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Page 1: NetSol Technologies Limited, Change management project.

Final Project NetSol Technologies limited

Introduction

This project is made to understand, experience and to get the practical knowledge that how

the Change is important on each and every step of any organization. This project includes

introduction of NetSol Technologies Limited, Change pursued by the NetSol Technologies in

Security Standards demanded by local and especially foreign customers. We mainly focus

change implemented by NetSol in its security standards. Our basic objective in this particular

assignment is to know how NetSol implemented the change. We visited the head office of

NetSol Technologies Limited Software Technology Park, NetSol Avenue Main Ghazi Road,

Lahore Cantt, Pakistan and we gathered information from Mr. Imran Zaheer (Associate

Software Architect) & Mr. Sajjad Hussain Kirmani (Executive Director) regarding the

Change adopted by NetSol Technologies in their Security Standards.

| www.netsolpk.com | [email protected] 1

Page 2: NetSol Technologies Limited, Change management project.

Final Project NetSol Technologies limited

PrefaceFirst of all thanks to almighty Allah who gave us the strength, courage and sense to acquire knowledge, wisdom to differentiate and without his mercy and help we would not have been gone through this report.

We really appreciate the support and guidance that our teacher Prof. Sohail Saleem provided us during the completion of this report.

We would like to thank all the participants and respondents in the study that helped us completing our report and those who allowed us to undertake the change pursued by NetSol Technologies Limited.

We also acknowledge our families who supported and helped us when we were engaged in this project.

In the end we wish to express sincere acknowledgement of the many contributions who are thinking from many sources and we take responsibility for any remaining deficiencies and omissions.

| www.netsolpk.com | [email protected] 2

Page 3: NetSol Technologies Limited, Change management project.

Final Project NetSol Technologies limited

Introduction to NetSol

Technologies Limited

NetSol Technologies, Inc. (NASDAQ CM: NTWK) (NASDAQ DUBAI: NTWK) is a

worldwide provider of global business services and enterprise application solutions. Since its

inception in 1995, NetSol has used its BestShoring™ practices and highly experienced

resources in analysis, development, quality assurance, and implementation to deliver high-

quality, cost-effective solutions.

Specialized by industry, these product and services offerings include credit and finance

portfolio management systems, hospital/healthcare information management systems

(HIMS), SAP consulting and services, custom development, systems integration, and

technical services for the global Financial, Healthcare, Insurance, Energy, and Technology

markets. NetSol's commitment to quality is demonstrated by its achievement of the ISO 9001,

ISO 27001, and SEI (Software Engineering Institute) CMMI (Capability Maturity Model)

Maturity Level 5 assessments, a distinction shared by fewer than 100 companies worldwide.

NetSol Technologies' clients include Fortune 500 manufacturers, global automakers, financial

institutions, utilities, technology providers, and government agencies. Headquartered in

Emeryville, California, NetSol Technologies has operations and offices in Adelaide, Dubai,

Beijing, Bangkok, Lahore, London, and Los Angeles.

Sole Mission at NetSol Technologies is to use their top-down dedication to the highest

ethical principles and quality standards, their worldwide domain and subject matter expertise,

their incomparable BestShoring™ methodology, and their proven track record to give you a

truly cost-effective solution that not only meets, but surpasses your needs.

Board of Directors

Salim U. Ghauri Chief Executive & Chairman

Najeeb U. Ghauri Non-Executive Director

| www.netsolpk.com | [email protected] 3

Page 4: NetSol Technologies Limited, Change management project.

Final Project NetSol Technologies limited

Naeem U. Ghauri Non-Executive Director

Irfan Mustafa Non-Executive Director

Shahid Javed Burki Non-Executive Director

Sajjad Hussain Kirmani Executive Director

Zahid Bashir Mirza Executive Director

Rehmat U. Ghauri Alternate Director

Ayub Ghauri Alternate Director

Company Secretary

Boo-Ali Siddiqui

Audit Committee

Najeeb U. Ghauri Chairman

Irfan Mustafa

Sajjad Hussain Kirmani

Head - Internal Audit

Imran Ahmad

Auditors

Kabani Saeed Kamran Patel & Co.

Chartered Accountants

321 - Upper Mall, Lahore

Legal Advisor

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Page 5: NetSol Technologies Limited, Change management project.

