What does 2020 look like for the technology industry? LBMC conducted a national survey covering business unit leaders in eight industries, including technology. The survey is considered a pulse survey, which is opinion based and not scientific in nature. The survey collected responses to determine a baseline of optimism and strategy preferences over the past 12 months and the coming 12 months.

According to the survey, optimism is high overall. Over half of technology leaders emphasized high revenue growth, while only 7 percent disclosed negative returns over the past 12 months.

Revenue Picture for the Technology Industry

Technology leaders saw significant growth in 2019, with 49 percent seeing growth of 10 percent or more. This growth is likely due to the demand for new technologies that improve efficiency and productivity as well as new tools for business intelligence and security. 34 percent of companies posted revenue growth of 10-20 percent in the past 12 months, compared to 11 percent of respondents in 2019.

Like in other industries, technology leaders are looking at leveraging information security/cybersecurity and increasing their marketing and R&D spending. Unlike other industries, technology leaders are not as focused on acquiring new locations and facilities with their capital spending as only 12 percent saw this as a focus in 2020.

Similarly, 27 percent of leaders are projecting growth of 3-9 percent, with about 15 percent of leaders planning revenue growth of 10-20 percent. About 26 percent of leaders are over 20 percent growth in 2020.

2020 Expectations for the Technology Industry

Inflationary factors including labor costs and the global economy are the top concerns in 2020 for technology leaders. Like other industries, technology leaders have rated the global economy at 5 out of 10. Along with economic conditions, technology leaders see changing customer preferences and developing new products and services as their top challenges in 2020.

Retention of talent, a top goal for 17 percent of technology leaders, will be a primary focus through a variety of incentives, such as increased compensation, training and flexible work arrangements.

 “Very positive and a growth period, the future is extremely bright!” -COO, Technology

40 percent of technology leaders say investing in business intelligence and analytics, along with improving cloud strategy, are the top technology priorities in 2020. The top overall goals for technology leaders are growing sales at 26 percent and increasing business value at 21 percent.