Investments in cloud, new products, services to drive U.S. revenue


The United States market has rebounded to first place
from third just a year ago, ahead of China and India, as a driver of future
revenue growth for the technology industry, according to KPMG.


Yet, while the senior technology executives surveyed see
the U.S. market driving revenue growth and although they anticipate continued
investment in mergers and acquisitions and emerging technologies  they are
less optimistic about overall technology industry employment growth and the
prospects of a national economic recovery than they were a year ago.


Survey respondents expect the U.S. market to provide the
highest percentage of revenue growth and employment growth over the next 12
months. China, Brazil and India follow the U.S. in revenue, while India and
China are second and third in employment.

In the 2010 KPMG survey, the
U.S. market was ranked third in expected revenue growth and fourth in
employment growth.  In addition, tech leaders this year predict the U.S.
also will have the industry’s greatest percentage of research and development
investment growth, followed by India and China.


“Technology executives clearly see a sustained
recovery and a strong appetite for technology related purchases by U.S.
companies and consumers, which helped raise the position of the U.S. market.
Coupled with demand from emerging market countries, this combined opportunity
bodes well for the industry,” said Gary Matuszak, partner, global
chair and U.S. leader for KPMG’s Technology, Communications &
Entertainment practice.


“They also intend to take advantage of their strong
liquidity and cash positions by investing in emerging technologies and new business
models, like Cloud, and new products and services, as well as M&A to drive
revenue,” Gary added.


The tech industry executives also may be buoyed by
information technology spending in the banking and retail industries.
Executives in KPMG business climate surveys in both of those sectors
identified technology as the number one area for investment.


In looking at revenue, many of the technology industry
survey respondents (77 percent) expect the overall revenue at their companies
to be higher one year from now. Technology executives again this year said
their biggest revenue driver over the next three years will be cloud computing.


In fact, KPMG’s survey results show 65 percent ranked
cloud computing as the top driver, a sharp jump from the 54 percent in last
year’s survey. The second and third ranked revenue drivers in this year’s
survey were mobile applications and advanced data analytics.


By Team
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