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
Source: Vertical IQ and Inforum
Coronavirus Update
May 9, 2022 - Low-code Development Gains Momentum
- Low-code development platforms have seen tremendous uptake since the beginning of the COVID-19 pandemic and arrival of the Great Resignation, according to some industry experts. The adoption of low-code software development platforms is growing at more than 20% per year, according to research firm Gartner. The global market for low-code development technology reached $13.8 billion in 2021. Low-code development is expected to be adopted by more than 50% of medium to large companies by 2023.
- The technology sector’s eight superstar cities (San Francisco; San Jose, CA; Austin, TX; Boston; Seattle; Los Angeles; New York; and Washington, D.C.) slightly increased their share of the tech sector’s total nationwide employment in 2020 even as hopes rose for greater dispersion of tech work, according to Brookings Metro. The cities accounted for half of the nation’s technology sector job creation during the pandemic’s first year. Brookings Metro notes, however, that tech sector employment growth slowed in all but one (New York) of the eight superstars in 2020 while it increased in many smaller places.
- 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. About 67% of IT executives surveyed in late 2021 by Harvard Business Review Analytic Services said that their organization accelerated the adoption or implementation of already-planned cloud applications, services, or infrastructure during the year because of the coronavirus pandemic, an increase from the 56% who said in the prior year's survey that their organization had done so. The majority (65%) predict that more than 60% of their IT portfolio will reside in the cloud within two years. This represents a 30-percentage point jump. A total of 85% say at least 40% will be in the cloud by 2023, a similar 32 percentage points higher than those reporting that much is in the cloud.
- Teachers are leaving the classroom for jobs in the private sector, and computer programming services are hiring them. Teachers’ ability to absorb and transmit information quickly, manage stress, and multitask are high-demand skills, recruiters and careers coaches say. Classroom instructors are landing sales roles and jobs as software engineers, instructional coaches, and behavioral health technicians, according to LinkedIn.
- About 58% of respondents to a survey conducted by software company Pegasystems said that they had wasted between $1 million and $10 million over the past five years on the wrong IT solutions. This sense of waste has been exacerbated by the coronavirus pandemic, which prompted companies to roll out new technologies quickly without sufficient time for planning or impact assessments. "There were many examples of IT success during the pandemic, but the urgency required and the speed of response also led to some systems being implemented that are now showing themselves to be difficult to scale and adapt," said Schuerman. "Some new digital siloes have been created as a result, and some poorly executed approaches to use of technologies like low-code have created 'shadow IT' groups."
- 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.
- 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 of the technology. 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.
- Commercial bankruptcy filings decreased 4% month over month in April after increasing 26% month over month in March, according to Epiq Bankruptcy Solutions. Commercial bankruptcies decreased 5.4% month over month in February, and 11.2% month over month in January. Commercial bankruptcies were down 16% year over year in April. Small business bankruptcy filings known as subchapter V cases, a new type of filing that went into effect in February 2020 under the Small Business Reorganization Act, decreased 40% month over month in April after hitting record numbers in March.
- 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.
- Employment in the computer programming services industry increased 8.3% year over year in March, according to the US Bureau of Labor Statistics.
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