Software design

Operation profile

The packaged software industry serves a wide range of markets, including business enterprise software, office software, educational software, and entertainment software. Software business operations typically range in size from hundreds of programmers providing sophisticated new products, to very small groups serving niche customer markets.

The representative operation modeled performs original technology development and ongoing application development for packaged software applications. As detailed in the following table, this operation is characterized by:

  • Leased office space
  • A workforce consisting mostly of very highly skilled product development staff, but also with significant sales and customer support functions.

The business is assumed to operate as a stand-alone profit center.
 

Summary of operating parameters

Industry: Software design

Operation: Software development

Facilities requirements
Class A office space leased - ft2 (2,090 m2)
22,500

Other initial investment requirements
   Office equipment - US $'000
$3,000
   Equity financing - % of project costs
67%

Workforce
   Management
8
   Sales and administration
38
   Dedicated product development
54
   Customer Support
10
 
Total employees
110

Energy requirements
   Electricity: monthly consumption demand - kWh
60,000

Other annual operating characteristics
   Sales at full production - US $'000
$24,000
   Operating costs - % of sales
10%
   Investment in tax-eligible R&D - % of sales
--

International results

International results are illustrated in the following chart. These results reflect the combined impact of 26 location-sensitive cost components applied to the modeled operation. Detailed results for these countries, by individual cost component, are available as a separate table.

City results

The following table profiles results for selected cities, by country, from among the 111 cities featured in this report. Results for all other cities included in the study can be found in the Results lookup section of this website.

Results for selected cities
Industry: Software design
Operation: Software development
North America – selected cluster cities
Country and CityIndex & Rank1
CAGatineau (National Capital Region), QC76.48
 Kelowna, BC78.313
 Montreal, QC75.86
 Toronto, ON79.919
 Vancouver, BC79.615
MXMexico City, DF68.32
 Monterrey, NL65.81
USAustin, TX94.983
 Boston, MA101.2108
 Denver, CO95.990
 New York City, NY106.1111
 North Virginia, Metro DC, VA99.9106
 Omaha, NE90.240
 Orlando, FL92.565
 Portland, OR95.991
 San Francisco, CA104.7110
 Seattle, WA99.9105
1  Rank among 111 featured cities.
 
 
 
International locations – all cities
Country and CityIndex & Rank1
AUAdelaide81.321
 Brisbane84.226
 Melbourne84.125
 Sydney85.828
FRMarseille88.433
 Paris93.372
GEBerlin87.932
 Frankfurt89.937
ITMilan86.129
 Rome84.024
JPOsaka88.734
 Tokyo91.552
NLAmsterdam83.823
 Rotterdam83.522
UKLondon96.194
 Manchester79.617
1  Rank among 111 featured cities.

 
Back to index

Download now

Competitive Alternatives 2016

Study reports

 

Corporate sponsors

Colliers

Colliers International

Link
MMK Consulting

MMK Consulting

Link

Contact KPMG

KPMG

Local KPMG contacts

See contacts