Growth Forum Summary Report

This report presents the current state of the Finnish Software Industry and examines the growth challenges within it.

The software industry is a subsector of the broader IT services industry. It grew by 7.5% in 2012 and has revenues of 4.8 billion Euros, and software business now accounts for 54% of the IT services industry.

Over half of the small- and mediumsized Finnish software firms have international revenue, and this share has been rising steadily. The industry is also characterized by a relatively high number of very high growth or “gazelle” firms, and the number of firms is rising steadily. When examining the growth challenges reported by Finnish software firms, they appear to have much in common with those of 2008. Our survey finds that the average software firm sees three things to be problematic to its growth: (i) shortcomings in sales and marketing (ii) too small a size to pursue customers, and (iii) the poor availability of able sales and marketing personnel. This result also holds over many different types of firms. Only very young firms form the exception in sales-related matters possibly because the founders are preoccupied with building the firm’s offering and setting up its operations. On the other hand, the availability of able technical workers is not commonly perceived to be problematic for growth.