2010 Branham300 - The Year of Opportunity and Hardship

Written by Darren Anderson

Last year was a tough one, but it capped off a successful decade for the Canadian ICT Industry

Branham300 Logo Albeit turbulent, 2009 closed out an extremely successful decade for the Canadian Information and Communication Technology (ICT) Industry. The economic environment that developed in late-2008 and remained for much of 2009 resulted in a mix of opportunity and hardship for the Industry's leading firms, with the Top 250 companies appearing on this year's Branham300 combining to generate $71.32 billion in revenue, down six per cent compared to 2008, but up 43 per cent compared to 2003; the first year that Branham compiled its Top 250 listing.

When 2009 is looked back upon, it will be recognized as a transitional period for the Canadian ICT Industry. For the first time in seven years, the Top 250 crowned a new number one company. As Nortel Networks underwent aggressive restructuring, which eventually led to the sale of most of its major operating units, Research In Motion (RIM) capped off an impressive decade, in which it produced double-digit revenue growth in all but one year, to surge to the peak of the Top 250 listing.

Merger and acquisition (M&A) activity and currency fluctuations also played a prominent role in how this year's listing played out. Several leading Canadian players leveraged their healthy financial positions to expand inorganically and as a result climbed the ranks of the listing, while 13 companies generating approximate $500 million in revenues in 2008 could not return to the Top 250 in 2009 due to M&A activity and changes in organizational structure. The strong Canada-U.S. exchange rate, which fluctuated upwards throughout the year to close almost 20 cents higher than 2008, impacted companies on the list considerably. Early forecasts indicate that the Canadian dollars appreciation is to continue into 2010. With more than half the list generating 20 per cent or more of its business south of the border, Canadian firms will face increased competition moving forward as the currency advantage that they enjoyed for much of the past ten years likely will not be present as the Industry enters a fresh decade.

For the first time since 2005 private companies comprise the majority of the Top 250 listing, accounting for 52 per cent of the companies in 2009, while public companies make up the remaining 48 per cent. A lack of new IPO's, the loss of public firms and an infusion of more than 45 new companies, of which more than 75 per cent are privately-held, were all contributing factors to the shift in the composition of the list this year.

The revenue threshold for this year's Top 250 increased approximately 20 per cent to $7.05 million. In addition, the companies appearing on the Next 50 listing experienced an incredible 2009, increasing cumulative revenues by 24 per cent over last year's group. Each of these factors illustrate that the Canadian ICT Industry has a lot to look forward to, as there is an exciting group of technology companies emerging as the leaders of tomorrow, ready to take the Canadian ICT Industry into 2010, and beyond.

Results by region

The geographical breakdown of the Top 250 listing remained relatively static in 2009. Ontario, which experienced the largest increase in representation among Canadian provinces in 2008, realized the sharpest decline in 2009, falling three per cent to account for 57 per cent of listed firms. Rebounding from a double-digit decline in representation last year, Quebec-area companies increased their share of Top 250 companies to 15 per cent, while B.C. and Alberta maintained their 2008 level of representation, accounting for 14 per cent and 10 per cent of the Top 250 in 2009, respectively.

Alberta led all Canadian provinces with eight per cent growth in 2009, increasing total sales to $2.81 billion. Representing 23 per cent of Top 250 revenues in 2009, Quebec was the only other province to experience an increase in revenues this year, rising seven per cent to $16.40 billion. Total revenues for B.C.-based firms fell two per cent to $9.28 billion this year, while Ontario realized the most significant decline in 2009, as aggregate sales fell 11 per cent compared to 2008 to $40.69 billion in 2009. The province was hit hard this year as 22 Ontario-based companies realized double-digit revenue declines, while the next closest province was B.C. with nine companies experiencing declines of 10 per cent or more.

