The Channel is preparing for a profitable 2010, according to a survey of members of the Technology Channels Association (TCA). Almost three quarters (72%) expect turnover to grow next year, with 57% anticipating that this will be in excess of 10%, and 61% planning for an increase in profitability of over 10%.
It is unlikely that the IT jobs market will pick up immediately – only 44% of respondents plan to increase headcount in 2010, with half expecting to keep staff numbers at current levels.
A significant 72% expect business to have returned to pre-recessionary levels by the end of next year, with 31% reporting that this has already happened by Q4 2009.
With over 700 members, the TCA is the representative body for IT resellers, service providers, distributors and vendors. CEO Adam Harris commented:
“2009 has been a tough year in general for the IT industry with customers cutting budgets, negotiating better deals with their suppliers and delaying spending decisions. But it appears that this has taught the Channel to work more efficiently, with the majority expecting to grow in profit and turnover next year without hiring new staff. Although the UK is taking longer than some other countries to emerge from the recession, it seems that the technology sector is in a good position to lead the economy on a positive upward path.”