Why Software is a Competitive Advantage in Bangladesh's Digital Economy?

Post By

Tasnima Islam

Category

Software Development

Date

11 Sep 2021

In today’s world, it turns out that digital adaption starts with software development as every individual and organization wants to embrace digitalization. But why is software development so important to go digital? 

Well, to stay ahead of the competition, it is mandatory for all to be digital and adopt modern technologies. In fact, statistics show that 27% of businesses believe that digitalization is the key to survival. 

Therefore, to start the digital transformation, software development plays the role of a prime mover for businesses. If you lack behind to shift towards developing advanced software applications, you will definitely fail to meet the changing demand of your customers. Because the main features of the digital economy contain the same goods and services as traditional ones, the only difference is a serving platform. In the digital economy, everything is served with the help of the internet. Therefore, software development is not anymore a choice, and it has become obligatory to support a digital economy of a country.

Bangladesh and its Digital Economy

The digital economy contains a broad spectrum of economic operations by using digitalized platforms. The essential components of the digital economy include e-business infrastructures (hardware, software, network, etc.), e-business procedures that how an organization operates on computer-mediated networks, and e-commerce styles. With the help of upgraded technologies, the digital economy can bring significant prosperity to a society, for example, creating innovative job opportunities that eventually enhance the country’s economic growth.

Source: TUFTS University

As we all live in an age of digitalization, Bangladesh has witnessed a digital revolution almost in every sector for the last few years. Everything has changed, including the medium of communication, the method of transaction, and the procedure of gaining information. In fact, people are blissfully embracing the digital revolution’s effect on their social and economic life. With the rapid growth of mobile and internet users, Bangladesh has also observed a drastic increase in digital entrepreneurship. In recent days, digital businesses have gained wider popularity because of their hassle-free advantages over traditional ones. 

According to Huawei Global Connectivity Index (GCI), Bangladesh secured a place on a list of top fourth countries in terms of 'improvement and remarkable growth’ in the digital economy from 2016 to 2019. Moreover, each nation worldwide is considering the digital economy as the fuel to innovation and competitiveness.

What about the Globe?

The modern economy is growing drastically on a global scale. According to different world indexes, it is observed that countries that have better access to the internet have a higher level of digitization of their national economies. As reported by John Sviokla, US advisory innovation leader, the digital economy will set up the third wave of capitalism around the globe, which will eventually reform the government and business styles and help every nation creating remarkable wealth.

Software Industry and Bangladesh’s Digital Economy

Compared to Bangladesh’s population and national economy, the software industry was relatively lower a few years ago. However, in current years, the growth rate of this industry is rising upward. 

The average annual growth rate of the software development industry in Bangladesh has been over 40% for the last five years, which is predicted to be continued in the future. 

Source: UNCTDA

Source: Light Castle

Moreover, compared to all industries, the software development industry has almost taken half of the Bangladeshi market and leading it successfully. Besides, the current trend of exporting software is impressive for Bangladesh. 

In Bangladesh, the exports from the software sector were more than $100 million in previous years. 

Source: The Daily Star

A developing country like Bangladesh faces numerous difficulties such as the high price of internet bandwidth, unavailability of strong submarine cable, absence of infrastructure, skilled human resources, and software Technology Park. Nevertheless, the rapid expansion and enormous contribution of every software company in Bangladesh’s digital economy make the software industry one of the major sectors today. 

Therefore, if people can make the best use of software, they can easily have more comparative strength than their competitors. 

The Everyday Use of Software

Software plays the role of encapsulation of knowledge in the digital economy as the new trends among individuals and businesses require new technologies to grow and more investment in computing to expand. We also need software to get connected with hardware for various purposes. Apart from this, in today’s digital world, everything we do is with the help of software and everything we encounter is guided by software. Almost every day businesses find modern tools in the development sector

In this era of digitalization where everything is going to be digital, our society almost completely runs on software. It means that as computer usage is increasing drastically, the importance of software is rising significantly. If there is no software, people would have to input codes to make any device perform which would be impossible in today’s digitalized world. 

From household to businesses including manufacturing, retail, banking sector, grocery store, education, hospital, transportation, entertainment, etc. computer is broadly used and thus the software. 

As software is being used in every sector, it has a great impact on the progress of our society. For example,

- Software is used in the education sector as in many parts of the world, computer-based learning is an integral part of the education system. Especially during this Covid period, the whole education system is running online. 

- In the automobile industry, computerized software is utilized to monitor and enhance the performance of sensors, engine timing, and other electrical system of the vehicles.

- In the gaming world, software has a major role in gaming consoles, PC computers, and mobile devices. Without implementing software applications, devices would not be able to run diverse games online. 

