept. 15.

According to the bimonthly CDW IT Monitor, 36 percent of IT decision-makers at the state level anticipate an increase in their IT budgets in the next six months, up two percentage points since June. The figure is the highest level of confidence since August 2008, according to CDW. In addition, 75 percent of IT decision-makers in state government are satisfied with their recent IT purchases, up one percentage point since the June survey.

While those gains are modest, measured overall the government IT market appears to be down. Seventy-seven percent of IT decision-makers in the government sector expect to replace or install software in the next six months, a decrease of four points since June. Seventy-two percent plan to replace or install hardware in the next six months, down five points.

The lower numbers are coming from the federal market, where 19 percent of IT decision-makers are anticipating budget cuts, up five percentage points since June and the most since December 2008.

“As it becomes clear that the economic recovery is likely to be slow and more prolonged than anticipated, large businesses and government IT decision-makers are cautious and are pulling back on IT budgets and hiring initiatives,” said Thomas E. Richards, president and chief operating officer of CDW.

If there’s some ray of hope, it’s that spending from small businesses is “beginning to show small but important signs of growth in the IT marketplace.” Twenty-seven percent of IT decision-makers at small companies anticipate increased IT budgets in the next six months, up eight percentage points from a year ago.

The CDW IT Monitor has been tracking small business IT sentiment since the beginning of the recession in 2007.