This paper provides an overview of the business software technology field, examining the roles and responsibilities of professionals in the industry, the field's significant economic contributions, and the personal and professional rewards available to those who pursue careers in it. Drawing on reports from the Business Software Alliance, the paper discusses how software drives e-business, supports organizational growth, and contributes billions of dollars and hundreds of thousands of jobs to the U.S. economy. It also highlights educational pathways, above-average wages, and strong employment growth projections that make business software technology an attractive career choice.
The information technology industry is vitally important to the advancement of our society and our world. This paper explores the business software technology aspect of the industry. First, it examines the tasks performed by individuals in this field. It then considers the economic impact of this segment of the industry. Finally, it explores the benefits and rewards of working in the business software technology field.
The business software technology field is critical to the success of any firm. The field researches and develops software applications that allow firms to thrive. The Business Software Alliance explains that "businesses use software to collect, analyze, and present information; to buy and sell goods and services; to design better products; and to facilitate communications" ("Building an Information Technology").
Business software technology is particularly critical for e-business applications. E-business is a growing segment of the industry and requires a great deal of software to ensure customer satisfaction and to maintain revenue gains for businesses. Employees in this field are in demand at firms across the country and around the world.
People in the business software technology field are trained to perform the following tasks:
Business software technology is also an important part of the broader economy. A report published by the Business Software Alliance outlines the impact of business software on the economy. The report asserts, "The direct effects of the U.S. computer software industry in 1996 included a $102.8 billion market for software and software-related services, payment of $15.1 billion in taxes, and 619,400 jobs" ("Building an Information Economy").
In addition, the business software industry has grown astronomically in comparison to other industries. The report notes that the industry grew 12.5% in the six years between 1990 and 1996 — 2.5% faster than the overall economy. Additionally, the packaged software segment of the industry grew by 14% during the same period.
Now that the significance of the industry has been established, it is worth examining the benefits and rewards of entering the business software technology field. This career field provides thousands of jobs nationwide, and individuals in the field reap many professional and personal benefits. One major benefit of working in this field is the knowledge that is acquired. This knowledge allows individuals to contribute greatly to their organizations. Professionals in this field can help their employers develop software that dramatically increases company profits.
Schooling and education are another benefit of entering this field. Educational institutions across the globe offer a broad range of courses in business software technology, from technical certificates to master's degrees. Whatever level of education one pursues upon entering this field, there will be jobs available.
Another benefit of working in this field is that highly skilled individuals are in high demand. When a company has a strong need for a particular type of employee, it is often willing to pay top dollar to attract and retain that individual. The BSA explains:
"Part of meeting the challenge of technology leadership is hiring and retaining a highly skilled workforce. The high wages paid by the software industry reflect the importance of 'human' capital in the industry, and the rapid wage gains of industry employees reflect the growing scarcity of such highly skilled workers." ("Building an Information Technology")
It is estimated that employment in the industry will make up 3% of the total economy by the year 2005. The Business Software Alliance reports, "In 1996, the U.S. software industry directly employed 619,400 people. Employment in the industry is expected to grow at approximately 5.8% per year between the years 1996 and 2005, resulting in 1,030,500 jobs" ("Building an Information Economy"). Employment in this industry has grown at a rate of 9.2% each year, while employment in the telecommunications industry has grown only 1% each year.
"High wages, advancement opportunities, and incentives"
There are also strong opportunities for advancement in business software technology once an individual has gained experience and pursued a higher level of education. In other words, positions in this field are not dead-end jobs. Workers earn considerably higher wages, and those wages continue to increase steadily over time. Additional rewards include incentives such as stock options, compensation plans, and other bonuses.
The high wages and incentives that workers earn from this industry not only benefit the employee but also improve overall firm productivity and thus contribute to the economy. The BSA reports that workers who earn higher wages work harder and take pride in their vocations. The relationship between compensation and productivity is a well-established principle in labor economics. As the BSA states:
"Economic theory teaches that workers' compensation — their wages and benefits — is directly related to the value of what they produce. As the value of their production increases, so does compensation. And when workers are more productive, the value of their production increases. Hence, if the development of software has, indeed, provided workers with the tools they need to be more productive, one would expect to find the compensation paid to those working with computers to be higher than the compensation of workers in similar occupations who do not use computers." ("Building an Information Economy")
The research gathered makes it clear that the business software technology field will continue to grow for years to come. The field is vital to the business world and to the broader economy. There are many benefits and rewards to be realized in this field, including acquired knowledge, educational opportunities, high compensation and incentives, and a high degree of productivity. The business software technology field is an industry worthy of serious consideration when choosing a career path.
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Gomolski, Barb. "E-Business PULSE: Too good to be true — Some technical schools paint an overly optimistic picture of IT careers, even in this tight economy." InfoWorld. Nov 5, 2001.
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