Performance by category

The Top 250 consists of four major categories: Software, ICT Professional Services, ICT Hardware and Infrastructure and x Service Providers. Only one of the four major categories realized an increase in its share of Top 250 companies in 2009, as the ICT Hardware and Infrastructure category accounted for 24 per cent of the firms this year, up from 23 per cent in 2008. Despite this increase in representation, the ICT Hardware and Infrastructure category was the only group that experienced a year-over-year decline in revenues, falling 21 per cent in 2009 to $28.74 billion. This decline is largely due to the category's leaders, as revenues at eight of the top 25 firms fell by 10 per cent or more in 2009. Although the percentage of Top 250 companies operating in the ICT Professional Services category remained static in 2009 (29 per cent), the category led all others with 21 per cent growth this year, increasing sales to $10.32 billion. Both the Software and xSP categories saw their representation on the Top 250 fall slightly in 2009 to 34 per cent and 13 per cent, while revenues increased 13 per cent and 3 per cent to $4.48 billion and $27.78 billion in 2009, respectively.

The Top Performers

Last year's Top 10 companies jockeyed for position on this year's list as Nortel Networks, Canada's perennial ICT Industry leader, filed for bankruptcy protection in early 2009. Throughout the year Nortel underwent aggressive restructuring that included mass layoffs, management retention bonuses, among other highly critical actions, before ultimately making the decision to sell off its major operating units piece-by-piece.

RIM continued its run of incredible growth in 2009, increasing revenues from $6.29 billion in 2008 to $11.58 billion in 2009, to land in the number one position on this year's listing. Contributing to its 84 per cent year-over-year growth, the wireless solutions company increased device sales by 89 per cent and added approximately 11 million net-new subscribers during its fiscal 2009 year. To cap it all off, in mid-March, RIM acquired Mississauga, Ont.-based Certicom (ranked 143rd on last year's Top 250) in an effort to boost its security portfolio, in an all cash deal valued at $131 million. It looks as though the new Canadian ICT Industry leader is here to stay; RIM has already closed its fiscal 2010 third quarter and the wireless solutions company's revenues continue to grow – up 43 per cent year-over-year.

The Big Three Canadian telecommunications firms all ranked in the top five in 2009. BCE climbed one position to land in the second spot on this year's list, generating $8.27 billon in revenue in 2009. Rogers Communications jumped three spots in 2009 to rank third, increasing sales by an estimated 8 per cent to $7.42 billion this year, while Telus boosted revenues by approximately 2 per cent to $6.87 billion ascending one position to the number four spot in 2009.

Leading this year's top 10 in year-over-year growth were Shaw Communications and CAE, which both increased sales by 17 per cent. While Shaw Communications continues to plan its entry into the wireless space with the spectrum licenses it acquired during the 2008 Canadian Wireless Spectrum Auction, the company continues to grow its existing customer base allowing it to generate just under $2 billion in revenues this year. Meanwhile, CAE experienced annual revenue increases in each of its major operating segments, allowing the company to reach $1.66 billion in sales in 2009.

2009 trends, and what to expect in 2010

After a relatively quiet 2008, this past year marked the return of feverish M&A activity within the Canadian ICT Industry, as several prominent deals took place: Open Text completed a mega-deal as it acquired U.S.-based Vignette, Groupe GFI Solutions purchased Fortsum Business Solutions (ranked 109 on last year's Top 250), Integrated Device Technology bought Tundra Semiconductor (ranked 59 on last year's Top 250) and Constellation Software continued its rapid expansion by acquiring 13 companies in 2009. Expect an abundance of M&A activity to continue in the Canadian ICT Industry in 2010 as companies in good financial standing look to capitalize on opportunities in an effort to expand customer bases, product portfolios and overall presence within the Industry.

Overall investment in research and development, sales and marketing, and other core activities took a significant hit in 2009 as companies entered maintenance mode for much of the year, focusing instead on near-term profitability and cash flow pressures. Much like the turn of the millennium, the events of 2009 have taught the Industry not to take the economic environment for granted. With the turmoil of the past year firmly entrenched in most firms recent memories, it is likely that companies will cautiously expand budgets and increase spend on existing projects, while carefully allocating resources to new and emerging technologies, that were pushed to the backburner throughout 2009. With newfound confidence and a somewhat optimistic economic outlook for the coming year, Branham expects moderate growth to return to the Canadian ICT Industry in 2010.

