Computer Programming Services NAICS 541511
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Industry Summary
The 62,773 Computer programming services firms in the US develop custom computer programs designed for clients’ specific needs. Services include developing application software, software analysis and design, software support, and web page design.
Off-shore Outsourcing
Clients attempting to reduce costs often look to foreign providers of programming services.
Highly Skilled Labor
Because of the complexity of IT systems and computer programming, firms rely on a staff of highly-skilled, educated professionals, including computer programmers, software engineers, and project managers.
Recent Developments
Jan 6, 2026 - Increasing Memory Price may Force A Rethink Of Application Memory Usage
- Increasing memory hardware prices driven by demand from data centers has renewed an old debate about whether modern software requires too much memory, according to The Register. Technical progress that caused hardware memory capacity to increase without end made protesting about bloat feel a lot like "old man yells at cloud," according to The Register, but memory prices have rocketed in recent months and currently show no signs of returning to levels where software developers can ignore increasing memory use. Reversing decades of application growth will not happen overnight, according to the Register. It requires a change of thinking and a different outlook. Toolchains must be rethought, and rewards should be given for compactness, both at rest and in operation.
- Federal contractors including computer system design services must prepare for an eventual surge in bid protest activity following the reopening of the federal government, according to the Crowell law firm. The shutdown brought the regular bid protest process to a standstill, and the reopening is set to create unprecedented backlogs and overlapping deadlines. The end of the shutdown will not mean an immediate return to business as usual. Government contractors should expect a hectic and crowded restart, especially for protest processes handled by the Government Accountability Office. Contractors need to be prepared for compressed timelines, increased agency corrective action, and potentially significant delays.
- Developers are no longer the sole gatekeepers of custom software, according to Design Rush. Business users now have access to powerful low-code and no-code platforms that allow users with minimal coding knowledge to build applications using visual interfaces. These platforms are increasingly powered by AI, enabling non-developers to create and deploy software faster, though the trade-off can be a lack of customization and scalability. Computer programming services once built everything from scratch but clients often show up with tools already in place now. The real value provided by computer programming services lies in guidance, strategy, and making sure the tools are solving the right problem in the first place, according to Design Rush.
- Computer programming industry employment increased slightly and average wages for nonsupervisory employees decreased slightly during the first eight months of 2025, according to the US Bureau of Labor Statistics. Computer programming service industry revenue increased 7.7% year over year and 5.1% quarter over quarter in the second quarter of 2025, according to the US Census Bureau. Computer programming service industry sales are forecast to grow at a 4.66% compounded annual rate from 2025 to 2029, faster than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc.
Industry Revenue
Computer Programming Services
Industry Structure
Industry size & Structure
A typical computer programming services firm operates out of a single location, employs 17 workers, and generates about $4.9 million annually.
- The computer programming services industry consists of about 62,773 companies that employ over 1.1 million workers and generate about $305 billion annually.
- Many individual programmers provide contracted services and operate as non-employer firms (these firms are not included in industry revenue data).
- Large companies include Cognizant Technology Solutions and Perficient. Major companies based outside of the US include Infosys Technologies and Tata Consultancy Services, both located in India.
Industry Forecast
Industry Forecast
Computer Programming Services Industry Growth
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