Technology

technology

Industry Overview

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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 U.S. 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.

Scottsdale Advantage

Scottsdale is becoming known as an emerging center for technology development and is increasingly becoming the location of choice for New York and San Francisco companies looking for national expansion. Its environment 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 CB Insights. It is also home to a number of Inc. 500 technology firms. Arizona State University’s SkySong Innovation Center in Scottsdale has advanced the emergence of technology companies in the city, launching more than 100 startups since its founding in 2008.

Scottsdale has a strong base of highly skilled software engineers, programmers and systems analysts to support this industry with a number of companies establishing software development centers of excellence in the city. Scottsdale boasts:

  • Tech company startup support infrastructure
  • Talented labor force and higher education and workforce training partners (54 percent of the Scottsdale population have a bachelor’s degree or higher)
  • 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.

Featured Firms

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) ranks among the largest firms in the United States developing wireless payment processing and secure mobile communications. Its success has prompted the development of a Scottsdale wireless payment cluster including Spindle, iPayMobil and Revel Systems. 

Enterprise Software

Through growth and acquisitions, Scottsdale is home to a number of enterprise and related software firms. Smaller firms such as Axosoft (project management software) and Ineight (construction project software) have experienced exponential growth in the city over the past decade. JDA Software h is now one of the country’s largest firms developing supply chain logistics software with sales of more than $600 million worldwide. Its clients include brands such as Kraft Foods and OfficeMax. Numbered among the Inc. 500 fastest growing companies in the country, GPS Insight develops GPS tracking systems for transportation fleets. Trax Technologies is one of the world’s leading firms in reconciling international bills of lading.

Cyber Security
Increasingly known as the center of the ‘Cyber Security Canyon,’ the Greater Phoenix area and Scottsdale have established a firm footing in this rapidly expanding sector. Early Warning Services, owned by six major national banks, is one of the largest national fraud detection companies and is readily expanding. InfoArmor also in this sector has experienced 200 percent annual growth. CyberSponse is engaged in post incident management while Trusona (funded by Kleiner Perkins) is rapidly gaining an international reputation for reasonably priced secure authentication.  

Company Location Type Employees Type
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
Yodle Branch 250 Website design 
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 

Testimonials

"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)