Innovation and growth are strategic imperatives for technology companies. In order to respond to a quickly changing environment, win the market share race and seize the advantage of disruptive innovation, technology companies have to be dynamic, fluid and bold. This involves a high degree of risk, which many are willing to take in anticipation of future rewards.
This report reveals that technology companies are among the most aggressive in pursuing growth opportunities and expanding their footprint in emerging markets. This pursuit, however, exposes them to a diverse set of risks associated with new markets and pressures to support this growth with flexible and efficient portfolios.
Technology companies are more prone to take risks for exploring commercial opportunities in emerging markets.
Their expectations to increase real estate portfolios in Brazil, Russia, India and China (BRIC) are higher than the average for other sectors, with 30%+ planned net portfolio growth in these key markets.
Question : Over the next three years, how will your portfolio evolve in each of the following regions?
Technology CRE executives will not only have to deliver a platform for growth, but must also ensure that this platform is flexible and can accommodate rapid shifts in business priorities. Creating on-demand spaces and enabling remote and mobile working to cater to a younger generation of workers, as well as increasing the utilization and productivity of the formal real estate portfolio are just a few examples of what is now expected from the CRE function.
Question : How are the demands of senior leadership/C-suite on the CRE team changing in the following areas?
Technology companies have the most strategic attitude toward outsourcing among all sectors—37% of respondents consider outsourcing as a strategic relationship where strategic value is assessed over the long term (compared with 29% in other sectors), as opposed to a tactical transaction mainly with a lower-cost supplier.
Full-scale outsourcing is progressing much faster in technology firms than in other sectors.
Question : How would you best describe the delivery of the following CRE Services three years from now?