Marketing, main drawback to develop software industry

by Surekha Galagoda and Gamini Warushamana

Sri Lanka has all the resources to develop the software industry but the only shortcoming is marketing. We have to market the country's potential and counter all adverse propaganda, said the Past Chairman of the Software Exporters Association Jayantha De Silva.

De Silva is also the Vice President, South Asia IFS Solution Asia Pacific (Pte) Ltd., a renowned international software company. Here are his views on the software industry in Sri Lanka.

Sri Lanka was one of the first countries to start the software industry. Since the 1970s and early 1980s companies contracted people for service jobs, the first step of the software companies. In 1986 we won the first presidential export award for software. During that time India was far behind in the industry.

Today India has moved ahead of us, specially with outsourcing industries. However, if we look at the software export vs population we are still ahead of India. We have got acquainted to comparing ourselves with India. Small countries such as Ireland and Israel are also leaders in the software industry. China is growing rapidly and Vietnam too has entered the business in an aggressive manner.

There are about 200 software companies in Sri Lanka with six big players among them. Sri Lanka's software companies have achieved landmarks in the industry as individual companies but as an industry we are not in a healthy position. Therefore we need to strengthen the industry.

For this purpose the government has a greater role to play. Our foreign service should facilitate the industry. Former Foreign Minister Lakshman Kadirgamar and Foreign Secretary S.P. Palihakkara initiated this and did a great service.

We have to compete with others the world over and convince people why some one should come to Sri Lanka to get their software developed.

The security situation in the country is not a big issue if we can showcase our advantages.

The cost of electricity and issues in telephone infrastructure are bigger barriers for the industry than security issues.

The other infrastructure facilities we have are also at a satisfactory level. We have better flight connections with the rest of the world.

If we were to consider bureaucracy India is worse than Sri Lanka.

In the software industry we have a niche market. Our financial services are No.1 in the world. We have all types of professionals. Sri Lanka is no.1 in the CIMA and BCS pass rates. In industries we don't have that potential.

Information and Communication Technology Agency (ICTA) helps the software industry to develop human resources. The EDB ceased support in software marketing saying that it is ICTA's responsibility.

We should have a strategic push in a big way. We can learn how Singapore renders its service and industry in marketing. For example they carry out advertising and promotion campaigns together with Singapore Airlines, hospitals and the Singapore Tourist Board.

All studies show that 2008 would be a prosperous year for the software industry. We have targeted US$ 1 billion software exports by 2012. This is a realistic target provided marketing is done properly. The Indian software industry is exposed to new challenges.

As the industry expands the duplication of work has started. Today one software is developed by different companies. This is a risky practice while there is no guarantee on the copyright of the intellectual product.

Flimsy consideration on copyright aspects in India too is an issue. Clients are now considering to develop the core part of the software in a different country to overcome these new challenges. All these situations create new opportunities for the Sri Lankan software industry.

De Silva has a different view on the HR aspects of the software industry. His approach is different. He said that the raw material of this knowledge business is talented people. Sri Lankan youth are amazing and you can train anybody within six months, he said.

De Silva also exploded the myth that fluency in English is essential for the software industry. "This is a wrong perception as I also conduct interviews and training programs in Sinhala. Learning English is not a big task for an IT graduate", he said.

The common perception in the country is that there aren't sufficient IT professionals in the country. "If you advertise for an IT graduate with five years' experience as a Java developer you will not receive a single application. But If you call for applications for people with academic qualifications in IT and offer training in the relevant field you will receive thousands of applications", De Silva said. This was his approach to human capital since he introduced IFS to Sri Lanka in 1997.

Ten years ago he set up the IFS Colombo branch with five people. He offered scholarships to follow part-time degrees. Young people who joined the IFS worked four days per week in the company and attended university lectures on Friday and Saturday. After five years they obtained a degree and five years' experience in IT.

Today universities offer scholarships and students are trained at the IFS. Indian IT companies too follow a similar approach in developing HR for the software industry.

Another misconception is that IT graduates are needed at every point in the development cycle of software. This is so only in some aspects. Today software development tools have also been developed.

Therefore, educated people especially those who pass the Advanced Level Examination but do not get the opportunity to enter universities can be employed as software developers.

There are thousands who hold professional qualifications such as CIMA, ACCA and CIM but are underemployed. They can be employed at one point in the production cycle of software. We should also pave the way for them to go for higher education, De Silva said.

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