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
Oct 1, 2024 - Commercial Bankruptcies Increase
- Commercial chapter 11 bankruptcy filings increased 40% year over year in July, according to the American Bankruptcy Institute. Overall commercial filings increased 17%. Computer programming services may be negatively impacted if investment in IT systems decreases as a result. “We continue to see a strong and steady rise in bankruptcy filings across the board, reflecting ongoing financial pressures faced by both businesses and individuals,” Michael Hunter, vice president of Epiq AACER, said. “Based on current trends and economic indicators, I expect bankruptcy filing volumes to continue this steady increase throughout the remainder of 2024 and into 2025.”
- The number of cyberattacks increased 30% year over year during the second quarter of 2024, reaching 1,636 attacks per organization per week around the world, according to Check Point Research. The three most attacked industries were education/research (3,341 attacks per week), government/military (2,084 attacks per week) and healthcare (1,999 attacks per week). North America accounted for 58% of publicly extorted ransomware attacks victims. The Manufacturing sector represented 29% of the published ransomware victims globally, marking a 56% year-over-year increase.
- 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.
- Computer programming industry employment and average wages for nonsupervisory employees increased slightly during the first seven months of 2024, according to the US Bureau of Labor Statistics. Computer programming service industry revenue increased 2.3% year over year and 1.8% quarter over quarter in the second quarter of 2024, 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.
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.