Top 25 ICT Multinationals (Link to listing)

The Top 25 ICT Multinationals are comprised of foreign-owned ICT organizations that maintain operations in Canada. The firms appearing on this list are some of the largest companies in the global ICT arena, with worldwide revenues ranging from approximately $200 million to $115 billion in 2009. However, for the purpose of this listing only domestic and/or export revenue generated by the organizations' Canadian entity is used to rank these firms.

Illustrating that not even the largest ICT organizations in the world are immune to challenging economic conditions, 60 per cent of this year's Top 25 ICT Multinationals listing experienced declining revenues in 2009. Further, an additional 16 per cent of the companies listed realized stagnant growth, maintaining there 2008 level of sales. This volatility coupled with the fact that six companies made their inaugural appearance on the listing this year resulted in a considerable amount of movement among the ranks.

The top two companies from last year's listing maintained their positions in 2009, as IBM Canada and HP Canada generated an estimated $4.88 billion and $4.30 billion in revenues this year. Siemens Canada surpassed Microsoft Canada, which realized a three per cent decline in 2009, to reclaim the third position it held two years ago, generating $2.50 billion in revenue in 2009. The only company in the top five to experience positive growth (up 12 per cent in 2009) was Apple Canada, which climbed one position to the fifth spot this year with an estimated $1.31 billion in revenues in 2009. Of the six companies making their first appearance on the Top 25 ICT Multinationals listing, Wipro debuted the highest in 2009 in the eight position, producing an estimated $860.51 million in revenues in 2009, on par with its 2008 level of sales.

Top 25 Up and Comers (Link to listing)

For emerging start-ups in the Canadian ICT Industry, there has never been a more challenging time to go-to-market than 2009. Although talent pools grew exponentially due to layoffs throughout the Industry, the necessary financing to hire teams and build successful business models was next to non-existent this year. The Top 25 Up and Comers highlighted on this year's Branham300 were not only selected due to their level of innovation, creativity and promise; they were also chosen because of the progress they have made in a period of time when the margin for error was extremely small.

Although all areas of Canada are represented on this year's listing, several cities have emerged as "hot beds" for start-up activity. In 2009, three cities housed the majority of firms listed with Toronto, Vancouver and Ottawa accounting for 32 per cent, 24 per cent and 16 per cent of this year's up and comers, respectively. Each of these cities provides emerging companies with a variety of tools to facilitate growth and innovation: industry associations, start-up accelerator centres, and a tight-knit community of technology professionals. In the next few years, look for many of these firms, regardless of headquarter location, to burst onto the Canadian ICT scene as the leaders of tomorrow.

Top 25 ICT Hardware and Infrastructure Companies (Link to listing)

Compared to each of the other Industry segments the ICT Hardware and Infrastructure sector was hit the hardest in 2009, as existing and potential clients reduced overall ICT infrastructure spend and delayed major investments. As a result, combined revenues for the category fell 21 per cent this year to $28.74 billion, compared to $36.61 billion in 2008. Sector leaders did not fair any better, with the category's Top 25 companies generating $27.91 billion in sales, down 22 per cent compared to 2008.

Despite the overall decline in category revenues, several companies did experience positive growth in 2009. Leading all firms on this year's Top 25 ICT Hardware and Infrastructure Companies listing with 84 per cent year-over-year growth, RIM surged past long-time sector leaders Nortel Networks and Celestica (down 59 per cent and 22 percent, respectively), to land in the number one spot in 2009. Representing approximately 40 per cent of the category's total revenues, up from 17 per cent in 2008, it is clear that RIM's overall presence in the Canadian ICT Hardware and Infrastructure arena is rapidly increasing.

Since first appearing on the Branham300 in 2007, Woodbridge, Ont.-based RuggedCom has produced annual growth of at least 50 per cent. Most recently, the provider of communications networking equipment designed for harsh environments, increased revenues by 54 per cent to approximately $63.19 million, to make its first appearance on the Top 25 ICT Hardware and Infrastructure listing, landing in the 22 position in 2009.

