Why Ethiopia’s Software Industry Falters
The expected growth and transformation of Ethiopia cannot easily be realised without software usage. Some of our undergoing projects are very big and complex that they cannot be managed by the old ways and means to reach the pinnacle of success according to plan and budget.
These days, almost every company is becoming a software company. By considering business and operating models pioneered by the software industry and tailoring them to their own needs, organisations can lower their costs, boost performance and turn software into a competitive advantage.
Countries likeEthiopia, whose financial capabilities are very low, should have learned fromIndia. In the last 20 years,India’s software industry surpassed the export income of any of its export products that began 100 years ago.
The reason is this industry needs skill and marketing unlike the others that require prosperity. The best students inIndiago to the Information Technology (IT) colleges knowing that they definitely get rewards.
The IT industry inIndiahas gained a brand identity as a knowledge economy. It has two major components: IT Services and business process outsourcing (BPO).
The growth in the service sector inIndiahas been led by the IT sector, contributing substantially to increase in gross domestic product (GDP), employment and exports. The sector has increased its contribution toIndia’s GDP from 1.2pc in 1998 to 7.5pc in 2012.
The IT-BPO sector inIndiaaggregated revenues of 100 billion dollars in 2012, where export and domestic revenue stood at 69.1 billion dollars and 31.7 billion dollars, respectively, growing by over nine percent. The industry’s share of total Indian exports increased from less than four percent in 1998 to about 25pc in 2012.
In contrast,Ethiopia’s private sector engaged in the software industry has not been able to show the fruits of technology and grow as observed in the other world. It is only the banking industry and a few big companies that have utilised the benefits gained from software of foreign companies.
But, it is to be noted that these entities are using expensive software while there can exist ample resource locally with less price. The number of universities and colleges teaching IT has also grown but the country has not been capable of providing them the core job of software production.
Little achievements had been seen from most of the existing local software companies from the small opportunities offered to them. A few could have been competitive with the international companies if proper support was given from the state and the society.
The situation is different in other countries. The time spent by the local software producers was sufficient to be reliable sources competitive in all respects. Due to various hindrances like limited resources, inexperienced marketing, shallow knowledge of the subject matter, prejudice of incapability from the authorities and so on, the country is assumed to have no dependable companies.
Moreover, software needs awareness. Though marketing inEthiopiais undeveloped, this situation aggravates in software systems and weak utilisation often results from such lack of awareness.
The free IT exhibitions still could not attract many customers. No IT advertisement or promotion is made by the state or its affiliated enterprises.
The weak economy of the country hinders the admiration of information systems by the private sector. The lack of proactive and dedicated awareness activities to deploy trained executives whose result needs time is common in the existing discouraging atmosphere.
The targeted software development works or those under process are too few though a big infrastructure is built. The result is a big tanker with little water.
These days, almost every company is becoming a software company. By considering business and operating models pioneered by the software industry and tailoring them to their own needs, organisations can lower their costs, boost performance and turn software into a competitive advantage.
Countries likeEthiopia, whose financial capabilities are very low, should have learned fromIndia. In the last 20 years,India’s software industry surpassed the export income of any of its export products that began 100 years ago.
The reason is this industry needs skill and marketing unlike the others that require prosperity. The best students inIndiago to the Information Technology (IT) colleges knowing that they definitely get rewards.
The IT industry inIndiahas gained a brand identity as a knowledge economy. It has two major components: IT Services and business process outsourcing (BPO).
The growth in the service sector inIndiahas been led by the IT sector, contributing substantially to increase in gross domestic product (GDP), employment and exports. The sector has increased its contribution toIndia’s GDP from 1.2pc in 1998 to 7.5pc in 2012.
The IT-BPO sector inIndiaaggregated revenues of 100 billion dollars in 2012, where export and domestic revenue stood at 69.1 billion dollars and 31.7 billion dollars, respectively, growing by over nine percent. The industry’s share of total Indian exports increased from less than four percent in 1998 to about 25pc in 2012.
In contrast,Ethiopia’s private sector engaged in the software industry has not been able to show the fruits of technology and grow as observed in the other world. It is only the banking industry and a few big companies that have utilised the benefits gained from software of foreign companies.
But, it is to be noted that these entities are using expensive software while there can exist ample resource locally with less price. The number of universities and colleges teaching IT has also grown but the country has not been capable of providing them the core job of software production.
Little achievements had been seen from most of the existing local software companies from the small opportunities offered to them. A few could have been competitive with the international companies if proper support was given from the state and the society.
The situation is different in other countries. The time spent by the local software producers was sufficient to be reliable sources competitive in all respects. Due to various hindrances like limited resources, inexperienced marketing, shallow knowledge of the subject matter, prejudice of incapability from the authorities and so on, the country is assumed to have no dependable companies.
Moreover, software needs awareness. Though marketing inEthiopiais undeveloped, this situation aggravates in software systems and weak utilisation often results from such lack of awareness.
The free IT exhibitions still could not attract many customers. No IT advertisement or promotion is made by the state or its affiliated enterprises.
The weak economy of the country hinders the admiration of information systems by the private sector. The lack of proactive and dedicated awareness activities to deploy trained executives whose result needs time is common in the existing discouraging atmosphere.
The targeted software development works or those under process are too few though a big infrastructure is built. The result is a big tanker with little water.
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