Houston is a Popular Home for Emerging Software Companies

Strong Talent Pool, Excellent Infrastructure, Numerous Business Opportunities and Attractive Cost of Living Top List of Reasons to Start a Software Company Here

HOUSTON (Jan. 29, 2004) – Houston is a great place to start and grow a software company, thanks to a highly talented employment pool, excellent infrastructure, numerous business opportunities and a low cost of living, according to a study released today by Houston Technology Center (HTC). The study indicates Houston has more than 300 software development and programming companies that employ 50,000 and have estimated annual revenues of  $4.2 billion.

“Houston’s considerable assets in the software development arena have been eclipsed by its reputation as the world’s energy capital, ” said Paul Frison, HTC President and CEO. “One of our best-kept secrets is the strength and vitality of this software community.”

Conducted by EDS and A.T. Kearney, HTC''s study was designed to gain an understanding of the size and scope of Houston’s software development market; determine the benefits and challenges of starting or relocating a software company in Houston; and understand how to overcome potential barriers to successfully operating a software business in Houston.

Key study findings:
• Houston is home to more than 300 software companies
• The average salary for software engineers in Houston is highly competitive
• Houston companies develop a diverse set of software products in multiple sectors
• Nearly 50,000 full-time employees work in Houston’s software technology sector, and about 24,000 work at companies dedicated to software development
• These companies generate more than $4.2 billion in annual revenues
• Houston’s vibrant entrepreneurial spirit is thriving despite the Internet bubble; one-third of the total companies are at least four years old

“Houston’s competitive and supportive business environment make it a viable alternative to locating in the traditional software niches, such as Silicon Valley and Boston,” said Moe Nagpal, Sr. Manager of Global Business Strategy and Planning at EDS. “Combine that with access a large concentration of Fortune 500 companies and you have many compelling reasons to locate here.”

Recommendations resulting from the study include:
• Develop a “venue” for leadership for the software community
• Increase research in computational sciences and engineering at area universities and at the Texas Medical Center
• Enhance collaboration with the high tech community, the city and other organizations
• Promote Houston’s software community vitality

Further findings in the study include discussion of funding sources, key challenges and the identification of major market drivers. Download the white paper at by clicking this link.

Author: Becky Myers
Phone: (713) 658-1750
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