THE software industry is continuing to boom in Ireland, according to Forbairt's biennial survey.

Employment, sales revenue and exports have all increased significantly.

Employment growth in the sector has risen by 24 per cent since 1993 to 11,784 people last year.

Although 80 per cent of the 483 firms are indigenous, employment is divided fairly equally between indigenous and overseas owned companies. The former employ 5,773 people while overseas firms employ 6,011.

The number of Irish software companies employing more than 50 people increased by more than 40 per cent to 26, while the number of overseas offices rose by over 20 per cent to 85.

Employment overseas by Irish software firms has risen by nearly 95 per cent. The number of offices they operate in the US has grown to 14, while the number in Britain has risen to 43.

Total output from the sector was up 50 per cent over the two years at £3 billion in 1995, of which £2.8 billion was exported, the survey found. Indigenous firms only contributed £386 million of this, from £236 million in 1993.

Exports as a percentage of total revenue are also moving strongly. In 1995, software exports at £226 million accounted for 58 per cent of total revenue earned by Irish firms, from 49 per cent in 1993 and 41 per cent in 1991. The overseas sector continued to export almost all its output at 99 per cent or £2.6 billion.

Almost 80 per cent of Irish firms are now involved in some way with exporting, with 41 per cent exporting more than 50 per cent of their output and 7 per cent relying on exports for 100 per cent of their income.

Company start ups are almost back to the levels seen in 1990 at 47, up from 36 in 1993. At the same time, the failure rate has risen to 5.95 per cent last year from 5.7 per cent in 1993 and 3.46 per cent in 1991 among indigenous firms. The rate is slightly higher for overseas companies at 6.17 per cent last year from 5.8 per cent in 1993.

Spending on research and development is continuing to increase. The indigenous sector invested some £41 million or nearly 13 per cent of revenue, from £22 million in 1993. Overseas firms invested £112 million or 11.6 per cent of revenue from 5.5 per cent in 1993.