Computer Programming Services
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 62,400 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.
Industry size & Structure
A typical computer programming services firm operates out of a single location, employs 16-18 workers, and generates about $3 million annually.
- The computer programming services industry consists of about 62,400 companies that employ over 1 million workers and generate about $185 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
Computer Programming Services Industry Growth
Recent Developments
Jul 14, 2024 - Labor Costs Increase
- Computer programming industry employment and average wages for nonsupervisory employees increased slightly during the first five months of 2024, according to the US Bureau of Labor Statistics. Computer programming service industry revenue increased 3% year over year and 4.9% quarter over quarter in the fourth quarter of 2023, according to the US Census Bureau. Computer programming service industry sales are forecast to grow at a 4.44% compounded annual rate from 2024 to 2028, faster than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc.
- An average of 854 people in the global technology industry lost their jobs every day this year through June 25, according to career advisory platform TrueUp. The number is high by historical standards but considerably lower than the 1,177 who lost their jobs every day in 2023, according to TrueUp. The worst month for tech layoffs so far in 2024 was January, when more than 45,000 employees globally lost their jobs.
- Computer programming services have benefited from the rapid increase in electronic health records (EHR) systems, telemedicine platforms, and interconnected medical devices, but these technologies have also exposed the healthcare industry to unprecedented cybersecurity threats, according to Forbes. Healthcare data has become a prime target for cybercriminals due to its sensitive nature and the potential for financial gain. Healthcare data breaches now cost an average of $9.23 million per incident, according to IBM.
- False Claims Act (FCA) risks are increasing as government contractors including computer programming services face increasing cybersecurity obligations, according to the Morgan Lewis law firm. “Knowingly” failing to meet cybersecurity obligations included in government contracts carries significant FCA risk. The FCA defines “knowingly” to include acting with deliberate ignorance or with reckless disregard. The US Department of Justice (DOJ) launched in October its Civil Cyber-Fraud Initiative, which united its government procurement and cybersecurity enforcement efforts to pursue civil enforcement against government contractors who fail to satisfy required cybersecurity standards. The DOJ has indicated that criminal enforcement in the cyber space will increase significantly. Tighter enforcement is likely to impact contractors and implicate a range of additional issues, according to Morgan Lewis.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.