Final Project NetSol Technologies limited

Corporate Law Associates

1st Floor Queen's Centre

Shahra-e-Fatima Jinnah, Lahore

Bankers

Askari Bank Limited

United Bank Limited

Bank Al Falah Limited

JS Bank Limited

IGI Investment Bank Limited

First National Bank Modaraba

Innovative Investment Bank Limited

Share Registrar

Vision Consulting Ltd

3-C, LDA Flats, Lawrence Road, Lahore.

Tel: +92-42-6375531, 6375339

Fax: +92-42-6374839

Registered Office

NetSol Technologies Limited

Software Technology Park, NetSol Avenue

Main Ghazi Road, Lahore Cantt, Pakistan

| www.netsolpk.com | [email protected] 5

Page 6: NetSol Technologies Limited, Change management project.

Final Project NetSol Technologies limited

Tel: +92-42-111-44-88-00, 5727096-7

Fax: +92-42-5701046, 5726740

Web Presence

www.netsolpk.com

[email protected]

NetSol Technologies

History

NetSol Technologies was founded in 1995 as a global provider of software and business

services solutions. They are proud to have achieved the ISO 9001, ISO 27001, and CMMI

Maturity Level 5 assessments, a distinction shared by fewer than 100 companies worldwide.

Their premium suite of asset-based leasing software, LeaseSoft (now part of the NetSol

Financial Suite) recently won APICTA's "Best Financial Industry Application" award for

2007. NetSol has also received the 2004-2005 "Best Software Exporter Award" from the

NCR National IT Excellence Awards.

With the addition of the lease, loan, and asset enterprise solution software LeasePak (also

now part of the NetSol Financial Suite), NetSol gained LeasePak's 35+ years of proven

functionality for the Financial industry and significantly deepened its domain and subject

matter experience with LeasePak's expert staff.

In June 2008, NetSol Technologies became the first U.S. company to dual list on both the

Nasdaq Capital Market and Dubai International Financial (DIFX) exchanges (now Nasdaq

Dubai), supporting strategic mission to further expand their brand visibility and investor base

in the United Arab Emirates (UAE) and broader Middle East region.

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Page 7: NetSol Technologies Limited, Change management project.

Final Project NetSol Technologies limited

Most recently, NetSol aquired its SAP® Practices division, adding a robust line of SAP

products, consulting, training, and staff augmentation services to their offerings.

NetSol believe that within all their clients are the potential of achieving the very best

solutions now and in the future to promote their growth and excellence. Towards this end,

they dedicate themselves to employing their resources and expertise to create the state-of-the-

art framework today that will deliver on tomorrow's capabilities.

Vision Statement

Mr. Salim Ghauri, Chairman and CEO NetSol Technologies Ltd, commented, “Our vision is to become a leading digital security organization in Pakistan providing support in securing the digital boundaries of Pakistan”

Mission Statement

Deliver high quality, innovative and best-in-class IT solutions and services to help our

customers achieve their business objectives and operational efficiencies.

Values

We care for our employees who are our most valuable asset. We offer our employees a

challenging and harmonious work environment where we encourage everyone to work to

their utmost potential.

We will always aim to develop long lasting relationship with our customers by delivering

value for their investments.

Our workplace will be an environment of great learning, extraordinary customer service,

consideration for our colleagues and self-development. A place where we are happy to spend

our working days.

We will be diligent expending company resources. We'll use them to serve our clients better

and perform our roles more effectively.

While we grow in size and scale, we will continue to improve our quality of service delivery.

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Page 8: NetSol Technologies Limited, Change management project.

Final Project NetSol Technologies limited

We will work tirelessly to grow in efficiency and productivity using best practices,

innovation and imagination.

As we are a global Company, we'll respect every other culture, religion and embrace the

change & the challenges that come with such diversity.

Behavior

While we grow in size and scale, we will continue to improve our quality of service delivery.

We will continue to invest in training in Quality.

We'll grow quality initiatives with better “Best Practices” and more quality accreditations

We'll implement better tools for measuring quality both in production and Customer Services.

Quality is not a domain with the few chosen ones but is a responsibility of all.

We'll not pass the buck to the “Quality People” when we can see and address deficiencies

Services Portfolio

Industries they serve:

Lease & Finance

Manufacturing

Health

Banking

Education

Information Technology

Insurance

E-Government

Defense

Services they offer:

Application Development & Maintenance

Technology Outsourcing

| www.netsolpk.com | [email protected] 8

Page 9: NetSol Technologies Limited, Change management project.

