Productivity gains in software engineering are powering innovation. Everyone is more productive these days. This has been a consistent trend for at least the past decade, where productivity gains have been particularly strong within the business sector. According to data from the U.S. Bureau of Labor Statistics, today’s business industry workers are on average 30% more productive than their 1998 counterparts (productivity growth of roughly 2.6% per year).
Within the technology industry, productivity has increased more. Thanks to smartphones, improved search engines, better CRM software, and ever-increasing bandwidth, salesmen and marketers can find, receive and process information faster than ever.
The most dramatic gains, however, have occurred within software development.
Software engineers today are about 200-400% more productive than software engineers were 10 years ago because of open source software, better programming tools, common libraries, easier access to information, better education, and other factors. This means that one engineer today can do what 3-5 people did in 1999!
The advent of open source software makes engineers particularly efficient. One VP Engineering that I talked to gave me an anecdote about one module where they used open source files with about 500,000 lines of code and then wrote 7,000 lines of code to stitch it all together. Open source software is also free. In the company I was running in 1999, “software” was a huge budget line item – we had to buy databases, testing suites, libraries, and more. Today all that stuff is free … a start-up might spend more money on sodas for the office than it does on software.
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