By Steve Ranger, 13 February 2006 12:25
NEWS
The real value of software developed in-house by UK businesses has been revealed by changes to the way the investment is calculated by government statisticians.
The Office of National Statistics (ONS) has updated its methods for measuring investment in software in the UK.
The new methods cover software purchased by companies from external suppliers and "own-account" software written in-house by employees.
The new estimates have revealed much higher levels of investment in software than previously thought.
In 2003 the UK invested £21bn in software - 12 per cent of the total UK investment in the year.
Previously the value of in-house software for 2003 was set at £2.5bn but the new calculations show it to be closer to £13bn. The value of purchased software also jumps under the new method, from £5.5bn to £8bn.
This increases the total value of software investment from £8bn to £21bn - 1.9 per cent of gross domestic product.
The ONS said the new method of measurement will enable it to meet international best practice in measuring the "new economy".
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1. anonymous
Would be interested to see what the stats are for 2005 - what is the growth like ?