Get patriotic with your software

Friday, 01 August 2008 00:00

As economic anxiety increases and IT budgets are tightened, South African businesses need to consider locally developed software to run their businesses instead of applications from overseas vendors. In the past, many South African companies have been loathe to purchase software developed locally, favouring international brands because of their perceived safety. A brand that is accepted and respected globally, people believe, is unlikely to go bankrupt and leave users in the lurch when it comes to updates or support.

Opting for software developed and supported locally, on the other hand, has been seen as too risky since the applications are bought from smaller companies with limited resources. It`s easy to forget that Enron was once also a respected global brand!

While South African software has unfortunately been seen as a second choice in the past, the success of many local applications on the international stage attests to the quality of the software produced in this country. And now that budgets are being restricted and the rand is weakening, many companies have been forced to accept local software as a viable option.

Fortunately for these new converts, local developers create good solutions focused on their fields of expertise; their service starts with pro-viding the right solution for the job at a reasonable price. Purchasing software from local developers offers customers a cost and support advantage. Since the applications are developed in South Africa, they are designed for local conditions and the costs incurred are in rand. This makes them far less costly than international competitors. Moreover, with developers located close to their customers, support will be around the corner, literally.

If an international software giant`s customer needs a change made to the system, the request is normally lost among thousands of others.

Businesses have been through two primary application boom periods in the last decade. The first was the millennium change; the second was in the post-Enron environment when corporate governance became critical. We are now in a new phase where cost of ownership and return on investment are important factors in purchasing decisions.

Being locked into a dollar or euro contract in these uncertain times scares many businesses. Local applications are a viable solution, not only in financial terms, but also in terms of quality and service. Naturally, international vendors will try to compete, but the benefits offered will only be realised in terms of the purchase price. Local resellers and service providers will have to bear the brunt of the vendors` lower costs, while they are expected to deliver the same level of service and support. Where will that leave the customer?

Once again, local software developers can offer quality products developed and supported in rand. The purchase and support costs will be more palatable to customers, enhanced by easier access to the developers.

Local developers with a reasonable customer base will be able to sustain themselves and their products while the economy remains tight. Resellers of international applications may not find it easy to continue as they face financial pressure from all sides. Consolidation among these high-flying companies in the near future is a certainty, while customer service will be an uncertainty.

Local software may have been the second choice for business in the past, but as the rand weakens and economic conditions slide, more companies will pay attention to their home-grown options. As they do so, they will realise that quality business applications that deliver superior cost of ownership and return on investment figures sometimes carry a South African flag.

Tags: Columns  Guest Column