Boost for FITIS software chapter

Ambitious plans are on the cards to develop the Sri Lanka Association for the Software Industry (SLASI), which represents the Software Chapter of FITIS (Federation of Information Technology Industry Sri Lanka), to its full potential to drive this key body in the Information and Communication Technology (ICT) sector to achieve the US$ 5 billion annual target in foreign exchange revenue through the export of computer software products and services, said the Association's president, Abbas Kamrudeen.

"At present, Sri Lanka's earnings from the export of software products and services are in the range of US$ 850 million. We are optimistic of pushing up revenue to US$ 5 billion within the next few years," he said.

"To achieve this new, enhanced target, we need to make a series of significant changes in the forward-march and overall progress of Sri Lanka's software industry. We have worked out a comprehensive plan of action to make this initiative a reality," Kamrudeen said.

The key objectives under focus are increased import substitution through enhancement and development of locally developed software products and services and extending assistance to members to initiate and increase software exports to meet the national target of the IT and BPO industry, as the highest net foreign income generating industry in Sri Lanka.

The focus is on four salient pillars to achieve the objectives attracting human capital to the industry, increasing the quality and efficiency of human capital through training and development, business development activities for members and canvassing and addressing policy decisions to develop the industry, he said.

Some of the new initiatives lined up for this year include an incubation centre to assist local software vendors to move towards export-oriented business advisory services, international market information, market penetration strategies, identifying and selecting partners, communication training, collateral preparation, product customisation, localisation and mentoring.

"As members of regional ICT bodies such as ASOCIO and APICTA, we hope to carry out extensive business match-making events between local companies and counterparts in other countries to promote local software internationally," Kamrudeen said.

"We will also study the feasibility of setting up a software product testing and certification facility. This would allow clients to make informed decisions," he said.

He said that many other ideas are under discussion and they encompass initiating escrow facilities for finance and intellectual property. These facilities are not readily available in Sri Lanka mainly because of the complexities involved.

This facility would allow payments for software solutions to be held in a trust and disbursed on basis such as project progress or functional deliverables. Source code can also be held in a trust to give clients peace of mind that their software investment is protected irrespective of the vendors' continuity, the Association's president said.

"We are also exploring the possibility of setting up a Dispute Resolution Centre to hear software related disputes. This would allow peace of mind for local and international clients who shy away from legal proceedings due to the complex nature of the industry and its practices," Kamrudeen said.

The ongoing strategy is to boost local and foreign businesses to carve out a vibrant market in Sri Lanka for software products developed by the companies, while extending facilities and advisory services to make a positive impact on the global marketplace, he said.

A separate dedicated centre will be set up to facilitate the purchase of software products by potential local buyers. This centre will feature a collection of software products developed by member associations. This will give a wide and varied choice to potential buyers, Kamrudeen said.

In terms of the plan of action to emerge victorious in the global marketplace, Sri Lankan developers will be afforded the opportunity of accessing information relating to the international market, map out strategies to venture into the market and identify and select the right buyers.

They will also be provided training on communications, facilities to stabilise products and offered advisory assistance. A general overview of Sri Lanka's software industry shows that the biggest obstacle for the growth of this vital sector would be the critical dearth of software engineers.

"We will have to give up large scale foreign software projects if there is a mismatch between human resources development and software industry growth. They should go hand-in-hand. To overcome this obstacle, the Sri Lanka Association for the Software Industry has identified the potential in youth and adopted a strategy to absorb them into the industry under a series of long-term programs that have been launched," he said. It is important to keep professionals updated on the new trends and development through a consistent learning process.

For the development of any industry, a long-term policy framework is imperative. Similarly, for the greater progress of the software industry a firm policy framework is vital for its long-term existence.

"This is not a task our association can do by itself. We have, with other related associations in this sector plus representative bodies in the IT field and the government shouldered the task of formulating a policy framework for the industry," Kamrudeen said.

A critical factor in purchasing computer software products is the inability on the part of the customer to identify at that point whether they would work or not. In other words, whether the product is faulty or not. This situation creates mistrust between the developer and the customer.

"To overcome this obstacle, our association hopes to set up a centre to examine the products and get reputed companies to certify them. This will go a long way to ensure quality tested products in the market and also ensure a cordial relationship between the developer and the buyer," he said.