Finnish Software Industry is still growing strong
The Finnish software and IT services sector grew over 20 percent in 2014. Game firms and smaller firms contribute most of the growth, while stock listed firms had mixed results.
Survey 2015
This year’s survey is conducted in two parts. The first part focused on the overall state of the industry. The second part, including a survey study with a short questionnaire, shall focus on details of software firms’ growth and internationalisation.
Based on Statistics Finland, the Finnish industry grew 20,6 percent last year. Within the industry, the game firms good results explain two thirds of the growth. Rest of firms grew approximately seven percent, which is also more than the total global growth of the industry.
We find that our industry has a group of software firms that have been able to exploit the new opportunities of digital marketing and delivery channels as well as the opportunities provided by the consumerism of information technology.
The analysis of the stock listed companies in the software and IT services sector indicates a minor decline of 2,2 percent in revenue compared to previous year. The positive aspect of the companies’ result is that the decline is smaller than in previous years and many firms have also been able to increase the revenues.
We find that the decline in the revenues is attributed to the structural changes taking place in the industry; the demand is changing from customer-specific projects to cloud services. The current situation seem promising as the firms have been able to develop new capabilities to match the changes in the industry.