- In the retail sector, the software helps to minimize manual processes and increase efficiency by protecting data, tracking products, keeping employee records, and manufacturing products to meet the rapid demand in the market. 

Moreover, the software has great value in other industries, for example, with the help of computerized software, hospitals keep track of their records, the aerospace sector operates and monitors the craft vehicles, people stream music, watch videos, take pictures, and surf the web. In short, the benefits of having software are virtually limitless. 

Therefore, not to be left behind, businesses must be aware of the technological updates. They need to know what is the current state and what will be the next big thing. However, as the software serves multiple functions based on the diverse needs of organizations or individuals, it is suggested to have a custom-made software solution. 

Why Having a Software Solution is a Competitive Advantage?

Custom software for your business can provide you the opportunity to meet the specific needs of your organization. Though at first, it seems quite an expensive investment, especially for small organizations, the initial cost can be retrieved easily. When you design and develop custom software it can easily identify the unique features and needs of your organization, which an off-the-shelf option can never get without difficulty. 

In most cases, companies can outperform their rivals and enhance efficiency if the software is built to meet specific needs.

Source: KUOKIO

Therefore, the software can provide a competitive advantage for any business in this digital economy.

Source: Invision Solutions 

There is a list given to understand the importance of having custom software for your business. 

  • Meeting the unique requirements

Every business is different and thus, their business requirements are distinct. If you run custom software, it would be easier for you to grow faster than your competitors who use common solutions to their business needs.

  • Ensuring more security

When you use software that is developed only for your organization, there is no risk of external hacking. Commercial software always brings the threat of being hacked by external hackers.

  • Integration with other software

Having custom software can minimize the difficulties of integrating business products with other pre-developed software. Again the majority of pre-designed software arise issues to integrate with business apparatus. 

  • Possessing a license agreement

You can have all the rights to the software and its codes if you have a license. Using commercial software will leave you behind your competitors whereas enjoying the license agreement will give you the opportunity to bring changes anytime based on your business needs. 

  • Having a constant technical support

A team that will develop the application system can assist you efficiently in your needs.

Hence, custom software can offer you a competitive advantage over your competitors by making your business more accessible, convenient, and efficacious. While you use any commercial software available in the market and used by other companies, you will fail to differentiate yourself and going forward with the competition. Running pre-existing software is like using the same tool as your rival is using, and therefore, fail to offer superiority to your business. 

Current Situation of Software Companies in Bangladesh

The current state of software development in Bangladesh has progressed significantly in recent years and produced a notable outgrowth. Therefore, all businesses, especially those that want to beat the competition, have started realizing the importance of software development and software companies in Bangladesh.  

In 1997, the Bangladesh Association of Software and Information Services (BASIS), started its journey with only 17 companies. However, there are currently more than 1200 companies registered under BASIS and actively engaged in software development. The worth of these companies is around $400 million and more than 70,000 professionals are involved there.

The main focus of any software company in Bangladesh is offering business applications solutions. In most cases, the applications involve software development, software testing, IT consulting, and, nowadays, game development. 

Having said that, people in our country know comparatively less about software companies and their services. The reason behind this is the lack of branding. Software companies must generate consciousness through strong promotion about their IT solutions among all people. Besides, most of the users of software and web, mobile, and game applications are from the domestic market. Therefore, software companies should set their business strategies according to the choice of local consumers. The newcomers in the software industry can follow the standards set by the key players in the market. Moreover, every software company in Bangladesh must carry out research on updated trends of the industry to compete with the international rivals at the same pace. 

So, do You Want to Enjoy a Competitive Advantage?

It is beneficial to every kind of business to have custom software according to their business needs and environment. Therefore in this digital era, everyone is concerned about upgrading their activities. Businesses are highly interested in seeking help from an expert software company in Bangladesh. 

Among more than 800 registered ICT companies, it is sometimes hard to choose the right one. Here, an expert company like Dcastalia can help you to develop custom software based on your business requirements. With an experience of more than a decade, Dcastalia is providing its web development, app development, e-commerce development, full-stack development, and on-demand development to both national and international companies. Many renowned domestic companies like United Group, United Hospital, Insstar Limited, and many more have received software development services from Dcastalia. 

Frequently Asked Questions (FAQs)

How long does software development take?

The length to complete a software development project varies on numerous factors including the complexity of your project and the scope of work mentioned in the agreement. 

How does the project work process take place?

Every project is unique and therefore, there is no particular approach. However, we will inform you of the stages of our work process before we start working on it. 

What happens after you finish my software application?

After completing the development process of your dream application, we will be more than happy to offer you technical support and app maintenance service. Also, if you want to maintain it from your end, you will have ownership of all source code and all technical data. However, we are always here to help you.

Can the software be upgraded in the future as new technology becomes available?

Of course, yes. Our expert team will always be there to upgrade your software.

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