Development of the Policy Approach and its Impact in IT sector of Pakistan

Development of the Policy Approach and its Impact-an perspective of Pakistan Software Export Board and its Polices

A policy is typically described as a deliberate plan of action to guide decisions and achieve rational outcome(s). However, the term may also be used to denote what is actually done, even though it is unplanned.
The term may apply to government, private sector organizations and groups, and individuals. Presidential executive orders, corporate privacy policies, and parliamentary rules of order are all examples of policy. Policy differs from rules or law. While law can compel or prohibit behaviours (e.g. a law requiring the payment of taxes on income) policy merely guides actions toward those that are most likely to achieve a desired outcome.
Policy or policy study may also refer to the process of making important organizational decisions, including the identification of different alternatives such as programs or spending priorities, and choosing among them on the basis of the impact they will have. Policies can be understood as political, management, financial, and administrative mechanisms arranged to reach explicit goals.
Policy is define as “ the activities of government and techniques used to make decisions regarding its activities have always been studied through various disciplines with in the social sciences”, over the last three decades there is an increased interest in the analysis of policy in order to understand and improve the decision-making capacity and outputs of the government.
Issues Impacting Policy Development Process
The four issues that can impact the policy are:
1. Universal
2. Advocacy
3. Selective
4. Technical
Now we will discuss them one by one.
Universal Issues
Universal issues affect large numbers of people in all walks of life. The designation of an issue as universal is not permanent; that is. These issues change with logical and economic conditions. Universal issues or problems are viewed as serious and imminent and concern is such that people feel government must intervene.
Advocacy Issues
Advocacy issues stand lower on pubic hierarchy of concerns than universal issues. For much of the population they are often potential rather than actual problems. Advocacy issues are usually introduced and promoted by interest groups claiming to represent board public interests. Although these types of issues don’t initially strike people as critically important and may or may not elicit government action, once a solution is identified large numbers of people may see government action as appropriate.
Selective Issues
Selective issues are those in which special interest groups promoting their own interests attempt to pose as promoting the public interest. These issues are usually matters affecting identifiable special interest groups or populations that may be identified geographic, demographics, occupational or other criteria. The costs of solving problems raised by interest groups for their specific causes are passed on to the public at large, since the solution to the problem in this manner is more or less “free” to the special interest group. Such issues also tend to generate intense commitment and activism for access to the policy agenda and government support.
Examples include the implementation of tariffs that result in higher prices fro consumers, residents living near nuclear waste sites or the use of hazardous materials that are within current acceptable government levels.
Technical
Usually the public has little or no interest in technical issues due to their complex nature and the less visible political attention they receive. Technical issues have no public profile but represent the vast majority of the government’s day to day regulatory activities. The public is very often content to leave to these policy issues to the experts. However when there is a major failure in managing the technical issues such as water contamination or the spread of a virus technical issues can shift into universal issues with public demand for government intervention.





Government Policy Making: Factors of Influence

The legislative system with in which the government operates play a central role in the policy making process.
Legislatures are found nearly in all societies, albeit in different forms. They serve to provide even nominally representative institutions legitimacy in law making by discussing and passing public policies.
Legislatures have some common characteristics which can be used to define them. These include:
A claim on legitimacy based on representing the public or publics
Power over law making
Nominal equality of membership
Processes for collective decision making
Legislatures serve three central functions:
Representation
Law Making
Oversight
Representation
Legislatures are often the branch of government in which popular complaints, dissatisfactions and demands for action are often articulated. In democratic system, the public has greater access to the legislature through their elected representative, over which they have a large claim for action and accountability than they do on other government officials. Legislative proceedings are often also organised to include debate and discussion with the public such as through advisory committees and hearings.
Law Making
Law making is an important tool that formally articulates and translates citizen preferences into policy through enacting legislation. Law making can be a difficult process and usually requires that the differences in public preferences as articulated by various representatives are reconciled. In most legislated bodies, reconciliation of various public interests in law making is carried out through committees. Committee systems provide forums for different groups to express their differences as well as environments that foster compromise and decision.