Final Project NetSol Technologies limited

IT Consulting & BPR

System Integration

Software Process Consulting

Business Intelligence Consulting

Information Security Consulting

Product Based Solutions

Education

Major Customer

Global:

Mercedes Benz Leasing Thailand

Mercedes Benz Auto Finance China

Mercedes Benz Financial Services Australia

Mercedes Benz Financial Services Taiwan

Mercedes Benz Services Korea

Mercedes Benz Services New Zealand

Mercedes-Benz Finance Company Japan

BMW Financial Services China

BMW Hong Kong

Yamaha Motors Finance Australia

Toyota Leasing Thailand

Toyota Motor Finance Company China

UMF Singapore

Australian Motor Finance

CNH Capital Australia

Finlease Company Limited Mauritius

Al-Amthal Leasing Saudi Arabia

FIAT Motors China

Nissan Motor Company Limited China

Innovation Group UK

| www.netsolpk.com | [email protected] 9

Page 10: NetSol Technologies Limited, Change management project.

Final Project NetSol Technologies limited

Local:

State Bank of Pakistan

Information Technology Department, Punjab

General Head Quarter, Rawalpindi

Electronic Government Directorate, Ministry of IT

Excise & Taxation Department, Islamabad

Command & Staff College, Quetta

Ministry of Health, Government of Punjab

MCB Bank Limited

Highnoon Laboratories Limited

Pakistan Military Academy, Kakul

USAID

Punjab Rural Support Program

Punjab Assembly

Competitors

Neither a single company nor a small number of companies dominate the IT market in the

space in which netsol competes. A substantial number of companies offer services that

overlap and are competitive with those offered by NetSol. It has a huge number of

competitors in IT industry some of which are listed here:

Local direct and indirect competitors

Trg Pakistan.

Techlogix.

Cybernet Pvt. Ltd

Kabbot international Pakistan.

Foreign direct and indirect competitors

International Decisions Systems, Inc.,

McHugh Systems, Ltd

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Page 11: NetSol Technologies Limited, Change management project.

Final Project NetSol Technologies limited

Data Scan, Inc

CresSoft Pvt Ltd.,

Systems Limited.

Tenhill Plc

SouthPac Australia.

HCL (India)

InfoSys (India)

PartnersOracle

Microsoft Gold Partner

IBM Business Partner

Sun Microsystems

HP DSPP Partner

Innovation Group

SAP

Business Objects

GE

Software Engineering Institute

Thales Raytheon Systems

IBM- Internet Security Systems

Kaspersky Lab

Shaukat Khanum Memorial Cancer Hospital

| www.netsolpk.com | [email protected] 11

Page 12: NetSol Technologies Limited, Change management project.

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Page 13: NetSol Technologies Limited, Change management project.

Final Project NetSol Technologies limited

SWOT Analysis

HelpfulTo achieving the objective

HarmfulTo achieving the objective

Inte

rnal O

rigin

Att

ribute

s of th

e o

rganiz

ation

Strengths

Excellent financial strengthCompany with a vision to become a billion $ company.First organization to achieve SEI CMMI Level 5 assessment in Pakistan.Increasing market shareproducts and services qualitySound organizational structureHighly skilled IT labor forceA large number of blue chip clientsStrong PR and corporate linkagesLargest exporter in IT industry of Pakistan

Weaknesses

Improper use of strategic conceptsHigh employee turnoverIneffective market segmentationLeast focus on brandingLeast focus on Pakistani marketIneffective promotion and advertisement policiesInsufficient MIS facilitiesLimited R&D facilitiesUnclear career pathsPoor rewards and benefits structure

Ext

ern

al O

rigin

Att

ribute

s of th

e o

rganiz

ation

Opportunities

Need of e-governance solutions in both the government and the corporate sector of Pakistan.Expansion in global computer software market.International organizations are outsourcing their IT operation in Pakistan.Tax exemption until 2016, the establishment of IT parks with low rent, foreign ownership of equity invested in IT, and 100 percent repatriation of profits for IT companies.Immense business sector growth in china.

Threats

Global economic turmoil and its severe effects on Pakistani economy.Competitors around the globe.Copy rights and patent violations.Brain drain faced by Pakistan.Inconsistent IT policies formed by government of Pakistan.Hacking and other illegal and unethical practices.

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Page 14: NetSol Technologies Limited, Change management project.

Final Project NetSol Technologies limited

What was needed to be

changed?

Previous processes that did not meet the security standards demanded by local and especially

foreign customers were needed to be changed with a secured process that does not hurt

privacy of information regarding customer’s corporate activities.

