Company
LOGO
Destination NeXT:Why P@kistan ?Destination NeXT:Why P@kistan ?
2Source: NASSCOM; TBT Analysis for US and India; PSEB Estimates for Pakistani Companies, March 2006
Pakistani labor is cheaper than India.
Operating Costs in US, India, and Pakistan
Total Price in Market
42,927 6,179 4,500
8,571 1,000 800
1,500 2,328 2,000
2,600 847 700
3,000 1,500 1,000
58,598 11,854 9,000
0% 100-200% 100-200%
Personnel
G&A Expense
Telecom
Property Rentals
Depreciation
Total Expenses
Markup
USA India Pakistan
58,598 23,708 to 35,562
18,000 to 27,000
3Source: State Bank of Pakistan, PSEB, BearingPoint Study September, 2005
Major Companies
Pakistan (State Bank Figures)
Rank Companies US$ Million
1 Netsol Technologies 5.26
2 Ovex Technologies 2.93
3 TRG Pvt Ltd 2.23
4 System Pvt Ltd 1.94
5 Elixir Technologies 1.51
6 Descon IT24 Pvt Ltd 1.4
7 Trivor Software 1.2
8 Geopaq Tech. (Pvt.) Ibd 0.99
9 Enterprise DB 0.85
10 Xavor Pakistan Pvt Ltd 0.75
11 LMR Resource 0.73
12 Itim Software 0.53
13 Accountancy OS Pvt. Ltd 0.42
14 Dev Technologies 0.34
15 Avanza Solutions 0.33
16 Streaming Network 0.31
17 Kalsoft (Pvt) Ltd 0.3
18 Innovative Pvt Ltd 0.27
Service Line
• Web Development• Document Management• Telesales /
Telemarketing• IT Consulting• Billing Services• Custom Application
development and maintenance
• Network consulting & Integration
• IT training and education
• Accountancy Services• Packaged software
support and Installation• Application
Outsourcing• Network Management• IT Enabled Services• Product development
and design• Embedded software /
mobile content
BearingPoint estimates that global IT services revenue of Pakistani IT companies is eight times the figure given by State Bank of Pakistan.
4
Share of Export Revenue by Type
Source: PSEB, State Bank of Pakistan, September 2005
0
10
20
30
40
50
60
70
80
2001 2002 2003 2004 2005 2006
Export Proceeds of IT (US$ Million)
Pakistan Market Distributed in 3 Tiers
11 %
20 %
69 %
Tier 1 — (2.5 Million USD +)Tier 1 — (2.5 Million USD +)
Tier 2 — (250K – 2.5 Million USD)Tier 2 — (250K – 2.5 Million USD)
Tier 3 — (Less than 250K USD) Tier 3 — (Less than 250K USD)
5
Active Companies in Major Cities
City # of Operational Companies
Islamabad / Rawalpindi 259
Karachi 368
Lahore 322
Abbotabad 4
Faisalabad 10
Hayderabad 3
Multan 6
Peshawar 19
Quetta 2
Sialkot 7
Others 13
Total 1013
Source: PSEB Survey, July 2006
6
Area of Expertise Total
Financial 192
ERP 159
Animation & Gaming 351
Mobile Content 25
Medical Transcription 14
Legal Transcription 39
Document Management 25
Total 805
Source: PSEB Survey, July 2006
Categorical Analysis of IT Industry
Expertise Wise Estimation
7
Service Line Total
Software Products 167
Software Services 685
IT-Enabled Services 387
Others 175
Source: PSEB Survey, July 2006
Categorical Analysis of IT Industry
Product Wise Estimation
8
Global Exports
Total Industry Size: $ 2 Billion
$1.4 B$600 M
Pakistani IT Industry Size
$ 75 M$ 75 M $150 M$150 M $600 M$600 M
IT Export Revenue Reported by SBP
IT Export Revenue Brought into the Country
Global IT Export Revenue
Domestic Industry
Source: BearingPoint Study September, 2005, IT Revenue Understated – V1.4, August 2006
9Source: SBP, July 2005
Pakistan IT Exports by Region
10
Office Space and Human Resource Growth Patterns of Top IT Companies
Source: PSEB Survey, July 2006
Growth Pattern of Pakistani IT Industry
Combined growth rate
•NCR•IBM•ZTE•NetSol•Touchstone•TRG•LMKR
HR434 %
Office Space418 %
11
Increase in number of IT companies over the last three years [2003-2006]
300 %
IslamabadIslamabad
150 %
LahoreLahore
180 %
KarachiKarachi
City Wise Growth of IT Industry
Source: PSEB Survey, July 2006
12Source: PSEB Survey, July 2006
Area of Expertise # of Employees
Transcription 895+
Telesales / Telemarketing 1200+
Document Management 740+
Accounting 660+
Billing Services 420+
Mobile Content 610+
Web sales / Marketing 1345+
HR Hiring / Administration 430+
Software / solution development 11970+
Web development 7430+
Call Centers 5000+
Total 30700 +
IT Skill-set available in Pakistan
Pakistan offers a wide array of skilled and qualified personnel which can be utilized by foreign companies to reduce their costs. ITES and Call centers is a growing industry in Pakistan and due to better English language competencies, Pakistan can emerge as a leader in this area if the required
service quality levels are met.
