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Texas Information Technology Services - Office of the Governor ...

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OVERVIEW<br />

State <strong>of</strong> <strong>the</strong> Industry in <strong>Texas</strong><br />

As home to nearly 14,000 IT services firms, <strong>Texas</strong> has<br />

achieved a significant number <strong>of</strong> national top 10<br />

rankings related to <strong>the</strong> industry. The state’s status as<br />

an IT services industry leader is streng<strong>the</strong>ned by<br />

proactive government support, a large venture capital<br />

network, a concentration <strong>of</strong> skilled IT services<br />

workers, multiple top-tier research institutions, and a<br />

top-ranked business climate.<br />

<strong>Texas</strong>’ position as a technology services hub has made<br />

<strong>the</strong> state a top location for international corporations.<br />

According to consulting firm FDI Intelligence, IT and<br />

<strong>Texas</strong> Ranked No. 2 High-Tech State<br />

In 2010, <strong>Texas</strong> was ranked as <strong>the</strong> No. 2 state for<br />

high-tech employment by <strong>the</strong> national industry<br />

association TechAmerica Foundation in its<br />

annual Cyberstates report, a state-by-state<br />

analysis <strong>of</strong> <strong>the</strong> U.S. high-tech industry. The<br />

report found that <strong>Texas</strong>’ multiple high-tech<br />

sectors employed more than 456,400 at 27,900<br />

establishments.<br />

TechAmerica’s analysis shows that <strong>the</strong> largest<br />

2010 high-tech employment gains in <strong>Texas</strong> were<br />

in computer systems design and related<br />

services. In addition, <strong>Texas</strong> ranked among <strong>the</strong><br />

top three states in employment in 9 <strong>of</strong> <strong>the</strong> 15<br />

high-tech sectors covered by TechAmerica.<br />

2<br />

s<strong>of</strong>tware was <strong>the</strong> number one sector for foreign direct<br />

investment in <strong>Texas</strong> between 2007-2011. More than<br />

60 IT companies from 20 countries established or<br />

expanded operations in <strong>Texas</strong> during that period.<br />

$1.6 billion<br />

Amount invested by venture capital firms in<br />

279 <strong>Texas</strong> IT services and s<strong>of</strong>tware companies<br />

from 2005-2010, according to consulting firm<br />

PricewaterhouseCoopers.<br />

Top <strong>Texas</strong>-based IT services companies ranked by<br />

sales are listed throughout this report. They include<br />

Fortune 1000 companies Dell Inc. (Round Rock, TX)<br />

and BMC S<strong>of</strong>tware (Houston).<br />

<strong>Texas</strong> is also home to some <strong>of</strong> <strong>the</strong> nation’s fastest<br />

growing IT services firms. They include Saxon-<br />

Global (Irving), S<strong>of</strong>tLayer Technologies (Dallas),<br />

Vintage IT <strong>Services</strong> (Austin), One Source Networks<br />

(San Antonio), and Kinnser S<strong>of</strong>tware (Austin), all <strong>of</strong><br />

which ranked on Inc. Magazine’s Inc. 500, a list <strong>of</strong> <strong>the</strong><br />

nation’s fastest growing private companies.<br />

<strong>Texas</strong>-based IT <strong>Services</strong> firms ranked on <strong>the</strong> Fortune 500<br />

<strong>Texas</strong>-based IT <strong>Services</strong> firms ranked on <strong>the</strong> Inc. 500

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