After dropping off the Top 25 ICT Hardware and Infrastructure listing in 2008, Sandvine turned things around in 2009, increasing revenues by 35 per cent to generate approximately $68.85 million and rank number 20 on this year's listing. Rutter, headquartered in St. John's, Nfld., followed closely with 28 per cent year-over-year growth. However, halfway through its fiscal year, the manufacturer and engineer of radar signal processing technology disposed of its controls and automation business for just under $23 million, contributing to its slide to the 25th position on this year's listing.

Two newcomers to the Top 250 landed on the Top 25 ICT Hardware and Infrastructure listing this year. Evertz Technologies, a video and audio infrastructure equipment provider, generated $315.91 million in sales in 2009 up 16 per cent from $272.51 million in 2008 to land in the seventh position on this year's listing. ESI Information Technologies followed closely with an 8 per cent increase in revenues to $64 million to make its first Top 25 appearance in the number 21 spot in 2009.

Top 25 Software Companies (Link to listing)

The Canadian Software category illustrated its resiliency in 2009, rebounding from an overall decline of seven per cent in 2008, to increase revenues by 13 per cent to $4.48 billion this year. The software sector's leaders faired even better, with 19 of the Top 25 Canadian Software Companies experiencing positive growth, combining to increase sales 17 per cent from $3 billion in 2008 to $3.52 billion in 2009.

Open Text solidified its status as Canada's leading software player in 2009. As a result of increasing revenues in both its licensing and customer support streams coupled with strong growth in its North American market, the company was able to boost sales by 8 per cent year-over-year to $822.28 million. In addition, the enterprise content management solutions provider strengthened its product portfolio in later-2008 with the acquisition of U.S.-based Captaris, a document automation solutions provider, for just over $100 million. Following the close of its 2009 fiscal year, Open Text completed a mega-deal as it acquired fellow ECM solutions provider Vignette for US$321 million. As a result of this rapid inorganic expansion, Open Text has further strengthened its future as the market leader in the ECM space as well as Canada's leading software company.

Mitel Networks made its first appearance on the Top 25 Software Companies listing in the second position in 2009, increasing revenues 6 per cent year-over-year to $769.36 million. Over the course of the past decade, the business communications solutions provider inverted its product portfolio from hardware intensive products to software solutions, with the majority of the shift completed to-date. After putting plans of going public on hold in 2006, opting instead to pursue the acquisition of Inter-Tel, news leaked in late-2009 that Mitel is planning to launch a US$230 million IPO on the NYSE, one of the largest public offerings ever for an Ottawa-based technology firm. Rounding out the top three on this year's Top 25 Software Companies listing is Constellation Software, which increased sales by an estimated 30 per cent to $449.91 million in 2009. As existing business units actually experienced a decline in revenues in 2009, the year-over-year growth that the company generated is attributed to the 13 acquisitions it completed during its fiscal year. The largest deal the company finalized in 2009 was its $30 million acquisition of the resource management business from MediSolution; a Montreal-based healthcare solutions provider that ranked 81 on last year's Branham300.

In addition to the top three, the software sector saw several other firms experience impressive growth in 2009. Leading all top software companies this year was Averna, a test engineering solutions company headquartered in Montreal, which increased revenues by 66 per cent to $48.50 million. Computer Modeling Group followed closely with 57 per cent annual growth, mainly attributed to significant increases in the sale of its reservoir simulation software to foreign markets, which comprise approximately 50 per cent of its business. Lastly, ParetoLogic introduced new software products, enhanced existing offerings and leveraged strong marketing channels, resulting in a notable increase of 52 per cent to $42.60 million in revenues on 2009.

