Identification of software export bottlenecks and solutions to solve it

The end of Zanameh for obtaining a master's degree in the field: Management

Abstract

Today, the new developments in the global economy, including the sharp fluctuation in the price of raw materials, the increase in the wages of manpower, the increase in the cost of transportation, warehousing and other production factors, have made many developing countries think to enter the field of production and trade of goods that have the least dependence on high-risk economic components for greater success in commercial competition. The software industry is one of these industries. In addition to having high added value, this industry has the least need for raw materials and other cost-generating components. In fact, the software industry is a pure knowledge industry and is based on research and development. Our country can also take a step towards software export in order to gain the benefits of this industry.

According to this, this research has investigated the identification of software export bottlenecks and provided solutions to solve it. In this research, the statistical population of which software companies were members of the software exporters union, five hypotheses were formulated about demand, national perspective and strategy, trust and international communication, features of the software industry and infrastructure and internal factors. The questionnaire was designed based on the assumptions of the research and was given to the sample, which is the statistical population, and the results of the questionnaire were tested based on the regression method. The results of this study show that all five factors are effective on software exports at a 5% error level. Key words: software, research and development, export, barriers 1) Introduction The software industry is one of the leading industries in the international economy, which in recent years has opened a special place for itself among other industrial branches. Economic research shows that the pressure Due to the fluctuation of production costs, especially during the global economic crisis, commercial interactions have led to the exchange of information technology and software services as much as possible, because the production of electronic content, in addition to having a very high added value, requires the least amount of raw materials and other cost-generating components, and its production has little risk compared to other goods and services. This characteristic of software services and its increasing importance in other industrial and service activities has caused it to attract more capital in recent years compared to different economic fields. If before this the software industry and trade was in the domain of developed countries such as the United States of America, Canada, England, Australia, Japan, Germany, Spain and at most one or two developing countries such as India and South Africa, today new contenders from the southern countries have entered this industrial and commercial field and in this way have improved their GDP. Brazil, Argentina, Thailand, Vietnam, Malaysia, Turkey and some of the independent republics of Central Asia are among the countries that have found a new approach to the production and export of software packages and are quickly opening their place among the major exporters of such products. A look at the world software services exchange statistics in 2009 shows that more than 60% of the 100 billion dollar export of this field belongs to India and several large industrial countries, however, some developing countries are rapidly increasing their share in the global market of such services and using their relative advantages in the production of electronic content, they are among the top producers and exporters of software.     (Iran Chamber of Commerce, 2018, Article ID 9024)

Our country, Iran, is one of the developing countries, and one of the most important ways to earn its income in the long-term horizon is to increase the supply of non-oil products to international markets. Exporting companies can find appropriate target markets for Iranian software products and increase the share of the country's software exports from global markets to a suitable position by applying appropriate strategies in a long-term time horizon. The studies carried out in this research aim to identify export bottlenecks and provide solutions based on strengths to export software to foreign target markets, through sent questionnaires and obtaining opinions.The studies conducted in this research aim to identify export bottlenecks and provide solutions based on strengths for exporting software to foreign target markets, through sent questionnaires and obtaining the opinions of software companies.

1-2) Statement of the problem

Today, the sale of information packages called software that gives its users the ability to produce, combine, design, and analyze information is the most profitable business in the world. goes Advanced countries in information technology and huge international countries that have achieved scientific and technological advances in this field earn billions of dollars annually from the sale of this emerging resource. America, Canada, India and some European countries, as the leaders of the software industry, have been able to cast their shadow on the international market and are unrivaled or less competitive in the field they have chosen to compete in. Scientific and cultural software have been developed and some software projects in neighboring countries such as Afghanistan, Tajikistan and Turkmenistan are currently being implemented by Iranian engineers. However, the existence of some bottlenecks has hindered the development and prosperity of the software industry and its export, so that according to the latest statistics, Iran's share of this large market is approximately 75 million dollars, which, considering the multi-hundred billion dollar industry of the software market, which was declared as 251 billion in 2007, does not have a large share in the world market. Iran's software industry can increase its share in the world software market if it formulates a correct strategy and organizes the current situation. (1387)

The importance and necessity of research

Iran is a country that relies on oil income, moving towards non-oil exports is inevitable. The intellectual nature of software production: software production is a work that requires more talented people and engineering and design methods, while the production of other technology products, in addition to intellectual work, requires human resources, equipment and many primary resources.                                                                              B- Inexpensive and accessible platform: rare and expensive infrastructures are not required for software production. C- No need for manufacturing stage: the distance between software products and its research stage is very small, as a result, software production is more cost-effective than other technological products. D- Career boom: The software job market, both domestically and globally, is much more than other fields. H- Small investment: Software production requires a small investment. F- The proximity of the industry to the university is a condition for success: due to the need for raw materials, factories must be built near the corresponding mine, while software production centers, which are mostly intellectual work, must be established in the vicinity of universities, which are centers for the production of experts, although both must be connected to the market from one side. (Akramifar, 2014)

According to the limitation of oil resources and the characteristics of software production, moving towards the production of this product can play a significant role in reducing reliance on oil resources.

1-4) Research background

Many researches and studies have been conducted in the field of software industry and its export in developing countries, some of which are mentioned here.

1. Indian IT industry: Analyzing the performance of the Indian IT industry In this article, Mr. Kumar, with the aim of analyzing the performance of the IT industry, states that the export of Indian services and software has grown very rapidly, and its range has been an annual growth rate of 20-22% in IT services. Mr. Kumar also states that software exports accounted for about 20 percent of India's total export earnings in 2003-2004 compared to 4.9 percent in 1997. And it is expected that by 2010 the annual export will grow up to 44%. This article further mentions that the export of software services has increased from 50 million dollars in 1990 to 5.9 billion dollars in 2001 and 23.6 billion dollars in 2005.