Software Development

 

Overview:

From the date that the Moroccan government inaugurated its first Web site in July 1996, the Moroccan government has recognized the profound affect that information technology has had and will have upon the world as a whole.  They also acknowledged the fact that information technology will affect all of the important aspects of society such as culture, education, public services, employment, and the economy. As such, the government of Morocco, in August 1997, created the National Agency of Telecommunication Regulation (ANRT), which has been granted the authority to promulgate regulations on telecommunications and encryption.  Even though the government has recognized the importance of IT technology and it’s applications, the overall usage of IT is still minimal.  As a result software development in Morocco is very limited.  There are several factors that contribute to this problem including:

·        Lack of technical know-how

·        Lack of resources for training and equipment

·        Its telecommunication infrastructure is still in its early development

·        Very low PC usage by its citizens

·        High costs for Internet connectivity

·        Government investment in local research and development in IT area is non-existent

·        Lack of adequate copyrights law

High Tech Presence:

Introduction of Information Technology Infrastructure in Morocco has been taking place at a slow but steady pace.  Given Morocco’s financial status, the country is unable to finance all of the IT Infrastructure improvements.  As a result they rely on a number of external entities for the funding of IT projects.  Some of the funding was provided by agencies like: World Bank, European Union, and direct investments by some governments and companies.  Although country’s IT Infrastructure is still in its early infancy and a lot more work needs to be done, Morocco’s cheap labor costs makes investment in the country very attractive.  In early 1998, for example, Microsoft set up its regional headquarters in Casablanca. Compaq and Oracle have also decided to set up regional bases in Morocco. By locating their production in Morocco, software MNCs can benefit from the relatively inexpensive labor costs, an investment-friendly environment, and Morocco's trade association with the EU.  However, more needs to be done before Software Development can be done in such environment.  One of the major hurdles that high-tech/software companies need to overcome in Morocco is labor law.  Currently the law is unfavorable to high-tech companies’ needs.  Morocco's laws make it extremely difficult for a corporation to change the size of its labor force to meet short-term requirements or a sudden upsurge in work.  Morocco's labor laws present numerous hurdles that make it extremely difficult to terminate an individual's employment. As such, any corporation will hesitate before hiring new employees to meet what may only be a temporary change in the business climate. As a result of this, business opportunities will be lost both for the corporation and for the individuals who could have been employed.

Software Piracy:

Morocco's current copyright law provides insufficient protections for the private sector and did not address the protection of software.  Although companies such as Microsoft have taken court action to enforce their rights in their property through Morocco's trademark laws and been successful, the penalties contained in Morocco's current cadre of intellectual property law are insufficient to provide long-term, effective deterrence of the theft of intellectual property.  Recognizing the importance of such law to foreign companies, Moroccan chapter of the Business Software Alliance (BSA) has drafted a revision to the current copyright law that was last modified in 1970 and does not currently encompass software protection. As part of the currently proposed draft legislation, BSA addressed the issue of software protection. BSA presented this draft to the Government in 1998. To date, this law has not been passed. 

Morocco needs to reform its intellectual property protection to be in accordance with international standards so that the high technology industry will look more favorably upon Morocco as a country in which to set up business.


Country Background

Telecommunications Infrastructure

Industrial Production

Internet Diffusion

Electronic Commerce

Hardware Manufacturing

Software Development

IT Labor Market

IT Geographic

Government policies

Analysis: IT strength/Weakness

Analysis: IT Impacts on Business

Reference

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