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Software industry of pakistan 1995 2008
Software industry of pakistan 1995 2008
Software industry of pakistan 1995 2008
Software industry of pakistan 1995 2008
Software industry of pakistan 1995 2008
Software industry of pakistan 1995 2008
Software industry of pakistan 1995 2008
Software industry of pakistan 1995 2008
Software industry of pakistan 1995 2008
Software industry of pakistan 1995 2008
Software industry of pakistan 1995 2008
Software industry of pakistan 1995 2008
Software industry of pakistan 1995 2008
Software industry of pakistan 1995 2008
Software industry of pakistan 1995 2008
Software industry of pakistan 1995 2008
Software industry of pakistan 1995 2008
Software industry of pakistan 1995 2008
Software industry of pakistan 1995 2008
Software industry of pakistan 1995 2008
Software industry of pakistan 1995 2008
Software industry of pakistan 1995 2008
Software industry of pakistan 1995 2008
Software industry of pakistan 1995 2008
Software industry of pakistan 1995 2008
Software industry of pakistan 1995 2008
Software industry of pakistan 1995 2008
Software industry of pakistan 1995 2008
Software industry of pakistan 1995 2008
Software industry of pakistan 1995 2008
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Software industry of pakistan 1995 2008

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I gave this presentation in the end of 2008, giving an overview of Software Industry of Pakistan from 1995 to 2008. Therefore, the recent ups and downs of the industry are not visible in the …

I gave this presentation in the end of 2008, giving an overview of Software Industry of Pakistan from 1995 to 2008. Therefore, the recent ups and downs of the industry are not visible in the presentation.

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  • 1. Software Industry of Pakistan 1995-2008 M. Nadeem Jahangir 21 April 2009  Institute of Science & Technology Development, Mehran University of Engineering & Technology, Jamshoro-Pakistan.
  • 2. Contents <ul><li>Objectives </li></ul><ul><li>Introduction </li></ul><ul><li>Pre 1999 Condition </li></ul><ul><li>Developments in 1999 </li></ul><ul><li>Post 1999 Developments </li></ul><ul><li>Pre 1999 VS Post 1999 </li></ul><ul><li>Innovation in Industry </li></ul><ul><li>Recent achievements of Industry </li></ul><ul><li>Future Forecasting </li></ul><ul><li>Recommendations </li></ul><ul><li>Conclusion </li></ul>
  • 3. Objectives <ul><li>Where Pakistan’s Software Industry stands? </li></ul><ul><li>How much Pakistan’s software industry able to develop itself during last ten years? </li></ul><ul><li>How much it able innovate itself to improve its performance? </li></ul>
  • 4. Introduction <ul><li>Pakistan’s Software Industry comes under the Ministry of Information Technology, established in November 2002. </li></ul><ul><li>110,000 IT Professionals in 2007. </li></ul><ul><li>1,105 Software Houses registered in 2006-07. </li></ul><ul><li>Export of IT services reached USD 1050 million in 2006. </li></ul><ul><li>local IT industry revenue reached USD 1,150 million in 2006. </li></ul><ul><li>Software/BPO Revenue reached USD 1,200 million in 2007. </li></ul><ul><li>Total IT & ITES Industry generating $2 Billion of revenue a year. </li></ul>
  • 5. Pre 1999 condition <ul><li>Before 1999, Country had very few SWHs which were established in 80’s. </li></ul><ul><li>Govt. of Pakistan started to support the IT services in country. </li></ul><ul><li>During 1970 to 1998 industry boost up itself. </li></ul><ul><li>Establishment of Pakistan Computer Bureau (PCB) in 12th January 1971. </li></ul><ul><li>Establishment of Computer Society of Pakistan (CSP) in 1973. </li></ul><ul><li>Pakistan Software Houses Association (PASHA) was founded in 1992 by nine Software Houses. </li></ul><ul><li>Pakistan Software Export Board (PSEB) established in 1995 for encouraging the software export in country. </li></ul><ul><li>Software market boosts up in 1996 and introduced Internet for the first time. </li></ul><ul><li>Declaration of Software and Information Technology as “Industry” by notification on March 1997 </li></ul>
