Turkish Lira vs. Turkish technology industry
Lately everyone has been talking about interest rates and the fall of the Turkish Lira against other currencies. These have a few serious consequences on the Turkish ICT industry. Firstly, with the rising dollar against the lira, the prices of all hardware and software programs have gone up. This will result in the decline of sales of technological products and services. On the other hand, in Turkey the hourly rate of a coder is way below than those in the U.S. and EU now, so we might see an increase in software exports. However, this trend could increase the rate of brain drain as talented coders will be more willing to relocate because the wages abroad are more appealing than those in Turkey. If the brain drain accelerates, Turkish software firms’ export capabilities will curb.
Everything is connected and it is very difficult to predict what will happen in the short run.
But I strongly urge the government to take action to support the ICT industry as soon as possible. It is the only industry that could catapult our country into a better future with minimum support.
All other industries have a profit margin of maximum 7-10 percent, whereas with a decent application or software platform a profit margin of at least 30-40 percent can be created.
There are some areas where Turkey already has momentum, like the gaming industry, and there are other areas where Turkey has a natural inclination, like block chain technologies.
I know that compared to the automotive or construction industries, the ICT industry is still small, but with enough care and attention it can grow into a giant and become a leading force in the Turkish economy.
In order to do that, we need a clear and doable industrial strategy. We need to create opportunities for young coders either to find decent jobs or to encourage them to start their own businesses. Government agencies should start working with startups. Industry giants like Aselsan should start becoming more open to other firms, startups and individuals.
We can do this, if we want to.