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IT Industry Business Confidence Report H1 2016

IT Industry Business Confidence Report H1 2016

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Executive Summary

Respondents feel that the current state of the economy will remain stable and identify the Rest of the World and Asia-Pacific regions as having more favorable opportunities with regard to economic conditions. Additionally, an increase in customer confidence towards the IT industry is attributed to growing technology needs from organizations, strengthening IT budget allocations, rising significance towards online/digital presence, and innovation in areas of cloud computing and big data. Over the next six months, the industry will increase its expenditure on new product development and mergers and acquisitions.

Key Findings

The highest percentage of survey respondents with business operations in the Rest of the World foresee a favorable economic environment in the region in H1 2016 (January-June 2016)

In total, 68% of IT industry executives are optimistic about their company growth prospects in H1 2016, compared to 62% of respondents who quoted that they are more optimistic about industry growth during the same period

Overall, 69% of survey respondents who operate in North America forecast a positive change in customer confidence during H1 2016

In H1 2016, 39% of global survey respondents expect consulting prices to rise up to 6%, whereas 22% of respondents operating in North America anticipate a rise between 4% and 5.99%

Globally, the majority of IT industry executives indicated improving operational efficiency and customer retention as the top two priorities over the next six months


Kable IT Industry Business Confidence Survey H1 2016 examines executives opinion on the business environment over January-June 2016. It also highlights existing economic conditions, supplier price variations, sales performance, industry and company growth outlook, spending patterns, and key priorities.

What else does this report offer?

Current state of the global economy: examines prevailing economic conditions globally and across various regions

Company and industry growth outlook: provides industry executives expectations towards the growth prospects of their company and the industry over the next six months

Change in customer confidence: analyzes IT industry executives opinion about the change in customer confidence during H1 2016

Supplier prices projection: determines expected change in supplier prices across various categories and their impact on business confidence

Change in staff headcount and sales performance: tracks expected change in staff headcount and sales for H1 2016 among industry executives globally

Significant investment activities: highlights various areas in which industry executives intend to invest over the next six months

Business concerns: provides information about potential business concerns indicated by survey respondents for H1 2016

Key priorities: identifies top priorities of industry executives operating in various regions

Reasons To Buy

Helps organizations to make effective business strategies by knowing the prevailing business conditions and sentiment within the IT industry

Helps to alter investment allocation by understanding key focus areas highlighted by survey respondents during H1 2016

Helps to improve operational efficiency of the organization by knowing about key priorities and major concerns of IT industry executives

Organizations will be supported in business expansion decisions by providing information about projected change in sales performance and supplier prices

Key Highlights


1 Introduction

1.1 Definitions

1.2 Methodology and sample size

1.3 Respondent profile

2 Economic State, Growth Prospects and Consumer Confidence

2.1 Existing economic environment

2.1.1 In H1 2016, the highest percentage of IT industry executives view the current global economic condition to be stable

2.1.2 The majority of survey respondents highlight a favorable economic environment in Asia and North America

2.1.3 Executives operating in the Rest of the World and Asia-Pacific have more favorable opinions with regard to economic conditions

2.2 Industry and company growth outlook

2.2.1 The majority of IT industry executives project a positive outlook for company and industry growth over the next six months

2.2.2 IT industry executives are more optimistic about company growth prospects compared to industry growth prospects during H1 2016

2.2.3 Overall, 71% of business executives operating in Europe are optimistic about company growth over the next six months

2.3 Expected change in consumer confidence

2.3.1 The highest percentage of survey respondents anticipate a positive change in customer confidence during H1 2016

2.3.2 IT industry executives who operate in North America project higher levels of customer confidence over the next six months compared to what it is now

