Computer Software Industry Overview

Excerpt from Computer Software Report

Companies in this industry create computer software and provide computer programming services. Major companies include US-based companies Cognizant Technology Solutions, IBM Software, Microsoft, Oracle, and Symantec, as well as international giants like Infosys Technologies (India), Nintendo (Japan), and SAP (Germany).

Competitive Landscape

The US economy heavily influences business spending for software products. The success of programming companies depends heavily on strong technical expertise. The success of packaged-software companies depends on technical expertise and good marketing. Small software companies compete mainly by developing packaged products in small niches or producing custom products for individuals. Many small companies form alliances with larger ones to market their products. The US packaged software segment is concentrated: the 50 largest companies generate about 70 percent of revenue. The US custom programming segment is highly fragmented.

Products, Operations & Technology

Packaged software products are generally programs that can be installed and operated by the customer with little or no assistance, such as an operating system. Custom programming either creates a new software product from scratch, or, more typically, customizes an existing software product for customer use. Custom program products can be very large, and may require special training and technical support.