Economic Recovery Driven by Tech Sector, Survey SaysPosted 2009-08-21 Email Print
The survey found eight out of 10 executives expect business conditions in the technology sector to improve in 2010, with 78 percent expecting stronger revenue and 72 percent expecting improved profitability.
A survey of 130 CEO and other C-level hardware and software company executives conducted by audit, tax and advisory firm KPMG found the respondents believe that the technology sector will recover from the current economic crisis substantially more quickly than the U.S. economy, with senior business leaders expecting improved revenue and profitability in 2010 and about half seeing an improved job picture.
In the KPMG survey, two-thirds of these senior technology executives said they thought their industry would fully recover from the current economic crisis ahead of the overall U.S. economy. Silicon Valley-based executives were even more bullish 77 percent expect the technology sector's recovery to outpace the U.S. recovery. About 43 percent of the technology leaders surveyed expect the U.S. economy to recover after 2010 while 39 percent predict the economy will recover by next year. The survey found eight out of 10 executives expect business conditions in the technology sector to improve in 2010, with 78 percent expecting stronger revenue and 72 percent expecting improved profitability.
"The results are in line with recent earnings reports in the technology sector which suggest business conditions are starting to improve," said KPMG partner, global chair and U.S. leader for the organization's information, communications and entertainment practice, Gary Matuszak. "There are also reports of software industry sales expanding five to ten percent annually after the recession, so while it's far from blue skies in the industry, the worst seems to be behind us."