National Monitor
VERNON HILLS, Ill. – Aug. 27, 2009 – In the midst of a slowly developing trend toward recovery in the information technology arena, data from the latest CDW IT Monitor indicates the first glimmer of good news about hiring. While industry sentiment falls short of promising new hires, the number of large companies planning on reducing IT staff continues to fall rapidly.
According to the August CDW IT Monitor, only 10 percent of large companies say they may be reducing IT staff in the next six months, down from 17 percent in February. In addition, the number of medium-size businesses planning to reduce staff fell to seven percent, down from nine percent in April. For the first time since December 2008, the overall IT Monitor score, an indicator of the direction, momentum and mindset of the U.S. IT industry, climbed one point registering a reading of 70.
“The fact that the largest employers are decreasing planned job cuts in IT is an encouraging sign in the marketplace as we continue to make small steps toward recovery,” said Mark Gambill, the company’s executive responsible for market insights. “While we’re not there yet, this is a positive step that paves the way for future hiring and creates a more stable environment across the industry.”
The tapering of IT job reductions is also consistent with higher expectations of improved performance. According to the IT Monitor, 63 percent of large businesses expect better performance in the next six months compared to 43 percent in February. Similarly, 56 percent of medium-size businesses and 53 percent of small businesses also anticipate better performance in the next six months. Both sectors registered 47 percent in February.
| Expect better performance in next six months | February 09 | April 09 | June 09 | August 09 |
| Large Businesses (1,000+ employees) |
43% | 50% | 61% | 63% |
| Medium-Size Businesses (100-999 employees) |
47% | 53% | 60% | 56% |
| Small Businesses (1-99 employees) |
47% | 48% | 52% | 53% |
“Six months ago was a low point across a variety of sectors, and it’s encouraging to now see some of that negative outlook begin to turn around,” said Gambill. “The stabilization we’ve seen in the last two IT Monitor readings appears to be gradually evolving into small signs of recovery.”
The CDW IT Monitor is based on an online survey of at least 1,000 IT decision makers from businesses of all sizes and all sectors of government. The overall IT Monitor score is composed of two sub-indices – the IT Growth Monitor, which measures future IT expectations, and the IT Value Monitor, which measures the value of IT in achieving organizational objectives. For more information about the mindset of IT decision makers please visit www.cdwitmonitor.com.
About the CDW IT Monitor
The CDW IT Monitor was created by CDW Corporation, and research and analysis is conducted by independent polling firm Richard Day Research of Evanston, Ill. Decision makers are invited from two large national panels of IT decision makers built and maintained by E-Rewards and Survey Sampling International. Data reported in this release are based on a survey of 1,048 IT decision makers conducted between July 16 and July 23, 2009.
At the center of the CDW IT Monitor is an index number, which registered an initial benchmark reading of 69 in December 2007. Results are calculated on a scale of 0-100, with 100 indicating the highest level of confidence. Future readings of the CDW IT Monitor will continue to yield comparisons to previous scores, allowing for an interpretation of the direction of sentiment in the IT marketplace. The next CDW IT Monitor will be released in October 2009.
Data are weighted to ensure that CDW IT Monitor calculations closely represent the overall population of corporate and government employers in terms of size, based on the number of employees. Corporate data are weighted according to U.S. Economic Census data, and government data are weighted according to data from the U.S. Census Bureau’s annual survey of government employment. The margin of sampling error for a survey based on this many interviews is approximately +/-4 percentage points for the business sector, and +/-6 percentage points for government.
About CDW
CDW is a leading provider of technology solutions for business, government and education. Ranked No. 34 on Forbes' list of America's Largest Private Companies, CDW features dedicated account managers who help customers choose the right technology products and services to meet their needs. The company's technology specialists offer expertise in designing customized solutions, while its advanced technology engineers can assist customers with the implementation and long-term management of those solutions. Areas of focus include notebooks, desktops, printers, servers and storage, unified communications, security, wireless, power and cooling, networking, software licensing and mobility solutions.
CDW was founded in 1984 and as of June 30, 2009 employed approximately 6,250 coworkers. In 2008, the company generated sales of $8.1 billion. For more information, visit CDW.com.
