Service businesses are looking for nearly three times the revenue impact expected by product companies. But their projected level of spending has increased to 15.6 percent of revenues from last year s 11.3 percent, a jump of 38 percent. In keeping with their higher growth projections, service businesses are planning on investing more than their product company peers. Only two percent plan to reduce their staffs, and 19 percent intend to remain about the same. Overall, current plans are a bit more robust than a year ago, when 78 percent were planning to add 15.3 percent new hires.
Service companies continue to lead the way in plans for new hiring.
33 percent mentioned pressure for increased wages, off six points from a year ago. These fast growing companies have apparently been able to hold down labor costs through continued productivity increases from their investments in information technology. 31 percent noted concern about managing or reorganizing their respective companies to meet the challenges of new growth in the year ahead, up 8 points from a year ago. Drawing upon the talents of 150,000 people in 150 countries, we help our clients solve complex business problems and measurably enhance their ability to build value, manage risk, and improve performance. PricewaterhouseCoopers refers to the U.S. firm of PricewaterhouseCoopers LLP and other members of the worldwide PricewaterhouseCoopers organization.