01 Overview
02 Talent Pipeline
03 Industry Ecosystem
04 Labor Analysis
05 Operating Cost Analysis
06 Quality of Life

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Develop your business in

Greater Phoenix

A top hub in the nation for software & IT

 

Greater Phoenix is a top market in the nation to locate, relocate or expand your software and IT business operations. In fact, the region’s software and IT sectors are some of the largest in the nation.

 

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Contents

1
Overview
2
Talent
Pipeline
3
Industry
Ecosystem
4
Labor
Analysis
5
Operating
Cost Analysis
6
Statutory
Incentives

Value Proposition

Livability

Greater Phoenix offers significantly lower costs of living with an abundance of craft breweries and coffee houses throughout the region and more than 300 days of sunshine annually.

Infrastructure

This region offers fast internet connectivity, low risk of natural disasters and a robust network of data centers, which creates consistent and reliable power coverage to any software and IT business looking to start or relocate to Greater Phoenix.

Competitive Operating Costs

In addition to cheaper real estate and benefit costs compared to peer markets, Greater Phoenix also provides a number of quality incentives to lower your business’s operating costs even more.

Educated Workforce

Through university alignment and partnerships, there are plenty of highly qualified college graduates to hire at your software and IT business. Specialized programs at universities across the state train the top talent the country has to offer.

Value Chain

Greater Phoenix cultivates a welcoming tech-focused community backed by dynamic firms. The region is also home to large software and IT offices of Fortune 500 firms.

Greater Phoenix Talent Pipeline

Below are the total number of non-distance program completions at colleges and universities in Greater Phoenix for computer engineering, information technology, computer and software engineering, and computer science programs. These programs produced over 1,600 graduates in these fields during the 2015 to 2016 school year. The region’s universities are committed to supplying the workforce needed to enable companies to scale here. This committment has entrenched Greater Phoenix as one of the top software and IT cities in the country. Comparison data for peer markets has been provided below. Data was adjusted to control for the population sizes of the markets.

 

Software Degrees in Western Regions

top software and it cities

Notable Programs in Software & IT - Related Fields

Competitive Programs

In a competitor markets’ talent pipeline analysis, Greater Phoenix has become one of the top software and IT cities to relocate to and start a business, pulling ahead of popular cities like Denver, Salt Lake City, and Charlotte in total degree completions for finance and insurance-related programs.

  • Arizona State University has been named the #1 Most Innovative School in 2015, 2016, 2017 and 2018 as well as boasting #5 in Best-Qualified Graduates
  • The University of Arizona was recognized as the #3 Undergraduate Management Information Systems program by the U.S. News & World Report
  • Grand Canyon University offers a live-fire cyber warfare range created to augment the current resources in Arizona and drive innovation in cybersecurity techniques, technologies, and training across the United States

Incubators & Accelerators

Greater Phoenix has a strong support network with beneficial incubators and accelerators for software and IT companies looking to relocate their operations to a more favorable environment. These spaces can be used by companies as they grow by offering additional services to help connect, integrate, and build new companies in the ecosystem.

 

Coworking Spaces

This region also provides coworking spaces that can be used by companies as they develop a presence within the region. Many of these workspaces offer complimentary amenities to help entice recent college graduates and potential employees to start their career in a top software and IT city.

 

FinTech Sandbox

In March of 2018, Governor Doug Ducey signed House Bill 2434 into law making Arizona the first state in the nation to enact a groundbreaking regulatory FinTech “sandbox.” Arizona joins countries such as the United Kingdom, Singapore, United Arab Emirates and Australia supporting FinTech investment by instituting sandboxes that encourage business owners and entrepreneurs to relocate and start their software and IT companies in Greater Phoenix.

In Arizona’s sandbox, startups, entrepreneurs and even established companies can launch products on a limited, temporary scale to consumers to test innovative products, services, business models, and delivery mechanisms in the real market without incurring regulatory costs and burdens that would otherwise be imposed. This makes the Greater Phoenix area one of the top software cities in the country and an attractive opportunity for innovators looking to start an IT business or relocate their software operations.

