Best US location for Technology businesses

www.FairfaxCountyEDA.org

Doing Business in Fairfax County

Siddharth Sarawgi

Director – India

[email protected]

+91.80.64516669

“…One of the great economic

success stories of our time.”

TIME Magazine

mailto:[email protected]


What does a business require to succeed in

the United States?

• Access to markets

• A productive labor force

• University and R&D support

• Ease of transportation access

• Assistance in meeting the right people

• A desirable place for employees to live


ACCESS TO MARKETS


FaiFairfax County, Virginia, U.S.


Location

60% of the U.S. population is within a day’s drive – or a two-hour flight – of Fairfax County

Chicago, IL•

St. Louis, MO •

Charlotte, NC •

300 m

600 m

900 m


Washington Dulles International Airport

• Adjacent to Fairfax County, 21 miles from Washington, D.C., 12 miles fromTysons Corner

• Served nearly 24 million people in 2008, including 5 million+ international passengers

• Nonstop service to 83 domestic and 43 international locations

• Undergoing $4 billion capital expansion program with new runway and underground rail system

Two other airports serve greater Washington:

• Baltimore-Washington International Thurgood Marshall Airport

• Ronald Reagan Washington National Airport


Fairfax County Facts

Total Area............................................................ 1,023 square kilometers

395 square miles

Park Land............................................................ 416 Park facilities

22,500 acres

Population (2008).............................................. 1,015,302

Number of jobs (2Q2009).............................. 572,708

Office space (midyear 2009).................... 111.5 million square feet

Corporate base (1Q2009).............................. 33,583 business establishments

Technology companies (2008)...................... 6,184

Foreign-owned firms (2009)........................ 355

Bond rating....................................................... AAA

(Sources: Standard & Poor’s, Moody’s, and Fitch; Virginia Employment Commission; US Census Bureau; FCEDA)


BUSINESS OPPORTUNITIES

IN FAIRFAX COUNTY


Where Are the Opportunities?

• Federal government agencies - $80+Billion IT budget

• Federal procurement - ~$800+Billion

• Washington Greater Area, VA, MD, local government -- $1.0B

• Defense sector Homeland security, Transportation and Port security, Cyber security

• Partner with integrator/reseller for: System integration / code development

Business Process Outsourcing

Shared Services

Value added knowledge service

Investments

• Real Estate Properties –very low now

• Firms in Chapter 11 status –low valuation

• Acquisitions of Service/Product companies – low valuation


Critical Mass of Technology Companies

• Nearly 6,200 technology establishments in Fairfax County directly employ more than 143,000 people

• Tech corridor between Washington, D.C. & Dulles Airport

• The technology sector accounts for more than one in four jobs countywide


Major Technology Sectors

• Aerospace/Defense: British Aerospace, General Dynamics, Lockheed Martin,

Northrop Grumman, Raytheon

• Biotech/Biomedical: American Medical Laboratories (AML), Biovail, Covance,

Envirogenesis

• Energy: Exxon Mobil, Columbia Energy

• Internet/E-Commerce: AOL, Primus,

UUNet, Verisign

• Software: American Management System,

Computer Associates, Landmark System

Microstrategy, TRW, Oracle, Xybernaut

• Systems Integration: BAE, BTG,

DynCorp, EDS, Radian, SAIC

Technology Sectors in Fairfax County (Number of companies)

Source: FCEDA analysis of 2008 VEC data


“Access and Proximity”

Defense, HLS, and IT

Northern Virginia is

Largest and strongest technology

cluster in the nation

Of the 20 largest regional SI firms, 18

are in Fairfax County

Foreign companies sharing in success

$15.0

$7.5

FY09


Federal Procurement

• According to U.S. Census Bureau‟s Consolidated Federal Funds Report,

companies in Fairfax County performed US $ 13.67 billion worth of

procurement in Fiscal 2007

• Key Steps to Success

Understand the Federal Market

Get Practical Help

Identify your Niche

Cover the Basics

Market your Business


Trends, technologies and applications

• Network/cyber security (e.g. consulting, risk analysis,

firewalls, virus protection, e-commerce security,

biometrics etc)

• IPv6; WiMAX; Web 2.0

• Mobile applications, e.g., messaging

• Geospatial and imaging applications

• Clean/green technologies


Information & Communications Technologies

(ICT)

• Northern Virginia is “Silicon Valley” for IT and

Department of Homeland Security (DHS)

Largest and strongest technology cluster in the

nation

Of the 20 largest system integrators in the

region, 18 are in Fairfax County

Foreign companies sharing in success


Key IT Sectors in Fairfax County

• Information Technology

• Aerospace

• Defense/Government

• New Media

• Network Security

• Satellite Communications

• Systems Integration

• Telecommunications

• Wireless

• Green Technologies


• Federal agencies are buying IT ($80B)…… DOD, DHLS, NASA

• Safe City / Port Security / First Responders

• Transportation / Critical Infrastructure

Network/cyber security / Bio-Defense

Mobile applications e.g. messaging

Perimeter defense and surveillance

• Proximity to research and academia centers.

