It is again the time of the year when the members of the Software Entrepreneurs Association have received an invitation to participate in the Software Industry Survey. Thanks to the 420 companies that have responded already to the ongoing survey, we can now share some of the initial results.
So, how is the software industry doing currently based on this preliminary data? Quite well, it seems. We have compiled a figure for the typical responses about expected and actual growth by three different size classes below. While more than half of the companies had decreasing revenues in 2009, resulting in net decrease of 1% of the industry size, growth figures for 2010 look a lot more like the pre-recession times. However, for companies with less than 1Meur of revenue, 2010 turned out to be difficult. While firms generally returned to a growth path in 2010, the recession is still visible in lagging profitability figures, which have stayed around the 6% level.

Looking ahead to the end of 2011, the revenue growth rate estimates are looking strong and edging higher than for 2010, but these are still clearly more modest than in pre-recession times. However, looking beyond revenue forecasts, managers’ growth motivations are now even higher than before the recession. This indicates that there is still some uncertainty in the markets.
A blog post about the Finnish software industry cannot ignore Nokia. As we all know, Nokia?s new platform strategy means heavy personnel cuts both inside the company and its subcontractors. Views on the final outcome for the Finnish ICT sector are divided from the “the best thing ever” to the “greatest structural change in new technology that the country has faced”.
A bit more than half of our respondents this far are saying that they will have more people on their payrolls by the end of 2011 than 2010. When this group was asked “would you hire at least some employees laid off by Nokia or its subcontractors?”, we obtained the following graph:

The data brings good news because ex-Nokians are more often on the preference list. But on the other hand, interest toward them is not universal. In a recent blog post <http://softwareindustrysurvey.org/node/59.html>, we dig a bit deeper into what is going on behind these numbers.
Long story short, companies that deal with large customers, operate very professionally, and are patching up certain technical competence areas are usually more interested in the engineers that Nokia is letting go. On the other hand, companies that have SaaS offerings or develop for social media platforms, such as Facebook, systematically see ex-Nokians as less valuable. Surprisingly, companies developing for iOS and Android do not systematically tilt in either direction.
Before the final results of the survey will be published on June 16th, we will have more time to examine these matters with more complete data. Meanwhile, those interested can read about preliminary results in our research blog at http://www.softwareindustrysurvey.fi/blog.html Also, it is still possible to participate in the study, as we will close the survey on June 1st. Like the previous years, this year all responding companies will be provided an analysis of their responses.
Mikko Rönkkö and Juhana Peltonen
Software Industry Survey project, Aalto University
Software Industry Survey is a survey project commissioned by the Federation of Finnish Technology Industries and implemented by Aalto University. The study was launched in 1997 and has since followed the software industry. The Finnish Software Entrepreneurs Association has been a long term partner of the project. More information about the survey is available on the home page at http://www.softwareindustrysurvey.fi








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