Amidst reduced global growth forecasts, the tech sector is bucking the trend as it continues to build on its strong position in global markets. Stock market figures reveal the extent to which growth in technology share prices underpins overall market increases. The Dow Jones (DJ) US Tech Index, for instance, shows a year-on-year rise of 10.30 per cent in the value of the technology sector, compared to overall growth of 3.63 per cent over the same period. Software innovation in particular is inspiring high investment, boasting an 11.31 per cent increase since this time last year.
Although both tech and non-tech components of the Nasdaq 100 stock market index have lost ground over the last three months, tech stocks have rebounded whilst non-tech stocks have continued to be much weaker. The same is true elsewhere in the world. In India the $132 billion IT industry has increased six fold in the last decade, while in China growth fuelled largely by increased investment in tech saw the benchmark index rise to its highest level in two months.
This trend indicates the extent to which technology remains resilient through market downturns. The traditional dominance of the financial sector is weakening in the face of technological upsurges: in fact the DJ index reveals that the tech industry outstripped growth in the financial sector by over 2.5 per cent over the last year. The latest FTSE All-world Index lists 185 tech constituents, compared to only 139 financial services companies, making tech now the third largest industry in terms of constituent numbers, and second only to Health Care on the market-capitalization weight of tech shares. The makeup of the market has changed, and the innovative tech market is promising future growth that will make up for the large decline in value amongst the more traditional industries such as oil and gas.
Alongside these market trends, tech companies are also continuing to attract staggering levels of venture capital investment, ensuring that medium-sized and start-up tech companies are well-placed to maintain the sector’s record of innovation and growth. A survey released in early October by CB Insights and KPMG found that $37.6 billion venture capital investment was secured by start-ups in the last quarter. These are the highest figures since 2001 and an astonishing 77% went specifically to tech companies.
Positive indications of this kind offer great encouragement for technology entrepreneurs. In response to the changing structure of the market, companies must embrace developments or risk being left behind. In this climate, tech companies providing other sectors with the capability to become more fast-moving, agile and efficient in the way they work are finding success. Condeco Software, the award-winning workplace solutions company, is among the tech businesses experiencing a high level of growth due to companies looking to adapt to the modern workforce and globalised market by investing in Condeco’s ground-breaking technology.
Condeco is itself an example of the success stories which are taking the tech market to new heights. Their next-generation software and analytical capabilities have seen sales grow by 300 per cent from £3.4m in 2011 to £10.5m in 2015 and the company was featured in the 2015 Gartner Digital Hype Cycle, recognising especially innovative companies in the digital space. By offering an end-to-end service which includes both hardware and software, Condeco ensure that their blue chip clients are at the cutting-edge of workplace management. Growth has been fuelled by companies relying on Condeco’s intelligent ecosystem of collaboration tools as they adapt to the growing need for agile and connected office in a globalised and tech-dominated market.
Responding to increasing demand for international workplace solutions, Condeco has itself expanded to become a global company. The opening this year of Condeco’s Singapore data centre gives the company an ever-deepening understanding of globalised business; expansion of its Asian footprint enables Condeco to better service clients in the dynamic ASPAC region, as well as to cater for their needs across the world. Offices in San Jose and New York are supporting prestigious international brands such as Pepsico and Chevron, as worldwide organisations are increasingly required to adopt an ‘anywhere, anytime’ approach. Condeco’s systems facilitate smooth integration for global businesses struggling to become more connected. As global turnover reaches over $25m in 2014/2015, Condeco’s success is clearly based upon their identification of a real need in today’s – and tomorrow’s –market.
The rise of tech giants such as Apple, Google and Microsoft over the last 30 years has irrevocably altered the landscape of the stock markets, a fact that the growing dominance and resilience of the tech sector continues to emphasise. Now tech is enabling a similarly transformative shift, this time in the very structure of work, and business leaders would do well to consider how their business can adapt to a new working landscape.