NYC is the Next Great Tech Hub
TL; DR: New York City has grown as a tech hub in the last few years. Venture Capital, big tech companies moving to the area, increased total wages in the last 5 years, and other variables are part of what’s making NYC seem like one of the biggest tech hubs around the globe, especially when compared to other US tech hubs. This article outlines 4 strengths of this location as it describes what’s in store for tech companies in NYC in the near future.
Why NYC Is the Next Great Tech Hub?
When you think of New York City, what comes to mind? For most, it’s Wall Street, Fashion Week, or the New York Times, but recently NYC has set its sights on something else —becoming one of the biggest tech hubs, especially when related to US tech hubs in general.
According to Tech: NYC’s Annual Report, the city boasted 10,340+ tech firms in 2022. Jobs have increased by 33.6% to 369,000 in the past five years, making tech the fastest-growing sector. But NYC is not Silicon Valley, nor is it trying to be. It’s rapidly carving out its own unique identity as one of US tech hubs that will be a force with which to be reckoned.
In this blog post, we’re exploring four strengths that differentiate NYC from other tech hubs, as well as what the future may hold for IT professionals and leaders.
4 strengths of NYC’s tech hub
- Silicon Valley has given NYC its co-sign
There are a lot of big tech companies in NYC. Silicon Valley tech giants like Google, Apple, LinkedIn, Facebook, and Salesforce have all set up offices here in the past decade. When the most successful companies all flock to the Big Apple, leaders see the value in the place, which is the case for NYC’s tech hub, its talent pool, and culture.
The arrival of big tech companies in NYC from Silicon Valley comes with great amounts of new resources, leadership, investors, talent, and job opportunities. The new bridge between the two will incentivize startups to pursue their business in NYC to take advantage of the city’s unique finance and media outlets. We should also account big tech’s usual investment in local education, real estate, and community development, which is likely to boost the city economically.
- NYC’s tech sector is profitable and growing
Tech in New York City has been growing steadily, even during the recent COVID-19 pandemic. The sector contributed $247 billion to the economy in 2022 according to Built in NYC. The boroughs of Manhattan and Brooklyn experienced tech employment growth at an incredible 36.2% and 42.6%, respectively, as well. NYC’s tech hub is especially flourishing thanks to many tech companies’ that seem to be recession proof with their flexibility to operate remotely.
From finance to media, new opportunities are being created and filled with tech-centered occupations. Data analysis, web design, product development, co-working spaces, and consulting are all becoming increasingly integral parts of the tech industries in NYC. The ripple effect from this influx of wealth has had a profound impact on almost every sector of the local economy, making New York City a tech hub destination for entrepreneurs, investors, and job seekers alike.
- Investors are pouring money into NYC startups
On top of the above, tech in this city is experiencing a surge of venture capital. The city is currently one of the most attractive places for tech investment. AlleyCorp, a top venture capital fund, recently opened offices here and their extensive portfolio includes tech companies such as Business Insider and Aura Health. They’re not the only VC firms interested in New York, however. There are 123 firms in the state and the list is growing. Proof to that comes from New York startups, which raised $1.2 billion in funding in October 2022 alone.
This influx of funding is helping a variety of projects become a reality in the area. The biggest verticals include fintech, healthcare, educational software, and online marketplaces such as Kickstarter. NYC is currently showing the world just how much venture capital firms are backing their startups.
- Job seekers around the world recognize NYC as a tech hub
Furthermore, the NYC tech scene is bustling with activity as job seekers flock to the city in search of their dream career. Why wouldn’t they? Total wages in the tech sector more than doubled (+108%) from 2016 to 2021 as reported by the Office of New York State Comptroller.
The great NYC tech rush has brought an influx of educated and experienced professionals, all looking to be part of the ever-evolving tech landscape that makes NYC such a great place to work. June 2022 saw 30,000 tech job openings in the city, and that number is only growing!
What’s in Store for Tech Companies in NYC?
Tech companies in NYC have seen undeniable and unprecedented growth in the past few years. Keeping up with the demand means finding the best possible IT talent—fast. The most effective way we know how to do this is through outsourcing. US-based clients in New York City can easily transition to this model to quickly face the industry’s rapid changes, speed their time-to-market, lower costs, and add resources to their projects.
We focus on Latin American talent at Nearsure for several reasons.
Our cultural alignment, shared time zones, and best talent all come from this region in our experience by being in the market for 15 years as a group. We seek to match companies with a much larger, vetted, and highly qualified pool of IT professionals that are culturally fit for their organizations in shared times of the day.
Yet, nearshoring solutions of various kinds are helping more and more tech companies save money while they gain access to diverse professionals from all over the world. Of course, the plus side to this growing US tech hub in NYC is that most people in tech eagerly want to work with NYC-based companies. The city is definitely seizing that.
Care to learn more? Our CEO Giuliana Corbo is headed to NYC the second week of January 2023 and she has a lot to share on staffing solutions. Feel free to connect with us anytime!