History of the industry
The computer software industry began to develop since 1955, when Computer Usage Company became the first company to provide computer software products and services. Then it was able to expand in the early 1960s due to the introduction of low price micro computer by Digital Equipment Corporation. The industry expanded rapidly with the rise of the personal computer in the mid-1970s. Up to now, the computer software industry consists of about 50,000 companies that employ over 500,000 workers and generate $85 billion annually. Generally, there are very few if any government regulation in this industry. One is that Regulators in Europe are set to file an antitrust lawsuit against Microsoft because of the company’s failure to offer users a choice of Web browsers on Windows PCs. Another policy is the Anti-Piracy Law, which is a global effort to combat the illegal trade of pirated and counterfeit software.
The Spanish software market has seen slow decrease in the past few years and the situation will remain, with further decline forecast through up to 2016. The Spanish software market had total revenues of $4.084 million in 2011, representing a compound annual growth rate of 1.5% between 2007 and 2011. (Software Industry Profile: Spain, 2012) Service in this industry includes developing application software, software analysis and design, software support, and web page design. In 2016, the Spanish software industry is forecast to have a value of $4.055 million, a decrease of 0.7% since 2011. Major factors affect growth as follow:
i. Economic downturns: Economic downturns affect business activities, which generally lead to reductions in IT budgets and demand for software and programming services.
ii. Industry evolving rapidly: Computer software firms must constantly develop more advanced technology, if not, other firms will quickly supersede and capture more market share.
iii. Competition: competition within the software market is...