Amidst ongoing market fluctuations and global uncertainties, the tech industry is displaying remarkable resilience, as revealed by a recent in-depth survey conducted by DLA Piper, an international law firm.
The latest edition of DLA Piper’s Tech Index for 2024 has expanded its reach beyond Europe, gathering insights from 1,200 executives across six major regions. The survey indicates that the tech sector remains largely unaffected by current economic challenges, with around two-thirds of tech companies expecting revenue growth in the coming year, and over a third predicting growth rates exceeding 6%.
This positive outlook in the global tech sector comes at a time when many markets are grappling with slow post-pandemic recovery and inflation worries. The survey covers businesses of various sizes, from small enterprises to large corporations with revenues ranging from US$10 million to US$10 billion, providing a comprehensive overview of the industry.
The survey recorded its highest confidence score of 71, surpassing its previous peak of 68. This confidence was prevalent across regions, with North America, Latin America, and Africa displaying high levels of optimism. While the Middle East, Europe, and the Asia Pacific region showed slightly more cautious but still positive sentiments.
Key drivers contributing to this confidence in the global tech sector include positive outlooks on venture capital markets, talent availability, and regulatory frameworks. However, concerns regarding geopolitical factors significantly impacted respondents’ confidence, with the score dropping to 53, reflecting apprehensions about international tensions and trade relations.
The study highlighted artificial intelligence as a major growth opportunity, with 63% of respondents identifying it as their primary focus. European organizations, in particular, showed great enthusiasm for AI, with 72% emphasizing it as their key development area.
Mark O’Conor, Global Co-Chair of DLA Piper’s Tech sector in London, remarked on the report’s global perspective, stating, “For the first time, this report offers a truly global perspective on the tech sector, drawing insights from industry leaders and policymakers worldwide.”
The research also noted a shift in how tech companies address challenges, showing increased adaptability in their strategies after navigating disruptions like the pandemic, supply chain issues, and economic uncertainties. While optimism prevails, organizations are adopting a more cautious approach to growth, focusing on disciplined investment strategies and thorough evaluation of new technologies, particularly in AI and digital transformation.
This balanced approach indicates a shift towards sustainable growth patterns in the tech sector for 2024, with industry leaders emphasizing careful strategic planning over aggressive expansion. Regulatory compliance, once viewed as a potential hindrance, is now seen in a positive light by 75% of respondents, suggesting that clear regulatory frameworks can aid rather than impede the sector’s progress.
