Tech Sector Overview and Outlook

www.techvoice.org

2014 IT Industry Growth Forecast

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

2010 2011 2012 2013 2014

Gro

wth

Rat

e R

ange

5.9%

1.0%

3.4%

Source: CompTIA

www.techvoice.org

Positive Outlook, But Concerns Always Loom

44.0

46.0

48.0

50.0

52.0

54.0

56.0

58.0

60.0

62.0

64.0

Q3

'09

Q4

'09

Q1

'10

Q2

'10

Q3

'10

Q4

'10

Q1

'11

Q2

'11

Q3

'11

Q4

'11

Q1

'12

Q2

'12

Q3

'12

Q4

'12

Q1

'13

Q2

'13

Q3

'13

Q4

'13

Q1

'14

Fore

cast

Price sensitive customers hesitant to spend (aka lack of demand)

2

3

4

5

1

Government

Labor costs / availability of skilled workers

Competition from new firms entering space / disruption

Disruption from new technologies or business models

Key Concerns Keeping Tech Executives “Awake at Night”

Tech Executives Feeling Slightly More Confident Heading into 2014

Source: CompTIA

www.techvoice.org

Assessing Technology-Related Employment

IT Industry

Employment

IT Occupation

Employment

Within the IT industry, there are many IT occupations

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U.S. Core IT Occupation Count: 4.74 million

Sources: EMSI | U.S. Bureau of Labor Statics Quarterly Census of Employment and Wages | CompTIA

Midwest: 934 K

Northeast: 906 K

South: 1.6 M

West: 1.2 M

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State Level View of IT Employment

1,008

1,068

1,218

1,285

1,330

1,584

1,687

1,801

1,845

2,203

3,945

Capital One

Computer Sciences

Booz Allen

Lockheed Martin

BAE Systems

Accenture

CACI

Northrop Grumman

Mantech Intl

SAIC

General Dynamics

Source: Burning Glass Technologies Labor Insights, January 2014

Note: not all job postings lead to new hires. Companies may hire internally, outsource the work, postpone the hire, repost the position to attract new candidates or change direction and withdraw the job posting.

Virginia Employment Landscape: 235,000 IT workers employed in a range of industries across the state

VA Employers with the Most IT Jobs Postings

Time period: during 2013

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IT Hardware

Mfg.

1,098,725 employed

Software Publishing

324,669 employed

IT Services

2,288,462 employed

Telecom & Info

Services

1,526,839 employed

Retail & Wholesale

& Dist.

491,123 employed

5.7 million employed* in the

U.S. Info Tech Sector

357,940 U.S. Employer Establishments

Telecom/Info Services: 67,047 establishments

• Wired telecom services • Wireless telecom services • Satellite services • Data processing, hosting and search

services

IT Services: 228,373 establishments

• Computer system design & implementation • Custom computer programming • Support and management • Maintenance & repair services • Computer training

Software Publishing: 12,187 establishments

• Software

IT Hardware Mfg.: 18,835 establishments

• Computer &peripheral equipment • Communications equipment • A/V equipment • Semiconductors & electrical components • Measuring & control instruments • Magnetic & Optical media

Retail & Wholesale: 31,498 establishments

• Computer & software stores • Computer, peripheral and software

wholesalers • Online computer & related retailers

Includes technical and non-technical occupations. The 357,940 figure includes employer firms ONLY –firms with payroll and employees. There are an estimated 878,243 self-employed, non-employer entities. These could be consultants, contractors, independent mobile app developers and other individual entities without payroll.

2013 U.S. IT Industry Employment Estimates

Sources: EMSI | U.S. Bureau of Labor Statics Quarterly Census of Employment and Wages | CompTIA

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Technology Adoption Progression

Innovators Early Adopters

Late Adopters

Early Majority

Late Majority

Trends Anti-

Trends

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Trends to Watch in 2014

Technology Becomes a Core Competency for More Businesses

Mass Customization Gets More Sophisticated

Processes and Workflow Get a Makeover

Technology Increasingly Embraced as the Remote Control of Life

Cloud Wars Intensify

Diverse Devices Flood the Market

Big Data Has a Little Sibling

Software’s Appetite is not Satisfied

Macro Trends

Tech Trends

Source: CompTIA

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And, the Anti-Trends…

Enterprise digital divide persists

Options overload (“good enough”)

Reinventing work processes easier said than done

Digital fatigue

On-premise technology remains a mainstay

The PC still critical business tool that sells a lot of units

Some organizations not even ready for small data

Large installed base; hardware-centric mindset

Macro Anti-Trends

Tech Anti-Trends

Source: CompTIA

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