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Cisco CEO: Tech Companies Benefit First in Recovery

CNBC.com
Friday, 29 Jan 2010 | 8:59 AM ET

Technology companies are the first companies to get a boost from a recovering economy as more companies upgrade their technology, said John Chambers, CEO of Cisco .

Tech Companies First to Benefit in Recovery: CEO
"Most of the global economies have stabilized," John Chambers, CEO of Cisco, said Friday. "Here in Davos, the mood is much more positive than a year ago, especially for the technology companies. And that's natural because when economies start to recover, you apply first technology â?? get your productivity up â?? then you add jobs."

"When economies start to recover you apply first technology, get your productivity up, then you add jobs if it continues normally," said Chambers in an interview with CNBC in Davos, Switzerland at the World Economic Forum.

Despite the downturn, Chambers says the tech company has been investing in the business heavily, moving into other areas like entertainment, security and smart grids.

"We predicted this, unfortunately, a few years ago saying we saw something unusual in the finance industry," he said. "We felt the downturn would be deeper and longer than people

thought and we made our changes 1 to 2 years ago. Then we got the most aggressive we've ever been—five acquisitions in a period of two months at the end of the year."

Chambers said he expects the company expects to increase headcount in U.S. as well as around the world from 2,000-3,000 jobs in the next two to three quarters.

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