Published: 07/01/2015
Leveraging Greater Phoenix’s Strengths to Drive Growth
The Information and Communication Technology (ICT) sector represents the convergence of telecommunication and information technology. The global market for software is robust and will grow at a rapid pace, the United States dominates 35 percent of the global software market, and there is opportunity for growth outside the United States. These trends demonstrate an opportunity for Greater Phoenix to leverage its strengths and capacity for entrepreneurship, innovation and exports, and strategically promote software as one of the key drivers for economic growth.
Key Findings
Poised to Grow
An overwhelming majority of the companies indicated they are experiencing high revenue growth. As a result, they have plans to expand and hire more workers in the near term. Some reported double and triple-digit year-over-year growth rates.
Global Customer Base
Software is an export industry with a national and global customer base. While serving the local market is the main revenue driver for some, the majority of software companies sell to national and global markets.
Greater Phoenix is A Hub
Greater Phoenix is emerging as a software hub, accelerated by an enriched innovation ecosystem. Ability to attract new investment capital is critical to a dynamic industry like software, where technologies evolve and change rapidly, and maintaining an edge over competitors requires regular reinvestment to upgrade equipment, capabilities and skills.
Lacking Qualified Workers
The region does not have a sufficient number of qualified workers to support future growth in the software industry. Companies consistently point out the current pool of applicants lack a combination of technical and soft skills sought by firms, and competition for qualified talent is contributing to higher wages in the software industry.
Expertise Needed For Venture Capital Funding
Venture capitalists are actively seeking deals in Greater Phoenix but expert assistance is needed to help companies navigate through the venture capital funding process. Less than 1 percent of venture capital in the United States is invested in Greater Phoenix businesses. However, low volume of deals does not accurately reflect actual levels of interest from venture capitalists.
Operations And Quality of Life Are Important
Business operating environment and quality of life are important to software companies. Local executives indicated that they started and grew their business in Greater Phoenix because of the region’s low-cost operating environment and quality of life.
$11B
Economic output of Greater Phoenix ICT
3.7K
ICT establishments in Greater Phoenix
$106K
Median ICT job earnings in Greater Phoenix
14.4%
Expected job growth by 2019
Learn more about our in depth report on the future of Greater Phoenix’s software industry.
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