Top five limiting factors for technology sector businesses:
- Fierce competition
- Financial management issues
- Growth and talent management problems
- Taxation
- Consolidation
In Summer 2007 we commissioned research into the challenges facing mid-tier companies in the technology sector.
Our research team conducted interviews with owners and directors of software development companies, consultancies and solutions providers, ISPs, networking and hosting suppliers, vendors and resellers, turning over from £1million to £50million across the UK. The aim of this research was to identify the primary issues and challenges that mid-tier technology sector businesses face.
Our research results ranked business ‘pain points’ common to most of the mid-tier companies in the technology sector, as follows:
- Competition in the marketplace is increasingly fierce from new entrants to the market, many of them not traditional suppliers to the sector
- Financial issues - cash flow was cited as the key business limiter in this environment and debt/credit control is a fundamental issue
- Growth and talent management - these issues are key to businesses. Many of which expressed a need for advice in these specialist areas
- A challenging tax environment - the complex array of tax issues creates considerable additional expense and liabilities
- Consolidation – there have been strong signs of integration in the telecoms sector, where small businesses are being bought out by larger players at prices attractive to the seller.
Nick Winters, Head of Technology & Telecoms at Vantis comments, “This research has identified some interesting areas of concern within the sector. Although most of our predictions were validated, it was interesting to find that an increasing number of companies are putting more focus on Enterprise Risk Management issues and that operational efficiency is a key priority. Understanding the pain points of these companies is integral to Vantis providing the best advice to its clients.”
In light of these research findings we have identified some ways in which our Technology & Telecoms Group can help address these challenges.
Read on for more information about these services or please contact us with any queries you may have.