Oversight
Oversight occurs after a law is passed. It involves monitoring executing activities for efficiency, probity and fidelity.
In parliamentary systems with a dominant majority, oversight tends to be less developed than in presidential systems where different parties can control a branch of the government.
Useful oversight powers include:
The ability to remove executives
The power to get information from the executives
Control of appropriations and expenditures
System of monitoring and assessing the executive branch
Other Purposes/ Functions
Legislatures can also serve the following purposes:
Serving as an electoral college to put governments into power in parliamentary systems
Making decisions when election results are inconclusive or in dispute in presidential systems
Implementing apportionment formulae recognising ethnic, religious, language, gender, economic and geographic differences for representation in the legislature for national integration
Providing an arena in which policy ideas might be incubated

Now we will discuss that how a policy change in government sector particularly in information technology has help many private organizations to help them in growing, generating thousand of jobs and increasing the GNP.
We will study the roll of Pakistan Software Export Board, its Facilitation to new companies.


Pakistan Software Export Board
PSEB is a guarantee limited company with a Board of Directors comprising representatives of the Government, industry associations and the private sector. PSEB is Government-owned, and is mandated to promote Pakistan’s Information Technology (IT) industry. In order to achieve this objective, PSEB undertakes a number of programs:
About 700,000 square feet of IT-enabled space has been leased out to IT companies in PSEB-designated IT Parks, and there are plans to construct several new Parks over the next couple of years.
PSEB also operates one of the most successful quality certification programs in the world, under which 110 IT companies have received International Standards Organization (ISO) certification.
There are a number of human resource development initiatives, including an internship program which has received national recognition for placing 2500 interns within the IT industry – 80% of whom have been permanently employed.
PSEB works extensively with the international and domestic media in order to promote Pakistan’s IT industry, and also subsidizes participation in international trade shows and delegations. Under a new targeted marketing program, Pakistan’s key strengths in animation, call centers, finance, gaming, medical transcription, and other areas will be offered to promising markets.
PSEB also plans to launch a Venture Capital (VC) Fund that will be part of an ecosystem for IT financing. The organization also advocates industry perspectives with a number of Government agencies related to data protection, intellectual property protection, tariffs, taxation, and other areas.
Facilitation activities offered to IT companies include assistance in visa processing, call center certification, software import, and access to a number of PSEB-commissioned, as well as international studies and reports.
All PSEB activities are part of an integrated strategy and action plan whose mission is to achieve fast track growth of the Pakistani IT industry from 2 billion dollars in 2006 to 10 billion dollars by 2010 – including global export receipts, domestic IT services, software and hardware. History
In 1995, it was felt by the Government of Pakistan that to guide and nourish the development of the software industry in the country, and to provide one-stop facilitation on behalf of all ministries, departments and agencies of Government of Pakistan in matters relating to the setting up of the software development and export business in the private sector, an organization needed to be created as no such existing Government of Pakistan Department was providing the said services. It is important to note that, at that period, significant strides were being made by India in this direction.

In line with this realization, Private Software Export Board (PSEB) was established by means of an executive order vide Cabinet Division’s notification dated 12th June 1995. The said notification outlined the composition and functions of the Board. The Board of Directors comprises of seven members, all nominees of the Federal Government. One nominee is traditionally from the private sector. The primary and most significant task entrusted with the board was the formation of a national software policy to facilitate the rapid development of the Pakistan software industry.

The word ‘Private’ in the name of the organization was substituted by the word ‘Pakistan’ by the Ministry of Communication, Government of Pakistan in September 1997. Hence the name became “PAKISTAN SOFTWARE EXPORT BOARD (PSEB)”.

