The Information Technology Landscape in Canada

 

About Canada

Telecommunication
Infrastructure

Privatization and Deregulation

Internet Activity

e-Commerce

Hardware Manufacturing
Software Development

IT Usage

IT Labor Market
IT Geographics
IT Financing
Government Policies
Legal Environment
Analysis : IT Strengths/ and Weaknesses
Analysis :Impacts on the Business
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About the authors

Software Development

Software Players

The Canadian software industry, which is a major sub-sector of the Information and Communications Technology Sector (ICT), is comprised of primarily small-and medium-sized enterprises (SMEs), although a number of multi-national enterprises also exist. Small and medium-sized players in the industry include:

  • Aerde Environmental Research - Providing software and related services in the area of remote sensing, project planning and management, GIS data integration and analysis tasks in the following areas: radar remote sensing applications development, education and training, and environmental policy and management.
  • Bio-Software-Developing software products designed to collect, manage and interpret environmental data. Software is constructed to deal with the entire range of environmental data, including water, energy, waste.
  • CadhamHayes Systems Inc. (www.cadhamhayes.ca) - Dedicated to developing new information technologies for environmental data management. CadhamHayes has recently introduced NewLeaf, an innovative software technology for environmental monitoring and data management. NewLeaf's flexibility makes it applicable to a range of applications in activities such as water resources management and flood forecasting, meteorological data gathering, air quality monitoring, environmental emergency preparedness, and many other integrated environmental monitoring applications
  • CANATEC Consultants-The CANATEC software is a database for ice data. It allows firms to display Arctic ice statistics in minutes, a task which previously took a day to complete.
  • Caribou Systems Corporation (www.caribousystems.com)- Caribou produces Environmental Management System software for its corporate clients. The Caribou System is a valuable tool for corporate environmental managers. It is particularly useful for those managers responsible for a wide spectrum of environmental issues at multiple locations. The Caribou System provides instant access and live data management of a complete environmental portfolio.
  • DPL Systems Engineering (www.dpl.ca)- DPL Systems Engineering provides turnkey control systems and engineering consultation for a range of Canadian industrial sectors. DPL's engineering products and services focus on providing industrial automation systems performing water and waste analyses. DPL focuses on serving municipal and industrial markets.
  • Environmental Software Associates Ltd. (ESA)
  • Geomatics Industry Association of Canada
  • Geosoft
  • Geostat Systems International Inc.
  • Hydro Tech
  • ICOM Alliance Inc.

Market Drivers and Barriers

In 1995, the software and computer services industry generated $14.3 billion in revenue and comprised 1.5% of total GDP in Canada. The geographic concentration of Canadian software firms is in the larger metropolitan areas of Ontario, Quebec and British Columbia. Canada’s software market is relatively small compared to foreign markets and there is a lack of demand for Canadian products and services within the Canadian market mainly due to potential Canadian clients utilizing products and services from outside of Canada. Market drivers in the software industry in Canada include a combination of regulatory, environmental corporate citizenship,

costs savings/efficiency, liability/risk management, technological advancement. These market-based, technological and social responsibility drivers combine to create the market for software company’s products and services.

Several barriers to entry exist for firms trying to penetrate this market. Some of the most common barriers were:

  • a lack of financial resources for marketing and business development;
  • difficulty and expense of educating immature markets and creating sufficient awareness of the value of new products and services; and
  • the absence of strong regulatory pressure which, in some cases, drives the demand for products and services.

Source: Strategis, Industry Canada's Information Source for Canadian Business

Software Spending

Canada ranks #6 worldwide in terms of software spending behind the United States, Japan, the UK, France, and Germany. Every year, Canada’s spending has increased in order to remain competitive in a global front.

Software Spending for Canada and the United States (# Worldwide Ranking)

 

1993

1994

1995

1996

1997

 

Spending (US$M)

% of World

Spending (US$M)

% of World

Spending (US$M)

% of World

Spending (US$M)

% of World

Spending (US$M)

% of World

Canada (#6)

2,055

2.9%

2,196

2.7%

2,484

2.6%

3,080

2.9%

3,433

3%

US (#1)

33,020

46.2%

37,780

46.6%

40,669

42.5%

46,802

44.7%

54,010

47.1%

Source: Digital Planet-The Global Information Economy

 
 

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Sarah Alijani sa0565a@american.edu  &  Richard Wright rightrf@aol.com ________________________________________________________________________________________
Last update: December 17, 1999