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PIRATED softwares are being used in the country at random. Intellectual Property Rights (IPRs) are also being grossly ignored. In fact, nobody is caring for what are the basic or what are the pirated ones. Public knowledge about such piracy is very poor. It looks like: well, the dealer is providing me with all components when I'm buying a PC from him. How can I identify whether software installed in it are pirated or not? Correct. But there are certain ways that can identify the piracy. But the question is: who is going to bother?
Many giant multinational companies, Microsoft included, were pressing Bangladesh for forceful enforcement of the intellectual property rights. But the proper enforcement is still a far cry. The dealers are not interested, users' mindsets are not ready to accept the extra burden.
An agent -- MicroServe -- appointed by the Microsoft carried out a number of surveys in the country and found that only multinationals and some local big companies currently use licensed software. Microsoft, before deciding to open its office in Bangladesh held a series of meetings with local stakeholders in the sector and apprised the participants about the benefits of using licenced software.
According to the Bangladesh Association of Software and Information Services (BASIS), the number of personel computers (PCs) being used in Bangladesh would be around 1.6 million. Following the waiver of duties on their imports, the use of PCs in Bangladesh increased dramatically. Around 50,000 PCs are being sold annually and the trend is on the rise.
Against the backdrop of random piracy of software products, the question now arises whether software outsourcing is possible. Many European and US-based multinational companies and firms are reluctant to offer software contracts to any local firms for fear of piracy. Pirated software are a threat to the thriving software industry of the world.
Contracts given to Indian firms are enormous in numbers. Thriving Indian firms have substantially raised their outsourcing charges. Yet still they are being favoured by the Americans and Europeans as the intellectual property rights are more or less protected there. Indian firms are now giving some sub-contracting jobs to a number of Bangladeshi software firms to reduce some pressure on their workloads. Some local firms are doing pretty good jobs through outsourcing. Yet image problem deters them from proper functioning. As such, revenue earning from the sector is not that much lucrative.
India is one of the most successful countries in developing its software industry and in 2002, it generated revenues totalling US $4.90 billion (out of which export was around 40 per cent), with an annual growth rate of about 70 per cent.
Software industry is one of the essential components of IT industry with global market of US $600 billion in 2004. It is still largely dependent on human resources and some of the developing countries are taking advantage of this opportunity.
The present size of software industry in Bangladesh is very small. Roughly, 200 firms/organisations and some individuals have been exporting software and data processing services. However, the total volume of such export is negligible and complete records of such performance are not available. BRAC, Computer Solutions Limited, ANIRBAN, IBCS-Primax, NACD and some other firms made some exports. Information relating to other firms are not immediately known.
Although not properly exploited yet, Bangladesh does have quite a few inherent strengths that can be used as the launching pad for turning this country into a potential offshore source of software and data processing services.
A good number of educated unemployed youth force, with ability to read and write English, exist in the country. They can be trained in the required skill (particularly in data processing services) within a short time. Quite a few Bangladeshi skilled professionals have been working abroad. They can be encouraged to return back to the country and/or collaborate with Bangladeshi entrepreneurs, provided proper environment is created.
Universities in Bangladesh are producing an increasing number of graduates in computer-related subjects every year, although the number is much less than the requirements. A large number of Bangladeshi students are studying overseas in computer related subjects. These overseas Bangladeshi students can be lured to come back to work in the computer-related fields with reasonable compensation packages.
Yet, hindrances to the growth of software industry are many that need to be addressed first. In the absence of any incentive scheme, the exporters do not feel encouraged to explore potential markets.
Recently, in Bangladesh, discussion of introducing e-government in many ministries has been intensifying. Some have already taken initial steps towards the use of Information communications technology (ICTs) to facilitate governmental activities. But the moot point is that the government needs to spend a significant amount of resources on software licencing requirements and on updating hardware resources to meet the requirements for latest proprietary technologies such as Windows XP.
In order to avoid 'unnecessary' expenses in software procurement, use of pirated software is becoming more and more prevalent. Use of open source (OS) technologies can significantly bring down costs for e-government for Bangladesh.
Due to this major disadvantage, many governments make it mandatory for governmental ICT applications to maintain open standards. Open source technologies inherently offer the advantages of ensuring open standards to allow for seamless interoperability. It prevents the government from being stuck with legacy systems that cannot be upgraded nor be interfaced with new technological improvements.
Due to the exorbitant price of software, piracy has become prevalent in Bangladesh to the extent that there are many who think that the cost of a Windows XP or Office XP is really just Tk. 100 at a reduced rate for Bangladesh. While it is less dangerous for households to use pirated software, its use in corporate offices and specially in government agencies can potentially lead to international harassment.
Business Software Alliance (BSA), an international software policing agency, and its numerous collaborators are expanding at a fast rate to reach countries with high levels of software piracy. Even in India, with official collaboration from NASSCOM, BSA has filed several piracy law suits. There is every indication that it will not be long before BSA comes into Bangladesh as well, and when that happens different IT-related associations and the government will be left with no choice but to collaborate. With international defamation for ranking high in corruption indexes looming over our national image, Bangladesh can ill afford to risk more cases of humiliation.
Also, compliance with the world trade organisation (WTO) intellectual property regulations will also likely put international pressure on the country. One of the major driving forces for China opting for open source is its requirement to comply with strict WTO regulations in order to become its member.
In such a global economic and political scenario, adoption of open source technologies can vastly reduce Bangladesh's current vulnerabilities in terms of potential harassment for widespread software piracy and allegations of violation of WTO rules leading to possible trade restrictions.
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