Industry Analysis & Industry Trends
The Software Publishing industry has grown steadily over the past five years, underpinned by increased online connectivity and the emergence of new technology. Increased access to high-speed internet has encouraged the development of software to take advantage of new hardware, such as smartphones and tablets. In particular, software development for smartphones and tablets has grown strongly, with new products being developed to carry out functions that were once the domain of PCs and gaming consoles. Industry revenue is expected to rise by an annualised 4.1% over the five years through 2014-15. This growth includes a projected increase of 4.8% in 2014-15, to reach $1.5 billion.
The industry faces strong external competition from large foreign software publishers such as Microsoft... purchase to read more
Industry Report - Industry Investment Chapter
Software publishing is characterised by a low level of capital intensity. For every dollar that the industry spends on capital, an estimated $16.05 is spent on labour. The industry employs a large number of skilled employees and has few capital expenses. The capital goods required for the industry are mainly office space, computers, and some networking capacity. Some operators rent these items instead of investing in capital, minimising capital intensity. Several industry players have opted to outsource basic development functions in order to strengthen profit margins and constrain wage growth. The large industry players, such as Atlassian, also maintain development teams in technology hubs such as San Francisco, enabling them to access a broader technical talent pool... purchase to read more