Develop Your Business in Greater Phoenix
As one of the fastest-growing and most dynamic regions in the country, Greater Phoenix is an emerging hub of innovative activity with a robust ecosystem of technology and software companies. With competitive operating costs and highly-skilled talent, companies can focus on growth and the bottom line. Greater Phoenix is paving the way for tech innovation and has quickly risen among the best cities for software companies.
Software Industry Report
Get our 30-page, in-depth report on the software ecosystem in Greater Phoenix.
Skilled Workforce
Hire from a highly concentrated, experienced computer science and engineering workforce. More than 100,000 people work directly in computer science occupations at information and communications technology (ICT) firms in Greater Phoenix.
Exceptional Talent Pipeline
Over 25,000 students are enrolled in engineering schools across Arizona. There are nearly 30,000 total graduates from Arizona’s largest universities each year. Institutions of higher learning offer continued education and specialty training.
Large Existing Cluster
Greater Phoenix is a location of choice for global leaders looking to scale operations in the western U.S., including Fortune 500 and Global 1000 software companies.
Competitive Operating Costs
Greater Phoenix has competitive operating costs for software businesses relocating and starting operations compared to other top markets. A highly competitive tax environment in Arizona includes tax incentives that can be used to mitigate operating costs.
Local Innovation
There’s a strong local ecosystem of researchers, innovators, founders, incubators, accelerators and investors, and it grows each day. Quarterly investment in Arizona businesses has grown an average of 83% each quarter since Q4 2020.
High Quality of Life
With lower cost of living than many competitor markets paired with more than 300 days of sunshine annually, a vibrant arts and culture scene, major sporting events and endless outdoor activities, it’s easy to enjoy a high quality of life in Greater Phoenix.
Skilled Workforce
Specialized, Concentrated Workforce
Greater Phoenix has over 110,000 workers in computer science occupations, employed by information and communications technology (ICT) firms. The workforce has the deep knowledge and skills necessary for productivity and innovation. The ICT workforce is highly concentrated in the region with a 64.1% job growth in the last 10 years, compared to the national average of 34.0% over the same period of time.
Continued Education
Greater Phoenix’s strong workforce offers an exceptional talent pool for your business. Universities are committed to aligning programs with industry needs and often partner with companies to offer specialized training programs in addition to curriculum. The region offers an educated workforce that software industry leaders can count on.
111148
employed in software development and management occupations
64.1%
ITC workforce growth in the last 10 years
20%
increase in software employment in the last five years
40+
universities and other institutions of higher learning
Exceptional Talent Pipeline
Extensive Programs
More than 40 universities and other institutions of higher learning – many of which have designated software engineering programs – fuel a continuous stream of employees. Arizona State University, ranked the #1 most innovative school by U.S. News & World Report for seven years in a row, has the largest engineering school in the nation, and offers degrees in computer science, computer systems engineering and information technology.
Qualified Graduates
Greater Phoenix’s universities are committed to supplying the workforce needed to enable companies to scale in the region. The region produced over 2,800 graduates in non-distance, computer engineering, information technology, computer and software engineering, and computer science programs at Greater Phoenix colleges and universities during the 2018 to 2019 school year. The chart below compares the talent pipeline in this sector to primary western competitor markets, showcasing how Greater Phoenix’s technology talent pipeline is comparable only to San Francisco in graduate output.
Software Degrees in Western Metros
Source: Lightcast 2020 Q4 Dataset
Large Existing Cluster
Global Leaders & Industry Disruptors in Greater Phoenix
Technology giants and disruptors alike are established in Greater Phoenix. Below is a sample of the companies we’ve assisted, by providing a full suite of complementary services from preliminary metro comparisons to site selection assistance, during their evaluation of and ultimate expansion to the Greater Phoenix market.
Recent Company Expansions
Below is a sample of the software and technology companies we’ve worked with recently.
Download the full industry analysis for more on the software ecosystem.
Competitive Operating Costs
Software Costs in Greater Phoenix
Greater Phoenix has competitive operating costs for software businesses relocating and starting operations compared to other top markets, with more affordable rates than southwest competitors such as Austin, Denver and San Francisco. Also, with the highly competitive tax environment in Greater Phoenix and Arizona, there exists a number of tax incentives that can be utilized to mitigate operating costs.
Taxes & Incentives in Arizona
Incentive programs offered in Arizona mitigate operating costs for businesses operations. The average sales tax rate is only 8.6%, corporate income is taxed at 4.9% and unemployment insurance is only 2.0%. Programs include the Quality Jobs Tax Credit and R&D Tax Credit.
Software Operating Cost Sample Analysis
Source: Applied Economics Metrocomp Tool, April 2022
Assumptions: $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)
Download the full industry analysis for for a full breakdown of the cost comparison.
Local Innovation
Research & Development at Universities
Arizona State University (ASU) has been ranked ahead of Stanford and MIT as the most innovative school in the country by U.S. World and News Report for seven consecutive years. Over 180 companies have launched based on ASU innovations, attracting more than $1 billion in external funding and 1,140 patents. In FY21 alone, 21 new startups launched.
