Tough times for software firms
Skills shortage among 10 hurdles facing companies struggling to sustain growth
Software companies will experience extreme difficulty in 2009, said a report by the Viet Nam Software Association and US-based International Data Corporation (IDC).
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Software companies are experiencing difficulties this year with only 36 per cent of them likely to achieve sustainable growth. |
The report was released at the “Overview of Viet Nam Software Engineering” conference held by the Ministry of Information and Communication (MIC) and the Viet Nam Software Association (VINASA) on August 24.
According to the report, only 36 per cent of software enterprises are expected to achieve sustainable growth, equal to or larger than their 2008 performance. Sixty-four per cent of software enterprises are expected to yield lower growth with 12 per cent being hit hard and face financial difficulties.
The industry is facing 10 key hurdles, including: a shortage of human resources; global economic slowdown; IT infrastructure; foreign language capacity; copyright protection; capital; branding; supportive Government policies; no strategic route for the industry’s development; and funds for research and development.
At the same time, 40 per cent of software companies claimed ignorance of two important industry policies: the “software engineering development programme until 2010″ and the “Viet Nam digital content industry until 2010″ proposed by MIC and approved by the Prime Minister in 2007.
Three popular products that 60 per cent of the participating companies provide include web-based applications, specific customer solutions and IT consultation. Fifty per cent are involved in software outsourcing.
This is the first report to capture a big picture view of the software engineering industry nationwide, with the participation from 149 software companies, 19 of which were joint-ventures. Analysis and evaluation was conducted by the IDC and VINASA’s specialists.
Director of Luxoft software company La Manh Cuong said. “With the data provided in the report we have a panoramic vision. But we don’t need general information. More detailed orientation is what we need.”
“Currently, even farmers are receiving guidance from the Government about which trees they should grow and which animals they should raise, not to mention high technology fields such as Information Technology,” he said.
Answering Cuong’s inquiry, VINASA’s director Truong Gia Binh said “VINASA is ready to provide any information related to development orientation for Viet Nam’s IT companies. For example, the white book which contains official data about Viet Nam’s IT industry will be published soon. In addition, additional reports by enterprises and international organisations are coming in. Enterprises can contact VINASA to gain access to such data in order to make the right decisions.”
Based on the current report, VINASA will engage in discussions within the association and co-operate with international experts to submit proposals to MIC and the Government to develop timely policies.
The industry’s 2009 annual revenue is expected to come in at US$680 million.
Under the Prime Minister’s decision, the 2010 target will be $800 million.
Source:vietnamnet.vn
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