Pakistan - News and Discussion 6

[Naresh]

<b>Foreign firms eye Pakistan</b>

<b>Software exports jump 50 per cent</b>

KARACHI: The country’s software exports have for the first time crossed $70 million during 2005-06, registering a growth of 50 per cent as more and more western firms are turning towards Pakistan for IT-enabled services to cut costs and raise profits.

Officials and industry players believe the rising export figures indicate Pakistan is fast catching up with rapidly developing software industry and at such rate, the country’s global IT revenue may touch $9 billion by the end of 2009-10.

“The $72 million exports are those recorded by the State Bank,” said Yousaf Hasan, Managing Director Pakistan Software Export Board - a federal body set up to promote outsourcing and software exports. “If you count such numbers independently, which are not documented, these will be far ahead and may be more than double the exports registered every year.”

He said the latest data compiled by the State Bank of Pakistan suggested software exports and service outsourcing reached $72 million during 2005-06 and could hit $80 million or above by the close of fiscal year on June 30.

“It shows software export growth at 50 per cent,” said Hasan. “We managed to surpass growth rate of 2004-05 as in that year exports of software and IT-enabled services reached $48.5 million against $32.88 million during 2003-04.”

The IT industry has emerged as the fastest growing sector this fiscal, mainly supported by phenomenal rise in call centres’ operations during the last two years. More than 140 centres are currently operating mainly in Lahore, Karachi and Islamabad offering employment to around 5,000 people.

Defined as a unit, the call centres have adequate telecom facilities, trained manpower and access to database providing information to customers. The advancement in telecom technology has made it possible that the person handling a call could be anywhere provided that communication and interaction is properly handled.

Growth in business from western companies has inspired local investors to explore new opportunities. Though Pakistan remains far behind India, operators believe they are on the right path now.

“The good thing is that western companies are looking at Pakistan to outsource services,” said Jehan Ara, President Pakistan Software Houses Association. “It’s an important development as after 9/11 local companies faced a tough time in terms of winning business from these companies.”

She said the growth on one hand boosted exports while on the other proved a boon for local skilled workers and professionals, who once had no option but to fly abroad mainly to the United States and Canada to build careers.

“It also saved brain drain to some extent,” said Jehan Ara. “But the potential is much more than what we are getting. So it’s time to plan a comprehensive strategy, which involves operators, regulators and professionals.”

The authorities appeared aware of the approaching opportunities and claimed to spend Rs115.2 million during fiscal year 2004-05, for subsidising various activities of immediate relevance to the industry, like participation in international exhibitions and acquiring quality certifications.

The PSEB says it plans to continue projects it initiated during the last two years and plans more in the new fiscal for the growth of software exports and call centre operations. Industry players say jump in business has also triggered competition among local operators, who now plan more for better marketing and some have designed aggressive plans to win contracts from foreign firms. <b>“Some of our members have set up front offices in the US and other countries to win deals,” said Farrukh Aslam, Coordinator Call Centers Association of Pakistan.</b>

The above is a bit of a come down as an earlier Article gave the following :

<b>Pakistan's exports of software and IT-enabled services are forecast to rise sevenfold to <span style='color:red'>$4.3 billion by 2010, from $600 million in the current fiscal year ending June 30</span></b>

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