1. Origin of the Study
The MBA program of DU requires that each student complete an internship attachment period of at least 10 to 12 weeks with an organization and submit a report on the basis of it. Considering the fast pace of the software industry today, I am working one of the youngest and brightest organization in the industry, Hello Dacca, as my place of internship. There is a lot of speculation regarding the future of the software industry, in general. With the little bit of healthy competition that the industry had been lacking till now, it is no doubt that the consumers would soon begin feel its affect in the form of lower prices and more packages to choose from. However, it remains a doubt as to which companies would just survive and which companies would thrive and prosper. Hence, I chose to carry out a comparative analysis of the prospects and challenges of software companies in Bangladesh, with particular emphasis on the future prospects of Hello Dacca Pvt. Ltd.
1.1 Watershed of the Software Industry
In 1955, the world's first software company was formed in the United States. Now, more than half a century later the software market has entered a period of drastic change. Many information processing functions found in packaged software has been transferred to the Web, and the use of open source software (OSS) has become widespread. There are also strong signs that "Software as a Service" (SaaS) will assume a greater prominence. These developments go beyond a mere discussion of whether to charge fees or to choose between packaged software or contracted development, or to use open source or proprietary software; they have shaken the software industry to its very foundation. Will the software industry continue to develop as a high-tech industry, or will creative destruction occur and a new industry grows from the ashes? Perhaps the industry will disappear altogether and become just another business service like embedded software? Tim O'Reilly describes three long-term trends in the evolution of software: (1) commoditization, (2) network collaboration, and (3) SaaS
2. History & Definition of the Software Industry
Software Industry consists of that part of computer programming activity that is traded between software-producing organizations and corporate or individual software consumers. Traded software represents only a fraction of domestic software activity, whose extent cannot be reliably estimated, since much computer programming takes place within firms and its value is not captured by the industrial census or software industry analysts. According to the industry analyst INPUT, in 2000 the U.S. market for traded software was $138 billion (Table 1). The U.S. software industry is a major exporter, and the total revenues of the top 500 U.S. software firms in the year 2000 were $259 billion, according to the trade publication Software Magazine. The traded software industry consists of three main sectors: programming services, enterprise software products, and shrink-wrapped software products. These three sectors became established in the mid-1950s, the mid-1960s, and the late 1970s, respectively, in response to the technological opportunities and the business environment of the time. The most successful firms developed specialized capabilities that enabled them to prosper within their sector; however, this specialization made it difficult to move into other sectors, and very few firms have been successful in more than one software sector. It should be noted that the software industry is not confined to independent software vendors, but also includes computer manufacturers such as IBM, Unisys, and NCR who supply programming services and software products alongside their hardware offerings and are among the largest software suppliers. These are sometimes referred to as "captive" markets because computer users have relatively little choice in the supplier of basic operating...