The information technology industry (IT) includes telecom, services, manufacturing, software development and data collection, scientific and aerospace research. IT is based on the market size of
Hundreds of companies have been formed by young entrepreneurs who are developing various applications, especially those used on cell phones. The Android application market requires minimum capital with exponential returns if the solution is successful. Financing IT related projects involves high degree of risk since the speed with which technology is replicated cannot be comprehended. If in case the solution is replicated and available for free or at a lower cost than the original developer, expected returns and future cash flows come under question since they are unpredictable. The demand hence changes rapidly and new solutions are available all the time.
Technology is used in every industry. Based on the manufacturing process required, machinery and software used to run the machinery is custom designed. The competition is tough since many companies tend to bid for a single large project. Companies in
Those involved in the IT career requires creative thinking and the drive to be able to spend countless hours in front of a computer screen and develop solutions, which competitors have not thought about. The programming skills require deep understanding of mathematics. Since the IT business is more about marketing, sales and understanding the need of the market, people acquiring strategic management roles within the IT companies are those who have a background of business and IT in terms of their education. The compensation may not be as high as those witnessed in other industries, however, still respectable for once to maintain a decent life style. Those who tend to keep investing in their training and education to stay abreast with new technology tend to remain in high demand and offered jobs within minimum effort.
In emerging markets, majority of IT related companies start with low capital and work on small projects keeping the resources in mind. Therefore, there are few companies that would go public and have actively traded stocks. In Western markets, investment banks and investment management firms have separate teams, which look after technology investments since stocks are actively traded. Once again, investment is risky but poses high returns for the project or solution launched if it captures the market as seen with the Apple iPod and then the iPhone. Technology is one of few industries which require investors to be abreast with company initiatives, how global technology is changing and what the target company is going to stay ahead of its competition.
Based on the trends for 2014, it is expected that the share of mobile computing will triple. Android having an 82% share in all mobile phones sold in world is expected to build the applications market where many young entrepreneurs have joined hands to develop apps for the Android market. Internet is the core need for any device hence, the speed with which Internet is delivered from the service provider to the mobile phone is the key. This comes under Internet of Everything (IoE). Other software trends include top ten strategic technology trends for 2014 include mobile device diversity and management, Hybrid Cloud and IT as a Service Broker, Cloud/Client Architecture, The Era of Personal Cloud, 3D-Printing and Cloud-Scale IT.
The Internet is playing an increasing role in the reach of technology as more and more companies are either trying to start internet based companies requiring minimum capital. Fresh startups emerge almost of a daily basis, which starts with an idea that can generate millions. The financial sector is more open to financing these projects since the return potential is high if the product is innovative and has the capacity to capture a wider market. Handheld devices, be it cell phones, GPS systems tablets or PDAs have further promoted the use of technology. With the competition in the market, solutions are available at increasingly lower price. Global technology stocks are followed by different analyst and tend to have a positive buy outlook. It is also expected that even if the world economy faces a recession going forward, people will be so in tune with technology that the demand will keep these companies in business.
It is expected that the technology industry will grow between 12 to 15 percent through the year 2017 with new businesses consistently being emerged. Technology is also being looked into for venture capital investments, private equity and future Merger and Acquisition transactions while favorable stance on technology is expected to continue.
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