Top 10 xSP Companies (Link to listing)

The Canadian x Service Provider (xSP) category is comprised of application, managed, wireless and Internet service provider companies. The most lucrative of the four major Industry sectors, the xSP category in 2009 combined to contribute 39 per cent of the Top 250's total revenues, up from 35 per cent in 2008, while only accounting for 13 per cent of the companies listed. The 32 xSP companies appearing on the Top 250 in 2009 combined to generate $27.78 billion in sales, up three per cent compared to last year's group, while this year's Top 10 xSP Companies bettered last year's group by 4 per cent, increasing sales to $27.23 billion in 2009. As businesses and individual consumers become more reliant on the Internet, from both their computers and mobile devices, and companies increasingly offer solutions in software-as-a-service and related models, it can only be expected that this category's percentage of Top 250 revenues will continue to increase in the years to come.

The Top 10 xSP Companies listing is led by the Big Three Canadian telecom firms. BCE tops the list for the sixth consecutive year in 2009, generating an estimated $8.27 billion in revenues, on par with its 2008 sales. Rogers Communications advanced into the second spot this year, increasing revenues by approximately 8 per cent to $7.42 billion in 2009, while Telus generated modest growth (up 2 per cent) to produce $6.86 billion in revenues to rank third on the Top 25 xSP Companies listing in 2009.

Ottawa-based Protus, an online business communication tools provider, led all Top 10 xSP Companies with 32 per cent year-over-year growth to land in the tenth spot this year with $69.56 million in revenue. Cogeco Cable followed with an 18 per cent increase in sales, generating $295.2 million in revenues to rank eighth, while Shaw Communications, last year's Top 10 xSP Companies growth leader, put together an impressive encore campaign as the Alberta telecom company produced $1.99 billion in revenues in 2009, up 17 per cent from $1.71 billion in 2008.

Top 25 ICT Professional Services Companies (Link to listing)

The ICT Professional Services category realized the sharpest increase in revenues compared to last year, as the 72 companies appearing on the Top 250 this year combined to generate $10.32 billion in revenues, up 21 per cent compared to 2008. The Top 25 companies within this category also produced a considerable increase compared to last year's leaders, increasing combined revenues by 20 per cent to $9.41 billion in 2009. However, as year-over-year growth for the current crop of companies actually declined two per cent, the significant growth that the category experienced in 2009 is a direct result of several new ICT Professional Services companies appearing on the Top 250 in 2009.

Picking up where it left off in 2008, Montreal-based CGI ranks as the leading ICT Professional Services company in Canada again in 2009. Not immune to the economic factors that impacted all companies; CGI was able to increase its presence in the government, healthcare, and financial services space, offsetting declines in the telecommunications, utilities and manufacturing verticals. As a result of its successful shift in vertical focus, the IT and business process services provider was able to generate $3.83 billion in revenues in 2009, up 3 per cent compared to 2008.

For the remaining companies comprising the top five, 2009 proved to be a difficult year, as fifth-ranked Compugen was the only company in the group to realize positive, albeit modest, growth. Hit hardest in this group was new comer Softchoice, a technology software and solutions provider, which saw its revenues decline an estimated 23 per cent in 2009 to approximately $1 billion. MacDonald, Detwiler and Associates also realized declining revenues in 2009, with sales down 14 per cent compared to 2008 to approximately $1.01 billion. The firms decline was largely due to reduced demand in its information products segment, which was negatively impacted by the soft housing market in the U.S. and the U.K.

However, several companies throughout the remainder of the list experienced considerable growth in 2009. Cyberplex, which more than doubled its revenues in 2008, realized a significant increase in demand for its web advertising solutions in U.S. and international markets, leading to an estimated 100 per cent increase in sales in 2009 to $114.75 million. OnX Enterprise Solutions, which acquired Thornhill-based Momentum Advanced Solutions (ranked 150 on last year's Top 250) following the close of its 2009 fiscal year, followed with 47 per cent year-over-year growth to reach $156.43 million and the number 12 position on this year's listing. The only other company to experience year-over-year growth in excess of 30 per cent in 2009 was Groupe GFI Solutions. Completing a series of acquisitions during the past five years, most recently purchasing Fortsum Business Solutions (ranked 109 on last year's Top 250) in 2009 and Bell Business Solutions in 2008, the ERP solutions developer and integrator was able to surpass the $100 million mark in revenues for the first time in company history, generating approximately $107 million in 2009, up 34 per cent compared to the previous year.

