KARACHI: Pakistan Software Export Board (PSEB) in collaboration with Pakistan Software House Associations (P@SHA) is developing a web-directory to showcase its member companies and generate more business leads for them.
The web directory will be a web 2.0-based portal that will display important messages about the Pakistani IT industry and highlight its achievements. The portal will become the single most important web destination to find out more about the skills of Pakistani IT companies and their capabilities. The directory will be searchable along many dimensions including technology, industry vertical, type of solutions provided and services offered among other things.
PSEB currently is in a process of gathering company information & is also recording CEO Interviews
PSEB promotes the image of the Pakistan IT industry in key markets abroad, enables trade interaction with international parties, and facilitates the entry of multi-national development and support centers in Pakistan
PSEB has initiated the process to revamp its current website. The revamped website will project the support/services that PSEB offers to IT companies/investors and appropriately address the fact that PSEB is a government funded, active advocate of the IT Industry, particularly the overseas investors. The revamped site will adequately outline/market the incentives and services provided by PSEB.
PSEB is a government agency mandated to promote Pakistan’s IT Industry. The IT Industry holds great promise as an engine of economic growth, earner of foreign exchange and creator of jobs. A major initiative of PSEB is to facilitate business development and sales for its companies. In today’s connected economic world, effective web presence is a must for any entity doing business internationally. To facilitate effective marketing, sales and business development for its member companies, PSEB wants to build an effective web 2.0 based member directory and portal.
The third part of this project is to develop short whitepapers on certain industry verticals. Examples of such industry verticals are eHealthcare, Financial Services, Gaming and Animation, BPO and Enterprise Application Development etc. These whitepapers will summarize the capability of Pakistani IT companies in these areas, summarise the problems that have been solved in this industry vertical and mention significant initiatives. staff report
via Daily Times
Pakistani Industry Overview:
The IT and IT-enabled Services (ITeS) marketplace offers lucrative opportunities for developing countries to join the ranks of the developed world. The scale and pace of growth in this sector is faster than in any other industry, and a number of developing countries are attempting to emulate the success enjoyed by countries such as China, Thailand and India.
The Government of Pakistan has been proactively developing the IT sector in Pakistan since the last few years. A few of the incentives offered include tax exemption till 2016, establishment of IT Parks with low rent, foreign ownership of equity invested in IT and 100% repatriation of profit allowed to IT companies.
Pakistan’s IT industry has been rising steadily since the last three years. A marked increase in software export figures are an indication of this booming industry’s potential.
STATISTICS OF THE PAKISTANI IT/ITES INDUSTRY
Total number of IT companies registered with PSEB 1168
Number of substantial IT companies region-wise breakup
- 402 Karachi
- 368 Islamabad/Rawalpindi
- 347 Lahore
- 051 Others
Number of CMMI-assessed companies One CMM Level 5 company, one CMMI Level 5 company, three CMMI Level 3 companies and sixteen CMMI Level 2 companies
Number of IT graduates produced per year Approximately 20,000
Number of universities offering IT/CS programs 110
Number of IT professionals engaged in export-oriented activities (software development/call centers etc.) More than 24,000
Total number of IT professionals employed in Pakistan More than 125,000
Total space utilized in IT & Software Technology Parks
Nine IT Parks covering an area around 700,000 sq ft
PAKISTAN'S IT EXPORTS
The State Bank of Pakistan in its statement for the year 2009-10 reports the export figures of software and IT-enabled services to be US$ 204 million. State Bank of Pakistan adopted BPM 5 reporting system to report the IT exports revenue, which restricted the export figures to US$ 204 million only in 2009-10. In India, the Reserve Bank of India follows the BPM 6 (also called MSITS) Reporting System, which raises its exports to billions of US dollars.
State Bank Reporting Earnings Estimated Total IT Industry Export Revenue
Estimated Total IT Industry Size
US$ 169m US$ 1.4b US$ 2.8b
The World Trade Organization (WTO) lists Mode 3, revenue generated by commercial offices overseas, and Mode 4, compensation received by temporary workers who have traveled abroad, as export revenue streams which must be included in trade revenue calculation. There is also strong evidence to suggest that other countries, such as India, in fact employ global services export figures when reporting or estimating revenue.
The following table describes the four WTO modes for export-in-services recognition. The need for the four-mode model arises because trade in services is much harder to monitor than trade in physical goods. Physical goods pass through air, sea or land ports, and are accompanied by detailed financial and other documentation. Services trade, on the other hand, can be transacted over the Internet, through post, or through travel of personnel, with revenue flowing into company or personal accounts, which can exist anywhere in the world.
Mode Description IT Exports (US$)
1. Cross Border Represents services that are sold by the exporting country to the importing country, with only the service crossing the border e.g. architectural drawings sent by courier, consultant report sent by email, call center support provided over the Internet, or software programs sent over the Internet. USD 242 million
2. Consumption Abroad Represents services sold in the exporting country to foreigners or foreign-owned entities in the exporting country itself e.g. IT services sold to the World Bank, the USA embassy or to one of the 700 multinational companies operating in Pakistan. USD 300 million
(Average USD 250,000 expenditure by over 800 entities)
3. Commercial Presence Abroad Represents the revenue of national firms established abroad, selling services in a foreign market. USD 675 million
4. Temporary Movement Represents services that are sold or delivered through the presence of the service provider temporarily in the foreign market e.g. the annual salaries of all H-1, L-1 and B-1 Pakistani IT workers in the USA. USD 266 million (At least 5000 workers earning at least USD 40,000 per year on average)
The total IT services export from Pakistan in FY 2005 amounts to US$ 1.050 billion, or conservatively US$ 1 billion.
Pakistan offers various competitive advantages over other outsourcing destinations, such as high quality software development, swift and easy establishment of business, lowest cost basis and emerging and state-of-the-art telecommunication and IT infrastructure. Experts estimate an average annual growth of 33% in the sector. This will result in the total IT export revenue crossing US$ 10 billion in the next five years.