How was the need for change

identified?

As major clients of company are from financial sector and as we know that the data from

financial sector is the most confidential data. So this was the need of time,

Secondly with the passage of time the cyber crimes have increased so in international market

people are very conscious about the secrecy and confidentiality of their data.

Why important to change?

Without information security management system (ISMS), it was very difficult for NetSol

Technologies to convince their customers. It was very important for marketing and was a

requirement of ISO 27001:2005 standards as well. Information security management system

enabled their employees to work according to specified procedure and was expected to

reduce the efforts for training newly appointed employees.

Forces for change:

Main forces we assessed that stimulated the idea for change were as follow:

Rapid growth in technology.

Heightened competition in the market.

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Page 15: NetSol Technologies Limited, Change management project.

Final Project NetSol Technologies limited

Increased demand of productivity,

Requirement for integration of available information

Increased levels of customization.

To gain more market share.

Ensure the security of client’s vital information.

Challenges:

Data secrecy, ensuring privacy of client, fool proof security at work place and adjusting new

employees in company’s working environment were major challenges to the company.

Bottlenecks:

Company’s processes previously were not in way to ensure the security of the information.

Due to lack of defined processes employees were not trained to meet security standards

described by ISO 27001.

Major Change In system limited:

They had introduced the “INFORMATION SECURITY MANAGEMENT SYSTEM” in their

BPO division. This change was introduced in 2007 and it was authorized by complete group

including the CEO, MD, CFO and Director.

Information Security Management System (ISMS)

“An information security management system (ISMS) includes all of the policies,

procedures, plans, processes, practices, roles, responsibilities, resources, and

structures that are used to protect and preserve information. It includes all of the elements

that organizations use to manage and control their information security risks.”

(Ref: ISO 27001:2005)

This Information Security Management System conforms to the world class ISO 27001 and is

applicable in four major areas:

1. Physical Security 2-Personnel Security

| www.netsolpk.com | [email protected] 15

Page 16: NetSol Technologies Limited, Change management project.

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3- Network Security Management 4-Access Controls

Goal of Change

At NetSol Technologies their goal is to exceed their customers’ expectations by timely

delivery of state-of-the-art software solution -- a solution that would translate their needs into

increased productivity and profitability. Major goal was to implement the ISO 27001

practices and pass the certification for it. Then the market requirement, business needs,

customer needs and the quality of system were focused. The major intent was to define

Simple and realistic goals which can be achieved in specified time and can be measured as

per defined measurements.

Among their goals were:

To make their system fool proof, and with minimum possible virus attacks.

To make all employees to be security conscious that even if they do not monitor the system it

remains secure with zero unauthorized attempts to secure data.

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Page 17: NetSol Technologies Limited, Change management project.

Final Project NetSol Technologies limited

How we can differentiate the

previous state of the

organization before the change

from current condition?

They did not change a lot, they already had quality management system in place and they are

CMMI Level 3 certified organization, they had many controls in place earlier, but now they

have better management of these controls, the records for all activities are kept and the

security of data is more focused now. The secrecy and confidentiality of customer data is

grown stronger now.

Compatibility of change to

organizational culture

Introduction of the change is one of the most difficult activities in organizational culture;

people are always reluctant to change, especially when there is installation of cameras

identification devices at entry points, making restricted areas secure and locked.

So the most difficult thing was to change the behavior of people but employees are very

cooperative and hardworking.

The culture of organization is autocratic, tasks are assigned by the top management and the

employees have to work accordingly to complete the project before the deadlines.

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Page 18: NetSol Technologies Limited, Change management project.

Final Project NetSol Technologies limited

When information security management system (ISMS) was introduced into the system then

employees have to perform task under some procedures, so it was according to the culture

because they were already working according to some defined procedures.

Type and techniques of change

This was organizational development change. Unfreezing technique was “ restructuring and

burning plat form” as organization’s processes were designed to ensure a behavior change

while the Transition technique was “ whole system planning and education” as every

department was involved to ensure and implement information security and as Refreezing

technique was “institutionalizing and burning the bridge” as the change was built into the

formal systems and structure.

How change was incorporated?

To achieve above described goals NetSol Technologies adopted Quality Management

Procedures that include well-defined management and software development processes and

mechanisms for continuous improvement of their products and services.

They also focus not only on the professional growth of their human resources but also on

their working environment. This helps them to attract and retain the best professionals and

keep the company abreast of innovations in technology.