Since PSEB was operating on a small scale and its main activities were limited to company registrations and renewals, limited interaction with the local software industry, and occasionally participation in seminars and international exhibitions, it was realized that opportunities in the IT sector could be better tapped if PSEB were to become a more independent organization. PSEB was incorporated as a company limited by guarantee under the Companies Ordinance - 1984, in June-1998.Major Functions
Undertake research and study on the state of the Information and Communication Technology (ICT) sector and propose strategies for fast track and sustainable development of the Pakistan IT industry including software and services, IT enabled services, and hardware in both export and domestic markets.
Study the laws and regulations of various competitor countries and propose improvements and modifications in Pakistan public policy impacting the IT industry in the light of Pakistan’s requirements.
Register IT companies in Pakistan and propose and provide fiscal, regulatory and corporate incentives and facilitation to them. Act as a one-stop shop to cater to all the needs of an IT company for setting up or facilitating its IT business ventures in Pakistan. Act as a bridge between the private IT companies and the various government bodies.
Work with telecom regulators and operators to reduce broadband bandwidth tariffs and rates and improve quality in order to maintain international competitiveness.
Plan, develop and establish “Software Technology Parks” and IT Parks in Pakistan
Determine human capital requirements of the IT industry and work to address these needs in collaboration with other entities.
Develop and execute a marketing plan to help local software companies reach out to potential clients abroad, attract and facilitate foreign software firms to establish their software development facilities in Pakistan. Arrange the participation of Pakistani IT Industry in domestic and international IT events. Provide protocol, hosting and match-making facilities for foreign delegates and investors. Establish a web portal for customers, investors and companies and prepare and disseminate marketing collateral.
Develop company capability by assisting them in acquiring quality, security and other certifications.
Facilitate company growth by enabling access to equity and debt financing and by fostering an entrepreneurial culture.
Undertake targeted development of sectors like ERP for Small and Medium Industry and Open Source Technologies to boost these sectors and create a snow ball affect.
Management-TeamPSEB is registered as a Guarantee Limited company with the Securities and Exchange Commission of Pakistan. Owned 100% by the Government of Pakistan, it falls within the administrative control of the Ministry of Information Technology, and is governed through a Board of Directors appointed by the Prime Minister. Chaired by the Federal Minister for Information Technology in his ex-officio capacity, the other Directors on the Board include the Chairman of the Export Promotion Bureau, the Federal Secretary IT, the Federal Secretary Finance, the Managing Director PSEB, the President of the Pakistan Software Houses Association (PASHA), and a prominent member of the IT industry, currently Mr. Atif Rais Khan, CEO of LMKR. All the Directors except for Mr. Atif Khan are on the Board by virtue of their official positions and not in their individual capacities.
PSEB obtains funding from three sources:
A direct grant from the Federal Government, in the form of an annual budget.
PSEB also generates some funds through the registration fee that it collects from the IT companies, and also from the sale of bandwidth within the IT Parks that it manages.
PSEB manages projects funded by the annual Public Sector Development Programme (PSDP) through the Ministry of Information Technology. These funds are typically in the range of Rs. 60 million per year.
PSEB employs a core group of about 109 people, with various others being employed on PSDP projects as per the demands of each project. With regional offices in Karachi and Lahore, PSEB’s head office is in Islamabad, which is where the senior management team is located.
Key Financial Points IT in Pakistan

Pakistan’s economic recovery has gained further traction during the fiscal year 2004-05.The Real GDP grew by 8.4 percent in 2004-05 as against 6.4 percent last year and surpassed the target (6.6%) for the year by a wide margin. In service sector export relating to IT and IT enabled services (ITeS) during 2004-2005 accounted for US$ 48.50 million, which is transacted through the State Bank of Pakistan. Whereas the export target for current fiscal year that is 2005-2006 are made for US$ 72.00 million.

Information Technology (IT) is revolutionizing the way, in which we work in evolving business climate. Pakistan is rich in human resource, which constitutes the foundation for any major IT initiative. The technology has emerged as fastest growing sector in Pakistan. During last 10 years, Pakistan has been developing human capital and infrastructure to cope with rapidly advancing IT world.

IT Sector in Pakistan can be categorized in three-sub sectors: Software, Hardware and Communication & Service Industry. Pakistan’s software industry widely seen as “great enabler” that provides an opportunity to play a greater economic role in the fast globalizing world. According to conservative estimates, there are about 350-500 software houses in Pakistan working in local and export market in areas of database management, internet applications, CAD/CAM management system etc.

