Survey: IT services business may be brightening

Information technology services firms envision an improved short-term business future, according to the results of a monthly survey released Nov. 4. Survey respondents said the federal government and transportation sectors are the biggest sources of recent business demand.


The survey was released by the Information Technology Association of America of Arlington, Va., a trade association; Input Inc. of Chantilly, Va., an IT market research firm; and Legg Mason Wood Walker Inc. of Baltimore, a financial services firm.


The poll of 57 IT services company executives found their month to month revenue expectations for October were up significantly, with smaller gains made in billable head count, billing rates, wage rates and operating margins.


"This is good news for a sector that has mostly seen its fortunes stalled in recent times," said ITAA President Harris Miller. "We are also starting to see the targets of opportunity increase somewhat, from strictly federal contracting to renewed optimism for future business demand in the telecom, education and banking sectors."


The survey also asked what IT services firms view as their most intense sources of competition. Large systems integrators, large consulting firms and hardware vendors led the pack. Offshore IT services firms were considered a competitive threat by far fewer survey respondents, as were software firms.


"We are not surprised that customers move to larger firms during difficult economic times. We are somewhat surprised that software companies, often with 50 percent or more of their revenue generated by support services, are not perceived as a more substantial competitive threat to IT services companies," Miller said.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here
close

Trending

  • Dive into our Contract Award database

    In an exclusive for WT Insider members, we are collecting all of the contract awards we cover into a database that you can sort by contractor, agency, value and other parameters. You can also download it into a spreadsheet. Our databases track awards back to 2013. Read More

  • Navigating the trends and issues of 2016 Nick Wakeman

    In our latest WT Insider Report, we pull together our best advice, insights and reporting on the trends and issues that will shape the market in 2016 and beyond. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

I agree to this site's Privacy Policy.