04 Sep 2019
Global Insights: Technology Sector
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The rapidly-evolving technology sector continues to fuel wide-scale digital transformation, including the emergence of Industry 4.0. With the consumerization of technology, especially from the ‘on-demand generation,’ we are finally seeing the increasing and real-life impact from modern technologies. In short, technology has caught up with the human imagination.
Digital disruption is no longer being fueled by the fabled firms concentrated in the 50 miles between San Francisco and San Jose. Innovation flows from digital hubs across other parts of North America, while in the UK and Europe their well-developed digital ecosystems continue to prosper. At the same time, Asia has become a rival technology powerhouse. Globally, companies have risen almost overnight, filled with talented people who are pushing the boundaries of what is possible, and sometimes what isn’t! While technology is the vehicle driving global disruption, the digital world has always been about people. A technological brain will never replace the essential elements for innovation that come from the rich depths of the human mind. This is our field of expertise: identifying and securing the most impactful talent that can make a difference to organizations across the world. We achieve this built on the understanding that every country has unique differences so we bring a global perspective combined with local insight.
We drew on regional perspectives built on the experience of Odgers Berndtson partners in our Global Technology Practice that resulted in a high-level, real time view of the important talent, leadership and technology trends occurring across North America, Europe and Asia Pacific. It’s a clear view of exactly what we are seeing in our day-to-day work in the market, from both a client and candidate perspective.
The following is an abbreviated excerpt of the overview for the United States. You can read our entire global outlook here.
USA – Country Overview:
Worldwide IT spending is projected to reach $5 trillion in 2019, with enterprise software revenues forecast to increase the most as the demand for SaaS/Cloud Services continues to drive growth in almost all software segments.
The United States is the largest tech market in the world, representing 31% of the total, or approximately $1.6 trillion for 2019 and is easily the country’s largest single industry sector measured by percentage of GDP.
Because of its already well established infrastructure, and large installed base of users equipped with connected devices, the last few years have seen significantly increased investment in Cloud based services, with edge computing, 5G, and other infrastructure technologies, leading the next wave of services and software development.
West Coast Overview:
Silicon Valley has just enjoyed the greatest decade of tech expansion and urban growth in US economic history. A combination of the San Francisco Bay Area’s unique work environments, its universities and the ecosystem for start-ups underpin recent government data illustrating that the Bay Area’s share of national income continues to climb.
Executive Talent Trends:
There’s no doubt that the US is in the midst of an escalating war for technology talent. This trend is most acute in the Bay Area, and especially hot for engineering roles. Clients are increasingly thinking deeply about where to locate their people, and continue to focus on building environments that foster great teamwork in order to attract this talent over their competitors.
East Coast Overview:
Although historically a hub for the more traditional industry sectors, including financial services, professional services, and pharma/life sciences, America’s East Coast is increasingly being seen as the nation’s second biggest technology center after the West Coast.
Executive Talent Trends:
New York and Washington D.C. face competition as big Silicon Valley companies are also adding tech jobs in other locations. Areas with top universities are also attracting top tech companies.
Texas is the most promising technology investment opportunity in the United States and is already the 10th largest economy in the world, there is still untapped potential and more growth in its future. Austin and Dallas continue to make an impressive impact on the Tech Sector but each in its own way.
Executive Talent Trends:
Executives with the passion, stamina, energy and intellectual curiosity to lead early stage, innovative, cutting edge companies do very well in Austin. The Dallas Metroplex has a large populace of tech executives from elite organizations. Most of the executives are not from the area but are finding it hard to leave due to the quality of living, education system, cost of living and reasonable tax code.