More than half of technology CEOs surveyed globally (54 per cent) consider that a “return to territorialism” poses the greatest risk to their organisational growth, according to a new report by KPMG.
KPMG’s tech industry CEO outlook (#tech #CEOoutlook) canvassed the views of 104 tech CEOs globally on a range of key topics, among them, territorialism, growth, cyber and trust, artificial intelligence (AI), customer centricity and millennials.
The research also identified five “evolving forces” that are continuing to “raise the bar” for tech CEOs which are: drive for growth; visionary leadership; relentless customer centricity; technology for social good; and reimagining the workforce of the future.
Despite these concerns over issues like the UK’s exit from the EU and renegotiation of the North American Free Trade Agreement (Nafta), tech CEOs are confident of their companies’ ability to outpace the tech sector and the global economy. Three per cent of CEOs expect their top-line revenue growth to exceed five per cent over the next three years, while half (49 per cent) indicate it will be between 2 per cent and 5 per cent, and 48 per cent indicate it will be less than 2 per cent.
Over the next three years, 42 per cent of CEOs predict they will expand their company’s headcount by between six per cent and 10 per cent and 43 per cent say they will expand less than five per cent.
“The rise of nationalism and affiliated global economic tensions are among factors bringing caution to revenue growth expectations. Still, nearly nine out of 10 tech CEOs remain confident in the growth prospects for their company,” said Tim Zanni, global and US technology sector leader, KPMG.
“Tech CEOs are focused on profitability and investing in technology and their people, as well as considering new business models.”
Two thirds (64 per cent) of CEOs agree that agility is the new currency of business and when it came to visionary leadership seven in 10 are personally prepared to lead their organisations through radical transformation of existing operating models to maintain competitiveness.
Meanwhile, on the issue of technology for social good, more than one third of respondents (35 per cent) report they are struggling to link their growth strategy with a societal purpose for their company.
“There’s a growing expectation for tech leaders to link their strategies with technology for social good. It’s important that CEOs communicate a clear and consistent strategy about their organisations’ vision, and beliefs, and how their strategy is impacting their customers, employees and society at large,” added Zanni.
