The UKsoftware industry is not the dead duck that gloom merchants might like todescribe it as with it instead being an ideal sector for investment.
According to a report into the UK market by TechMarketView thetop 50 home-grown companies are experiencing revenue growth of 20% plus andoperating profit increases of 25% in the last year.
Overall the sector, with 400 plus companies, is generating global sales of£6bn and proving to be a solid exporter.
But there are a number of problems that are having a negative impact on theBritish market including a lack of available financial backing, particularlywhen compared to the US,and a local rather than global mentality.
The consequences of those problems might not only mean that the sectormisses out on investment but that some players could become victim to foreigntakeover.
“There is a tendency to write-off the UKsoftware industry because most of the familiar software companies are in the US. That wouldbe a big mistake,” stated Richard Holway, chairman of TechMarketView.
He added that the UKsoftware industry had never had a problem with quality or the innovation of itspeople but needed to improve its management and marketing skills and gaininvestment to grow operations beyond the local market.