As the current global economic downturn continues to bite, South African software developers should be looking to create products for both home and international markets. 
Ripple effects of the Eurozone financial crisis are far-reaching and will continue to have a negative impact for some time to come. In fact, according to the Grant Thornton consultancy, businesses in South Africa have lost an estimated $15-billion in revenues, with four in 10 companies affected globally and an increasing number looking to do business elsewhere.
“The bottom line is that South African businesses need to adopt a flexible approach to both developing and marketing their products and services. Wisdom prevails in these situations and the most obvious way of countering the negative impact of the Eurozone crisis is to tailor solutions to meet the demands of new and emerging markets,” says Malcolm Rabson, MD of Dariel Solutions.
An interesting trend that is rapidly taking hold is the increasing growth of emerging markets in the global economy.
The International Monetary Fund (IMF) states that for the first time in history, the combined GDP of the emerging markets will exceed that of the developed market’s gross domestic product (GDP) by $1,4-trillion.
“This will provide opportunities not only for South African companies to expand their footprint into cross-border African countries, but indeed across the globe into other developing regions,” adds Rabson.
Under the auspices of the Nepad Business Foundation Lesetja Kganyago, deputy governor of the South African Reserve Bank explained that in the Regional Economic Outlook, between 1990 and 2010, the value of sub-Saharan Africa’s exports expanded at an annual average rate of 8,5%. Of that rate, nearly 50% came from growth in exports to emerging and developing economies.
“This is a very positive indicator that South African businesses will remain sustainable given their decreasing dependence on the Euro zone as a trading partner,” says Rabson.
Key to the success of addressing these new and emerging markets is the ability to evolve products and services that are customised to the specific market needs.
“South Africa has shown its mettle during previous economic uncertainties and in times of embargos instituted by foreign investors. The country has a wealth of technically adept people who are able to apply their skills and knowledge in the development of products that comply with international standards.
“A smarter, more focused approach is critical and given our economic and industrial history, South Africa is perfectly positioned to capitalise on markets not only across Africa itself, but certainly outside the Eurozone as well,” adds Rabson.
He says that, given the incredible expansion of the Indian software development market, there is a huge opportunity for the African IT industry to make its mark as well.
“Business analysis is the primary building block and enables companies like Dariel Solutions to match the high-level processes and workflows of our customers. By conducting risk assessments at a very early stage of the project, software development is customised to mitigate risks and present a more productive and sustainable business model for companies going forward.
“By working closely with African businesses, we can create agile business systems that will allow these companies to capture and retain an increasing market share. The ability to provide integration with existing business software and systems, as well as a tailored approach to creating application-specific software, will allow African businesses to readily adapt to the changing global business landscape.”