There should be no surprise that technology as a sector accounts for so much job creation, and will continue to do so.
Read most updates within the annual reports from across industry and it will be more than likely that, somewhere in them will be statements about improvements to their business coming through technological means.
Jeff Immelt, chief of the not insignificantly sized GE, said in an interview this month with McKinsey & Company that GE "can’t be an industrial company anymore. We need to be more like Oracle. We need to be more like Microsoft.” He added that "industrial companies are in the information business whether they want to be or not."
But, technology is not all about technology. Product managers have to be different; salespeople have to be different; on-site support has to be different. According to Immelt, GE (which is about $5 billion in revenue) has "built up a population of applications; we’re approaching $500 million of productivity a year."
For many companies like GE, to succeed in 'becoming like Microsoft' they will need to change their cultures and processes to adopt a more 'Silicon Valley' approach to business. "The notion that, in the digital age, sitting down once a year to do anything is weird, it’s just bizarre," Immelt admits.
The chances are that more and more companies will define themselves as being in the tech sector. It's just that they serve different industries. On this basis 'digital' will account for far more than 10 per cent of GDP before too long. And...more and more companies providing innovative tech solutions (let's call them pure tech) to these companies will only grow, and along with it the venture financing.
To listen to Jeff Immelt's interview go to: http://goo.gl/3ZKddf
“despite taxi drivers always assuming working in tech means IT support jobs”. “Digital is already 10 per cent of UK GDP and it is forecast to be 15 per cent in 2017. “Tech is the sector with the greatest job creation compared to the national average and we have 10 times as much venture financing coming into London tech as we had five years ago.