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Comparative Advantages of Software Industry in Developing Countries: Study of Structure, Market Strategies and Software Development Approaches in Croatian Software Companies

During the global economic crises national software industries have proven to be one of the most resilient industries. After initial fall of the market in 2008 and 2009, recovery followed with a period of intensive innovation. Some Asian software industries even reported no influence on the market share, such as Thai software industry. Nevertheless in smaller economics impact was more pronounced but in comparison with other national industries the recovery is generally faster. In this paper we will concentrate on software companies in developing countries and try to investigate the main characteristics of small and developing software industry that may create resilience in difficult economic setting and serve as a basis for international competitiveness. For the purpose of this paper research was conducted on the case of Croatia. The goal of this paper is to detect the most important opportunities and sources of comparative advantages that open these companies in global international software markets. Based on the conducted research of software industry structure, market targeting and software development practices guidelines are outlined on how to strengthen the competitive advantage of small national software industries in developing countries on the global software markets.

Agile software development; Cloud computing; Comparative advantages; ICT industry; Offshoring; Software development methodologies; Software industry

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