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Tech CEOs have brighter outlook than pessimistic peers

Despite global uncertainties, some tech CEOs know they’re so money.
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· 3 min read

For many executives looking at their company’s prospects, the golf bag is half empty, so to speak.

A January 2023 survey from the business-services consultancy PwC found that nearly 40% of CEOs around the world think their organization will no longer be economically viable in ten years’ time, thanks to global uncertainties like inflation, war, and the job market.

While the research revealed that a good number of CEOs overall are pessimistic about their capacity to operate, tech CEOs aren’t as in need of that “you’re so money and you don’t even know it” pep talk. Their technology offerings—say, AI-enabled platforms or network-hardening cybertools—are part of executives’ plans.

“If you’re a tech CEO, you might be sitting back and saying, ‘Well, you know what, here’s the opportunity,’” said Conall Dempsey, partner at PwC.

Why so sad? What a difference two years makes.

The 2021 PwC report revealed a level of record-high optimism, when 76% of chief execs believed global economic growth would improve that year.

A variety of factors have shaken the 4,410 CEOs surveyed this year, including changing customer preferences and skill shortages. Some 43% of respondents noted concern for supply-chain disruption, while almost half of the execs saw advanced tech like artificial intelligence and the metaverse as negative impacts to profitability. A further 29% cited competition from adjacent industries.

Pessimism, however, does not mean that CEOs are not spending on upgrades: 76% of PwC’s surveyed CEOs are investing in automation; 69% are deploying technologies like cloud and AI. Companies who cited exposure to geopolitical risk are spending on cybersec and data-privacy technologies, according to the 2023 report.

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Tech CEOs have room for optimism as their nervous peers still make room for investments. When more IoT devices get connected, for example, network-management companies have more customers.

“The strength and security of corporate networks is critically, critically important. And that’s an area where I think a lot of CEOs will continue to invest right through the economic cycle, because of the criticality of hardening the network, increasing the capacity, being more efficient and being secure,” said Dempsey.

The PwC research demonstrated optimism from tech CEOs—in the medium term at least. Some 64% of “TMT” (technology, media, and telecom) chief execs said they were extremely or very confident in their revenue-growth prospects in the next three years, and 51% showed that same confidence in their 12-month prospects.

Sameer Penakalapati, CEO at the SaaS provider CEIPAL, is one of the more confident leaders. CEIPAL is an AI-powered, cloud-based platform supporting talent acquisition—a tool that potentially comes in handy when orgs invest in tech.

“The health concerns, political instabilities, the war, the inflation, high interest rates, all of these things all come at once, and that…almost forces companies and corporations to optimize and be efficient. And that means corporations or organizations are going to spend more time, money, and focus on upgrading and enhancing their operations,” Penakalapati told IT Brew.

Money. And he knows it.—BH

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Top insights for IT pros

From cybersecurity and big data to cloud computing, IT Brew covers the latest trends shaping business tech in our 4x weekly newsletter, virtual events with industry experts, and digital guides.