March 12 - 18, 2007 Myanmar's first international weekly © Volume 18, No. 358
 
 
 

Homegrown software industry struggles on

By Ye Kaung Myint Maung
An employee of a software company in Yangon demonstrates the application of a popular software called iLedger. Pic: Ye Kaung Myint Maung

PRODUCERS of computer software in Myanmar have battled hard to forge an industry for themselves in the last decade as the country has slowly been pulled into the digital revolution.

A narrow market, widespread piracy, negative attitudes to locally made products and the lack of reliable network infrastructure have forced developers to work hard for every inch of market share they have gained.

Software developers classify their products into either readymade or tailormade programs.

Readymade software is developed to satisfy a wide ranging market – dealing with issues faced by many people in different places.

But tailormade software is made to fill a specific gap. This usually requires the user – after the software has been developed – to undergo training just to be able to use it.

Ko Saing Nay Htut, marketing manager of iNTEGRA Systems Company, said the most popular markets for software were the accounting, sales and human resources sectors.

iNTEGRA Systems has produced a widely known program called “iLedger”. It combines accounting software, human resources management software and the “iStock” sales control system in one handy package.

Myanmar’s software industry enjoyed a small time of prosperity in the years leading up to the banking crisis in 2002. In that ‘boom’ time the international delivery service company DHL and several up and coming banks were ordered a number of tailormade programs.

But the banking crisis put an end to that prosperity; some of the foreign banks closed shop and left Myanmar.

The condition of the country’s marketplace today has led software development companies to focus on small and medium enterprises, according to Ko Saing Nay Htut.

“We developed some readymade software but we market and sell in tailormade form,” said Ko Saing Nay Htut. “For example, iLedger covers all common processes in accounting but we can also modify it and add additional features when users give us specific requirements,” he said.

Local software programmers face a constant struggle against illegal pirate software CDs. These discs are imported and duplicated in Myanmar. They are available on the market for about K1000 (less than US$1) and only require installation onto the computer. These illegal products have heavily influenced user attitudes toward software.

But locally made products have continued to survive in competition against illegal imports by being cheap, offering special features and close maintenance services.

“Even if the foreign-made software programs were perfect, there would be still a place for local developers who know exactly what the users need and can tailor programs to suit. We often include Myanmar language font systems that foreign programs don’t bother with.”

iNTEGRA Systems has also begun planning for future product needs.
“We are now upgrading our products to be compatible with Window’s Vista platform. But until now, there have been few Vista users,” Ko Saing Nay Htut said.

Recently, some local companies have begun importing foreign software and penetrating local markets by providing additional services – just like local software developers.

Daw Lwin Lwin Myint, manager of IT Myanmar, a local company marketing for the Malaysian-made accounting software, Mr Accounting, said the company has been providing services similar to local software developers.

“Mr Accounting focuses on business procedures in countries like Myanmar. It includes user-friendly interfacing systems, multicurrency systems and an automatic depreciation function. It can be used on either Client Server types or Standalone types. We provide free service for six months and allow two staff members from the buyer’s company to join the computer accounting courses we have,” Daw Lwin Lwin Myint said.

U Ye Myat Thu, from Mandalay Computer Industry Association, said people’s attitudes were vital for the development of IT businesses.

“Most Myanmar people have no idea about the value of computer software, many think they will only pay for the hardware and get the software for free. Entrepreneurs want to spend their money on advertisements and promotion instead of investing on software for the long term,” he said.

“Information Technology is just a tool to assist, not a solution. That’s what IT technicians always say. Some of them think it makes no difference using better software. But others overestimate software and think it will solve everything. I think the truth is somewhere in the middle of those two viewpoints,” U Ye Myat Thu said.

   
         
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