Software Cluster

The Information Technology/Software (Software) industry cluster consists of those companies involved in computer services, including computer programming services, software development, data processing, Internet service and computer facilities management. IT Professionals may be found in all industries but this industry cluster includes only those employees working for IT/Software companies.

Click here for a list of Software cluster definitions

National Outlook

The United States will continue to be a world leader in this industry, but employment domestically will be trained towards project management, while production jobs move overseas. As the industry becomes more diffused into smaller companies, it will become more stable, as the entrepreneurial operations are less likely to move abroad.

While software demand has slowed, there are several areas presenting growth opportunities in the Software industry. The White House has continually expressed the importance information technology plays in maintaining an efficient and effective homeland protection program. Additionally, The Institute of Electrical and Electronics Engineers-United State of America (IEEE-USA) has spearheaded an effort to utilize information technology in the protection of critical infrastructure. Software provides significant means of identifying and authenticating personnel, detecting adversarial threats, mitigating consequences of disruption of critical infrastructure utilities, and maintaining surveillance and protection of such structures.

Other Potential Areas of Growth

Sarbanes-Oxley

The Sarbanes-Oxley Act of 2002 (Sarbanes-Oxley) mandated a number of reforms to improve corporate responsibility, enhance financial disclosures, and combat corporate accounting fraud. Demand for software to assist companies in complying with the financial documentation and reporting requirements of Sarbanes-Oxley has skyrocketed driving new growth in the Software industry cluster.

Open-source

Open-source software is beginning to put pricing pressures on traditional software suppliers. Open-source software provides the user with access to the source code, giving the user the ability to modify the code and software program. The modified software can be distributed and reproduced for free or minimal fees.

Security Software Applications

Demand for software and information technology related to heightened security needs will also drive the growth of the Software industry cluster. Both software security applications that protect computer systems and the larger security issues of homeland security will contribute to software demand.

PDF Downloads

Download the "Software" Section of the Target Industry Report (PDF 427KB).
Download the entire Target Industry Report (PDF 8MB).