Employment in the software publishing industry has more than doubled over the past decade, 1992-2002. Despite the recent economic downturn among firms involved in information technology, software publishing is, nevertheless, projected to be the fastest growing industry in the U.S. economy over the next decade. Wage and salary employment is expected to increase by 68 percent between 2002 and 2012, more than four times the 16 percent growth projected for all industries combined. Even in difficult economic times, organizations continue to make investments in software. Software boosts productivity, increases efficiency, and, in some cases, reduces the need for workers. Growth will not be as rapid as it was during the previous decade, however, as the software industry begins to mature and as routine work is increasingly outsourced overseas.
An increasing reliance on information technology, combined with falling prices of computers and related hardware, means that individuals and organizations will continue to invest in applications and systems software to maximize the return on their investments in equipment and to fulfill their growing computing needs. Such needs include the expansion of electronic commerce, a growing reliance on the Internet, faster and more efficient and secure internal and external communication, and the development of new technologies and applications. Given the rate at which the software publishing industry is expected to grow, and the increasing integration and application of software in all sectors of the economy, job opportunities should be excellent for most workers. Professional workers should enjoy the best opportunities, reflecting employers’ continuing demand for higher level skills to keep up with changes in technology. However, employment growth may be tempered somewhat as companies contract out more of the routine tasks to foreign countries, where labor costs are lower, in an attempt to remain competitive.
Today, there is demand for software products ranging from Web browsers, home networking software, and firewalls to maintain security to video games and other entertainment-related software products. Yet, new growth areas will continue to arise from rapidly evolving technologies and business forces. The increasing uses of the Internet, the proliferation of websites, and mobile technology such as the wireless Internet have created demand for a wide variety of new software. The market for educational software and entertainment software, which includes video games, is also expected to experience robust growth over the next decade.
The way the Internet is used is constantly changing, and so is the software required to run the new and emerging computer applications. Expanding electronic commerce, for example, has changed the way companies transact business. Business-to-business commerce is automating many steps in the transaction of business between companies, allowing many firms to operate more efficiently. Businesses are moving their supply networks online and participating in and developing online marketplaces. The sustained growth of electronic commerce as well as the growing uses of intranets and extranets will drive demand for increasingly sophisticated software tools geared towards these technologies. And, as the amount of electronic information stored and accessed continues to grow, new applications and security needs will increase demand for database software. Demand for an even wider array of software applications also should increase as companies continue to expand their capabilities, integrate new technologies, and develop new applications.
One significant factor contributing to growth in software is computer security. Organizations invest heavily in software to protect their information and secure their systems from attack. And, as more individuals and organizations are conducting business electronically, the importance of maintaining computer system and network security will increase, leading to greater demand for security software.
Given the increasingly widespread use of information technologies and the overall rate of growth expected for the software publishing industry, most occupations should grow very rapidly, although some faster than others. The most rapid job increases will occur among computer specialists such as computer software engineers, as firms continue to install sophisticated computer networks, set up Internet and intranet sites, and engage in electronic commerce, and as consumers continue to explore and use vast amounts of applications software.
