At the same time, the survey indicates technology executives are increasingly concerned about labor costs and low-cost producers.
Geographic growth and revenue gains expected
This year, just under 80 percent of the executives expect their company’s revenue to increase over the next year, compared with 77 percent in last year’s results. The responses also indicate the growing importance of markets such as Brazil, Canada, Mexico, and South Korea and lower revenue growth expectations for the United States and China.
As global adoption increases for mobile and cloud technologies, revenue expectations continue to be significant for these technologies. The majority of respondents say cloud and mobile revenues have met or exceeded their expectations.
Continued optimism is leading to further investments in products and services development, core R&D, acquisitions, and geographic expansion.
Plans for employment growth reflect broader geographic diversity as emerging markets increasingly drive technology demand and many countries offer employment incentives. The United States, China, and India remain the leading countries for employment growth, with executives also citing plans to increase headcount in Brazil, Canada, Mexico, the United Kingdom, South Korea, and other countries.
Pricing pressures were cited as the most significant growth barrier over the next year, followed by increasing labor costs and the ability to remain on top of emerging technologies. Regulatory and legislative pressures also emerged as a more pressing growth challenge in this year’s results.
The potential loss of market share to lower-cost producers was described as the largest business model threat, followed by political or regulatory uncertainty and the emergence of disruptive technologies.
U.S. economy expectations
Tech leaders’ expectations for a broader U.S. economic recovery remain muted. Respondents anticipating the economy to remain about the same rose significantly, with a notable decline in those with expectations for economic improvement in the United States.
- Gary Matuszak
Global Chair, KPMG’s Technology, Media and Telecommunications practice