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IT Management Slideshow:
Why Your CEO, CFO are Losing Sleep

By Dennis McCafferty on 2010-09-23


CEOs and CFOs are most concerned about the impact of increasing taxes, regulation and legislation on your organization’s revenues, according to a recent survey from PricewaterhouseCoopers. The upshot: CIOs will need to align their own IT spending/oversight plans with the cautious perspectives of their CEOs and CFOs. Experts have declared that the recession “officially” ended last year, but the economy is hardly out of the woods yet. C-level executives present a mixed picture when it comes to business prospects for the next 12 months, according to the “Private Company Trendsetter Barometer,” based on a 2Q 2010 survey of some 250 CEOs and CFOs by PricewaterhouseCoopers. Optimism is declining even as many are anticipating that revenues will increase. The majority of those surveyed say they plan to hire. Yet, only a minority have capital expenditure increases planned. "Although we continue to emerge from the downturn, political and economic uncertainty may linger for some time," says Ken Esch, a partner with PricewaterhouseCoopers' Private Company Services practice. "That uncertainty isn't keeping companies from pursuing growth opportunities. But it does reinforce the need to carefully manage against ongoing market and regulatory risks." Here are some of the key findings by PwC.

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Only 45 percent of CEOs/CFOs surveyed voice optimism about prospects for U.S. economic growth over the next 12 months – 6 percent less than in 1Q 2010.

37 percent of senior execs with internationally marketed companies express confidence about the global economy, down from 47 percent in 1Q.

76 percent of those surveyed at top companies expect positive revenue growth over the next 12 months.

38 percent of CEOs, CFOs at top companies anticipate double-digit percentage growth over the next 12 months.

Only 14 percent of respondents from these companies expect zero revenue growth within the next 12 months.

Only 12 percent of respondents expect negative revenue growth.

Despite expectations of positive revenue growth, only 29 percent of executives plan major capital investments over the next 12 months, down from 32 percent in 1Q 2010.

78 percent of respondents say lack of demand continues to be the main potential barrier to growth – up 4 percentage points from 1Q.

52 percent are concerned about increased taxation harming revenue growth, up 7 percentage points from 1Q 2010.

50 percent are concerned about the impact of legislative/regulatory pressures when it comes to revenue growth, up 2 percentage points from 1Q.

54 percent of respondents plan to add employees to their workforce over the next 12 months – nearly the same as 1Q 2010, and well beyond the 34 percent reported in 2Q 2009.

44 percent of senior executives plan to keep the workforce level the same.

Only a fraction of those surveyed plan to reduce their workforce.

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