Wednesday, March 18, 2015

Which sectors turn tech2highest profit (willing2pay4top talent

Notes on Raymon Teo discussion:  west coast shops ... creating big value through high user base, high data, .....innovation is high risk -- "risk premium". In contrast, Singapore IT projects have a fixed "value" i.e. the project budget. ($1m is quite big.) Directly impacts IT salary.

Those "upstream" sectors often needs a smaller number of elite techies.The "upstream" don't really exist in Singapore. Therefore, only a small elite of  techies in Singapore would end up in the financial IT domain. The vast majority of techies live in a totally different world and earn S$60k (up to $100k) a year as non-managers.

As I stated elsewhere, an mediocre techie easily earn a Wall St salary on Wall St, but the same guy would earn $60k in Singapore.
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Database/OperatingSys vendors enjoy highest margins (in silicon Valley) but no all Oracle clients get the same ROI buying oracle. Let's compare the major client-industries that are using technologies. In which sectors does technology create the most profit? Note consumers are the largest user population of technology, but consumers don't make profit and are not an "industry", and (crucially) won't pay us a salary. Our focus here is the major commercial sectors/industries using technology to make profit.

Telecom equipment makers make heavy use of technology and have good margin. Like the DB/OS creators, a small number of elite engineers create industry standards.... Anyway, here are a few sectors.

#1a) HFT or algo trading, either sell side or buy side
1a) other trading engines
2) risk engine, but is the calc really useful, relevant and accurate to be reliable?
2) settlement system can be just as critical and valuable to an i-bank

1b) search engine?
1b) facebook, linkedin, Amazon ...

1c) DB/OS/language, as described above, is not a client industry, but DB/OS profit margin is higher than all other domains.

4) Telecom equipment maker, as described above
5) commercial banking, corporate/retail banking, insurance. Lower margin than trading, but higher than non-financial service industries. ecommerce like amazon, ebay...? I feel thousands of online services offer useful services but have low margin. B2B better than B2C.

#eor

telecom operators? I know a lot of operators (US or S'pore) don't pay very high, partly because technology is at equipment makers. health care? logistics? no no no

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