The software industry can be categorized on the basis of products/ services and market. On product/services basis the industry is focusing on product only, services only and hybrid operations that are both product and services including changes in existing products. On market basis the industry can be categorized as Domestic Focused Local Firms, Export Focused Local Firms, Export Focused Foreign Firms and Dedicated Development Center.

The ability of Pakistan to produce quality software is based on our abundant pool of IT professionals. Pakistan is producing about 5,500 IT graduates annually but there is need to utilize their potential and facilitate their innovations. The online services with unmatched security and superior customer satisfaction are required to enhance market and open new horizon for the sector.

There are only 100 business-to-business (B2B) users in Pakistan compared to 75,000 in Hong Kong, which is top of the list. The business-to-consumer volume is greater but no statistics are available. Just how low narrow the base of B2B business is evident from the fact that the number of B2B users in Sri Lanka is ten-times to Pakistan. Iran has a same number of B2B users it enjoys a better rating than Pakistan as far as infrastructure readiness, awareness/education and investment in the e-commerce is concerned.

As the global IT and IT-enabled services (IT/ITeS) industry matures, quality certifications are becoming critical to success of products and services. PSEB has developed an especially designed incentives program to assist IT/ITeS companies in Pakistan for securing these certifications.

ISO 9001-2000
Capability Maturity Model Integration (CMMI)
Customer Operations Performance Center (COPC)

The Government of Pakistan has provided several incentives to investors for promoting the IT industry in the country. The government has designed IT policy and regulations for the promotion of Information Technology. The Focus areas of Pakistan IT Policy are:

1. Human Resource (HR) Development
2. Infrastructure Development
3. Software Development









INTRODUCTION

Pakistan’s economic recovery has gained further traction during the fiscal year 2004-05. The exceptionally strong growth was strengthened by accommodative macroeconomic policies, growing domestic demand, renewed confidence of private sector, fiscal discipline and competitive exchange rates. During the year 2004-2005 Pakistan’s economy extended in all three major components namely, agriculture, manufacturing and services. The Real GDP grew by 8.4 percent in 2004-05 as against 6.4 percent last year and surpassed the target (6.6%) for the year by a wide margin. The growth in year 2004-2005 is supported by a healthy performance in large-scale manufacturing (15.4%), impressive recovery in agriculture (7.5%) and a strong growth in services sector (7.9%).

Service sector is one of the major contributor of country’s growth, grew by 7.9 percent in
2004-05 aided by remarkable growth in finance and banking sector (21.8%), wholesale and retail trade (12.0%); and a modest growth in transport and communication (5.6%). The per capita income in dollars has grown at an average rate of 13.5 percent per annum during the last three years rising from $ 579 in 2002-03 to $ 657 in 2003-04 and further to $ 736 in 2004-05.

Exports were targeted to grow by 11.3 percent in 2004-05 rising from $12.3 billion last year to $13.7 billion this year, thereby registering an increase of $1.3 billion in absolute terms.

One-half of the net increase in exports amounting to $651 million has come from the non traditional exports items, followed by 27 percent from other manufactures and 13.4 percent from primary commodities exports.

1. Information Technology

Information Technology (IT) is revolutionizing the way, in which we work in evolving business climate. In a short period of three decades, computer science has developed from branch of electronics to one of the largest engineering disciplines itself. The reason for the rapid growth in the demand for software development is lead by the widespread use of computers in everyday life, evolution of high-powered general-purpose computers and low cost of maintaining, debugging of software products. The potential in the field of software development is still growing worldwide.

Pakistan is rich in human resource, which constitutes the foundation for any major IT initiative. The technology has emerged as fastest growing sector in Pakistan. During last 10 years, Pakistan has been developing human capital and infrastructure to cope with rapidly advancing IT world. The Government is fully aware of IT being the driving force in the new millennium. Presently, IT industry is in take off stage and catching up with regional and global industry. Pakistan is also sharing internationally in IT. Pakistan is in best position to take on the challenges in the global market. IT Sector in Pakistan can be categorized in three sub sectors:

Software Industry
Hardware Industry
Communication and Service Industry


1.1 Software Industry

Pakistan’s software industry widely seen as “great enabler” that provides an opportunity to play a greater economic role in the fast globalizing world. According to conservative estimates, there are about 350-500 software houses working local and export market in areas of Database management, Internet applications, CAD/CAM management system etc.

