Software industry is key to reverse economic downturn

RESTON, USA: Software AG, solution provider for business infrastructure software, believes that the software industry is critical to future economic growth and innovation in the U.S. and around the world.

As a global IT leader, Software AG has called on industry and political leaders to recognize the importance of the software industry in helping to counter the economic downturn and drive economic recovery.

The software market is forecast to resume growth in 2010 and the company believes a larger software sector would provide a buffer to economic contraction and spur an earlier return to growth. Software will also play a major role in helping both the public and private sectors adapt to economic changes quickly and economically said the press release.

“We believe the software industry provides a cost effective way of implementing competing requirements such as increasing efficiency, initiating cost reductions and ensuring new regulatory compliance,” said Dean Mericka, president of U.S. Operations for Software AG.

“The innovation our industry brings will be a fundamental driver of national and global economic growth,” added Mericka.

A major contributor to the economic resilience of the global software sector is the role played by business infrastructure software in enabling companies to counter the recession. Organizations facing contradictory pressure to reduce costs, increase efficiency, implement new industry regulations and effectively deal with industry consolidation are turning to a flexible and agile IT infrastructure to deliver on all fronts.

Software AG’s beliefs were confirmed by a report, the 2009 Truffle 100, issued earlier this month. The “Truffle 100 Europe” is the leading ranking of the top 100 European software companies and the 2009 issue shows that the software industry increased revenue, profits and employment above the European Union industrial averages in 2008 despite the global recession.

While Europe’s manufacturers are being hit hard by a drop in export demand, Europe’s software vendors are showing some resilience to the current economic climate. Of particular significance was the increase of over 9 per cent in employment within the software industry at a time when overall employment was shrinking. The report shows that a larger software sector would provide a buffer to economic contraction and provide an earlier return to growth.

“The Truffle 100 report focuses on Europe but validates our view that the software sector is vital to future prosperity and growth around world,” said Mericka. “As the world’s largest economy, the U.S. software industry must embrace a leading role in enhancing high-tech industries and increasing innovation.”