Rather than being a hindrance, Perth’s isolation has helped forge a collaborative community of mobile app developers ... and the world has started to notice.
Rather than being a hindrance, Perth’s isolation has helped forge a collaborative community of mobile app developers ... and the world has started to notice.
It might not be Silicon Valley, but Perth is holding its own in the global application development market.
Since the release of the first Apple iPhone in June 2007, computer scientists worldwide have been developing new applications to use on these devices.
There are now more than 700,000 apps available for download in the Apple store; closely followed by Google’s ‘Play’ market, which sells apps for Android phones.
It’s a truly worldwide phenomenon and seriously competitive business - and one in which Perth developers are playing a significant part.
Who’s who
No matter who you talk to in Perth app-development circles, the names David McKinney and Stuart Hall are likely to pop up in the conversation - they’re the men behind the Discovr apps.
Mr McKinney’s idea was to create tools for use on mobile devices that could help people discover music, movies, other apps or even people with similar tastes. Simply input a musical artist, for instance, and the app suggests other users who are similarly inclined.
The app debuted in the Apple Store two years ago and helped place the names McKinney and Hall, and their company Filter Squad, among the best known in the industry.
Matt Comi is another prominent name in local app circles. The 29-year-old’s app - a retro-style game named The Incident - became the eighth best-selling app in the US shortly after its release in 2010.
Both apps were developed in Perth and the product of start-up tech companies; Mr Comi and business partner Neven Mrgan’s company, Big Bucket Software, is now known internationally.
Other players include companies that already had established reputations in the web development space. Of late, there has been a general shift in the market, with advertising agencies previously focused on print now looking to digital and web development, while those that were already working online have shifted to begin producing mobile apps.
Adapptor is one such example; it was founded by former Market United chief executive Marc Loveridge and focuses solely on mobile app development.
Mr Loveridge has a long history in digital agencies and took advantage of the increasing interest in mobile apps to form Adapptor, which is one of only a handful of companies working solely on the development of apps for mobile devices.
“It was pretty difficult in the early days, I’ll admit,” Mr Loveridge told WA Business News.
That was a time when mobile apps were fairly new in the consumer consciousness; now Adapptor’s client base includes HBF, Tourism WA, and iiNet.
The Frontier Group, Sumo Group and ACS Software have also moved into the development of what’s termed ‘native’ mobile apps from a web development background.
The difference between a native and web app is minimal for a layperson - a native app essentially lives on a mobile device’s home screen, while a web-based app is more of a tool to link a user to a mobile version of a webpage.
For an app developer, the difference is significant and has put pressure on Perth’s talent pool.
Skills shortage
The Frontier Group co-founder Adam Fitzgerald said securing staff with the necessary skills to develop the type of apps companies were after was a major challenge.
“It’s a pretty big jump from web to native app development ... if you can hire someone who knows how to do it then that’s great, and some companies are growing that way,” he said.
“The availability of staff hasn’t really increased over time, but the number of people doing this job has.”
That has led to an increase in the number of substandard apps being produced by companies based in Perth, according to Mr Fitzgerald.
“There is some really high quality and some really poor quality stuff being produced here, which is the same as everywhere I guess, but particularly in Perth because there is a smaller number of companies that do it,” he said.
The combination of growing demand for app development alongside a restricted skills base has prompted some companies to outsource the work to offshore developers.
Mr Loveridge said the outsourcing trend began before Perth had the capability for app development.
“A couple of years ago when there were a couple of large companies wanting mobile apps developed there weren’t any companies here that could develop to that scale; that’s when I think they were forced offshore,” he said.
“In a lot of instances they had a bad experience and came back onshore.
“Yes you get lower cost development (by outsourcing), but you get higher cost management and higher risk of project failure.”
ACS Software director Courtney Smith said the number of companies looking to tap into the local market for app development was growing - but not necessarily to the benefit of the industry.
“We are seeing a lot of groups here that are basically just sales offices for offshore developers,” he said. “There’s a fair amount that is outsourced to the likes of India, mainly due to cost factors; at the end of the day we can’t compete with the labour costs.
“The only way that we can really compete is by being a local company and meeting with clients to get a greater understanding of their requirements - after that it just comes down to quality.”
Among ACS’s locally developed products is the Swan Taxis app, which allows users to book a taxi and track its progress via GPS.
Mr Smith said its popularity was partly due to the fact it changed the way users interacted with the company.
The Sumo Group and inhouse group have found similar success through the development of travel-based apps; both have developed apps for parking companies.
inhouse group this year launched its City of Perth Parking app, which allows users to locate car parks in the city and even provides information on how many bays are available in the car parks.
The Sumo Group has created a similar app for Wilson Parking, which received a national award last year.
Open doors
The success of The Sumo Group developing a successful app for Wilson - an international company - proves Perth’s isolation is no barrier in the app development field.
In fact, most say the isolation has resulted in the creation of a tight-knit community.
“The industry has just naturally grown here over the last few years,” The Frontier Group’s Adam Fitzgerald said. “Once those similar minds get together and talk about things, new things just grow out of that.”
Mr Loveridge said the Perth industry’s isolation and contained size was more conducive to a collaborative community - a factor typically bene fitting creative industries.
“There is a growing innovative spirit in Perth and a growing support network for that,” he said.
“We get together and try to make one and one equal three; we share ideas and sometimes even resources.”
Mr Comi’s experience developing The Incident - and another current project due for release next year - was slightly different, as his business partner Neven Mrgan is based in Portland in the US.
“The time zone thing ... Neven and I demonstrated that you can get away with it, but it’s not optimal. I do miss sitting beside someone and working,” Mr Comi told WA Business News.
“But at the end of the day it doesn’t matter where you are - you can get away with being in the most isolated city in the world.”
Mr McKinney accepted, however, there was a general shift to Silicon Valley, particularly for start-up technology companies.
“I do think you can do a great job from here - we do have awesome talent here and similarly there are fantastic investment opportunities available in Perth,” he said, referring to the increasing interest from venture capitalists.
“We don’t really feel restricted in any way by being in Perth, but there are a lot of advantages when it comes to lifestyle; running a start-up is challenging so at least we have that offset.”