A detail survey of Pakistan software market based on top leading 60 software houses representing the total software market. It shows that there are over 4,000 technical and professional employees with an average of 66 employees in an organization. Out of these software houses 32% of the software companies reporting annual revenues of more than a million dollar with some reporting more then $5M, another 36% between $200K and $1M, and the rest 32% less than $200K. On the whole these companies had experienced an employment growth of about 27.5% and a revenue growth of 37.4 % over last year.

These companies derive their revenues from export and domestic markets in a ratio of 60:40. On the exports side, they derive 22.5% revenues from products and 38.5% revenues from services. The majority of the product-exports are “customized” rather than “shrink-wrapped” products. On the domestic side, however, the ratios are somewhat reversed with products and services contributing 23% and 16.5% respectively. The industry is serving the private sector markets with around 85% of the total sales going to private sector (local and foreign combined) and the rest going to public sector, equally divided between domestic and foreign.

1.2 Hardware Industry

Computer hardware industry can be defined as design, development, manufacturing and maintenance of all products, components that form building blocks of an IT infrastructure. Computer hardware manufacturing is extremely capital intensive industry. Presently, there is no state of the art hardware manufacturing activity in Pakistan because imported hardware components are available in abundance and on cheaper rates. Especially after the emerging in China as a big computer hardware manufacturer & supplier, the prices of hardware components have been reduced.
In this scenario, the computer hardware manufacturing facility in Pakistan is not currently available and feasible. Mostly the computer vendors are assembling the imported parts and components but some companies like INBOX, RAFFLES, MICRO PAK etc. have developed organized assembly lines and are producing small components like casings of PCs.




Following categories included in the scope/definition of hardware industry:-

Computing Devices: Desktop Computing Devices, Servers and Mainframes, Work
Stations, Mobile Computing Devices including Hand-held computing devices
Computer Mother Boards and Cards including: Computer Processor, Mother
Boards, Mother Board Cards/Chips, Device Interface and Controller Cards
Other Computer peripherals (input/output device): Computer Monitors,
Keyboards, Mouse, Digitizers, Pointing Devices, Printers & Plotters, Scanners of all kinds, Multi-Media Kits, Gaming Devices, All kinds of computer output devices.
Computer Networking Products: Hubs, Routers, Networking Switches, Computer
Networking Connectors, Fiber Optical Cables and networking accessories like,
Connectors, Patch Panels, Back Boards, Wiring Block, Surface Mount Boxes
Power Suppliers for Computing Devices: Switch Board Power Supply,
Uninterrupted Power Supply (UPS)
Storage Devices Including: Magnetic Hard Disk Drives with Controllers, Floppy
Disk Drives, CD Rom Drives/CD Read-Write Drives, Digital Versatile Drives
(DVDs), Back Up Devices like Tape, DLT, ZIP, RAID Drives etc.
Consumables: Floppy Disks, Writable/Re-writable CDs, Backup Media like
Magnetic Tapes, Optical Devices, ZIP/ZAP Disks, Toners/Ink Cartridges/Ink for
computer output Devices
Computer Communication Equipment: Multiplexers, Modems including Cable
Modems, Wireless Datacom Equipment – including Set top boxes for Video and
Digital Signaling, Computer Interface Equipment with the Hand-Held Devices like
Pagers, Mobile Cellular Phones etc.

1.3 Communication and Service Industry

Pakistan IT industry equipped with modern and rapidly expanding telecommunication system with highly skilled and economical work force. Total 1900 cities/towns/villages have been provided Internet facility and total telephone lines installed by March 2005 were 5.5 million as against 4.4 million up to June 2004 last year.8 Pakistan’s Tele industry is growing at a reasonable steady pace since last decade. PTCL is playing a leading role in promoting telecommunication sector in the country. Its achievements are significant in last three years. It added about one million new fixed lines and established Ufone, a new GSM company.