Involvement of vision

The vision of NetSol technologies is to be recognized by its customers, employees,

stakeholders, vendors, partners and competitors as the number one Software house and IT

enabled services provider in Pakistan. It is focusing on security of data (change) to remain

best choice for its customer.

Change plan

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Page 19: NetSol Technologies Limited, Change management project.

Final Project NetSol Technologies limited

How was change planned?

Complete planning process was done including SWOT analysis, framing reframing,

individual analysis, team session, development of action steps, collate action steps, and brain

storming.

Change manager first of all after identifying problem of insecurity of customer data, through

using SWOT analysis, in a briefing session with teams from different departments of

company described all details regarding following issues:

What actions does this issue require?

What detail must be included?

(e.g; need of employees, technology requirements like cameras and software,)

How this should be communicated?

Who is responsible to do what? By when?

How action will be monitored?

How was the change

implemented?

It followed the complete cycle of change management i.e. freezing, transition and refreezing.

They hired international consultants for this purpose, which helped them starting from the

GAP analysis till the Stage B audit.

Individual teams from each department were formed and assigned a specific task to make

change effective within their department. Through above described communication strategies

message is delivered effectively. Their performances are checked through internal audit

conducted on quarterly basis and all issues causing hurdles in change implementations are

reported to higher authorities for timely actions.

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Page 20: NetSol Technologies Limited, Change management project.

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Challenges faced during

implementation

Cost was a major factor during the entire change to purchase all infrastructures, hardware,

software and security devices.

How was change Reinforced?

They have replaced previous procedures with new processes, hence depletion of old

techniques and introduction of totally new ones does not allow people to return back to work

in insecure working conditions, permanent bonding with new process is developed. Monitory

rewards are also attached with working perfectly in changed environment.

Communication System

Management has clear insight in the communication system. Communication network is

hierarchal so highly formal in nature. Information moves in both downward and upward

directions without bypassing any link in the network.

Following strategies are being followed to communicate a clear cut message throughout the

organization:

Public address /written memos lower level employees.

Briefing sessions middle level managers.

One-to-one directors and higher authorities.

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Page 21: NetSol Technologies Limited, Change management project.

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Employee development and

training sessions for change

understanding

NetSol Technologies internal audit and Process developing team conducts workshops and in-

house training sessions in all departments at different timings on regular interval basis. It also

ensures through employee trials that they have been trained enough and change has been

actually in practice.

Monitoring and Evaluation

NetSol Technologies has a very strong monitoring system, they have logical monitoring

through different soft wares, physical monitoring, CCTV cameras, and intrusion detection

systems are installed on all glass windows within the premises.

NetSol Technologist’s internal audit and Process developing team conducts internal audit on

quarterly basis which never leaves anything hidden. Also annual audit is conducted by

“Kabani Saeed Kamran Patel & Co” on every first week of June.

Beneficiaries of change, How

they are benefited

Customers are the major beneficiaries of this change as this change ensures data secrecy and

leads to more satisfied customers. Other beneficiary is company’s management itself because

they need not to put more efforts on training newly hired employees to adjust them in

company’s working environment.

Change perceived by employees | www.netsolpk.com | [email protected] 21

Page 22: NetSol Technologies Limited, Change management project.

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Employees are very cooperative, hard working, young, energetic and supportive to change

and through team work in all departments anticipated to make change successful.

Management has distributed the responsibilities among different departments, and different

teams are made having representations from all departments in change management process.

Major Pitfalls and Resistors,

Strategies proposed to

overcome registers

In NetSol Technologies, currently more than SIX hundred employees are working, majority

of them are young employees. Employees are very passionate, energetic and hard working.

They didn’t resist when the change was introduced. However a five or six senior employees

showed minor resistance in the early stages of change. Through motivation and involving

them in change planning process this problem was resolved.

Gains of the change

It has improved quality of services, data security. Management now can better plan the

business continuity, incidents are well managed, all kinds of risk and threats are well assessed

and managed, and lots of other benefits which are worthy to consider.

Impact of change

Impact of this change has on the overall quality of services. Changed process has helped

management to better monitor either services are smooth and secure enough to make

customers satisfied or not. Impact of change on the cost and ROI (return on investment). As

quality of services has improved, the defect count has decreased, cost of quality has reduced

and they have now a very loyal customer. This trust of customer has increased ROI by almost

30%.

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Final Project NetSol Technologies limited

Future plans of the organization

They are planning to improve further by implementing Six Sigma and ITIL.

| www.netsolpk.com | [email protected] 23


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