The UK software industry is an ideal sector for
investment.
According to a report into the UK market by TechMarketView, the
top 50 home-grown companies have experienced revenue growth
exceeding 20% and operating profit increases of 25% over the past
year.
Overall, the sector, with more than 400 companies, is generating
global sales of £6bn and proving to be a solid exporter.
But a number of problems are having a negative impact on the
British market, including a lack of available financial backing,
particularly when compared with the US, and a local rather than
global mentality.
As a consequence the sector could miss out on investment and
some players could become the subject of a foreign takeover.
"There is a tendency to write off the UK software industry
because most of the familiar software companies are in the US. That
would be a big mistake," stated Richard Holway, chairman of
TechMarketView.
The UK software industry has never had a problem with quality or
the innovation of its people, but it needs to improve its
management and marketing skills and gain investment to grow
operations beyond the local market, he said.
A version of this story appeared on
Microscope.