Where is America’s tech talent migrating to?

More than a third of technology CFOs believe the US tech sector will experience the biggest global growth this year, according to the 2018 BDO Technology Outlook Survey.

Confidence in the sector is growing. But it begs that age-old question: where’s the talent coming from to support this boom?

Traditionally, the best in tech have migrated to Silicon Valley.

However, the California campuses have now got competition.

Tech talent is migrating to localised pockets across the country.

I’m going to tell you why, where they are and how to capitalize if your business is looking to take advantage of this trend.

Is Silicon Valley’s star waning?

High living costs and a corporate culture that’s at risk of eating itself have been cited as reasons to suggest Silicon Valley is not the attraction it once was.

That’s before we even get to mentioning the untapped opportunities now being explored elsewhere.

Before we get to those, and some of the anecdotal evidence, let’s examine some statistics.

KPMG’s annual survey of more than 750 global technology leaders found that 45% of respondents expect Silicon Valley to be overtaken as the world epicenter of tech innovation by 2021. 

China is seen as the biggest competitor by one-third of the panel although 24% listed other US cities.

Speaking to Forbes, Jacob Albers, a Data Analytics Associate at KIG CRE, said: “In the Bay Area the tech culture can be monolithic… I may have grown up in the Bay Area, but Chicago gave me opportunities and a lifestyle that would have been far more costly on the coasts.”

Talking of Chicago…

Tech’s new hotspots

• Austin, TX
• Chicago, IL
• Los Angeles, CA
• New York, NY
• Raleigh, NC

These cities all featured in the Forbes article mentioned above.

The post is titled ‘Millenials Prefer These 5 Tech Hubs to Silicon Valley’ and some familiar themes emerge.

Supportive local ecosystems, cheaper living costs, less top-down culture, and the pace of innovation away from San Francisco have all been given as great reasons for migrating to pastures new.

In the case of Austin, tech workers there witnessed the biggest salary increase in 2017.

According to Hired’s State of Global Salaries report the Texan capital’s tech workforce made 7% more on average than they did in 2017.

Los Angeles and Washington D.C (6%) were close behind while San Francisco still saw a 5% rise.

Commenting on the findings, Hired CEO Mehul Patel said: “A couple of things are happening in Austin: A low cost of living, no income tax, and you already had a tech ecosystem there.”

Attracting the talent on your doorstep

Tech talent is on the move and wherever you’re based in the US you’ll want to be able to take advantage.

How do you attract the best?

Here’s a few pointers:

• Build partnerships. Develop ties with local universities and colleges to hone in on the techies of tomorrow.
• Create the dream environment. Flexible working, a collaborative culture and a few fantastic office perks can go a long way.
• Define what makes your business great. Competition is fierce. You’ve got to look fantastic and really sell the big ideas that’ll turn your talent into tech heroes.
• Offer new opportunities. You don’t have to be West or East-coast anymore. Look further afield and keep an eye on emerging locations where your business can expand and thrive.

Is your organization searching for the tech specialists it needs to grow? Why not give me a call on +1 954 376 0260 or email david.welch@bps-world.com to discuss your hiring priorities?