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Pakistan’s IT Market - an Insider’s View
Syed Ahmed 


IT industry of Pakistan, like most of other industries is played down at, some even questioning its existence. It’s true that the glittery spot lights received by India are a far cry for a late starter like Pakistan; it can still place itself amongst 2nd tier of emerging countries in world of IT.

Language - Technical Aptitude - Government support, everything is there Yet it seems to miss the mark. So what exactly is the problem? Is it another one of the races where Pakistan instead of getting the top spots, would land into the “Also ran” status? Let’s take a quick peek.

Since Dr. Ata-ur-Rehman took charge for IT, the long due push that he made to the IT scenario was commendable. More than a decade of tax breaks for software exports, huge investments in telecom infrastructure, subsidies in technology parks are some of the steps that have shown the government was serious to support IT industry. This goes to his credit that thousands of students were mesmerized to choose IT as their dream career.

Not everything went in the right direction though. As thousands had been poured into the market to take advantage of the labor arbitrage in global market, the local industry went nose down after the wake of September 11. True to their image, young aspirants panicked and ran in all different directions to other fields, leaving a big hole in quality human resource. Although companies are coming strong in post 9/11 era, the human resource scenario is far from ideal.

Having diagnosed one of the important problems, there are lots of things to cheer for! Local IT industry is getting matured day-by-day. There are corporate players like Elixir, LMKR, NetSol, Ultimus, Si3 that add some value to Pakistan’s image as a viable and serious marketplace. While corporate companies may get Pakistan’s name in international news, yet these are very few in numbers and may be counted on fingers. The future of Pakistani IT industry lies in hands of SME sector.

SME sector currently seems to be serving the corporate companies by indirectly providing trained resources at it’s own cost and working inexpensively for sub-contracted projects. They bubble up every now-and-then to present a pitiable picture of local IT industry enticing government to allocate more and more funds for IT; that are directed yet again to the corporate companies.

Angel investment in Pakistan, as compare to US is non-existent where in USA approximately 30,000 startups get funded by 250,000 active angels. Neither banks are open to invest in startup IT companies nor any considerable government investments. Venture capital companies’ existence is also negligible. Given a level playing field, I still think that entrepreneurial skills of local talent along with technical competence can deliver better than what India has to offer.

We do inherit some of the issues from our society that needs to get washed out. This includes under-selling ourselves for low quality and not understanding value of time; but time itself and productivity have been teaching us well. Our industry has started to understand the international and local market and it seems to adapt quite well.

Some of the indicators point towards the bright side of the picture. Some of these are:

  • Huge demand for more space in software technology parks
  • Sharply increased spending by government and local market in IT
  • IT exports increasing rapidly to reach a billion dollar mark soon

If we can resolve some of the striking issues being faced by our industry and give some time to local industry to flourish, then we are bound to see revolutions in international IT market. If you would doubt me then recall Bill Gates as saying “Any kid with a computer in a garage can put me out of business”.

The writer is CEO and Sr. Software Architect of Digital Prodigy (Pvt) Ltd, an IT consulting and Outsourcing Partner company. He is an ambitious young entrepreneur specializing in healthcare and e-commerce industry. He can be reached at syed@dprodigy.com

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