New Delhi: Chief executives of Indian and Chinese technology companies are among the most optimistic in the Asia-Pacific (APAC) region, when it comes to their growth prospects in 2011, according to a study.
According to a survey by consultancy firm Deloitte, 54% of chief executive officers (CEOs) surveyed across APAC region predict strong growth in 2011, and a majority of these optimists are from the two Asian giants.
The survey, which was conducted among 245 tech CEOs across the APAC region, said that 60% of Indian executives have expressed that their companies have experienced overall growth in their focus markets. This is higher than APAC numbers where nearly half of the respondent have expressed the same.
The CEOs across the globe believe that overall economic recovery, growth of specific market segments and geographic expansion will pump the growth engine in the coming 12 months. Besides, most of the executives believe that a strong offering and sustained innovation are the other main elements of the growth.
Notably, the sustained growth witnessed by the Indian IT/ITES sector is due to the fact that these companies are transforming themselves from merely being outsourced service providers to IP-led businesses over the last few years.
A paradigm shift in technology is already in the offing. Of the APAC CEOs surveyed, 44% believe that availability of cloud-based services has aided the company in terms of scale up quickly at a lower cost.
“One of the most significant trend visible was the impact of cloud computing, which started shifting the fundamental business model of delivering and consuming IT services away from infrastructure-based computing. This trend is capturing the fancy of Indian customers and vendors alike,” said PN Sudarshan, senior director at Deloitte Tohmatsu India Pvt Ltd.
Meanwhile, the study said that Indian CEOs feel that talent crunch would negatively impact companies’ growth outlook. Apart from that executives are of the view that finance and operations oriented parameters like rising input cost, and rising cost of capital will exert downward pressure on the industry.
“Though the market has gradually emerged from the shadows of the downturn, growth has been gradual. The overall mood if we can sum up among the CEOs is optimistic but still cautious,” the survey noted.