  • 6. Pre 1999 condition Source: Experts Advisory Cell, Ministry of Industries and Production May 2004 Showing the registered number of Software Houses (1995-1998) 88 Grand Total 35 6 20 5 4 1998 20 - 12 5 3 1997 15 1 13 1 - 1996 18 7 4 1 6 1995 Nos. Nos. Nos. Nos. Total OTHERS PSEB SBP PASHA Name of Organizations Year of Registration
  • 7. Developments in 1999 IT infrastructure in 1999 PTCL, PTA, PSEB 72 No. of Cities (Fiber Optic) PTCL, PTA, PSEB 68 No. ISPs PTCL, PTA, PSEB 250,000 Internet Users MoIP US $18.2 Million Software Export MoIP 49 Software Houses (total) Source Potential (1999) Area Business Software Alliance Source US $18,913 Million 83% 1999 Revenue Loss Piracy Rates Year
  • 8. Developments in 1999 Software House/ IT Companies (1995-1999) Source: PSEB, PASHA, SBP
  • 9. Post 1999 developments <ul><li>In year 2000, Pakistan has been able to develop its Software Industry rapidly on the basis of its Telecom sector. </li></ul><ul><li>Devising liberalized IT policies to facilitate the process of establishing new software houses. </li></ul><ul><li>Providing incentives to software houses to start their business in software field. </li></ul><ul><li>Introducing new flavors of jobs like specialized IT professionals, Software developers, IT consultants, Networks administrators, Database Administrators, Application Developers etc. </li></ul><ul><li>Enhancing technical services like networking, high speed internet connectivity, bandwidth size, system support, number of ISPs etc. </li></ul><ul><li>Establishing IT parks and Electronic Governance at administrative level. </li></ul><ul><li>Establishment of new universities and institutes was the revolutionary step of government of Pakistan </li></ul>
  • 10. Post 1999 developments <ul><li>MoIT took a number of initiatives for the promotion of ICT in the country. </li></ul><ul><li>Those were; </li></ul><ul><ul><li>e-Governance </li></ul></ul><ul><ul><li>Training of government employees </li></ul></ul><ul><ul><li>Software industry development programs </li></ul></ul><ul><ul><li>Institutional strengthening programs </li></ul></ul><ul><ul><li>IT related Human Resource Development programs </li></ul></ul>
  • 11. Post 1999 developments MoIP: Ministry of Industries & Production PSEB: Pakistan software Export Board Software Houses/ IT Companies in Major Cities (2000-2006) Source: PSEB Foreign Companies IT Business in Pakistan by City (2002-2006) PSEB 1105 69 394 - 357 285 2006-07 PSEB 737 - 265 - 231 241 2005-06 PSEB 454 - 170 - 121 163 2004-05 PSEB 248 - 81 - 66 101 2003-04 PSEB 134 - 39 - 36 59 2002-03 - - - - - - - 2001-02 MoIP 223 16 82 14 64 47 2000-01 Source Total Others Karachi Rawalpindi Lahore Islamabad Year 23 15 22 60 2006-07 12 21 15 48 2005-06 15 11 11 37 2004-05 8 6 4 18 2003-04 3 2 1 6 2002-03 Karachi Lahore Islamabad Number in City Foreign Companies Year
  • 12. Post 1999 developments Software Houses / IT & Foreign Companies Source: MoIP: Ministry of Industries & Production PSEB: Pakistan software Export Board
  • 13. Impact on Economy Software/BPO revenues
  • 14. Impact on Economy FDI in economic group (2001-2008) Million US Dollar Source: State Bank of Pakistan FDI (2001-09) Million US Dollar 160.5 62.15 24.19 9.56 6.15 4.24 2.43 IT Services 6.6 4.57 1.08 3.87 1.28 1.21 0.41 Hardware Development 13.7 5.18 4.96 8.77 6.26 4.44 3.50 Software Development 180.7 71.90 30.23 22.19 13.68 9.90 6.34 Information Technology 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 ECONOMIC GROUPS
