Mass Technology Leadership Council Issues Annual State of the Industry Report; Survey of Region's Tech Businesses Show Increase in Services Offerings, Growth in Foreign Distribution.(Industry Overview)

BOSTON -- According to survey results announced by the Massachusetts Technology Leadership Council today, services are an increasingly important part of businesses in the Bay State, with growing numbers of companies wrapping services around their technology products. Nearly 50 percent of the respondents reported they offer both a product and a service, up from 40 percent reported in last year's survey.

This year's survey also indicates that companies have increased foreign distribution of their products and services over last year, with 37 percent reporting distribution outside the U.S., up from 27 percent in 2004.

The survey results were announced in conjunction with the release of The Complete Guide to the Massachusetts Software Industry, the Council's directory of the companies and annual report on trends in the Massachusetts software industry. The 2,655 companies included in the directory currently employ 118,976 employees. The guide is available for sale on the Council's website at www.masstechleaders.org.

This year's survey continues to show that smaller companies are fueling the region's technology industry. More than 70 percent of the respondents employ 25 or fewer people and 52 percent employ 10 or fewer people. In addition, 68 percent of the companies reported $5 million or less in revenues, while only 10 percent of the companies reported revenues of more than $50 million.

"The state's software industry has grown threefold since the first Mass Software Council survey in 1989, and the trends identified this year are evidence of some of the changes that have driven this growth," stated Mass Technology Leadership Council President Joyce L. Plotkin. "The software industry continues to be a major employer and a key economic engine for the state, and the increased focus on software services and on business outside the US are two important trends that highlight the industry's vision for success in the future."

While the survey indicates slightly fewer companies and jobs in 2005 compared to last year, revenue per employee is up, with software industry revenues remaining steady at $10.5 billion. Last year's directory listed 2,781 companies employing 124,807 employees.

Additional survey findings include:

--89 percent of the companies are privately held.

--12 percent are owned by women and minorities.

--28 percent concentrate on horizontal market applications.

--23 percent provide Internet products and services.

--22 percent are currently receiving or have previously received venture funding; 68 percent have never been venture funded; while 10 percent of companies are seeking venture funding.

The Council has also begun to track emerging areas of technology growth, such as RFID, robotics, and embedded software for inclusion in this year's annual directory. Future editions will provide statistics on the growth of these specific areas.

The Complete Guide to the Massachusetts Software Industry is published on an annual basis in cooperation with Mass High Tech. The 2005-2006 edition of The Complete Guide to the Massachusetts Software Industry, sponsored by Silicon Valley Bank, is available for purchase in printed version for $85 or on CD-ROM for $425. For more information about the publication, or to learn more about the Mass Technology Leadership Council, call 617-437-0600, send e-mail to info@masstechleaders.org or visit the Council's Web site at http://www.masstechleaders.org.

About the Mass Technology Leadership Council

The Mass Technology Leadership Council is the premier association for providers and users of innovative technologies in the region. Formed by the combination of the Mass Software Council and New England Business and Technology Association, Inc., the organization is dedicated to fostering entrepreneurship and promoting the success of companies that develop and deploy technology across industry sectors. The Mass Technology Leadership Council conducts educational programs, hosts industry events, facilitates networking, sponsors research, advocates on behalf of its members, and is involved in a variety of activities that will help to produce the next generation of science, technology, engineering, and math (STEM) professionals.