3 Supplier Prices, Staff Headcount and Sales Performance

3.1 Supplier prices expectations

3.1.1 In H1 2016, industry executives indicate the highest increase in power and energy, and consulting prices

3.1.2 Software prices are expected to increase by 1.9% on average during H1 2016

3.1.3 Supplier prices of hardware products are expected to increase by 0.4% on average during H1 2016

3.1.4 Overall, 29% of respondents operating in Asia-Pacific anticipate no change in power and energy prices

3.1.5 Overall, 30% of executives who operate in the Rest of the World anticipate an increase of more than 10% in consulting prices over the next six months

3.2 Anticipated change in staff head count and sales projections

3.2.1 Respondents from the Rest of the World anticipate the highest increase in staff headcount and sales growth over the next six months

3.3 Anticipated change in spend on key activities

3.3.1 Global IT industry executives expect the highest investments in new product development during H1 2016

4 Business Concerns and Organizational Priorities

4.1 Level of concerns and expected impact

4.1.1 Economical, industrial, and social or political issues impact customer and business confidence

4.1.2 Executives who operate in Europe and Asia-Pacific highlighted cyber crime and the performance of the Eurozone as their major concerns for the next six months

4.1.3 The highest percentage of respondents who operate in North America are concerned about the competition from new entrants in H1 2016

4.1.4 The performance of the Eurozone is the main concern for global IT industry executives in H1 2016

4.1.5 IT industry respondents are concerned about rising cyber crime activities over the next six months

4.2 Significance of potential business priorities

4.2.1 Operational efficiency and customer retention are the top two priorities for respondents who operate in North America and Asia-Pacific in H1 2016

4.2.2 Global IT industry respondents indicated improving operational efficiency as one of their top priorities in H1 2016

4.2.3 Respondents highlighted a slight focus on corporate and social responsibility initiatives over the next six months

5 Appendix

Figure 1: Profile of Respondents

Figure 2: State of the Economy: Key Takeouts

Figure 3: Current Economic Condition-Overall (H1 2016)

Figure 4: Current Economic Condition-Region

Figure 5: Current Economic Condition-Those Who Operate and Do Not Operate in a Region

Figure 6: State of the Economy-in Their Words-1

Figure 7: State of the Economy-in Their Words-2

Figure 8: Growth Prospects and Consumer Confidence: Key Takeouts

Figure 9: Industry and Company Growth Prospects-Overall

Figure 10: Industry and Company Growth Prospects-Overall-In detail

Figure 11: Industry and company growth prospects-Region

Figure 12: Anticipated Variation in Consumer Confidence-Overall (H1 2016)

Figure 13: Anticipated Variation in Consumer Confidence-Region

Figure 14: Growth prospects and customer confidence: in their words

Figure 15: ICT Products and Services Price and Expenditure: Key Takeouts

Figure 16: Category Wise Supplier Prices Highlights

Figure 17: Projected Change in Supplier Prices-Software-Overall and Regional

Figure 18: Projected Change in Supplier Prices-Hardware-Overall and Regional

Figure 19: Projected Change in Supplier Prices-Power and Energy-Overall and Regional

Figure 20: Projected Change in Supplier Prices-Consulting-Overall and Regional

Figure 21: Staff Headcount and Sales Outlook-Regional-H1 2016

Figure 22: Expenditure Projection on Key Activities-Overall

Figure 23: Priorities and Concerns: Key Takeouts

Figure 24: Concerns: Overview

Figure 25: Top Five Business Concerns-Region

Figure 26: Business Concerns-Regional Highlights

Figure 27: Business Concerns-Overall and Regional-A

Figure 28: Business Concerns-Overall and Regional-B

Figure 29: Top Five Organizational Priorities-Region

Figure 30: Organizational Priorities-Regional Highlights

Figure 31: Organizational Priorities-Overall and Region

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Business Confidence, Economic Outlook, It, Software, Hardware, Consulting, Telecommunications, System, Technology, Outsourcing, Global, It Vendor, Supplier, Staff Headcount, Sales Performance, Spending, Customer Confidence, Threats And Priorities, Growth Prospects, Power And Energy

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