| | Confident technology
CEOs are shrugging off
economic and security
worries and focusing
inward to strengthen
their companies and
increase growth,
according to Deloitte's
2005 CEO Survey of the
fastest growing
technology companies in
North America as ranked
on Deloitte's Technology
Fast 500.
"Fast 500 CEOs are
confident that the
economy and their
businesses are poised
for growth," said Tony
Kern, a principal with
Deloitte & Touche LLP
and deputy national
managing principal of
Deloitte's U.S. TMT
industry practice. "Tech
CEOs are focused on
facilitating that growth
by improving internal
operations and hiring
and retaining talent,
rather than on external
issues, such as economic
conditions and | |
| |
| | last year.
CEOs Increasingly
Confident About Future
Growth
Compared with last
year's survey, far more
CEOs (36 percent
compared to 21 percent
in last year's survey)
are "extremely"
confident about their
company's growth
prospects during 2005.
Nearly three-quarters of
the CEOs are "extremely"
or "very" confident
about their companies'
future growth.
To put this
confidence in
perspective, the Fast
500 winners demonstrated
average revenue growth
of 4,109 percent over
the past 5 years.
Percentages ranged from
329 percent to 437,115
percent.
Concerns about
economic conditions have
faded, and are only an
issue for 2 percent of
the CEOs this year, down | |
|
| | significantly from 16
percent last year.
Perhaps as a result,
managing cash flow is
not as big of an issue
this year as it was last
year; it concerns 11
percent of the CEOs
surveyed, down from 17
percent last year.
Solid Strategy a Key
to Success; Unique
Products are Not
The necessity of a
strong business strategy
ranked higher this year,
21 percent this year
compared to 16 percent
last year. Developing a
strong sales and
marketing strategy,
however, is important to
only 21 percent of the
CEOs, down dramatically
from 33 percent last
year. Having exceptional
or unique products is
not as big a priority,
dropping to 13 percent
this year from 24
percent last year.
Pricing Pressure,
Strategic Relationships | |
|
| | Increasingly Worrisome
While the biggest
challenge in sustaining
growth continues to be
bringing new products to
market (27 percent,
consistent with last
year), other challenges
are of increasing
concern. Twice as many
CEOs are concerned about
competitive pressure on
pricing (13 percent, up
from 6 percent last
year), and far more are
concerned with building
strategic relationships
(15 percent, up from 3
percent last year).
The survey was
conducted during the
first quarter of 2005 by
Deloitte's Technology,
Media &
Telecommunications (TMT)
Group. Deloitte's
Technology Fast 500 is
an annual ranking of the
fastest growing
technology companies in
North America based on
percentage revenue
growth over five years. | |
|
| | geopolitical
instability."
Ninety-five percent
of the CEOs have plans
to grow their workforce.
Forty-two percent
indicate plans to add at
least 25 percent more
employees in the next 12
months, while 19 percent
have plans to add more
than 50 percent.
High-quality
employees are the
greatest contributors to
success, according to 25
percent of respondents,
up from 19 percent last
year. However, finding,
hiring and retaining
qualified employees
remains CEOs' biggest
operational challenge at
27 percent, the same as | |
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