Optimism makes a tentative return

Our technology radar plots IT priorities

IT managers are showing a marked but cautious return to optimism about their future prospects ­ but vendors are still wary about the ongoing effect of the recession.

According to the third quarterly Computing/Cobalt Technology Barometer, Computing readers’ views on the next 12 months in terms of staff numbers, salaries, spending and technology priorities are all more positive than they were when we last conducted the research three months ago.

The barometer, produced in association with financial adviser Cobalt Corporate Finance, asks a standard set of questions to a panel of Computing readers and to Cobalt’s IT vendor clients to compare views on the key issues of the day.

For the first time since the survey was launched in January, IT managers who expect staff numbers to increase over the next year outnumber those who do not. Similarly, respondents say salary increases are more likely, and for the first time a small majority expect IT budgets to increase too.

And for nearly every technology rated on the barometer’s planning radar, IT managers see a greater likelihood of evaluating or using those tools within the next 12 months than they did three months ago.

“The general mood in the economy is more positive, so we all respond to that,” said Cobalt partner Chris Williams.

“We are talking about a relatively small change, but the key issue is that there appears to be an inflexion point; sentiment has appeared to shift from marginally negative to marginally positive ­ this is significant.”

Williams said that IT managers were forced to respond quickly to the downturn, but their suppliers have struggled to react as promptly. “Buyers experienced the recession very quickly as budgets were put on hold or cut. So it looks like they are responding just as quickly to the improvement in sentiment,” he said.

“While buyers were experiencing the shift in boardroom focus to cost reduction, vendors had only a general awareness of the shift and did not experience execution of the change until later.”

While the barometer results contribute to a sense that the worst of the downturn in IT may be past, few people are likely to be over-optimistic, according to Williams.

“The IT sector adjusted well and surprisingly quickly compared to previous recessions and structurally it does look like the sector has bottomed out,” he said.
“Having said that, if there is another economic dip then future cuts could be a lot harder.”

Technology Radar of IT priorities

Barometer responses on employment and salaries:

Barometer responses on investment areas:

The Computing/Cobalt Technology Barometer ­ how you can take part

Computing’s reader research panel is composed of more than 4,500 UK IT managers. We surveyed the panel in July 2009 and received 202 completed responses. Cobalt surveyed its separate panel of 80 board-level executives in technology vendors.

Everyone contributing to Computing’s reader panel has an opportunity to win great prizes. If you would like to take part in future barometers and research studies, visit: www.incisiveopinion.com/it