Goutam Das, Bengaluru
The Asian Age
There is a raging debate on whether the technology sector will mirror the economic recovery curve or be ahead of it. Some CEOs in the Silicon Valley certainly hope the technology sector can recover faster because of huge pent-up demand and productivity gains the sector promises.
CEO of governance, risk and compliance solutions firm MetricStream Shellye Archambeau, who also serves on the board of the Silicon Valley Leadership Group, says companies are starting to see some of the pent-up demand coming through.
Enterprises are starting to cautiously open up their spending on key and critical areas. However, discretionary spending is not freeing up just as yet.
Chief executive officer’s in the Silicon Valley, says Archambeau, certainly don’t foresee a ‘U’, ‘V’ or a ‘W’ recovery for the economy. "The expectation right now is that this would be a slow, gradual recovery versus a nice slope going," she notes.
Economists have often pointed to the different nature of the current recession — while the last economic slump, the Dotcom bust, was an one industry event, the current crisis has spread beyond financial services and is, in fact, a culmination of six bubbles.
There were the subprime, the real estate, commodity, consumer spending, corporate earnings as well as the stock market bubbles that led to the present crisis.
Many CEOs, therefore, believe the recovery would be a more steady, gradual improvement.
Many see a sickle-shaped recovery — a small rebound followed by months of flat lining in economic activity.
A McKinsey quarterly survey stated that a majority of global executives expect an upturn only after 2010.
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