Top Three Challenges for Global Tech Companies
“While technology companies may be high in demand and garner large amounts of revenue, the industry still faces its own challenges.”
Technology has become a significant part of our everyday lives. It allows us to communicate with each other from all corners of the globe, it turns intense labor into simple tasks, and it can even track our health. Accenture, Canon, Facebook, and Samsung are all examples of global tech companies that are constantly innovating the way we live.
In 2018, the GDP output for the Information Technology (IT) sector in the United States was USD $2,229.6 billion. While technology companies may be high in demand and garner large amounts of revenue, the industry still faces its own challenges. Finding talent and hiring employees, data security issues, and market demand are all challenges global tech companies must find solutions for. Keep reading as we discuss what these challenges are and how companies can work around them.
Finding Talent & Hiring Employees
In the technology sector, talent drives innovation and execution. Creative thinkers help companies find solutions to everyday problems. However, with technology becoming the main economic driver for many developed countries, talent is distributed throughout the world. This can make finding top talent difficult because companies are faced with competition from other companies looking to hire employees with the same talent.
In order for companies to overcome this obstacle, companies can look towards skilled employees in the countries they are most interested in expanding to or already operating in. Through hiring employees in the country of operation, business owners can have employees with the best skills working for their company no matter where they are living in the world. A PEO (Professional Employer Organization) like NNRoad, helps companies achieve this. NNRoad’s employment solutions allow a company to hire employees overseas to work under their authority. This is also a great option if one does not already have a legal entity in the market they are targeting and want to test market. This option is full-service HR outsourcing, leaving you time and money to focus on your core business needs.
Data Security and Privacy Issues
Within the last decade, tech companies have gotten a bad reputation for privacy issues and collecting users’ data as a means to better target their audience with advertisements. This leaves open the possibility of the misuse of this information if it were put into the wrong hands. Generally, the public has issues trusting their data with big tech companies. In response to this, European countries have created the General Data Protection Regulation (GDPR) in 2018. It is a regulation law that gives European Union (EU) citizens control over their digital information. Additionally certifications such as ISO ensure that companies are using your data in a safe and secure way.
In order for big tech companies to regain their users’ trust, they must find ways to operate within the confines of the law in different countries. This may mean establishing a new business model that is not rooted in privacy infringements. The innovators in the technology sector will have to think creatively to be compliant while still serving the people. For companies worried about compliance, NNRoad works with trusted legal experts to ensure they are upholding local laws and always staying up-to-date on changes.
Predicting Market Demand
Technological advances are progressing faster than most people can imagine. While solutions are being found and new ideas are materialized, this also means the average person may take even longer to catch up. New technology cannot be invested in, marketed, and sold unless there is demand for it. Tech companies must ask themselves, are the people ready for this product?
Global tech companies know that they are serving a global audience. The demand in one country is not going to be the same in the other. The power of local competitors, the lack of demand, or lack of market research can be the reason why some tech companies fail in certain markets. Companies can work around this by immersing themselves in the market they plan to target. Testing a market, is also a great time to bring in an employment service. An employment service will offer solutions so you can hire someone who is already accustomed to the way of life and business in the country you are tapping into. This employee can conducting due diligence on how the market interacts with technology. Your local employee in the country will have the local and cultural knowledge to significantly raise your chances of success.
Challenges help tech companies innovate. While technology helps us solve our problems, challenges will still arise. NNRoad’s trusted experts are committed to helping global companies succeed no matter what obstacles they face. Talk to us about hiring employees or opening up your company in growing markets worldwide.