FOR IMMEDIATE RELEASE
For information contact:
Matt Landry
Topaz Partners
mlandry@topazpartners.com
781-388-7900, ext. 205
Carol Greenfield
Mass Software Council
carol@msicouncil.org
617-437-0600, ext. 14
SOFTWARE COUNCIL SURVEY SHOWS INDUSTRY GROWTH ANTICIPATED IN 2004
Majority of Companies Plan Expansion over the Next 12 Months
Boston, MA – September 12, 2003 – A survey conducted
by the Mass. Software Council in conjunction with the release of its annual publication,
The Complete Guide to the Mass Software Industry, shows that most of the state's
software companies are anticipating growth in 2004. The survey findings showed that 69%
of Massachusetts software companies plan to expand their workforce over the next six to
twelve months, with 33% reporting that they are projecting increases of 20% or more.
Additionally, the survey found that the economic climate in the software industry has stabilized
over the past 12 months, with total employment decreasing by just under five percent over
the past year - from 135,000 to 128,600. The survey included feedback from 2,902 software
companies, with total revenues totaling $10.4 billion. The survey's results are published
in the Mass. Software Council's 2003-2004 Complete Guide to the Mass Software Industry
which is now available.
"The shakeout in the industry continues, but we think that the worst is over, and we are
encouraged by the positive outlook expressed by the companies surveyed throughout the state,"
said Mass. Software Council Chair Deborah M. Besemer, President and CEO of BrassRing Inc.
"The results of the survey show that technology, especially software, is starting to recover
from the challenges of the past few years and that that technology industry - one of the
pillars of the state's economy - is poised for growth and optimistic about the future."
The survey reflects that the strength of the software industry lays in the innovation of
their small, entrepreneurial software developers and distributors; 65% of the state's
software companies have 25 or fewer employees and 75% $5 million of less in revenues.
Additional findings include:
- 87 percent of the companies are privately owned
- 13 percent are owned by women and minorities
- 11 percent of included software companies have over $50 million
in sales annually.
- 18 percent of software companies identify themselves as providing a product; 37 percent
as providing a service; and 45 percent as providing both a product and a service
- 23 percent of the state's traditional software companies are currently receiving or have previously
received venture funding, while 68 percent have never been venture funded.
The Complete Guide to the Mass Software Industry is published on an annual basis in cooperation with
Mass High Tech. Silicon Valley Bank sponsored the cost of printing which allows the Council to
distribute the Guide to members, libraries, state and federal officials and international delegations
at no cost.
The 2003-2004 edition of The Complete Guide to the Mass Software Industry is available for purchase in
printed version for $85 on CD-ROM for $425. For more information about the publication, or to learn about
the Mass. Software Council, call 617-437-0600, or visit the Council's web site at
www.masoftwarecouncil.org.
About the Mass Software Council
The Mass. Software Council was founded in 1985
to promote the Massachusetts software industry, to help
executives start, grow, and manage companies, and to help companies
compete successfully in global markets. Currently there are approximately
600 member companies. The Council organizes more than 50 meetings
a year on the business aspects of managing software companies;
conducts research on the industry; represents the software industry
on technology-related public policy issues; creates
innovative programs to address workforce issues;
and promotes Massachusetts globally as a center of technology leadership
and innovation. The Council's newest initiative, the MemberExtras Program, seeks
to help Member companies save time and money, lower their operating costs, and
improve their business operations through Council negotiated discounts on products
and services.
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