As the holiday season approaches, confidence among IT decision makers has made its greatest leap of the past 18 months as evidenced not only by our own survey but also that of CDW IT Monitor. Fuelled by IT investment expectations and emerging signs of good news about hiring, IT confidence has clearly returned to levels last seen before the start of the financial crisis in August 2008.

According to the latest CDW IT Monitor, almost half (48 percent) of corporate IT decision makers anticipate budget increases in the next six months, rising nine percentage points since October. In addition, more than three quarters (76 percent) of both corporate and government IT decision makers expect to replace or install new software in the next six months, the highest reading on record for the IT Monitor. The overall IT Growth Monitor, which measures anticipated IT investment, rose four points from 63 to 67, the largest gain in the past 18 months.

“There are a number of dynamics in the marketplace that, when combined, create a greater sense of optimism—especially during a time of the year when people traditionally feel more hopeful,” said Thomas E. Richards, president and chief operating officer, CDW. “However, some uncertainty lingers as potential federal legislation remains under debate. It will be interesting to see how confidence levels behave as these developments continue to take shape.”

Initial positive signs are also beginning to emerge for the IT job market. Twenty-two percent of corporate IT decision makers plan to hire additional staff in the next six months, an increase of 10 percentage points since October. Also, within the large business sector, 34 percent expect staffing increases, up 18 percentage points since the last IT Monitor.

The overall CDW IT Monitor index score increased two points from October to stand at 72, the highest reading since before the 2008 collapse of the financial markets, a strong supporting indicator of returning confidence and improved sentiment in the IT industry.