In response to the risk of a digital embargo by US-listed companies for doing business with Iran since the nature of sanctions still continues to remain vague for technology and software companies, Turkish software developers highlighted that the sector will develop its indigenous digital infrastructure. Domestic software developers exporting to 100 countries have announced that they can meet many needs of the local companies.

Local software companies have taken a stance against possible digital embargoes from global software giants that shook the business world. Noting that many important public and private sector organizations are working with foreign companies, sector representatives emphasized the capability of the Turkish software industry to meet the needs of developing digital infrastructure for firms.

Speaking to the Sabah newspaper, German software giant SAP, which is at the center of the discussions, confirmed allegations that it is to cut its relations with companies that engage in trade with Iran. There are also allegations that Microsoft will be added to the embargo, a possibility that is still being discussed. Even though the embargo imposed by the software companies on Iran applies to all countries, this situation will reportedly affect Turkey the most.

CPM Software Chairman Recep Palamut said that software companies contain the most important information, stressing that today, a digital embargo imposed by foreign software companies on firms once again shows how important domestic software is. Palamut stressed the danger created by the fact that all the processes of the companies are in the hands of foreign firms. Palamut said that since taxes are not applied to foreign software companies, Turkey has a loss of tax revenue of TL 1.2 billion ($315.1 million) annually and that it has an export target of $30 billion regarding the current figures.

"We are in a time when we need to reduce our dependency [on foreign] software and the economy as much as possible," Palamut said. "While Turkish software developers are capable of entering the global rankings, receiving services from foreign software companies is a situation that we have to question, especially now in terms of the economy. All public institutions, especially the Turkish industry, must be more sensitive in this regard."

Hüseyin Şahin, the general manager of Uyumsoft Information Systems and Technologies Inc., stated that since the 1990s, Turkey has taken important steps in software development, noting that the Turkish software sector competes worldwide in terms of knowledge accumulation, project management and strategy development.

Saying that Turkish software companies continue to export their solutions to many countries such as China and the U.S., Şahin said that with their software solutions and engineering staff, the Turkish software sector is ready to serve and add value to all sector and sizes of company both in Turkey and around the world.

"With the research and development activities we carried out in software, including our enterprise resource planning [ERP] solutions and our innovation culture, we are ready to serve and take on projects instead of using international solutions," Şahin said.

Şahin stated that the company has achieved hundreds of thousands of success stories, but that unfortunately, they have not been able to show their potential and power enough to date due to the brand pressures and relationship management of global companies. Suggesting that if the public and private sectors further protect the Turkish software sector, Şahin claimed it would then be possible to create world brands from the Turkish software sector and to accompany the growth of companies in trade both domestically and globally.

"We have been successfully serving thousands of businesses with our ERP solutions and e-invoices for 20 years and we will continue to carry this achievement to the world," he declared.

Turkey's domestic software and research and development companies play a crucial role in closing the current account deficit with their new products and systems. Eteration, which was established in 2002 with this target and is located at the İTÜ Arı Teknokent, has offered 100 percent domestic solutions to many world giants operating in Turkey and other countries in Europe and Asia.

Eteration General Manager Suat Eker said that as a domestic and national company, their aim is to reduce imports in this area. "Our motivation to produce independent and domestic projects has become our main mission," Eker said, stating that as of today, they have 50 employees.

"We provide software, consultancy and training services mainly to companies operating in telecommunications, the automotive industry and finance. The most important advantage that we provide is to add agility to them. We are quickly adapting to new technologies and bringing this technology to them," he concluded.

The world's third-largest software manufacturer, Germany-based SAP, was reported to have sent a letter to all its customers in which the company warned against doing business with Iran and said that it will impose an embargo on companies that do. The decision, SAP said, was made by all companies traded on the New York and Frankfurt Stock Exchanges. "We have to take all the measures so that SAP products and services are used in compliance with all sanctions and legislation on the sanctions. In case our partners fail to provide a letter, we will not have a sales contract with them," an SAP executive told Sabah. The fact that SAP has positioned itself as a monopoly in the Turkish market, providing services for many companies, small and medium enterprises in industrial manufacture, jeopardizes the business of these corporations.

The company highlighted that all companies listed on the New York Stock Exchange (NYSE) were required to warn their partners against doing business with Iran.

A recent statement released by SAP highlighted that the company does not interfere with any customer's commercial operations or expansion plans in Iran or any other countries. "The export control rules in some cases simply require approvals to export and use SAP products in certain countries," the statement read with particular emphasis on the obligation to comply with export control regulations and sanctions. This may particularly require SAP partners and service receivers to obtain approval and license to conduct business with countries listed in the sanctions list. "SAP must adhere to these regulations, including laws restricting the sale, export, and usage of SAP software and services," the company said and reiterated its commitment to Turkish customers' digital journey to best serve their operational needs and support economic growth.

Last year, The SAP Compliance Office released an official letter providing guidelines to SAP partners on doing business with Iran. The letter serves as a reminder to partners contemplating doing business with the country in light of several restrictions that are still in place after certain EU and U.S. sanctions were lifted starting Jan. 16, 2016.

"Partners may be prohibited from supplying, distributing or committing to supply, whether directly or indirectly, any SAP Product or parts thereof to any Iranian person, business, company or organization or to any customers which are considered an Iranian person," the letter read.

On Jan. 16, 2016, certain EU and U.S. sanctions against Iran were partially lifted in accordance with an implementation of the Joint Comprehensive Plan of Action (JCPOA) agreed between Iran and the EU, U.S., U.K., Germany, France, China, and Russia.

Notwithstanding these efforts, several restrictions on U.S. persons and the export or re-export of goods subject to U.S. jurisdiction remain in place. Therefore some technology companies refrain from entering the Iranian market.

For instance, Apple announced in August that it will remove apps from access in Iran. "Under the U.S. sanctions regulations, the App Store cannot host, distribute or do business with apps or developers connected to the certain U.S. embargoed countries," the company said.

In March, Chinese telecom equipment maker ZTE agreed to plead guilty and pay nearly $900 million in a U.S. sanctions case.