Weakness of the Company which Caused them to Shutdown or not to Improve

Completely outsourcing company so when affected by global recession they have no option to depend no local market.

 

Did not have any supporting business so when software business affected they have no other earning source to recover.

 

Did not do a proper market research before starting business.

 

Started business during the global recession.

 

Provided high salary to employees without knowledge of Bangladesh’s payment rate.

 

Employees are skilled but not equivalent to their project requirement in terms of technology.

 

Did not improve the product quality.

 

Did not give proper training to enhance the employees’ skill.

 

Because of lack of experience could not rightsizing human resource as a result could not meet deadline of their ongoing projects.

 

Did not take any other policies to cope with the recession like reducing salary, benefits, and bonus to reduce the cost.

Completely outsourcing company so when affected by global recession they have no option to depend no local market.

 

Did not have any supporting business so when software business affected they have no other earning source to recover.

 

Did not improve the product quality.

 

Did not give proper training to enhance the employees’ skill.

Completely local software company so when their local customers such as- Banks, garments sector, other industrial sector affected by global recession and lost their interest to go for business automation Genesys System limited  lost their clients. Though Genesys System limited is only doing local software business so they have no option to depend no global market.

 

Did not improve the product quality.

 

Did not give proper training to enhance the employees’ skill.

Nil

Strengths of the Company which Helps them to Survive  or to Improve

-

Strong human resource management policies which helped in rightsizing as a result cost has reduced as well as the current projects did not hampered.

 

Experience in the software industry.

 

Taken other policies to cope with the recession like reducing salary, benefits, and bonus to reduce the cost.

 

Have a supporting business of trading of Dell PC so when software business affected they have other earning sources to recover.

 

Strong human resource management policies which helped in rightsizing as a result cost has reduced as well as the current projects did not hampered.

 

Experience in the software industry.

Taken other policies to cope with the recession like reducing yearly increment to reduce the cost.

 

Local + Outsourcing Software Company so when they lost their global clients they could depend on local clients as well as when they lost their local clients they could depend on global clients.

 

Have a supporting business of trading of Sagum Mobile, HP PC, and Laptop so when software business affected they have other earning sources to recover.

 

Strong Marketing Policy helped to better understand the current market situation and demand.

 

Improve product quality.

 

Enhance employees’ skill through providing professional training.

 

Experience in the software industry.

 

Current Status of the Company

Shutdown.

Survived.

 

 

 

Survived.

Survived and even improved.







































































Summary of the Findings:

From our study  we found that “Flora Systems Limited” is not affected by global recession, they survived and even improved, they got new projects in local market as well as they are taking the opportunity of outsourcing which is created by global recession. Because of their strength –

Have mixed business- local + outsourcing,
Have a supporting business,
Strong marketing policy,
Better understanding of the current market situation and demand,
Improvement of product quality as well as development of human skill, and
Long experience in the software industry. 

On the other hand we found that Eyeball was highly affected by global recession, they could not survive and shutdown. Because-

Completely depended on outsourcing business,
Did not have any supporting business,
Did not do a proper market research,
Started business during the global recession,
Provide high salary to employees,
Employees were not properly skilled based on technologies,
Did not improve the product quality as well as develop human skill,
Could not rightsizing human resource,
Lack of experience in the software industry, and
Did not take any other policies to cope with the recession like reducing salary, benefits, and bonus.

In case of Relisource Technologies Limited we have found that Relisource Technologies Limited is less affected by global recession and they survived. Because-

Strong human resource management policies helped in rightsizing human resource,
Experience in the software industry, and
Taken other policies to cope with the recession like reducing salary, benefits, and bonus.

But ReliSource Technologies Limited could not improve. Because-

Completely outsourcing company,
Did not have any supporting business, and
Did not improve the product quality as well as develop human skill.

In case of Genesys System Limited we have found that Genesys System Limited is less affected by global recession and they survived. Because-

Have a supporting business (Hardware)
Strong human resource management policies helped in rightsizing human resource,
Experience in the software industry, and
Taken other policies to cope with the recession like reducing yearly increment.