Top 10 IT Security Companies (Link to listing)

In order to the thwart the increasingly sophisticated threatscape that companies encounter on a day-to-day basis, recent Branham research has found that organizations are implementing more proactive IT security measures in an effort to protect against events such as theft of sensitive corporate data or loss of revenue due to a disruption of operations. As a result of this increased attention, the companies operating in the Canadian IT security space experienced impressive growth in 2009, as category revenues increased 20 per cent compared to last year to $426.58 million. The category leaders also produced solid 2009 numbers, generating $373.18 million in 2009, up 21 per cent from $307.34 million in 2008.

ESI Information Technologies, a newcomer to the Top 250 and the Top 10 IT Security Companies list in 2009, landed in the top spot this year. Increasing revenues by 8 per cent year-over-year to approximately $64 million, the security and compliance solutions provider was able to surpass last year's IT security leader, Memory Experts International, which saw its revenues slide 14 per cent to $60 million in 2009.

ParetoLogic, headquartered in Victoria, B.C., led all firms on this year's Top 10 IT Security Companies listing with 52 per cent growth, increasing sales from $27.98 million in 2008 to approximately $42.6 million in 2009. Third-ranked Radialpoint bettered its 2008 fiscal year, in which it grew 19 per cent, with a 44 per cent increase in sales to $57.11 million in 2009. Two other firms generated in excess of 40 per cent annual growth on this year's Top 10, as Absolute Software landed in the third position on this year's list with $53.22 million in revenues, and The Herjavec Group ranked sixth in 2009 with $36.5 million in sales.

Top Healthcare ICT Companies (Link to listing)

Acting as a fundamental enabler of change, technology offers the healthcare vertical a host of positive implications, including: improved quality and efficiency in patient care, better synergies in back office functions, and an overall superior system that better services the lives of Canadians from coast-to-coast. Overall, the healthcare ICT niche in Canada has evolved significantly over the past few years. As a result, Branham has opted to change the way it ranks the leaders in this field, recognizing the Top 5 Pure-play Healthcare ICT companies and the Top 5 Mixed-play Healthcare ICT companies in 2009.

Maintaining its position as a leading ICT company in the healthcare vertical, Telus ranks number one on this year's Top 5 Mixed-play Healthcare ICT Companies listing. Increasing its focus in the healthcare realm, CGI followed closely in the second spot, while xwave rounds out the top three in 2009.

After appearing on the Top 10 Healthcare ICT companies listing in each of the past two years, Montreal-based Logibec Groupe Informatique leads the Top 5 Pure-play Healthcare ICT companies listing in 2009. Generating double-digit growth in each of the past four years it has appeared on the Top 250 listing, the healthcare management software provider increased revenues by 13 per cent in 2009, mainly due to acquisitions it made in the U.S. in its 2008 fiscal year, to generate $76.33 million. Making its first appearance on the Top 250 in 2009, PointClickCare.com, a software solutions provider for the long-term care Industry, landed in the second spot on this year's Top 5 Pure-play Healthcare ICT companies listing, increasing sales 42 per cent year-over-year to $22.84 million in 2009. Meanwhile, QHR Technologies led all companies on this year's listing with 107 per cent year-over-year growth to produce $13.53 million in sales in 2009. Look for QHR Technology's growth to continue as the enterprise management and electronic medical records solutions provider rapidly expanded its presence in the Canadian healthcare space in 2009 with the acquisition of Momentum Healthware, headquartered in Winnipeg, and Calgary-based Clinicare, for combined proceeds of $10 million.

Mover and Shakers (Link to listing)

The events that took place throughout 2009 contributed to a considerable amount of company movement in the ranks of the Top 250 this year. The Movers and Shakers listing recognizes those companies that were able to overcome difficult business conditions and generate impressive positive growth, leading to substantial upward movement on this year's listing.

