Factors Influencing Internationalization in software development

Internationalization of business environment involves several factors like political, cultural, social, regulatory, legal and technological factors that encompasses a business entity in various sovereign nations. There are many key factors which are related to the internal environment of an organization in the international environment. These factors affect the decision-making process on the use of assets and resources.

Adaptiveness reflects the changing needs in operational process of a business. Organizations doesn’t have any control over external business ecosystem. Thus, the success of an international firm depends upon its ability to adapt to the overall environment. It is also depend on the ability to adjust and manage the company’s internal elements to leverage on the opportunities of the external environment. The firm’s capability to control various threats produced by the same environment, also determines its success.

Countries attractiveness is an important factor which influence the international investors. Investment in foreign countries is one of the most important aspect and thus, a firm want to determine how suitable a country is in terms of its external business environment. Organizations always prefer a country that is less costly, more profitable, and has fewer risks. Cost considerations are related to investment, Profitability depends on resources and risks are associated with the environment and therefore it is a key concern.

Our Business environment comprises of political, economic and cultural factors. These factors are responsible in influencing decision making process in an international business firm. Political factors of a country affects the legal aspects and government rules which a foreign firm has to experience and follow for running business in that nation. A foreign software company that operates within a particular country has to abide by the country’s law for the duration it operates there. Political environment would mainly effect the impact on economy, change in regulation, political stability and migration risk on a business firm.

In software development Economic factors could influence a huge impact on international business firm. Business firm seeks risk-free, stable and predictable environment. Monetary system is an important factor that influence company’s growth. Inflation also contributes hugely to a countries economic factor. High rate of inflation increase the cost of borrowing and makes the revenue contract in domestic currency.

Cultural factors consists of social, religious and educational systems within the marketing system. Knowledge of foreign culture is also important for international organization. Language, color, customs and taboos, values, aesthetics, time and Religious Beliefs may vary from one region to other region.

Author have more than 10 years experience in software development and product development