In fact, there is considerable uncertainty around economic and trade policies going forward. The rise of data localization requirements and other regulatory developments enacted by various countries could reduce the competitiveness of U.S. companies abroad. And that’s not the only potential threat to the export business of American IT service providers. U.S. IT industry executives say the top five potential inhibitors to international growth are trade barriers; the logistics of managing extended work processes, staff, and supply chains; the challenges of localizing products and services to meet the needs of overseas customers; currency and exchange rate issues; and weak demand in key international markets, according to a May 2017 CompTIA survey.
“The one factor not listed, but should be acknowledged, is competition from existing or new market entrants,” Herbert says. “Foreign tech firms are keenly aware of the growth in software and services and will be working hard to capture a larger slice of the pie.”
Exports of U.S. technology product totaled an estimated $309 billion in 2016, according to CompTIA, accounting for approximately $1 out of every $4 generated by the American tech industry and supports 40 percent of the tech industry’s jobs.
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