Like 2008, this year's Movers and Shakers listing is primarily comprised of Software and ICT Hardware and Infrastructure companies, accounting for 40 per cent and 30 per cent of those listed in 2009. Although each region within Canada is represented on the listing, the majority of the firms are headquartered in Central Canada, with 45 per cent of the companies operating in Ontario and 25 per cent housed in Quebec.

Leading all firms on this year's Top 250, Enablence Technologies increased revenues an astonishing 1,135 per cent in 2009, to climb 209 positions and land in the number 84 spot on this year's list with $45.24 million in revenues. The Ottawa-based company underwent significant change during its 2009 fiscal year, integrating three firms it acquired in 2008 into its operations, while also maintaining its focus on building out its sophisticated product line with a significant percentage of its revenues (37 per cent) allocated to research and development activities.

After making its first appearance on the Branham300 last year, Toronto-based GuestLogix surged 69 positions on this year's listing to rank number 151, increasing revenues by 122 per cent to an estimated $18.78 million in 2009. The designer of retail solutions for the passenger travel Industry experienced strong growth in both North American and European markets, adding several high-profile airlines to its list of clients, during its 2009 fiscal year.

Two other firms making their first appearance on the Branham300 this year realized significant year-over-year increases to land on the Top 10 Growth Companies listing in 2009. With the help of an acquisition it finalized late in its 2009 fiscal year, JumpPoint, formerly known as GloPlug, took off to increase revenues by 170 per cent this year, from $13.68 million in 2008 to $36.92 million in 2009. Meanwhile, Vancouver-based Elastic Path also expanded rapidly this year, increasing revenues by 112 per cent to $17.94 million in 2009. The enterprise e-commerce platform provider has come a long way since its “boot-strapped” beginnings, to land in the number 157 spot on this year's Top 250.

2009 – Survival of the fittest

Operating in the eye of the worst storm to hit the Canadian and Global economy since the Great Depression, the Canadian ICT Industry faired well with three of its four Industry sectors experiencing positive growth in 2009. Although combined revenues for the Top 250 fell approximately 6 per cent this year to $71.32 billion, success stories can be found throughout the listing, as 46 per cent of Top 250 generated double-digit expansion in 2009. With the economic outlook continuing to improve and cautious optimism abound, companies in the Canadian ICT Industry must begin to invest in their core activities and shift their focus from cost cutting to calculated spending. Canada's ICT Industry will bounce back, and the companies operating in it must be ready for the wave.

Moving forward: A call for action

In early 2009 with the economic storm firmly overhead, the Canadian government announced a sophisticated stimulus package, primarily focused on the protection and creation of jobs during the downturn. While some spend was allocated to expanding broadband Internet Access to un-served Canadian communities, for the most part Canada's ICT Industry was left to fend for itself. The past twelve months have illustrated that no Industry is immune to difficult economic conditions, not even Canada's rapidly expanding ICT Industry, which grew by more than 40 per cent during the past decade.

Executives from leading ICT companies met with senior government officials in Ottawa in mid-2009 to assess the major challenges facing Canada and its digital economy. This was an admirable step in the right direction, with several pressing issues addressed throughout the event. However, immediate action must be taken now to prevent Canada's ICT Industry from falling further behind other developed nations.

The Canadian ICT Industry is not and never has been in need of a bailout package, but more resources must be allocated to industries that improve the overall quality of life for Canadians and enhance this country's ability to compete in what is now more than ever a global playing field. Canada's ICT Industry is reshaping this country's healthcare system with the roll-out of electronic health records across the majority of its provinces. It is innovating technology that allows businesses and individuals to stay connected, regardless of geographic location. Further, the Canadian ICT Industry employs hundreds of thousands of Canadians in knowledge-intensive positions, contributing significantly to the overall wellbeing of this Country's economy. For too long, Canada's ICT Industry has fallen under the radar. It is time for both government and the Industry's leaders to support a promising sector that undoubtedly improves and enables the day-to-day lives of Canadians from coast-to-coast.

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Tech Now

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