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        Computer Software Industry Profile

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        Excerpt from Computer Software Industry Profile

        Companies in this industry design and publish computer software. Major companies in the US include Activision Blizzard, Adobe, IBM, Microsoft, NortonLifeLock, Oracle, and Salesforce; as well as Dassault Systèmes (France), Sage Group (UK), and SAP (Germany).

        Global spending on enterprise software is nearly $400 billion per year, according to Gartner. The US is the world's top software-producing country in terms of revenue; other major producers include Germany, the UK, and Japan. Many US-based software companies outsource some of their production work to other countries due to the high cost of domestic labor.

        The US computer software industry includes about 13,300 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $270 billion.

        COMPETITIVE LANDSCAPE

        The health of the global economy heavily influences spending for software products. The success of software companies depends on technical expertise and effective marketing. Small software companies compete mainly by targeting niche markets or developing new technology. Many small companies form alliances with larger ones to market their products. The US software industry is concentrated: the 50 largest companies generate about 75% of revenue.

        Competitive Advantages:

        Access to Programmers - The ability to attract and retain talented programmers is crucial in the software industry, where developer shortages are a widespread challenge. Companies with adequate resources may recruit internationally, but immigration laws hinder that practice in some markets.

        Global Reach - Because software spending is so closely tied ...

         
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