ICT economy: export as a growth opportunity
The latest ICT foreign trade study by the umbrella organization ICTswitzerland shows: ICT services continue to be Switzerland's fifth most important service export group. Thanks to steady growth, Switzerland's ICT services trade balance is now virtually balanced.
As part of the CNO Panel 2016 event, two studies commissioned by ICTswitzerland were presented in Bern on November 1, 2016. The new ICT Foreign Trade Study and the Software Industry Survey (SSIS) illustrate the increasing economic power of ICT.
Services export as growth driver
The ICT foreign trade study conducted by IWSB AG reveals several key findings for 2015. Firstly: The continuously growing ICT services sector remains Switzerland's fifth most important services export group with export sales of CHF 13.1 billion. Trade in computer services (CHF 9.0 billion) remains of substantial importance. Telecommunication services (CHF 2.4 billion) and information services (CHF 1.7 billion) are also very important. Exports of ICT goods have been declining for years (2010: CHF 7.3 billion; 2015: CHF 6.4 billion). Overall, Switzerland exported ICT goods and services worth CHF 19.5 billion. This means that ICT service exports are the real growth driver.
On the other hand, net exports of ICT services are now virtually balanced (2010: CHF -2.1 billion; 2012: CHF -1.1 billion; 2015: CHF -0.2 billion). With the exception of the Americas, exports of Swiss ICT services to all country groups are higher than imports, which underscores the quality and competitiveness of Swiss ICT. With regard to ICT goods, however, net exports have hardly changed (2014: -5.8; 2015: -5.7 billion Swiss francs), resulting in a trade deficit for the ICT economy as a whole.
EU remains most important main destination
Europe remains Switzerland's most important trading partner with a services export share of 62%, followed by America with 24% and Asia with 10% export share. Within Europe, the United Kingdom (CHF 1.5 billion) and the Netherlands (CHF 0.5 billion) are important alongside neighbors Germany (CHF 2.6 billion) and France (CHF 0.9 billion).
Focus on internationalization
The Swiss Software Industry Survey SSIS, conducted annually by the University of Bern, provides information on developments in the Swiss software industry. In 2015, the survey focused on internationalization. The latest results show: The Swiss software industry remains profitable with an average EBIT margin of 7.5%, despite a decrease compared to the previous year (2014: 8.5%). The growth prospects for 2016 are also viewed positively - albeit somewhat subdued: On average, software companies expect revenue growth of 5% (2015: 12%). This picture is also reflected in spending on research and development and in expected employee growth: On average, Swiss software companies spend 12% of their revenue on future-oriented investments (2014: 14%). If the workforce was expanded by 12% in the previous year, companies in the software industry are planning to expand their workforce by 8.5% in 2016.
Almost two-thirds of export sales are generated in Germany: In 2015, the Swiss software industry generated only 12% of its sales abroad. 62% of these exports are to Germany. Standard software manufacturers are more satisfied with their internationalization plans than manufacturers of individual software, which can be attributed to differences in internationalization strategies and the type of market entry.
The complete studies are available for download at:
www.ictswitzerland.ch/publikationen/studien-ict-aussenhandel-und-ssis-2016/
