US Tech Firms Bullish on Global Expansion in Spite of Growing Uncertainty, According to Velocity Global Research
The Global Expansion Tech Index™ ranks “top 50” most promising markets for international expansion
US and UK technology businesses remain determined in their plans for international expansion, according to findings in the 2020 State of Global Expansion Report: Tech Industry, which is based on a survey of 1,000 U.S. and UK decision-makers from companies in the IT, software, hardware, and technology industries. The company also released findings from its annual Global Expansion Tech Index™, which identifies the most promising markets for international expansion.
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According to the report, tech businesses on both sides of the Atlantic say they primarily pursue international expansion to grow their customer base (62%), develop greater scale and efficiencies (56%) and access a talented workforce (41%).
“During the past year, technology companies maintained ambitious growth plans while managing through growing uncertainty on a number of fronts,” said Ben Wright, Founder and Chief Executive Officer of Velocity Global.Ben Wright, Founder and Chief Executive Officer of Velocity Global. “Challenges to global expansion included increasing protectionism from some of the most significant economic powers such as the U.S. and China, political instability in the Middle East, Brexit—which dominated the agenda in Europe, and most recently global health pandemic fears.”
In spite of these challenges, more than four in five tech companies said they plan to open operations in at least one new country over the next 12 months. However, according to the report, companies still face significant challenges when it comes to establishing a presence in a new country.
“Businesses entering new markets need to recruit, manage, and retain the right people, comply with ever-changing local labor laws and regulations, manage tariffs or export fees or VAT/GST, navigate immigration processes, and stay current on tax updates,” added Wright. “A significant proportion of organizations admit to pulling out of an international market at least once due to one or more of these factors.”
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