CompTIA: Government Gridlock Negatively Impacts MSPs
As the federal government shutdown drags on, concerns about government gridlock have sharply increased, according to the most recent CompTIA IT Industry Business Confidence Index.
CompTIA, a non-profit association for the IT industry, reported that its Industry Business Confidence Index remained essentially unchanged in the fourth quarter of 2013, but a survey attached to the report showed an increase in concerns over the recent government deadlock.
"A portion of the concern can certainly be attributed to the impasse in Washington and the shutdown of the federal government," said CompTIA Public Advocacy Vice President Elizabeth Hyman in a prepared statement.
In fact, concern over government inaction and its impact on the overall economy jumped from 31 percent in the third quarter to 42 percent in the fourth quarter.
"One in four IT companies does regular business with some branch of government," Hyman said. "The federal government alone purchases more than $80 billion in technology each year, so the effect of a shutdown directly impacts the bottom line of these companies.
"There's also the potential for a longer-term impact if federal departments and agencies are unable to plan for and allocate current and future IT resources," she added. "The technology companies and workers they're doing business with will be in limbo, too. There will be hesitancy to hire people."
Hyman noted that recent government gridlock may affect small and medium-sized businesses (SMBs) delivering technology services directly.
"Outside of the government procurement process, many tech SMBs rely on federal financing through the Small Business Administration," she said. "The processing of these loans may be delayed."