2. IT POLICY AND GOVERNMENT REGULATIONS:

The government has designed IT policy and regulations for the promotion of Information Technology in the country, which express that ‘the Government shall be the facilitator and enabler to encourage the private sector to drive the development in IT and Telecommunications’.

2.1 IT Policy

The vision of the Policy is to harness the potential of Information Technology as a key
contributor to development of Pakistan and the broad-based involvement of the key
stakeholders. The Focus areas of Pakistan IT Policy are:

Human Resource (HR) Development for the local IT industry to position as an important
player in the international IT market.

Infrastructure Development: For world class-enabling infrastructure and a series of IT
Parks and Incubators across the country would be established.

Software development Integrated efforts to develop software industry with focus on exports (in addition to the local market) would be undertaken. This would include encouragement of local software houses in Governmental projects, local content development, Urdu and regional language software development, promotion of software exports through establishment of international marketing network, special bandwidth rates for software exporters, encouraging joint ventures, hiring of international consultants for global business development and fiscal and regulatory incentives for software exporters through state bank of Pakistan.

Hardware Industry Development: Focus on developing the areas that are within Pakistan’s reach, in terms of technology and resources and in which the country could have a competitive advantage which include the waiver of duties and taxes on the hardware, incentives to reduce the cost of raw material and inputs, encourage fund research and development in the universities and engineering colleges through faculty chairs, matching grants and focused joint projects.

Internet: To encourage competition, avoidance of un-necessary regulations, provision of low cost, reliable and broadband internet access, universal internet access in the areas connected with the telecom network, free internet access for public sector, universities and support for the development of national internet content.

Incentives: Invest in various fiscal and non-fiscal incentives to nurture, develop, and promote the use of IT in organizations, promotion of venture capital industry financing by the banks and DFIs, creation of investment friendly environment, changes in rules to allow the technology companies to be listed on stock exchanges of Pakistan.
IT Promotion & Awareness: A massive IT promotion and awareness campaign that
includes provision of continued support and funds by the Export Promotion Bureau (EPB) for the participation in world IT/computer trade fairs, exchange of delegations, posting of IT specialists in Embassies and Commercial Consulates, promotion of IT use by the head of the government, ministers, and all other key figures.

IT Usage: To embark on an aggressive program to improve efficiency and provide quality
services to the citizens of Pakistan, IT would be inducted at all levels of government. Key
projects thus launched would include government online, electronic governance project and e-commerce network.

Legislation: To provide protection and enhance the confidence of users, providers, and
facilitators of information services, legislation based on the recommendations of the working group comprising. Take actions in the areas of digital signature act, Intellectual property & copyright act and the consumer protection act.

Regulations: Concentrate on regulatory framework to avoid violating policy. It would be
ensured that excessive regulations do not stifle industry investment and growth.

Action Plan: It is an integral part of the IT Policy. The action plan provides a framework for implementation of the IT policy which includes priority areas, specific projects that can be conceptualized, formulated, assessed, prioritized and implemented. Eleven working groups in respective areas working on devising IT policy and action plan:

Working Groups for IT Policy

i. HR Development, Training and Education ii. IT in Government and Databases
iii. IT Market Development and Support iv. IT Fiscal Issues
v. Telecomm, Convergence and Deregulation vi. Cyber Laws, Legislation and IPR
vii. IT and Telecom Manufacture and R&D viii. Internet
ix. Software Export x. E-Commerce
xi. Incentive for IT investment













3. Government Regulations

a) Custom Duties and Taxes

Government of Pakistan has given tax exemption on the income from export of computer software and related services. As per the 2nd schedule - exemptions and tax concessions of the Income Tax Ordinance Clause 133:

"Income from export of computer software and its related services developed in Pakistan: provided that the exemption under this clause shall not be available after the 30th day of June, 2016."


b) Import Procedure

Software houses/companies are exempt from customs duties and leviable taxes on import of hardware/software tools, which are not manufactured locally, and to be used for software development and export purposes. Central Board of Revenue (CBR) Notification No. SRO 358 (i) /2002 for a complete list of equipment exempted can be seen in customs import tariff.