  • 15. Impact on Economy Source: P@SHA and BSA Growth in Software & Services Sector in 2007-08 39% $2 Billion 2007-08 Revenue of High piracy rate 84%
  • 16. PRE 1999 VS POST 1999 Trend of registration of Software Houses/ IT Companies (1995-2006) Source: PSEB, SBP, P@SHA PSEB 1105 2006 PSEB 737 2005 PSEB 454 2004 PSEB 248 2003 PSEB 134 2002 PASHA, SBP, PSEB, Others 118 2001 PASHA, SBP, PSEB, Others 111 2000 Post 1999 PASHA, SBP, PSEB, Others 49 1999 PASHA, SBP, PSEB, Others 35 1998 PASHA, SBP, PSEB, Others 20 1997 PASHA, SBP, PSEB, Others 15 1996 PASHA, SBP, PSEB, Others 18 1995 Source No. of SWHs/ IT Comps Year of Registration Pre 1999
  • 17. PRE 1999 VS POST 1999 Pre 1999 Post 1999 Source: SBP, PSEB, PASHA Chart showing trend of Software Houses / IT Companies (1995-2006)
  • 18. Software piracy rate (Pre 1999 vs Post 1999) Software Piracy Rate (1996-2007) Source: Business Software Alliance www.bsa.org Pre 1999 Post 1999 Showing yearly revenue loss in US Million Dollars On 17 January 2007, Federal Cabinet approved Cyber Crime Bill 2007 $ 125,000 84% 2007 $ 143,000 86% 2006 $ 48,000 86% 2005 $ 26,000 82% 2004 $ 16,000 83% 2003 $ 11,429 83% 2001 $ 31,379 83% 2000 $ 18,913 83% 1999 $ 22,667 86% 1998 $ 20,395 88% 1997 $ 23,144 92% 1996 Revenue Loss Piracy Rates Year
  • 19. Innovation in Industry Source: Experts advisory cell Report 2004 Ministry of Industries and Production Source: PSEB Product Innovation IT Exports : US $ 46.3 Million ISP Services and Others. ASP Programming service. Hardware/ Software/ Networking Vendor. IT Training Institutions. Transaction Services. Call Center Services. IT Consultancy. Areas of business in 2004 IT Exports : US $ 116.60 Million $ 10.36 Others $ 9.19 Computer Services $ 73.21 Computer Software (Legal) $ 0.04 Maintenance & Repair Services $ 22.27 Software Consultancy Services $ 1.43 Hardware Consultancy Services Areas of business in 2006-07
  • 20. Innovation in Industry IT Exports (million US $)
  • 21. Innovation in Industry <ul><li>In 90’s programmers used to design software on the DOS based programming languages like Cobol, BASIC, Dbase III plus and Turbo C. </li></ul><ul><li>Today, industry is innovating the products using the different kinds of latest versions of programming languages and databases. </li></ul><ul><li>C#, VB.Net, JAVA, ASP.Net, PHP etc. </li></ul><ul><li>DB2, Oracle, SQL Server, My SQL etc. </li></ul>Product Innovation
  • 22. Innovation in Industry <ul><li>Process Innovation </li></ul><ul><li>Pakistan Software Industry is using a business strategy which is called “ Offshore Software Development ” or “ Outsourced Software Development” </li></ul><ul><li>Definition </li></ul><ul><li>Offshore Software R&D is a provision of software development services by an external supplier called Business Process Outsourcing (BPO) positioned in a country that is geographically remote from the client. </li></ul>
  • 23. Innovation in Industry Software/BPO Revenues Employment Growth (Full Time) Source: Annual Review of Pakistan’s Software/BPO Industry 2007, P@SHA Process Innovation
  • 24. Operating Costs in US, India & Pakistan *G&A (General and Administration) Pakistan Pakistani labor is cheaper than India. Total Price in Market 42,927 6,179 4,500 8,571 1,000 800 1,500 2,328 2,000 2,600 847 700 3,000 1,500 1,000 58,598 11,854 9,000 0% 100-200% 100-200% Personnel *G&A Expense Telecom Property Rentals Depreciation Total Expenses Markup USA India 58,598 23,708 to 35,562 18,000 to 27,000 Source: The Buying Triangle, LLC, 2006 US$ Cost per FTE (Full Time Employee)
  • 25. Future Forecasting <ul><li>According to PSEB, Pakistan software industry will continue the consistent growth in its IT services, IT outsourcing, IT export revenue and IT domestic revenue in future. </li></ul>
