European software industry gets big thumbs up

The European software industry is booming at the moment, according to IT trade association Intellect.

At an awards ceremony in Brussels, Intellect announced the top European IT companies for 2007 - the 'Truffle 100'.

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20.Mark Hurd HP

The top four European software companies in terms of revenue were announced as Germany's SAP, followed by UK company Sage and the two French companies Business Objects and Dassault Systemes. Software AG, a German company, overtook the UK's Misys for fifth position in Intellect's Truffle 100.

Jean-Pierre Brulard, VP of Syntec Informatique, a French IT industry body present at the ceremony, said: "With €22bn in revenues, up 6.6 per cent, despite significant acquisitions by US companies and €2.8bn in profits, the European software industry need not be modest about its position in the world economy."

Intellect said European companies are successfully facing global competition through constant innovation and heavy investment in R&D. The Truffle 100 European companies last year collectively invested €3.3bn in R&D, or 15 per cent of total revenues and 63 per cent of them expect to increase their investments this year.

An Intellect statement said: "With a headcount of 175,000, Europe's software vendors have become a key force in creating new, added-value jobs for engineers, computer programmers and other highly qualified employees."

The data for the ranking was collected by market research company CXP in association with Truffle Capital, a private-equity firm. Bernard-Louis Roques, a general partner at Truffle Capital, said investment in R&D was "excellent news for European economies, which will profit greatly by increased employment throughout the software industry".

Roques added: "Our data clearly shows that the European software industry is succeeding in reversing the brain drain of the 1990s, when many qualified IT employees sought jobs outside Europe."

Tom Espiner writes for ZDNet.co.uk