 

National Operations in Greater Phoenix

Many leading national software and IT companies started and relocated substantial operations to Greater Phoenix. Below are a few of the top companies that have a presence in the region.

Phoenix-Based Firms

Greater Phoenix is home to a dynamic and growing software ecosystem. In addition to many national leaders operating in the region, a number of software and IT companies are headquartered here.

Banne Health
Godaddy
Honeywell Aerospace

Labor Costs

Median wages in Metro Phoenix are significantly lower than in peer markets like Austin, San Francisco and Denver.

Scroll to the side to see how Greater Phoenix stacks up against other cities in terms of median wages for software and IT occupations.

 

Occupation Phoenix Austin Denver New York City Salt Lake City San Francisco Seattle
General & operations managers $87,156 $100,668 $119,377 $142,133 $77,979 $128,283 $114,059
Sales managers $95,427 $138,401 $137,763 $176,720 $106,784 $135,798 $118,355
Computer & information systems managers $133,301 $146,026 $151,998 $167,560 $105,637 $170,838 $145,863
Computer systems analysts $89,847 $84,356 $90,731 $99,850 $74,044 $107,488 $96,174
Computer programmers $77,716 $80,436 $96,177 $82,620 $77,481 $107,787 $123,036
Software developers, applications $92,479 $105,460 $104,617 $107,019 $93,681 $123,252 $128,322
Software developers, systems software $95,348 $98,751 $113,470 $115,711 $98,248 $132,643 $116,020
Web developers $61,617 $72,046 $59,539 $80,008 $65,523 $95,165 $90,821
Database administrators $85,776 $86,967 $99,137 $99,766 $90,614 $107,947 $100,947
Network & computer systems administrators $79,041 $86,173 $86,399 $93,406 $76,865 $107,009 $91,732
Computer network architects $95,201 $118,858 $112,195 $115,501 $99,335 $133,459 $108,541
Computer network support specialists $60,758 $57,816 $66,150 $79,095 $55,932 $77,642 $71,442
Computer occupations, all other $77,434 $78,471 $98,348 $89,856 $74,528 $108,504 $83,391
Sales representatives, wholesale & manufacturing, except technical & scientific products $54,080 $59,488 $61,505 $62,318 $56,371 $60,780 $60,224
Average Salary $84,656 $93,851 $99,815 $107,969 $82,359 $114,043 $103,495

The Annual Business Operating Cost analysis below has been prepared using the following parameters as an estimate for software and IT operations in competitor markets. Component and custom analyses to match your company’s operations can be provided upon request if you’re looking to relocate or start your software and IT company in Greater Phoenix.

 

Assumptions

  • $2,500,000 personal property investment
  • 10,000-square-foot Central Business District
  • Utilities (per month): Included in lease
  • 50 jobs (Bureau of Labor Statistics equivalent occupations)
Occupations Employment
Computer & information systems managers 2
General & operations managers (Human Resources) 1
Secretary 1
Computer network architects 4
Computer network support specialists 2
Software developers, systems software 10
Software developers, applications 15
Web developers 15
Total 50

Total Operating Cost

 

Please note that this is not a comprehensive list of all incentives available within the state of Arizona. Additionally, this information serves as a guide for potential incentives that depend on project parameters and program requirements.

 

Arizona Tax Environment vs. Competitor Markets

Arizona has an attractive tax and fringe/mandated benefits environment compared to other major markets making Greater Phoenix a top city to start or relocate your software and IT business.

 

Quality Jobs Tax Credit

  • $9,000 of corporate income tax credits per job, spread over three years
  • Capped at 10,000 jobs per year
  • Employer must offer to pay at least 65% employee health insurance premium

 

Companies in Greater Phoenix

  • Amazon Services
  • Blackboard
  • GoDaddy
  • Houzz
  • Kudelski Security
  • Lyft
  • Nextiva
  • Opendoor
  • PayPal
  • SiteLock
  • Turo
  • Uber
  • WebPT
  • Weebly
  • Yelp
  • ZipRecruiter

Want to see a full list of companies in Greater Phoenix? Download the complete report.

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