Both of the largest universities in the state, ASU and the University of Arizona (U of A), were ranked in the top 4% of all U.S. universities for R&D expenditures by the National Science Foundation (NSF). ASU ranks number eight in communications and communications technologies expenditures and U of A ranked in the top 50 for science and engineering, computer and information sciences and engineering. Both universities actively engage corporate and government collaborators on research development.
Source: National Science Foundation (NSF), FY20 Report; ASU Knowledge Enterprise; U of A
Greater Phoenix Cybersecurity Organizations
Arizona Cyber Warfare Range is a live-fire cyber warfare range created to rapidly upskill cybersecurity talent with hands-on learning and drive innovation in cybersecurity techniques, technologies. Businesses can submit their technology for testing at no cost.
The Arizona Statewide Cyber Workforce Consortium (AZSCWC) develops a unified approach to ensure the state has adequate cybersecurity resources and connects applicants from traditional and nontraditional training backgrounds to the region’s cybersecurity cluster.
ASU’s Center for Cybersecurity and Trusted Foundations brings together leading researchers from engineering, social sciences, and business to solve problems in identity management, privacy, malware, security, digital forensics and predictive analytics.
Homegrown Innovation
Greater Phoenix has a strong network of entrepreneurs and innovation. Dozens of coworking and manufacturing spaces around the region such as Co+HOOTS, StartUpPHX, InnovationHub @ GoodyearAZ and WeWork allow companies to develop a presence in the area.
VC Backing/Capital Access
From July 2020 to December 2021, Arizona headquartered businesses attracted 121 non-debt VC/Equity financing deals totaling $1.9B. Internet software and services was the number one sector to garner investments.
Quarterly investment activity has grown on average 83% each quarter since Q4 2020.
#1
ASU has ranked No. 1 in innovation seven years in a row.
#6
ASU is ranked No. 6 in online bachelor's degree programs
#4
U of A's undergraduate management information systems program is ranked No. 4.
#3
U of A's graduate management information systems program is ranked No. 3.
All sources: U.S. News & World Report
Community Support & Resources
Community Organizations
#yesphx
#yesphx is the unifying force in the Greater Phoenix startup community. Their mission is to amplify what is happening in the Greater Phoenix startup community, unify actors in the space, and clarify the community’s vision: to be the most generous community for entrepreneurs. #yesphx is the go-to resource for startups and technology companies in Greater Phoenix that are either entering the market or looking to grow.
Venture Madness
Venture Madness is Arizona’s longest running capital conference and early-stage pitch competition. The annual event connects investors with early stage and growth companies. With an audience of nearly 300 attendees including accredited venture capital and angel investors, seasoned entrepreneurs and business leaders, approximately 25 – 35 presenting companies showcase their innovative solutions and business plans in various industry tracks to compete for investor attention, media attention, future investment potential and cash prizes.
Phoenix Startup Week
Phoenix Startup Week is a five-day event for the Greater Phoenix startup ecosystem. Designed by the business community, for the business community, startup week features sessions, mentoring, competitions, debates, panels, happy hours, and its annual Street Pitch event. At this event, 10 startups pitch their company idea for a chance at a $50,000 investment. Growing every year, Phoenix Startup Week gathers Greater Phoenix’s technology community into one place.
Arizona Technology Council
The Arizona Technology Council is the largest trade association for technology companies in the state. With more than 800 members, the organization hosts events, provides networking opportunities, and advocates on behalf of technology companies. The Arizona Technology Council also hosts a job board and promotes Arizona firms through media.
Incubators & Accelerators
Greater Phoenix has a strong support network for software companies including incubators and accelerators that can be used by companies as they grow. Many of these spaces offer additional services to help connect, integrate, and build new companies in the ecosystem.
Coworking Spaces
Greater Phoenix is home to more than 40 coworking spaces. With access to a wide variety of spaces, incubators and accelerators, leaders are able to expand their network in more ways than ever before. Whether you are an established company or just getting your idea off the ground, these spaces can accommodate any sized business. See the regional map and comprehensive list here.
High Quality of Life
Experience a vibrant lifestyle and diverse culture at an affordable cost of living.
Enjoy the outdoors with more than 300 days of sunshine, average temperatures of 75 degrees, convenient access to over 400 hiking trails and globally recognized sporting events. Take part in a vibrant arts and culture scene that includes prominent classical arts to public art to craft markets and a diverse range of music and cultural events. And, eat well with fresh farmers markets in every city, and globally recognized chefs and culinary experiences at your doorstep.
Calculate Your Cost of Living Savings in Greater Phoenix
Select your annual income, monthly mortgage, healthcare and grocery costs to find how much you would save with a move to Greater Phoenix.
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Source: C2ER 2024 Q1 Cost of Living Analysis; Zillow Research August 2024
