1. Software Strategies in Developing Countries.
- Author
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Heeks, Richard B.
- Subjects
- *
COMPUTER software industry , *INTERNATIONAL trade , *LABOR supply , *COMPUTER software developers ,DEVELOPING countries - Abstract
This article focuses on the computer software strategies adopted in developing countries. It has been a big business in developing countries. Many of these countries have cheap, talented labor that finds an easy route into a business that is labor-intensive, has relatively low entry barriers, and has few economies of scale. But this is also a multifaceted business. Extrapolation from the patchwork of incomplete and sometimes uncertain figures suggests these countries exported some $3 billion of software in 1998-99. The export image projected is one of virtual development, in which clients sitting in the West interact with software professionals developing packages overseas. The high profile of India's success makes many developing countries wish to follow in its footsteps. Those who do, however, find difficulties. Inter-developing countries markets are also growing. Africa, Asia, and the Middle East are the target for about 5% of India's software exports, while Korea and Malaysia are outsourcing to countries like the Philippines, China, and Vietnam. The vast majority of developing countries software firms sit in the position-D market segment, largely because it is by far the easiest for them to enter.
- Published
- 1999
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