Economic Turmoil and Productivity: A study of Sri Lanka’s Software Development Industry

The complex relationship between economic crises and software development productivity is examined in this study, with a particular emphasis on Sri Lanka. The study intends to close the current knowledge gap on the crucial elements affecting the productivity of software development during recessions. An exceptional setting for examining the difficulties faced by the software development sector is Sri Lanka’s economic crisis, which has been made worse by the COVID-19 pandemic, excessive external debt, and fiscal mismanagement. A comprehensive literature review and a pilot survey conducted to reveal the most impactful factors on productivity of software development during economic crisis are Employee motivation, Employee turnover, Infrastructure and Work environment. This study aims to uncover how various factors impact software development productivity during economic crises, exploring their interrelationship for better understanding. An online questionnaire survey was used as the primary data collection method, and 140 responses were obtained from technical professionals in the Sri Lankan software industry. The results show a significant positive relationship between employee motivation and productivity. Employee turnover, on the other hand, is found to negatively affect productivity, indicating that its effect is not statistically significant. Additionally, during economic downturns, infrastructure and work environment are found to be beneficial and important influences on productivity in the software development business. The dynamics of software development productivity during economic downturns are better understood by organisations, legislators, and stakeholders thanks to the insightful information provided by this research. The results emphasise how crucial it is to support worker motivation, optimise infrastructure, and create a happy work atmosphere to boost productivity in the difficult economic times facing Sri Lanka’s software development industry. A nuanced view that can guide strategic decision-making and resource allocation in the software development industry during economic downturns is offered by the study’s detailed methodology and particular focus on the Sri Lankan environment.