  • 26. Future Forecasting IT industry growth forecating Trillion US Dollars Source: Pakistan Software Export Board 6.3 1.481 2010 6.3 1.394 2009 6.3 1.312 2008 6.3 1.238 2007 5.6 1.165 2006 5.6 1.103 2005 5.6 1.045 2004 Rate Growth (US $ Tril.) Year
  • 27. Recent Achievements <ul><li>Pakistan has been given 3rd place after Canada and India as the future outsourcing destination by oDesk Global Offshore Outsourcing Statistics Report 2008 . </li></ul><ul><li>Gartner , the world’s leading information technology research and advisory company has placed Pakistan amongst the top countries of the world in terms of suitability for offshore outsourcing. </li></ul><ul><li>Pakistan has the world’s biggest WiMax Network (Motorola Administration). </li></ul><ul><li>Pakistan has world’s biggest biometric database system of NADRA. </li></ul><ul><ul><ul><li>(DAWN report, 1 st January 2004) </li></ul></ul></ul><ul><li>Lehman Brothers, 2006 “Best IT outsourcing fundamentals” </li></ul><ul><li>“ We believe the Pakistan Banking sector is one of the highest growth stories in the Asia Pacific region”. </li></ul><ul><li>Merrill Lynch & Co </li></ul>
  • 28. Conclusion <ul><li>Pakistan Software Industry is going in the right direction bur still we have problem of IPRs. </li></ul><ul><li>It requires more serious efforts and funding by the government. </li></ul><ul><li>The problem of unavailability of statistics is no more and now industry could analyze its performance on regular basis. </li></ul>
  • 29. Recommendations <ul><li>IPRs must be enforced to reduce piracy. </li></ul><ul><li>More investment needed to Industry. </li></ul><ul><li>Provide conducive environment to foreign companies. </li></ul><ul><li>Utilize the potential of domestic IT professionals to avoid brain drain. </li></ul>
  • 30. References <ul><li>Experts Advisor Cell Report 2004, Ministry of Industries & Production. </li></ul><ul><li>Software Development in Pakistan: What Do Statistics Tell Us? </li></ul><ul><ul><li>By Athar Osama, published on September 14th 2007 </li></ul></ul><ul><ul><li>http://www.pakistanincorporated.com/software-development-in-pakistan-what-do-statistics-tell-us-athar-osama/ </li></ul></ul><ul><li>A Zero-budget Strategy for Innovation and ICTs’ Promotion in Pakistani Libraries: </li></ul><ul><ul><li>The Case of Pakistan Library Automation Group (PakLAG) By Muhammad Iqbal Library Specialist, Planning Commission </li></ul></ul><ul><ul><li>Islamabad, Pakistan http://www.paklag.org/PakLAG2.pdf </li></ul></ul><ul><li>Experts Advisory Cell by Ministry of Industries and Production Report 2004 </li></ul><ul><li>How Pakistan is a Great Outsourcing Destination? By Aamir Attaa · Friday, Jan 16, 2009 </li></ul><ul><ul><li>http://www.propakistani.com/2009/01/16/why-pakistan-is-a-great-outsourcing-destination/ </li></ul></ul><ul><li>Pakistan's Software Industry Celebrates Achievements </li></ul><ul><ul><li>By Anthony Mitchell E-Commerce Times Part of the ECT News Network http://www.crmbuyer.com/story/65046.html </li></ul></ul><ul><li>Economist Intelligence Unit, 2007 </li></ul><ul><li>oDesk Global Offshore Outsourcing Statistics Report 2008 </li></ul><ul><li>The Daily Times </li></ul><ul><ul><li>http://techlahore.wordpress.com/2008/01/10/gartner-places-pakistan-in-first-category-countries-for-it/ </li></ul></ul><ul><li>Pakistan Software Export Board </li></ul><ul><li>Software Piracy in Pakistan - Building a case for ICT Software Freedom </li></ul><ul><li>Pakistan’s Cyber Crime Bill 2007 </li></ul><ul><ul><li>http://southasiaict4d.wordpress.com/2007/01/20/pakistans-cyber-crime-bill-2007/ </li></ul></ul>[email_address]

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