But Genesys System Limited could not improve. Because-

Completely local software company and
Did not improve the product quality as well as did not develop human skill.

Recommendation

Analysis and the findings of the research clear the circumstances. And, as such we need to draw a set of recommendations so that affected software companies can survive or even improve the condition by taking the opportunity of outsourcing created by global recession.

1. Local company should start software outsourcing to take the opportunity of global recession in our country to survive or even expand their business.

2. But to take the opportunity of outsourcing the quality of software should be improved which will give us a competitive advantage over other countries .A question may arise here that is-

To improve quality what should we do?

Professional training should incorporate into the organization to enhance employees' skill about new technologies which will help us to bid in the world software market in terms of quality software.
 
3. Companies should diversify their product line such as a software company can also trade hardware which will help them to reduce risk because the possibility of affected one product is much more than the possibility of affected two or more products simultaneously.

4. Completely outsourcing companies should concentrate on local market also so that it will help them to protect from uncertainty which can happened in the global market.

5. Affected companies should not shutdown completely. They have to do critical analysis of the current market situation and should take step-by-step strategic decisions to survive in the market. Such as they can rightsizing their human resource, reducing bonus, benefits and other facilities to improve their quality of software etc.

6. Different software companies should exchange their ideas, and thoughts.

7. BASIS should organize workshops, seminars on a regular basis on software development.

8. Government may give subsidies to the badly affected software companies by global recession to survive for the time being and protect their skilled human resources.

9. Recession spurs software piracy (Kisakye, Frank: 2009) so copyright laws should be enforced to protect local and outsourcing companies.

10. To increase outsourcing Export Promotion Bureau (EPB) should have to take vigorous initiatives to improve this industry.

11. Government as well as private financial institution should give feedback to software industry.

12. Government as well as private institutions should go for more automation which will expand the local market and create a huge demand of the software so the outsourcing companies can also concentrate on local market.

Conclusion

The new government has taken decision to make digital Bangladesh by 2021 on this perspective they have omitted tax on the PC (both on laptop and desktop) as well as reduced tax on the spare parts.

The Bangladeshi government currently provides 60 per cent of the salary or allowance cost for recruiting fresh graduates by any software company. (The Financial Express: 2009).

Bangladesh, is now connected to Submarine Cable Network South East Asia-Middle East-West Europe-4 (SEA-ME-WE-4), has already brought all of its major cities and towns under high-speed and low-priced fiber optic backbone. (The Financial Express: 2009).
 
So this is an environmental opportunity to expand the both software and hardware business.

Undergone with a survey and analysis works, we can say that there lies a huge opportunity to increase the outsourcing of software and expand the market. If the survived software companies can improve their product quality, diversify their business, diversify their product line, develop their employees, share their ideas with other companies, rightsizing their employees as well as use the environmental opportunity they can improve their business and can be profitable. On the other hand the improved companies must have to continue their product improvement and innovation as well as development of employees to keep their growth sustainable. Alongside all these the government and private sector must have to provide feedback to affected companies. They have to go for more automation, copyright law should enforced, govt. has to give subsidy to affected companies, BASIS and  EPB has to work together to improve the software industry. We believe with all these policies the software companies will be survived and grow much faster than ever before.
 
Reference:

1) Karim H.N: 2009: "Bangladesh's software industry turns suitable harbor for outsourcing". Retrieved from Worldwide Web http://skyscrapercity.com on Monday, February 23, 2009.

2) "The Prospects for Bangladesh’s Software Industry". The Financial express, Dhaka, Tuesday, April 7, 2009.

3) Ahmed Nahid: 2009:  "Bangladesh's software industry turns suitable harbor for outsourcing". Retrieved from Worldwide Web http://skyscrapercity.com on Monday, February 23, 2009.

4)  Sinha, Soumya: 2009: "IT Recession is going to End Next Year: Infoys CEO Recession". Retrieved from Worldwide Web http://blog.taragana.com on Saturday, April18, 2009.

5) Kisakye, Frank: 2009: "Recession Spurs Software Piracy". Retrieved from Worldwide Web http://www.Ovserver.ug/ on Wednesday, May 20, 2009.