13Source: PSEB Survey, July 2006
Critical to Rank Call Center Companies
1. TRG
2. Touchstone communications (Pvt) Ltd
3. Ensign Communique (Pvt) Ltd
4. Altsource Communications (Pvt) Ltd
5. AMZ Access (Pvt) Ltd
6. Astro Outsource (Pvt) Ltd
7. Ovex Technologies (Pvt) Ltd
8. InfoSpan (Pvt) Ltd
9. Quest Marketing
10. Voxel Communication
14Source: PIE, FLAG, PSEB, May 2007
Bandwidth Statistics for Pakistan
Statistics
CC
BB
DD
AA
No. of DSL / Broadband Users
Purchased Bandwidth
No. of Dialup Users
Bandwidth Delivered
2484 MB (PIE + FLAG)10.5 Million
1.5 Million3104 MB (PIE + FLAG)
15
Utilities &InsuranceApplications
Retail Banking and Financial Products
Animation & Graphics
Mobile Content
IT NichesIT Niches
ERPSoftware
DocumentManagement
Medical Transcription
Niches of Pakistani IT Industry
Pakistani Industry specializes in these solution areas
16
World Class Companies
TELECOMWavetech: Large display systems in public
placesInov8: Leading mobile transaction management
platformMobile complete: mobile testing suitePixsense: Mobile Photos
JOB PORTALSRozee.com.pk: Online recruitment solutionPersonforce.com: US Online recruitment solution
DOCUMENT MANAGEMENTeDox: Superior document management and office
automation solution with over 150international customers
17
World Class Companies
PERSONAL PRODUCTIVITY Scrybe: Leading Web based email and calendaring solution
RETAIL ITIM: Fast growing retail solution with over 50 UK customers
SOCIAL NETWORKING Naseeb.com: Muslim social networking portal
18
World Class Companies
FINANCEMixit: Stock Market Order Management, NYSE, USD 0.5 Bil per yearNetSol: Car Leasing and Services. Daimler Chrysler, Toyota, BMWAutosoft: Retail banking Solution running in three countries Metalbid.com: world leading metal exchangeTPS: e-payment and e-banking (Customers: Al Bilad KSA, CBK, BoK, ESB, UBL Kuwait, 1Link, Allied Bank)
ENTERPRISE COMPUTINGUltimus: Business Process Management. 160 international customers including Microsoft & White HouseFive Rivers Technologies: Clear Cube Partner and world leader in fast growing field of centralized computing.
19
World Class Companies
SOFTWARE SERVICESVisualsoft: Hardware and software system integrationKalsoft: Advanced infrastructure design and implementation Averox: Enterprise client/server based solutionSi3: System Integration solution providersTechlogix: Business process improvement solutionsTechaccess: Enterprise management solutions Systems Ltd: IT and BPO servicesPi Sigma Group: Consulting and software developmentComcept: Innovative telecom solution provider
20
World Class Companies
IT ENABLED SERVICESPost Amazers: Animation. “Son of Mask” and “Exorcist : The Sequel”LMKR: Seismological and Geological Data Management. BP, CALTEX, TEXACOiEngineering: Platform Management. Most comprehensive database in the worldTouchstone BPO, Ovex, Infospan, TRG, IT24: IT enabled services/Call Centers