Technology is the fastest growing industry sector in the world. Thousands of start-ups enter the competition on a daily basis trying to meet the ever-changing needs of the market. Without any doubt, velocity is the main trigger for the growth of Tech companies. However, as contradictory as it may sound, it has also become the source of major difficulties. And not only for the tech companies as such.
While many businesses see technologies as an integral part of their operations, unfortunately, very few realise the true scale of its influence. Tech companies have re-shaped the business landscape and continue to do so. They have transformed the way we live, delivering social impact across all aspects of society. Therefore, Tech issues will have far reaching consequences for many industries across the globe if not dealt with very soon.
Here is the list of the main challenges Technology industry is faced with today:
1. Keeping up with the speed of innovation.
Many companies cannot keep up with the speed of innovation. New technologies emerge too fast, not allowing enough time for IT specialists to develop application and implementation strategies. As a result, Tech firms struggle to put their products to the market as well as deliver them to the clients.
2. Skills shortage.
Competition for the top IT talents is fierce. Finding experts with the right skills set is not easy. Getting them, to accept your offer is even harder. They are expensive and come with the list of ‘terms and conditions’. Whilst well-established corporates have large budgets to spend are in a position to offer additional benefits, as well as growth opportunities and flexible working hours, smaller businesses struggle to fill in the vacancies.
3. Staff retention
Even the largest brands find it hard to keep their best employees. For example, Google’s average retention rate is 3.2 years and Facebook’s – 2.5 years. In order to fill in the vacancies, many organisations turn to the services of independent contractors or third country nationals. Yet, seeking outside help may lead to the risk of non-compliance with local labour and tax legislation.
4. Coping with market competition
It has never been easier to start a company but staying in business is much more complicated. The ease of starting a business creates much broader level of competition. Moreover, when your company is successful – others recognise the opportunity and enter the industry. As a result, you may find multiple organisations battling for the same market segment. On the other hand, start-ups that haven’t proven themselves yet, need to compete with large well-known organisations to get the share of the market.
5. Finding new sources of revenue
Most of small and medium businesses make a huge mistake relying on one or two revenue streams. Usually it is insufficient and risky. Once enterprises exhaust the main sources of income, they face major cashflow problems. Currently, international expansion remains the most efficient solution to acquiring new customers.
Challenges are part of every company’s day-to-day life. Some of these obstacles can be overcome without major complications. Yet, others can significantly affect the productivity and overall performance of organisations. The ability to respond to these difficulties with agility separates successful businesses from ephemeral ones.
What is next?
Over the next couple of months, we will be discussing more challenges faced by Tech industry and how they affects companies across the globe. Most topics will receive an in-depth overview with solutions and leading leading industry practices.
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