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Risks of exclusion of Fund participants: a case study on software development

The Astana Hub Monitoring Service continuously monitors the activities of participants for compliance with the list of priority activities in the field of information and communication technologies. The main attention is paid to the analysis and verification of the reporting data provided by the participants, the execution and results of the project indicators provided for in the business plan.

Thus, during the planned monitoring of the participants' activities, the monitoring service identified a Fund participant with a risk of going beyond the List.

The company "S" received the status of a participant in Astana Hub, which gave it access to a number of benefits and support in the implementation of projects in the field of ICT. According to the business plan, the Company was obliged to carry out activities exclusively within the framework of the selected item from the list: development, implementation, maintenance, development, modification and implementation (including the implementation of services integrated into software and technical capabilities, through commercial use, including the placement of paid content, sale of built-in additional functionality) of software and the software product.

In addition to providing the above services, the Participant received income from the provision of services for the development of the preparatory stage for the development of the website software. This service included a preparatory stage, prototyping and writing a Technical assignment.

The software creation process is the process by which the needs of users are transformed into a software product.

The main stages of the software product life cycle are divided - the phases through which the product passes from the origin of the idea to its market launch and further support: 

1. Planning At this stage, a detailed project plan is being developed. Deadlines, budget, resources and tasks are determined. The stage includes defining the development team, assigning responsibilities, and creating a work schedule.

2. Requirements Analysis During this stage, the requirements for the software product are collected and documented. It involves communicating with the customer and end users to understand their needs. The result of this stage is the creation of a document with requirements.

3. Design and Engineering (Design) As part of this stage, the architecture of the software product is being developed. The data structure, user interfaces, system components and algorithms are designed. This stage also includes creating a user interface (UI) design and defining technical specifications.

4. Development At this point, active code creation begins. The developers write the program in accordance with the requirements and design defined in the previous stages. Development may include the creation of various modules, components and functional parts of the program.

5. Testing and integration (Testing & Deployment) During this stage, the quality of the software product is checked using various types of testing, including modular, integration, functional and other types. After testing, the software is released into production. It is installed on the target server or distributed to end users.

6. Support After the release, the software continues to be maintained and updated. This stage may include implementing updates, correcting errors that occur, providing technical support to users, and responding to requests to change or add necessary features.

It should be noted that in accordance with the List, the first item includes software development services starting from the development stage, i.e. services up to the development stage, namely the preparatory stage for software development is not included in the list of services of the first item of the List.  Consequently, the services provided go beyond the scope of the List, since company "S" received income from services not related to the services of item 1 of the List. 

According to the monitoring results, the Participant who violated the rules of the Fund's activities was prematurely excluded, in connection with the implementation of activities that do not correspond to the mission and goals of the fund, the information was transferred to the authorized body for additional taxes for the entire period of his participation.

The Monitoring Service urges participants to ensure strict control over the activities carried out and receive income within the List and their own production in order to avoid the risks of early exclusion from the Fund and additional taxation.