Tuesday, August 31, 2010

Software developers in search of better opportunities

REPUBLICA

KATHMANDU, Aug 31: It might be hard to believe that the history of software developers in Nepal dates back to the time of IBM computers era. It was in the mid-eighties that software developers started showing there presence in Nepal.

But despite having an impressive history of more than 25 years, different sectors, including corporate offices, are still relying on software developed by foreign companies.

Apart from private companies, a mega project of the government called ´e-governance´ is also working with Indian software developers as the major players. Though there are at last a dozen software companies, only a few of them are getting good market access.

Nepali customers are aware about software applications but the dependence on foreign software is higher.

Some of the major software developers have shared challenges and opportunities that they faced in their initial days with myrepublica.com.

Professional Computer System: Professional Computer System (PCS) started with data processing in 1988. After the introduction of IBM computers in Nepal, the company ventured into the software industry by introducing Devanagari script. The company was started with a group of four people with the investment of Rs 10,000 each.

"In the initial years, the focus was not just in the software development," Suresh Regmi, managing director of PCS explained. Regmi said the company also ran training for computer learners to cover operation cost. It was only after 1992 that the company started putting focus entirely on software development.

PCS is putting focus on utility industry software and also works for some government agencies.

Mercantile Office Solutions: The Company started its service from 1985 with just seven persons.

According to Surendra Bajracharya, managing director of Mercantile Office Solutions, the company developed Pumoree Banking Software, the first banking software of the country. Bajracharya claimed that their software covers nearly 80 percent of the market and has almost replaced foreign software.

This software developer is also working on delivery channels like SMS banking, ATM, Internet Banking and transaction security.

Info Developer: Info Developer was formed by some experts from the banking and IT industry in 2001.

Umesh Raghubanshi of Info Developer said their primary focus is not in selling products but in solutions and relationships. "We aim to give highly automotive services to financial sector at low cost,” Raghubanshi added.

The software called Finysys is used in 255 co-operatives across the country, while the next software called Infinity designed for banks is slowly picking up.

Opportunities and Challenges

Software developers opined that though the initial days were full of challenges, the sector now offer both challenges and opportunities. They said the basic problem is the lack of experts in the sector.

"Although the condition is getting better as compared to the scenario a decade ago, most of the professionals fly abroad causing shortage of human resource," Suresh Regmi of PCS said. He further added that the lack of government´s policy was another hindrance for the development of software industry.

Initial days were tougher from the market perspective. "The market is getting bigger with ample of opportunities at present," said Surendra Bajracharya of Mercantile Office Solutions. “Customers are now somehow convinced that software does not come for free.”

One of the software developers told myrepublica.com that some of the commercial banks believe that foreign software give better performance as compared to the local products.

"There are very few clients who want quality products," Umesh Raghubanshi of Info Developer opined, adding that a majority of clients look for low-priced software. “If anyone wants quality product, one should not hesitate to pay the suitable price for it.”

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