Information technology companies provide services such as software support, computer systems design, and data processing facilities management – helping clients use computers, software and communications systems more efficiently. The US information technology (IT) services industry includes about 100,000 companies with combined annual revenue of about $330 billion. Key drivers of growth include a heightened focus on data security and the proliferation of wireless devices, according to Hoovers First Research.
There is an existing base of information technology industries, including a number of small software companies, already located in Scottsdale. The local business community is developing a specialization in software to support digital learning that represents a growth opportunity within this cluster. These types of office users are compatible with the space available in the Airpark as well as existing space or appropriately zoned locations in southern Scottsdale.
Scottsdale is becoming known as an emerging center for technology development. It is home to an environment that combines successful entrepreneurs, a highly talented workforce and a burgeoning high-tech industry cluster. Despite being the sixth largest City in Arizona, Scottsdale ranks second in the state for the amount of venture capital its companies are able to attract, according to research conducted by the Greater Phoenix Economic Council. It is also home to a number of technology firms ranking in the Inc. 500. Arizona State University’s SkySong Innovation Center in Scottsdale has advanced the emergence of technology companies in the city. SkySong, one of the most successful accelerators in the United States has launched more than 100 companies since its founding in 2008. Google proclaimed Scottsdale in August 2013 as a National eCity, the only such designation in the State of Arizona, confirming the intensity of Internet business activity in the city.
Scottsdale also has a strong base of highly skilled software engineers, programmers and systems analysts to support this industry as well as the following benefits:
- Tech company startup support infrastructure
- Talented labor force and higher education and workforce training partners
- Wide range of affordable housing options within a 15-minute drive time of all predominant Scottsdale employment corridors
- Excellent climate for data integrity
- Outdoor activities and walkable/bike friendly community with image attractive to young workforce
Over the past 20 years, Scottsdale technology companies have developed expertise in a number of key sectors that have made them industry leaders. Specific technology clusters that have emerged in recent years include wireless payment systems, security software and enterprise software.
Wireless Payment System
Apriva (started by three ASU grads in 1995) and Verifone (formerly Hypercomm) rank among the largest firms in the United States developing wireless payment processing and secure mobile communications. Their success has prompted the development of a Scottsdale ‘wireless payment cluster’ including Spindle, iPayMobil and Heartland Payment Systems.
Through growth and acquisitions, Scottsdale is home to a number of Enterprise and related Software firms. JDA Software has grown sales to more than $600 million worldwide developing its supply chain management software. Smaller firms such as Axosoft (project management software) and Shared Performance (Change Management Software) have experienced exponential growth in the city over the past 10 years. JDA Software Group is one of the country’s largest firms developing supply chain logistics software. Its clients include Dr. Pepper Snapple Group, Kraft Foods and OfficeMax. Numbered among the Inc. 500 fastest growing companies in the U.S., GPS insight develops GPS tracking systems for fleets.
|General Dynamics C4 Systems||Branch||1,945||Custom software|
|Yelp||Branch||850||Software, Social media|
|GoDaddy||Headquarters||829||Online services technology consultants|
|Early Warning Services||Headquarters||470||Financial analysis software|
|JDA Software, Inc.||Headquarters||347||Custom computer programming services|
|Apriva||Headquarters||200||Software development and applications|
|Rose International, Inc.||Branch||150||Computer software development|
|Ineight||Headquarters||140||Project enterprise software|
|Paradigm Tech||Headquarters||120||Asset & financial management|
|ZocDoc||Branch||120||SAAS, scheduling apps|
|Appointment Plus||Headquarters||120||Business management software|
|Trax Technologies||Headquarters||117||Business management software|
|Global Med Group||Headquarters||113||Healthcare software|
Source: Hoovers.com, July 2016 and MAG 2015 Employer Database
"There is an amazing pool of quality talent in the area and we are extremely excited to have our new customer operations headquarters in Scottsdale."David Rusenko, Co- founder, Weebly (source: City of Scottsdale Economic Development)