Research Indicates U.S. Software Industry is Emerging from Recession

The current economic slowdown has forced many enterprises to shut down, expel employees and cut their input cost. However the market has given the signs of recovery but recession is still going on.

The Software & Information Industry Association (SIIA) has explained major trends and strategies associated with the incipient globalization process in the U.S. software industry. Recently, The Software & Information Industry Association (SIIA), the principal trade association for the software and digital content industries, today released the 2010 Software Benchmarking Industry Report, which was developed in partnership with OPEXEngine, a major aggregator of financial and operating benchmarks for small and mid-sized software companies. The comprehensive report surveyed firms with up to $300 million in revenues and found that this segment of the software industry has effectively weathered the recession and stands poised for substantial growth in the year ahead.

Ken Wasch, president of SIIA said that the SIIA report clearly demonstrates that small and midsized software companies have dramatically improved revenue, profitability and productivity since 2008 and this is new and convincing evidence that the industry has both weathered the recession and positioned itself for continued growth.

Lauren Kelley, CEO of OPEXEngine noted that since the recession, small and mid-sized software firms have focused on extensive expense and cash management, and now that revenue is improving, those decisions are really paying off and high growth, early stage software companies still tend to be the least profitable, and spend the most on sales and marketing.

Kelley added that they have however, seen renewed strength and improvement in each segment surveyed. The 2010 Software Benchmarking Industry Report provides extensive financial and operating metrics for companies ranging from start-ups, to those with revenues of up to $300 million. Benchmarks cover key financials, including detailed expense ratios, revenue and profit metrics, geographic break-outs, employee statistics, as well as customer and sales model comparisons.