Hola folks, I was wondering about the typical turnover of a small (3-20) software house.. I know that in Europe (Scandinavia) a company usually gets around 100.000 $/year / employee.. till 500.000 (us)$ / year/ employee.. the cost of the employee is anything between 40.000 - 80-000 $ in general.. How about your companies? Could you please mention - The country of operation. - Turnover /employee - and specialisation Do you guys have an idea which is best for small companies. To make their own system and sell it.. or to concentrate in consultation and help clients with their projects. How about the %of Developers in a typical company.. I know a company that is making around 10Million $ (for 34 employees, they are doing very well) and the R&D dep has around 13 guys.. Don't u think that there are many sales/Hr and support guys?? Comments will be appriciated [ January 03, 2004: Message edited by: Tonny Tssagovic ]
It's probably easier to be profitable if you are a consulting firm since you should have a natural cash flow from your customers. To develop your own products will take a lot of up front cash and there is the risk that you will never complete your product, it won't sell or someone will beat you to market with a similar or better product.
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This seems most appropriate to Jobs Discussion, so I'll move it there.
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posted 16 years ago
Originally posted by Michael Morris: It's probably easier to be profitable if you are a consulting firm since you should have a natural cash flow from your customers. .
Thanks for the reply Micheal This is true, but this assumes that you get enough projects to keep your team working like hell.. Maybe getting some projects, and re-investing the money and time not used to make your own products could be a good idea. If you don't make your products, you will never get rich...If you had a product to resell, then if you have an agressive marketing Dep. you can lie down, and enjoy being rich (maybe not as "dramatic" as this though) .. How about The $$, I still want to hear about what you guys/your ompanies earn /person. By the way, I would also add an other question, DO you guys know how deep do you need to your hands inside your pocket if you wanted to get a GURU to review your architecture?? (say Martin Fowler).. Any ideas? Thanks in advance
One way some companies have created products is by contracting for another company, offering their services for free (or very little) and retaining the intellectual property rights of the software. The software can then be 'productised'. One company that did this - and is doing very well - is Royalblue <www.royalblue.com> Richard
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