Software Industry Productivity
The post-bubble era is seeing dramatic increases in productivity for software companies. It looks like the software industry is really maturing. Our little baby is growing up.
- The average revenue per employee has increased from $195,000 in 2003 to $287,000 last year.
- The average Net Income per employee is now $3,700 (which sounds anemic but represents huge improvement over the average net loss of $61,600 per employee back in 2003.)
- 62% of the companies are now profitable versus only 46% back in 2003.
- This increased productivity has increased the average market cap per employee from $600,000 to $1,129,000.
This report looks at revenue per employee in the tech sector and shows dramatic gains in productivity over the last 8 years for software companies. The report also introduces a new way of looking at productivity through the calculation of Return on People. This new measure improves on the Revenue Per Employee metric typically used in many industries.
You can get the report on Software Industry Productivity here.