• Leading SI and government contractors:

Homeland Security: IT Ground Zero


Corporate Trends / M&A

Foreign-owned communications firms: BT, China Telecom, Ericsson,

Siemens, Orange Business Services/FT, T-Mobile, Detecon, TATA

Communications, TeliaSonera

Mergers and acquisitions

Software AG (Germany) acquired WebMethods (April „07)

IBM purchased Consul Risk Management (The Netherlands) (Dec ‟06)

QinetiQ acquired Apogen, Planning Systems, Analex and 3H Tech („05-‟08)

BT (UK) to acquire Comsat International (April ‟07)

Irdeto (The Netherlands) acquired Cloakware (US/Canada) (Dec „07)

Finmechanica (IT) purchased DRS Technologies (May „08)

Elbit NA purchased Innovative Concepts (Nov‟08)

Cisco announced the $3 billion acquisition of Tandberg (Norway) (Oct „09)

Cobham (UK) made multiple acquisitions in 2009

CHEMRING (UK) purchase Allied Defense (Jan „10)


DOING BUSINESS

IN FAIRFAX COUNTY


Taxes

• Major Tax rates in Fairfax County

Description Tax

Corporate income 6 per cent

Business Personal Property $ 4.57 per $ 100 assessed value

Real Property (Residential) $1.04 per $ 100 assessed value

Real Property (Commercial) $ 1.15 per $ 100 assessed value

Sales and Use 5 per cent

(4 per cent + 1 per cent local)

Sales and Use (food for home

consumption)

2.5 per cent

(1.5 per cent + 1 per cent local)

Personal Income 5. 75 per cent (top rate)

Hotel/ motel

(Transient Occupancy)

4 per cent


Commercial Real Estate

• Fairfax County is the largest suburban office market in the Washington metropolitan area and the largest office market in Virginia (Nearly 112 million square feet of office space)Average Monthly Rents for 2000 sft office space

Class A: $ 5000

• There are about 30 executive office suites located in the County Average monthly rents: $800 for 200 sft


Highly Skilled Workforce

Source: U.S. Census Bureau, 2008 American Community Survey; Virginia Employment Commission

Measure Fairfax County United States

Residents age 25+ withCollege degree (2008) 58.8% 27.4%

Unemployment (4Q2009) 4.5% 9.5%

Foreign Born Population (2008) 27.7% 12.5%

Technology jobsas a % of total (2008) 24.6% 7.8%

Median household income (2008) $106.8K $52.2K


Largest Fairfax County Employers

Sources: Fairfax County Economic Development Authority, Dun & Bradstreet


Associations and Partnerships

• Northern Virginia Technology Councilwww.nvtc.org

• TelecomHUBwww.telecomhub.org

• Center of Innovative Technologywww.cit.org

• Virginia Economic Development Partnership (VEDP)www.yesvirginia.org

• Greater Washington Initiative (GWI)www.greaterwashington.org

• ITAA / WITSAwww.itaa.org

http://www.nvtc.org/

http://www.telecomhub.org/

http://www.cit.org/

http://www.yesvirginia.org/

http://www.greaterwashington.org/

http://www.itaa.org/


Fortune 500 HQs in Fairfax County

http://www.capitalone.com/


Foreign-owned Firms (355)

http://www.baesystems.com/index.htm


LIVING

IN FAIRFAX COUNTY


Education

Fairfax County Public School System

• 12th largest in U.S. (2009-2010): 173,573 students in

197 schools/centers

• Nationally recognized for excellence

Higher Education

• 70 colleges and universities in greater Washington

• George Mason University‟s Fairfax campus: 31,000 students, 168

degree programs

• University of Virginia and Virginia Tech: Northern VA Center,

joint undergrad/grad campus


Quality of Life


FAIRFAX COUNTY

VS.

OTHERS


Fairfax County/ Virginia Vs. Maryland


Fairfax County/ Virginia Vs. Maryland


HOW TO START YOUR BUSINESS IN

FAIRFAX COUNTY


Entering the US Market: A Roadmap

1. Market research the opportunity

2. “On the ground” business development

Key partners (Integrator, Regional reseller, 8A firm)

Expertise in the Federal Market sales

Leads generation –direct sales –need reference!!

Capture the business -- demonstrate dedicated support

3. Start small – grow gradually

4. Network with the business community

5. Build your brand presence-- PR / Marketing


How Can FCEDA Help You?

• Assisting with business introductions and connections

• Identifying and showing possible location options

• Providing information on the country‟s real estate market

• Assisting businesses with building and planning processes and zoning

regulations

• Providing current market information about Fairfax County and Washington

D.C. area

• Providing information to employees relocating to the county

• Providing information on venture financing, conventional banking services

and other financial services


FCEDA Outreach to India• A local FCEDA office in Bangalore – Innoversant Solutions

(www.innoversant.com)

• Outreach marketing activity

• Fairfax County is home to 20+ Indian companies

IT, Telecom, ITeS, S/W and Application development, Defense, Security

• Tata Communications, Infosys, Satyam, Wipro

• HCL Technologies America, IDS Infotech

• EAI Technologies, Epass Central, CMC America

• Indus Corp., Megasoft, Pingho Associates

• Grintex, Vasu Export, Newgen Software

http://www.innoversant.com/


Case Studies

Tata Communications

• Offers services ranging from co-location, managed hosting and storage,

security, content delivery network and TelePresence services.

• Started its operations in Fairfax in Jan, 2009

• The Fairfax office is equipped with a state-of-the-art Cisco-certified

TelePresence room to host "virtual" meetings around the world.

• The office accommodates around 100 employees

“Fairfax County has been an outstanding place to do business for Tata Communications,

and we are pleased to be able to grow into larger premises”- Dave Ryan, EVP, Tata Communications


Fairfax County

Economic Development Authority

Head Office:

8300 Boone Boulevard - Suite 450, Vienna, VA 22182


India Office:

#62, 1st Cross, 2nd Main, Dollars Layout,

J.P. Nagar 4th Phase, Bangalore 560078

www.FairfaxCountyEDA.in

Email: [email protected]

Ph: +91-80-64516669

Overseas Offices: Bangalore, Frankfurt, London, Seoul and Tel Aviv

http://www.fairfaxcountyeda.org/

http://www.fairfaxcountyeda.in/

mailto:[email protected]