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Software Industry Survey 2013

The Software Industry Survey 2013 has been completed. We will keep the survey form open for a while just in case a firm would like to respond to receive a company analysis.

The main results of the survey have been published, and presented in a press event. The press slides and the press release can be downloaded from our publications section. Our results from this year mirror those from the last year: the public listed companies have had difficulties during 2012 - many were still suffering from Nokias downsizing-, the SMEs are doing quite well. We wish to thank our funders and all of our (exaxtly) 500 respondents for their time!

The industry grows steadily, but not particularly fast

Finnish software and IT services sector grew by 5.8% percent in 2012. Growth was led mainly by small and medium-sized software companies. While Nokia's subcontractors heavy layoffs still dragged the overall growth of the software industry, the situation of the small and medium-sized enterprises seems to have improved from the previous year. Overall growth was driven in particularly by a few of successful game companies.
One of the major challenges of the industry is that promising young companies rarely develop into steadily growing and employing large companies. In recent years, the number of software companies on the Helsinki Stock Exchange has in fact decreased, even though the founding rate of software firms has remained constant or even slightly increased.

The degree of internationalization achieve two milestones in 2012. For the first time in the history of the survey more than half of the responding companies had international revenues. Moreover, more than half of the firms that did not have international revenues stated that they are either planning or had previously attempted internationalization. For the first time, Russia and Eastern Europe surpassed North America as a target market. Although the number of entries shows that Russia and Eastern Europe are increasing, the North American markets still generate more revenue. Scandinavia and Western Europe remained the most common target market by a large margin.

The software industry restructuring continues - small and medium software companies employ a steady pace

While Nokia's rotating staff reductions are today much less in the headlines than in 2012, the restructuring is still ongoing. Open job positions in the software industry dropped from around three hundred to around two hundred in 2012, but started to increase slightly in 2013. In 2012, small and medium-sized software companies recruited about 350 people that were previously employed by Nokia or any of its subcontractors.

Cloud Platforms passed the mobile platforms in software development

Corporate software development is rapidly moved to take advantage of cloud computing platforms: 47% of software companies announced to develop software that take advantage of cloud computing platforms, at least to some extent. The results suggest that Finnish software companies take advantage of cloud computing both to enhance existing business and to exploit new business opportunities. One differentiating factor between firms that use cloud computing and those that do not is that firms that develop for the cloud platforms seem to be more growth oriented.

The survey also shows that the popularity of smart phones, software developers competition in Finland is a competition between three platforms: Android and iOS, and Windows Phone 20%, 19% and 15% of the contributions. Symbian has fallen to below five per cent, and expected to decrease further.

We will continue analyzing this data and publish detailed results on factors limiting firm growth and funding in conjunction with Kasvufoorumi 2013. Stay tuned for more! 

From the research blog: Insights about your firm

All firms that participated in the survey will receive a complimentary report, where we compare the firm with all other firms that responded to the study. These reports are now set up and we will begin sending them out soon. We are leaving the survey form open for June, so even if your firm did not "officially" participate in the study, you may still fill in the questionnaire and obtain a report about your firm.

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