Thursday 24 October 2013

Myanmar a Better Choice Than Thailand Says Singapore’s Dcode

Myanmar is not a country that one automatically associates with having a pool of talented and skilled IT programmers, but for Singapore mobile applications developer Dcode, it is proving a better choice than neighbouring Thailand.

Established in Singapore in 2010 Dcode develops custom mobile applications based on Apple’s iOS for iPhones and iPad, as well as for the rival Android operating system. Past clients have included blue-chip corporate brands such as Audi, Sony Pictures, and Estée Lauder with demand for the company’s custom mobile applications seeing it rapidly expanding to 15 developers.

With a determination to be “the” mobile apps developer in Asean the company looked at expanding its operation in nearby countries where a second office would give a greater geographical reach and where the wages bill would be lower than Singapore.

Alfaseeh Maricar, a director of Dcode, said after some initial investigations we found a talented team of programmers in Yangon, Myanmar, however with international sanctions in place, a dysfunctional banking system and lengthy visa application process it was all just to hard.

“I was flying there each month with a large bag of cash just to pay salaries. This was a problem for the company from a governance stance as there was no way of verifying who was receiving what money, as well as it being inconvenient and presenting a risk for robbery.”

Deciding that Malaysia was geographically a little to close to Singapore to extend the company’s reach further throughout Southeast Asia than from Singapore, Mr Alfaseeh said Thailand was considered next as it has all of the appearances of being developed, cosmopolitan and having a large and apparently functioning education system producing technology graduates.

“One problem we found immediately was the requirement under the Thailand Foreign Business Act to have a Thai partner, while another issue was the Thailand work permit regulations that required four Thai staff for each foreign worker we could obtain a work permit for.

“Setting up a 100 per cent foreign owned company for a small business such as our was just to expensive. Fortunately we had a good connection in Thailand and we were able to establish a 51-49 joint venture and commenced business in Bangkok in June 2011.”

Thai Staff Demand Excessive Salaries From Foreign Companies


After two years though Dcode has pulled the plug on its Bangkok office, firing its team of 12 and reverting to its previous programmers in Myanmar, with Mr Alfaseeh saying Thais just do not have the skills, aptitude or ethics necessary for the work.

Despite paying well above market rates for programmers Mr Alfaseeh said finding coders who had a knowledge of modern operating systems such as iOS or Android was difficult in Thailand, while the salary demands became outrageous – up to 500 per cent above the going market rate – once candidates knew the company was partially foreign owned.

“The developers were working in Thai and had very poor verbal and written English language skills while technically they had difficulty grasping even basic things. Most of their knowledge appears confined to legacy operating systems such as Microsoft .Net.

“The young people were not very flexible or open to learning new things. Because they had been taught by a Thai person to do something one way, that was the only “right” way of doing things. Irrespective of if they were in the middle of programming a section of code or we were pushing to get a revision completed to for a client they would stop like machines at exactly midday to go to lunch or when it was time to go home. Some would collect their monthly salary at the end of the month and then we would never see or hear from them again”, he added.

One vivid example of how foreign or partly foreign owned companies are seen as somewhat of milch cow by some Thai workers is reflected in a programmer who had applied to Dcode for an advertised vacancy.

According to Mr Alfaseeh, “we interviewed the person, checked their references and tested their knowledge and offered them a position at Bt10,000 (about US$322) per month above the market rate.

“When we offered the person the job he then asked if he had to come to the office every day and when told yes, he said because he lived at Lat Phrao, about 10km (6.2 miles) away, he wanted an extra Bt10,000 a month so he could rent an apartment in the city, despite us being five minutes walk from the MRT and BTS lines at Asok”.

In comparison Mr Alfaseeh said programmers in Myanmar have good English language skills and knowledge of modern operating systems such as iOS, Android, and Unix, while salaries were considerably less than in neighbouring Thailand let alone Singapore.

“For $200 (Bt6,200) a month we have dedicated programmers who turn up to work each day, don’t watch the clock, are committed to turning out a quality product and are inspired to learn new methods and the latest techniques.

Professionally Thai IT staff Are a Great Disappointment


“Whereas in Thailand I was often surprised if things I requested were done, with our programmers in Myanmar I’m surprised when they say they can’t do something or don’t understand”, Mr Alfaseeh added.

Claiming that Yangon reminds him of Singapore in the 70s, Mr Alfaseeh said he predicts a bright future for the former British colony as the country shrugs off the cloak of more than 20 years of sanctions provided business and societal reforms continue.

“While the Thai people are friendly and hospitable, professionally they are a great disappointment. The Thailand education system seems more intent on meeting quotas rather than attaining any level of quality, while the restrictions placed on foreign businesses are very prohibitive.

“From our experience it will probably be another 20 years before the Thai education system is able to produce the skilled programmers that industries such as our needs. India has become a major center globally for producing high quality IT personnel and this has taken more than 50 years”.

While acknowledging that Myanmar would not be high up the list in most people’s thoughts when it comes to computer programming, Mr Alfaseeh said this is largely due to the country’s recent past, with international sanctions resulting in many people not knowing what the country has to offer.

“There’s more IT development going on inside Myanmar than many people realise. In fact, one 100 per cent foreign owned Japanese systems development company which established itself there in 2008 now has a team of over 200 programmers in Yangon.

“With business regulations, foreign business ownership and the banking and finance industry all rapidly developing as a result of the sanctions being lifted I won’t be surprised if it becomes somewhat of an IT hub in the next five years due to the peoples English language skills and their enthusiasm and willingness to adopt and learn”, he added.

source: The Establishment Post


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