Annual Survey of Software Development and Computer Services

Detailed information for 2004

Status:

Active

Frequency:

Annual

Record number:

2410

This survey collects the financial and operating data needed to produce statistics on the Software Development and Computer Services industry in Canada.

Data release - January 26, 2006

Description

This annual sample survey collects the financial and operating data needed to produce statistics on the Software Development and Computer Services industry in Canada. The survey also collects detailed information on the characteristics of the businesses, such as type of revenue and type of client.

These data are aggregated with information from other sources to produce official estimates of the national and provincial economic production of the Software Development and Computer Services industry in Canada. The results from this survey provide data to businesses, governments, investors, and associations. These data allow these groups to monitor the growth of the industry, measure performance, allow comparison across similar businesses and to better understand this industry to react to trends and patterns.

Statistical activity

This survey is part of the Service Industries Program. The survey data gathered are used to compile aggregate statistics for over thirty service industry groupings. Financial data, including revenue, expense and profit statistics are available for all of the surveys in the program. In addition, many compile and disseminate industry-specific information.

Reference period: Calendar year

Collection period: February to October

Subjects

  • Business, consumer and property services
  • Business performance and ownership
  • Financial statements and performance
  • Information and culture
  • Professional, scientific and technical services

Data sources and methodology

Target population

The target population consists of all establishments classified to the Computer Systems Design and Related Services (NAICS 541510), Software Publishers (NAICS 511210) and Data Processing, Hosting and Related Services (NAICS 518210) according to the North American Industry Classification System (NAICS) during the reference year. This industry comprises establishments primarily engaged in software development and computer services.

Instrument design

The 1999 Annual Survey of Software Development and Computer Services questionnaire was field tested in October of 1999 by Statistics Canada. Based on contacts with respondents and data users, some modifications have been incorporated to the questionnaire since 1999 in order to reflect the changing nature of the industry surveyed.

Sampling

This is a sample survey with a cross-sectional design.

Even though the basic objective of the survey is to produce estimates for the whole industry--all incorporated and unincorporated businesses--not all businesses are surveyed. Rather, a sample is surveyed and the portion eligible for sampling is defined as all statistical establishments with revenue above a certain threshold. (Note: the threshold varies between surveys and sometimes between provinces in the same survey). The excluded portion represents a substantial proportion of the industry in terms of number of establishments, but its contribution to the overall industry revenue is only about 10%. These excluded establishments are accounted for in the final estimates through the use of administrative data. However, only basic information is obtained from administrative sources, i.e., total revenue, expenses, depreciation and salaries, wages and benefits. Detailed characteristics such as client base, revenue by type of service, and detailed expense items are collected only for surveyed establishments.

The frame is the list of establishments from which the portion eligible for sampling is determined and the sample is taken. The frame provides basic information about each firm, including: address, industry classification, and information from administrative data sources (as discussed above). The frame is maintained by Statistics Canada's Business Register, and is updated using administrative data.

Prior to the selection of a random sample, establishments are classified into homogeneous groups (i.e., groups with the same NAICS codes, same geography (province/territory), and same business type (incorporated/unincorporated) attributes). Quality requirements are targeted, and then each group is divided into sub-groups called strata: take-all, must-take, and take-some.

The take-all stratum includes the largest firms in terms of performance (based on revenue) in an industry. Every firm is sampled, which means each firm represents itself and is given a weight of one. The must-take stratum is also comprised of self-representing units, but these are selected on the basis of complex structure characteristics (multi-establishment, multi-legal, multi-NAICS, or multi-province enterprises). Units in the take-some strata are subjected to simple random sampling.

Finally, the sample size is increased, mostly to compensate for firms that no longer belong in the industry; i.e., they have gone out of business, changed their primary business activity, they are inactive, or are duplicates on the frame. After removing such firms, the sample size for reference year 2004 was 1,139 collection entities.

Data sources

Responding to this survey is mandatory.

Data are collected directly from survey respondents and extracted from administrative files.

Data are collected through a mail-out/mail-back process, while providing respondents with the option of telephone or other electronic filing methods.

Follow-up procedures are applied when a questionnaire has not been received after a pre-specified period.

View the Questionnaire(s) and reporting guide(s) .

Error detection

Data are examined for inconsistencies and errors using automated edits coupled with analytical review. Where possible, data will be verified using alternate sources.

Imputation

Partial records are imputed to make them complete. Data for non-respondents are imputed using donor imputation, administrative data, or historical data.

Estimation

As part of the estimation process, survey data are weighted and combined with administrative data to produce final industry estimates.

Quality evaluation

Prior to dissemination, combined survey results are analyzed for overall quality; in general, this includes a detailed review of individual responses (especially for the largest companies), an assessment of the general economic conditions portrayed by the data, historic trends, and comparisons with other data sources.

Disclosure control

Statistics Canada is prohibited by law from releasing any information it collects which could identify any person, business, or organization, unless consent has been given by the respondent or as permitted by the Statistics Act. Various confidentiality rules are applied to all data that are released or published to prevent the publication or disclosure of any information deemed confidential. If necessary, data are suppressed to prevent direct or residual disclosure of identifiable data.

Data accuracy

While considerable effort is made to ensure high standards throughout all stages of collection and processing, the resulting estimates are inevitably subject to a certain degree of error. These errors can be broken down into two major types: non-sampling and sampling.

Of the sampled units contributing to the estimate the weighted response rate was 59.5%.

The sample of software development and computer services represents 90% of the estimated industry revenues. The remainder of the estimate was derived from administrative data sources.

Since this survey was based on probability sampling the potential for error caused by sampling can be measured. A standard measure of sampling error is the coefficient of variation (CV). The qualities of CVs are rated as follows:

. Excellent 0.01% to 4.99%
. Very good 5.00% to 9.99%
. Good 10.00% to 14.99%
. Acceptable 15.00% to 24.99%
. Use with caution 25.00% to 34.99%
. Unreliable 35.00% or higher

The CV for this survey for reference year 2004 at the Canada level has ranged from "very good" to "excellent" for revenue, expenses and wages and salaries variables.

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