Economic Issues

1. 

   Economic Recovery

Despite recent speculation the U.S. economy has hit bottom and may be on the rebound, a large number of IT industry executives see few signs of a significant recovery in 2009.

A strong majority of respondents – 72 percent – expect improvement to the national economy to come in the first half of 2010, later than many are hoping.

Given the stunning and rapid nature of the economic decline, it’s not surprising many executives are cautious about the future. It may also reflect their opinion that many firms will be in cost cutting or frozen budget mode for the remainder of 2009. Not the best case scenario in the short-term, but longer-term, it means there will be plenty of pent-up demand for a range of capital expenditures, including IT products and services.

But even if budget constraints ease, it may take some time before business confidence is truly restored and purchasing managers feel comfortable investing in big ticket initiatives. That means IT firms able to help their clients continue to “do more with less” and deliver high ROI solutions in a short time frame will be best positioned to ride the recovery wave.

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