Tech companies feeling secure from economic and political volatility
TECHNOLOGY companies are confident they can weather the storm of major economic events, according to new research.
A survey by accountancy and investment management group Smith & Williamson found that 90 per cent of technology businesses were optimistic about their own prospects over the next 12 months, with half expecting the economy to improve.
Fergus Caheny, partner and head of technology at Smith & Williamson, said businesses in the technology sector felt secure from events such as Brexit or elections.
“There is a growing confidence within the tech sector that a lot of what they do is protected against large macro events,” he said.
“Brexit, the US elections and now the UK elections have not stopped the rise in share price of Alphabet, Facebook and the like.
“Smaller technology companies, particularly those involved in digital are beginning to feel the trickle down effect of this.”
He said larger companies were happy to work with smaller digital companies, unlike in other sectors.
“A big company, such as Apple, can provide financial and intellectual support that can really make a huge difference,” Caheny said.
“This dynamic is becoming far more common as both sides realise the intrinsic benefits in doing so.”
However, there was less enthusiasm among digital businesses for cryptocurrencies such as Bitcoin.
Only 41 per cent of respondents believed it would become a widely accepted payment method over the next five years.