IT INDUSTRYOUTLOOK2018

January2018

The complete IT Industry Outlook 2018 report can be viewed free of charge at CompTIA.org (with simple registration)

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Trends to Watch in 2018
The Democratization of Technology 7.
1. The Insights Economy Comes Into Focus
Leads to Breakthrough Models
Businesses Race to Upgrade Digital
2. Cloud Enters New Phase of Maturity 8. Expertise in the Boardroom

‘New Collar’ Jobs Mindset Gains

3. Internet of Things Expands Technology Footprints 9.
Momentum, but ChallengesPersist

4. Artificial Intelligence Adds a New

10. Online Marketplaces: Friend or Foeof
Layer to the SolutionStack the Channel

5. Businesses Adjust to the New Normal ofSecurity 11. Subscription Pricing Gets Harder to Figure Out

Growing Up: Tech May No LongerAutomatically

6. 12. Primed and Ready for the As-A-ServiceWorld
Be Given the Benefit of the Doubt

Source: CompTIA’s IT Industry Outlook2018

The Global Information Technology Industry: $4.8 Trillion
Estimated 2018 spending at constant currency, according to IDC | Encompasses hardware, software, services and telecommunications

33% 22%
33%

5%
7%

Source:IDC
Momentum Continues for IT Industry Business Confidence
CompTIA’s IT Industry Business Confidence Index is calculated on a 100-point scale using an aggregation of three metrics:
1). Perceptions of the state of the U.S. economy, 2). The state of the IT industry, and a 3). Self-assessment ofone’s own company.

75.0

70.0 Heading into Q1 2018,

CompTIA’s BCI remains
near its all time high.
65.0 This reflects confidence
among IT industry
executives for continued
60.0 customer demand for IT
products and services,
as well as strong
55.0
economic
fundamentals.
50.0

45.0

Forecas
Q1'11

Q4'14
Q3'09
Q4'09
Q1'10
Q2'10
Q3'10
Q4'10

Q2'11
Q3'11
Q4'11
Q1'12
Q2'12
Q3'12
Q4'12
Q1'13
Q2'13
Q3'13
Q4'13
Q1'14
Q2'14
Q3'14

Q1'15
Q2'15
Q3'15
Q4'15
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
Q1'18

t
Source: CompTIA’s IT Industry Outlook2018
Global IT Industry Growth Projected to Hit 5.0 Percent
Methodology note: CompTIA utilizes a consensus forecasting methodology, also referred to as a “wisdom of the crowds” approach. IT industry executives in
the US, Canada and the UK provide their optimistic and pessimistic projections for the year ahead; these inputs provide the basis for the CompTIA forecast. All
figures are presented in current dollars, which do not take factors such as inflation or currency exchange rates into consideration.

OPTIMISTIC END Global:

8.0 OFFORECAST
5.0% midpoint
7.0 7.2% upper end
2.8% lower end
6.0 United States:
Growth Rate Range

4.9% midpoint
5.0 7.1% upper end
2.7% lower end
4.0
Canada:
3.0 5.3% midpoint
7.4% upper end
PESSIMISTICEND 3.3% lower end
2.0 OFFORECAST
United Kingdom:
1.0
5.1% midpoint
7.2% upper end
0.0 2.9% lower end
2013 2014 2015 2016 2017 2018
Source: CompTIA’s IT Industry Outlook2018
 Factors that Could Drive or Inhibit Growth in2018
Factors in hitting pessimistic sideof forecast Factors in hitting optimistic side of forecast

Customers postponing purchases / wait and see approach Successfully reaching new customer segments
-40% 48%
Customers substituting for less expensive or smaller purchases Pick-up in business from existing customer base
-33% 42%
Government action (e.g. regulation, trade policy changes etc.) Successfully selling / launching new business lines
-31% 40%
Unexpected shock (e.g. financial crisis, terrorist attack, etc.) Improvement to internal operations
-30% 38%
Shrinking margins / profitability Improvement to sales / marketingefforts
-29% 37%
Labor costs / availability of skilledIT workers Improved margins
-28% 28%
Disruption / competition from new firms entering space Government action (e.g. deregulation, tax code changes, etc.)
-25% 26%
Source: CompTIA’s IT Industry Outlook2018
Top Factors Cited for Exceeding Growth Targets for 2018
UNITED STATES
1. Successfully reaching new customer segments
2. Pick-up in business from existing customer base
3. Successfully selling new business lines / launching new products
4. Improvement to sales / marketingefforts
5. Improvement to internal operations / running more efficiently

CANADA
1. Improvement to internal operations / running more efficiently
2. Pick-up in business from existing customer base
3. Successfully reaching new customer segments
4. Successfully selling new business lines / launching new products
5. Improvement to sales / marketingefforts

UNITED KINGDOM
1. Successfully reaching new customer segments
2. Successfully selling new business lines / launching new products
3. Pick-up in business from existing customer base
4. Improvement to internal operations / running more efficiently
5. Improvement to sales / marketingefforts
Source: CompTIA’s IT Industry Outlook2018
IT Firms Plan to Introduce Range of New Offerings in 2018

35%
33%
Among firms
planning to launch
new products /
24%
services in 2018,
16% expect these
offerings to have a
significant impact
on the bottomline,
8% while 49% expect a
modest impact.

Mostly Mostly new Mix of both NA;nothing

extensions of products / planned
existing products services
/ services
Source: CompTIA’s IT Industry Outlook2018
Smaller IT Firms Lag in New Product/Service Offering Plans
Large ITfirms Medium Small Micro
37%
Mostly new products/services 39%
(e.g. emerging tech categories) 34%
18%

21%
Mostly extensions of 25%
existing products/services 25%
28%

35%
33%
Mix of both 32%
41%

7%
4%
Not applicable; nothing planned 8%
13%

Source: CompTIA’s IT Industry Outlook2018

Most IT Firms Are Actively Recruiting Tech Talent
Large IT firms Medium Small Micro

46%
Currently have openings / 48%
actively looking to hire IT ortech staff: 36%
6%

44%
Currently have openings / actively looking 47%
to hire business staff (e.g. salesetc.): 39%
13%

20%
18%
Fully staffed / not actively hiring
30%
78%

Source: CompTIA’s IT Industry Outlook2018

More Challenges Ahead in 2018 on the IT Hiring Front

UNITED STATES CANADA UNITED KINGDOM

31% 38% 34%

16% 12%
11%

11% 14% 11%

42% 37% 43%

2018 significantly morechallenging 2018 about on par with 2017

2018 moderately more challenging NETless challenging / don’tknow

Source: CompTIA’s IT Industry Outlook2018

The Need for Skills in Emerging Areas Driving IT Hiring
Reasons IT Firms are Hiring Top Hiring Challenges Cited

57% 59% Finding workers with the right soft skills

Competing with other tech firms for talent

34%
Finding workers with skill/experiencein
emerging areas (e.g. IoT, AR, AI, etc.)

Competing with other industry sectors fortalent

Expansion / Need for skills Replacements
adding new in new areas for departures /
headcount (e.g. emerging retirements Rising wage/salary expectations
tech)

Source: CompTIA’s IT Industry Outlook2018

CompTIA research studies available at CompTIA.org