Note on the IT Software Industry

This book deals with strategic managerial accounting from the perspective of one segment of industry in general—the information technology (IT) software industry. However, the software industry is not a homogeneous environment that can be dealt with as one entity. The financial dynamics of a product company such as Adobe or Symantec are different from that of an online company such as Google or Facebook, which in turn are different from that of a software development services company (also referred to as outsourcing) such as Infosys or Accenture. Table N1.1 gives the cost structure of these companies, which illustrates the different cost structures of these types of industries.

As software companies often provide ...

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