The IT industry is in good standing at the present time, a great sign that businesses are investing in the most innovative technologies available to promote long-term growth. CompTIA's latest Business Confidence Index is at a 60.1 on a 100-point scale, down slightly from the second quarter's 61.3. The IT nonprofit organization asserted, however, that the overall outlook for 2014 looks optimistic and is expected to gain two points in the next six months.
Of the companies included in the study, 75 percent said they are on target or have exceeded initial revenue goals for 2014 at the halfway mark. In 2013, 68 percent of businesses answered similarly, so there is clearly improvement to this year's use of IT solutions.
Forty-four percent of decision-makers did note, however, that their confidence could wane if customers are reluctant to spend due to price concerns. Other worries included labor costs, cited by 28 percent of respondents, up 4 percent from the previous quarter.
"Closely related is concern over downward pressure on margins," said Tim Herbert, vice president of research and market intelligence at CompTIA. "With an ever-expanding array of technology solutions available at a range of price points, cost-conscious customers have more options than ever to optimize their IT spending."
IT investments continue to trend in the right direction
Other research has highlighted the IT industry's steady growth, including a Gartner report detailing global tech investments for 2014 and beyond. The firm predicted worldwide spending to total $3.7 trillion this year, up more than 2 percent from 2013. In 2015, this figure will reach nearly $3.9 trillion, an increase of 3.7 percent from this year.
Richard Gordon, managing vice president at Gartner, said increased vendor competition, a lack of product differentiation and price pressure led to a slight downgrade in the short-term growth prospects of the IT industry.
"However, 2015 through 2018 will see a return to 'normal' spending growth levels as pricing and purchasing styles reach a new equilibrium. IT is entering its third phase of development, moving from a focus on technology and processes in the past to a focus in the future on new business models enabled by digitalization," Gordon said.
Even though Gartner's initial growth expectations were higher than its current projections, the fact that the IT industry is still expanding even in the face of certain challenges speaks volumes to just how critical technologies are to firms worldwide.
Maximize your IT investments today
With IT budgets increasing and confidence stabilizing throughout the industry, businesses are likely to embrace tech products more than ever moving forward. Although companies may rely on such solutions for daily operations, not every organization fully understands how these systems operate or has the resources to maintain them day in and day out.
Pinnacle, an Advanced Imaging Solutions company, is a leading managed IT services provider that assists clients with their management needs so customers can focus on more internal tasks. If your business is interested in leveraging IT solutions without the hassle, contact Pinnacle today.