DENVER–(BUSINESS WIRE)–More than three in four U.S. technology businesses are planning to
expand overseas, with many doing so to access top global talent,
according to a survey* from Velocity
Global, the leading provider of global business expansion solutions.
The company surveyed senior decision-makers from 500 U.S. and 500 UK
tech companies of varying sizes for The
State of Global Expansion 2019 report, revealing a sector of
ambitious businesses looking to uncover growth in foreign markets.
The findings revealed that 85% of firms said they were planning to
expand their services into new international markets, with many hoping
to do so in the near future. Currently, more than half (54%) of the
companies surveyed said they operate in the U.S. only, but this is
expected to fall to just 22% by the end of 2019.
Almost half (45%) of businesses said their expansion plans were driven
by a desire to recruit the best tech talent overseas. Of these firms,
Europe (23%) and Asia (23%) are seen as key destinations to bring in new
skills, though just 7% view Latin America as a promising market for the
China, Japan, India, South Korea, Hong Kong, the UK, Germany, and France
were among those named as markets being considered to capitalize on
pools of talented workers.
Ben Wright, CEO of Velocity Global, said, “The survey provides a
fascinating snapshot of the way U.S. tech firms are feeling about their
global ambitions. It reveals an outward-looking sector that has the
confidence to pursue growth internationally and recognizes these
companies understand the benefits that global expansion can bring to
“Crucially, the businesses we polled recognize that when it comes to
tech, people are everything,” Wright continued. “Many of them are
expanding overseas not just because U.S. tech carries with it a
reputation for innovation and excellence, but also because they want to
ensure they have a presence in markets with the brightest talent.”
Although the research revealed confidence and ambition among American
tech businesses, it also uncovered a cautious outlook among some firms
in the sector.
When asked about global expansion, 46% cited recruitment as a major
challenge, ahead of managing employee immigration (39%), managing
unfamiliar payroll processes (30%), finding expert consultancy (30%),
and communicating with clients over long distances (27%).
Meanwhile, of the 15% of tech businesses that said they were not
planning to expand, almost half (49%) said seeking to expand globally is
Wright added, “It’s understandable that some businesses continue to have
reservations about taking those first steps into unfamiliar overseas
markets. Yet more often than not, the myriad opportunities outweigh the
risks. And with the right advice and an expert partner on hand to
simplify processes, it can be hugely rewarding and the route to future
To read The State of Global Expansion 2019 report in its entirety,
please visit VelocityGlobal.com.
*Censuswide surveyed 1,000 U.S. and UK tech businesses (IT, software,
hardware, and SaaS) on behalf of Velocity Global in March 2019.
About Velocity Global:
Velocity Global is the leading provider of global employment solutions
that has reinvented the way companies expand overseas. With unrivaled
expertise in over 185 countries, Velocity Global delivers end-to-end
services and best-in-class support to help companies confidently
navigate the entire lifecycle of international business. To ensure a
compliant, efficient, and flexible international expansion, Velocity
Global provides a comprehensive suite of global services that includes
International PEO, Entity Setup and Support, Global Talent Acquisition,
Immigration, and Consulting.