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Annual Survey of Software Development and Computer Services
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Three of Canada's top information and communications technology (ICT) services industries combined for $30.7 billion in operating revenues in 2005, up 4% from the previous year. The computer systems design and related services industry remains the largest of the three ICT service industries covered by the survey, accounting for $21.6 billion in operating revenues. It is followed by software publishers at $6.4 billion and data processing, hosting and related services at $2.8 billion.
Operating revenues grew for all three industries compared to 2004. The data processing, hosting, and related services industry led with 5% growth year-over-year, followed closely by the computer systems design and related services industry at 4%. The software publishing industry posted a modest 1% operating revenue increase.
The customization of packaged software and custom application design together accounted for 16% of revenues earned, up from 13% the previous year.
Operating profits for the combined industries grew to $1.9 billion in 2005, allowing businesses to post a 6% profit margin. Operating profits were up sharply in the systems design industry but down for both software publishing and data processing.
The group's payroll grew at a 4% rate between 2004 and 2005. Data processing, in particular, saw the highest relative increase, up 18% from the previous year. This compares to a payroll increase of 7% for software publishers and 1% for systems design businesses. Despite the increase in payroll, employment dropped by 2% to an estimated 185,500 persons in 2005.
Sales growth was powered by three customer segments: exports, the domestic financial sector, and public institutions such as schools and hospitals.
Despite increases in the value of the Canadian dollar compared with the United States dollar in 2005, exports by the three industries grew 9%, accounting for $5.4 billion in revenues earned. The United States remains the largest foreign market, accounting for 75% of all exports. Europe is the second largest market, accounting for 16%.
For the three combined industries, the provinces posting the largest year-over-year operating revenue gains were Nova Scotia (+13%), British Columbia (+11%), Alberta (+10%) and New Brunswick (+10%). Ontario, which accounts for just over-half of combined industry revenues, and Quebec, which accounts for one-fifth of industry revenues, both edged up 2%.
Available on CANSIM: table 354-0005.
Definitions, data sources and methods: survey number 2410.
Results from the 2005 Survey of Software Development and Computer Services are now available.
Detailed tables at the provincial level for a range of industry characteristics are included in the data release package, which is available upon request. To order a copy, contact Denyse Brazeau (613-951-5634; fax: 613-951-6696; denyse.brazeau@statcan.gc.ca), Service Industries Division.
For more information, or to enquire about the concepts, methods and data quality of this release, contact Jamie Carson (613-951-3407; fax: 613-951-6696; jamie.carson@statcan.gc.ca), Service Industries Division.