c) Realization of Export Earnings

Pakistan Software Export Board (PSEB) had approached the State Bank of Pakistan (SBP)
for evolving a procedure for realization for export earnings by the software houses/companies for export of software. Accordingly, the State Bank of Pakistan has evolved a procedure, and issued Circular No. 2/FEB.1 (51) Software-96 in this regard. A software house/company must be registered with PSEB and the State Bank of Pakistan, in order to realize its earnings and to avail Export Finance/Refinance Scheme.

d) Export Finance/Refinance Scheme

The State Bank of Pakistan had allowed a financing facility under the Export Finance Scheme for export of computer software by the software houses / companies. Exports in such cases are required to be made according to the procedure laid down in Circular No.2/FEB.1 (51) Software-96.

The State Bank of Pakistan has issued Circular No. 23 and laid down the rules and procedures for getting finance / refinance facility for export of software by the software houses/companies. Subsequently State Bank of Pakistan has issued a Circular No.13 of 2000 allowing banks to accept the contract/export order as collateral for bank borrowing under the Export Finance Scheme.



e) Grant of Work Permits to Foreigners
The Government has decided to simplify procedure for grant of permission to expatriate
foreign personnel to work in Pakistan.

4. Market Analysis

Market Demand

The Market demand is moving upward due to the fact that the country’s financial
community—the business houses, investors, and business managers—are learning how to manage the IT and the IT professionals are learning how to manage the “business” parts of the IT business. Pakistan’s market demand can be viewed by Last year growth at around 37% in revenue and 27% in terms of technical and professional employment. Another encouraging sign is the increasing number of Pakistani owned foreign firms being located to Pakistan as well as the reverse brain drain caused by returning Pakistani entrepreneurs who see the relatively less competitive and virgin market at home as a tremendous opportunity for setting up a Pakistan based company.

IT industry had been recognized by global IT companies as being a rapidly growing Market place, and this is reflected by the fact that companies such as Cisco, Motorola, and others have recently set up their corporate offices in the country, to cater for the growing demand. Overall IT market size far exceeds expectations, and that the opportunities being created both in the public as well as the private sector indeed were very exciting.

The demand in the market exists for the following solutions and services.

 Financial and Leasing Solutions  Banking, ATM Solutions
 Inventory, Payroll and Marketing Solutions  Retail Store Systems
 Mortgages, Portfolio Management  Call Center Automations
 Health Care Solutions  VOIP Billing
 Manufacturing and ERP Solutions  Traveling and Hotel Management System
 Project Management and Business Intelligences
 Human Resource Solutions


5. GAP Analysis or Opportunities in Market

The following opportunities are present in IT Sector of Pakistan:

Development of packaged software
Quality training and development of specialized human resources
Re-engineering and computerization of government/public sector and private sector organizations installation of network (LANS, WANS, etc)
E-information switch over to Urdu as a computer language
Reorganization and growth of communications infrastructure
Foreign exchange earning potential utilization of available educated human resources pool unlimited e-commerce potential
Global and domestic Internet explosion
World-wide growth and lowering of cultural barriers due to the use of the internet and
Government drive for documentation will provide growth opportunities
Entertainment potential of IT and the internet


6. Project Concept

The project has concept of export oriented software development house with corporate
presence in Lahore, Pakistan and International market target major in USA or UK to utilizes the cutting edge technology and offer full range of business application solutions for the corporate, financial and industrial sectors. The Project's strategic vision will be provide the clients with quality systems to stimulate their growth in the existing competitive markets.

Three important aspects are being considered while developing the project:

1. Robust, and extensible architecture and design
2. Good software quality
3. On-time delivery

The planning to achieve these objectives required;

Employing a highly professional and experienced staff in all aspects – project
management, architecture, design, development and QA

Ensuring continuous personal and professional growth through on-going training

Having a well-developed organization structure, and well-defined responsibilities
With in the company in order to ensure good teamwork, coordination, and timely product delivery