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 Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 61,300 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 15-16 workers, and generates about $3 million annually.

    • The computer programming services industry consists of about 61,300 companies that employ 971,000 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

                                    Coronavirus Update

                                    Oct 3, 2021 - Industry Benefits From Well-developed Infrastructure
                                    • Domestic computer programming services have had a significant advantage during the coronavirus pandemic, according to Forbes Magazine. Countries like India didn’t have the requisite infrastructure in place, and employees didn’t always have the work-from-home resources to support stay-in-place mandates. Broad availability of computers and broadband in homes across the US allowed software development to continue largely without interruption.
                                    • Ten states have made mobile apps available to let people show that they have been vaccinated against COVID-19 available, but 22 have banned the systems to some degree, as of mid-September. Several other states were still debating a ban. Supporters of digital vaccination credentials say that the apps make congregating less risky while incentivizing vaccination. Critics say that restrictions which may be put in place following the introduction of the apps could infringe on civil liberties, unfairly punishes those who cannot get vaccinated, discriminate against those who will not, unleash another form of surveillance, and worsen inequalities rather than eradicate them.
                                    • None of the artificial intelligence (AI) tools developed to help fight the coronavirus pandemic made a real difference, and some were potentially harmful, according to studies published in the last few months. Epidemiologists at Maastricht University in the Netherlands, for example, looked at 232 algorithms for diagnosing patients or predicting how sick those with the disease might get. They found that none of them were fit for clinical use. Just two have been singled out as being promising enough for future testing.
                                    • The US today is producing roughly the same amount of goods and services as before the coronavirus pandemic, but with 8.2 million fewer workers, according to The Washington Post. Analysts cite increasing use of automation for the development. Analysts also note that many companies are struggling to attract enough workers to meet surging demand, and computer programming services are likely to benefit if the problem results in even greater reliance on automation.
                                    • Commercial bankruptcy filings increased 1% month over month in August but were down 26.3% year over year for the first eight months of 2021, according to Epiq Bankruptcy Solutions. “The programs put in place by the government to bolster personal cash flow and keep people in their homes during the pandemic has had a positive impact on businesses and consumers who would typically file for bankruptcy,” said Todd Madsen, senior director of Epiq Bankruptcy Analytics. The number of bankruptcies per month has been volatile in 2021. Some experts continue to question whether government support and easy access to capital will keep distressed companies out of court or if another bankruptcy spike will soon come, according to S&P Global Market Intelligence. "You can't kick the can down the road forever," said Robert Hirsh, a partner in Lowenstein Sandler LLP's bankruptcy and restructuring department.
                                    • Computer programming services may focus on shifting enterprise software development to cloud-based platforms due to the pandemic-driven acceleration of the move from on-premises data centers to data centers operated by cloud service providers and colocation specialists. “By the end of 2021, based on lessons learned, 80% of enterprises will put a mechanism in place to shift to cloud-centric infrastructure and applications twice as fast as before the pandemic,” market tracker International Data Corporation (IDC) said. Enterprise spending on cloud infrastructure services increased 33% year over year in Q3 2020, according to Synergy Research Group.
                                    • Healthcare and computing industry experts are concerned that a lack of transparency in and collaboration on development of artificial intelligence (AI) tools may be impacting COVID-19 patient care. Some institutions have not published any results showing whether their models work, according to healthcare industry news site Stat. Concerns have also been raised about the generalizability of a given model, especially one that is tested and trained only on local data. A study published in the November 2020 issue of Nature Machine Intelligence revealed that a Covid-19 deterioration model successfully deployed in Wuhan, China, yielded results that were no better than a roll of the dice when applied to a sample of patients in New York.
                                    • Computer programming services industry employment increased 4.8% year over year in July, according to the US Bureau of Labor Statistics.
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