The Swiss software industry is growing

The SSIS, commissioned by ICTswitzerland and conducted by the University of Bern, was presented at the CNO Panel 2017 event. It is the largest study of the Swiss software industry and the only one of its kind to enable conclusions to be drawn about the following year’s revenue growth and headcount. Thanks to a record number of participants and an improved extrapolation method from the Institut für Wirtschaftsstudien Basel AG (institute for economic studies), it has proved possible to generate particularly informative results. This year’s study focused on the Swiss software industry’s role in the digital transformation of Switzerland. This was the first time the SSIS also analysed the internationalisation of the value chain of Swiss software companies.

The SSIS produced the following main results for 2017:

• Positive growth expectations: For 2017, Swiss software companies expect revenue growth of 8.4% compared with the previous year. Revenue is expected to increase by an even more impressive 14.2% in 2018. Swiss software companies are planning to expand their workforce in Switzerland at a similar pace: by 5.9 % in 2017 and 11.3 % in 2018. In absolute terms, this is equivalent to around 15,000 additional jobs in 2017 and 2018. In 2017, the headcount for staff employed outside Switzerland is expected to grow by 12.4% in comparison with the previous year. 2018 should see an increase of as much as 18.7% in the number of staff employed abroad.
• Digital transformation: Economic factors as drivers, conservative corporate culture as an obstacle: The software industry is a key player in the digital transformation within Switzerland. The study shows that Swiss software companies tend to be active in classic digitalisation areas, such as the digitalisation of business processes. They focus less on such areas as «digital globalisation» and «performance management». The Swiss software industry believes digital transformation is driven chiefly by such economic factors as low costs and higher competitiveness. Technological factors such as new technologies and innovation play a lesser role. The obstacle mentioned most often is the corporate cultures of Swiss companies.
• More software exports: In 2016, the Swiss software industry generated around 15% of its revenue abroad. Germany accounted for about half these exports (46%).
• Internationalisation of the value chain: This was also the first time that the SSIS 2017 analysed the global outsourcing trend in Switzerland’s software industry. The results show that software integrators display services. They were followed by standard software manufacturers (around 40%) and consulting companies (around 34%). The most popular destinations for outsourcing among Swiss software companies remain Switzerland (around 31%) and then Germany (around 17%). The Eastern Europe region is also popular (32%).

ICTswitzerland’s CEO Andreas Kaelin greeted the growth of the Swiss software industry: «The SSIS again underlines the growing significance of the software industry for Switzerland – also increasingly as an export industry.» He continued: «The software industry is an important driver of digital transformation in Switzerland. If we in Switzerland are to remain on the road to success, our companies must be willing to break with their conservative structures and become more open to new digital solutions.»

The full study can be downloaded on the website of ICTswitzerland.

(Press release)