TURKEY IS ON COURSE TO BECOME AN E-TIGER IN SOFTWARE

Turkey plans to expand its export-oriented growth target to include software sector as well.Informatics maintains its growth in Turkey in parallel to the world.


The incrase in income per capita within the country,popularization of information technologies,and a young population open to innovation constitute top major factors accelerating Turkey's transition to an information society.Informatics sector grows percent on average every year and has now reached a volume of 34 billion dollars.According to Turkish Political Research Foundation (TEPAV), there are more than 2,300 software development companies approximately half of which are located in technoparks.





FAVORITE OF ANGEL INVESTORS

EU countries, North Africa,the Middle East, the Caucasus and Central Asian countries are among the major software export markets of Turkey.According to the Association of Software Industrialists (YASAD),Turkish software market,which had been realized as 800 million dollars in the year before, reached 1.2 billion dollars in 2012.Australia, Germany, France, Japan,the United Kingdom and the USA are among the leading countries in the global software sector.According to Selahattin Esim,General Director of Esim Software,Turkey needs to be one of the e-tigers  in such a global market.The expansion of angel investor networks in Turkey and their utmost interest in the software sector allow the  entrepreneurs in this area to grow in an export-oriented manner together with foreign partnerships.In Turkey,the fact that 75% or 100% of the capital invested by angel investors in the enterprise is deducted from income tax assessment and this ratio increases up to 100% if the project is supported by TUBITAK and includes R&D elements offers great opportunities to angel investors,especially with respect to the software sector.
Further,with income tax exemptions provided during stock purchases and sales realized by angel investors,angel investors obtain a great tax  advantage both at the time of investment and of stock sale and withdrawal.




In 2012 Deloitte Technology Fast500 EMEA assesment,there were 29 Turkish companies among the top-500 



In Turkey, e-shopping has reached TRY 35 billion in 2013 and e-commerce is expected to catch a good growth trend with domestic software support. According to Marketline's May 2012 report,in 2016,global software and service sector is expected to reach a market share of 3,422.8 billion  dollars by a 37.9 % increase in comparison and the annual compound rate of growth is expected to reach 6.6% in the period until 2016.Selahattin Esim, General Director of Esim Software,states that export-oriented companies in the software sector draw attention particularly by their solutions for ERP, the Health sector,software developed according to the business activities of companies,ecommerce, banking,document management systems and software developed for the defense industry.


 
37 COMPANIES WERE TRAINED WITH TETSOFT

Within the scope of TETSOFT Project for the Improvement of International Competitiveness (PIIC) created by the Union of Electricity,Electronics and Service Exportation within Istanbul Union of the Exporters of Minerals and Metals together with NGOs in the sector,37 companies were provided an advanced training for the purpose of improving exportation.


INOVALIG POSITIVELY AFFECTS THE SECTOR

Whereas the software sector is the leading one among those in which innovation is the most effective,Fatih Project,which particularly aims for the spreading of information in grassroots and which is put into practice by public initiative,both provides a great service in the area of education by public initiative and offers opportunities to content producers through correct incentives and guidance.While domestic software alone can sustain Turkey's rapid growth,localizations of foreign software for Turkish organizations are not being used as efficiently as required due to infrastructure inadequacies.Due to the leading position of the sector in terms of innovation development,software sector,as a part of  informatics,is the primary sector to go farthest in the future together with InnovaLEAGUE.


IMPROVEMENT OF INTERNATIONAL COMPETITIVENESS IS THE AIM

Although the Information Technologies sector now depends on consumption and importation to a great extent,it has the potential of being a driving force behind the growth of our country with a correct strategy and relevant implementations.Selahattin Esim,General Director of Esim Software, states that companies need to learn to cooperate in large international scale works.In this way,conditions of competition of the developing Turkish private software sector are expected to improve.



COMPANIES NEED TO LEARN HOW TO COOPERATE

According to the Governmental Program of 2014 issued in the Official Gazette,in 2014 information technologies market is expected to reach 12 billion dollars in Turkey.The Turkish software sector is expected to meet 2023 targets if government incentives are correctly utilized, regulations are fully implemented and the software sector gains collective mobility.



GOVERNMENT SUPPORT FOR SOFTWARE CONTINUES

Turkey,depending on her own sources,develops sectoral solutions as well as embedded software in defense industry with small software developers and entrepreneurs and exports such software.Stating that Turkish software developers are aware of their own potential and they receive sufficient govermental support in this regard,Ertan Barut Türk,General Director of Globalnet,describes what is required for the utilization of such contributions by the sector as follows: "In order for the entrepreneurs in the sector to reach the organizations that would meet the requirements or to achieve  the scales that would enable growth,they need additional resources and powers.


WE MUST ESTABLISH PARTNERSHIPS WITH GLOBAL SOFTWARE GIANTS

Turkish software sector exports to many countries with entrepreneurial companies in defense,health,and telecommunication sectors.Recently,in order to increase the potential of Turkey,Turkish software companies take their services to the international arena by promoting them in various expositions and increase their export potential.Regarding the software sector,Ertan Barut,General Director of Globalnet,says "in terms of production and exportation,the only sector to enable foreign exchange gain without foreign exchange loss is the software sector”.Stating that the added value per capita and the added value obtained from a product are higher in the software sector in comparison to the conventional production sector,Barut adds that Turkish software sector exportation, which is estimated to be above 500 million dollars, increases every year with the Conglomeration Study carried out by  the Electrical Electronics and Services Exporters' Association (TET) within IMMIB (Istanbul Minerals and Metals Exporters' Associations),which is
among those supported by the Government,together with our Software Industrialists Association (YASAD) which operates exclusively for the Software Sector.




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