![A Pinsent Masons report reflect an increasing convergence of technology and infrastructure [representational image].](http://www.constructionweekonline.com/pictures/2017/300x200/High-tech-construction.jpg)
A Pinsent Masons report reflect an increasing convergence of technology and infrastructure [representational image].
A project has a higher chance of receiving support from investors if it has a technology company holding an equity stake.
This was among the findings of a study carried out by law firm Pinsent Masons, published in a report titled ‘The Evolution of Infratech’.
According to the report, 87% of investors globally are more likely to back a bid if the technology provider is a member of the consortium instead of a sub-contractor.
READ: Construction technology is a long-term reality in the Middle East
Meanwhile, 43% of technology respondents anticipated entering a joint venture with an infrastructure company over the next three years, reflecting a 100% increase compared to their engagement over the past three years.
The report also noted that more than half of the study’s infrastructure respondents are expecting to partner with tech firms.
Infrastructure expert and partner at Pinsent Masons, Nick Ogden, commented: “For investors, having technology providers play a leadership role means there are real incentives motivating them to provide the best technology and speed up delivery.
“Our survey shows that 92% of infrastructure investors will often or always consider technology when making investment decisions over the next three years. This shows that investors are willing to spend the money which will drive this growing trend. Collaboration is already here, and is only going to increase.”
While these findings show an increasing convergence of infrastructure and technology, the report pointed out that there are a number of obstacles that must be addressed.
Overcoming cultural differences was cited by respondents as the main challenge to infratech projects, with 37% identifying the siloed approach to both sectors as a major barrier.
READ: Construction tech makes business sense in the GCC
“Infrastructure needs to learn from tech firms and start changing from the inside-out by bringing technology into all aspects of their operation. Both sectors will need to bring together their commercial objectives, whilst understanding each other’s varied risk appetites, commercial drivers and business models,” said Ogden.