The document compares operating costs for IT companies in the US, India, and Pakistan. It finds that personnel costs are much lower in Pakistan compared to the other countries. It also notes that Pakistani IT exports are estimated to be eight times higher than figures reported by the State Bank of Pakistan, and that the IT industry in Pakistan has grown significantly in recent years with increased companies, employees, and exports.

1. Destination NeXT: Why P @ kistan ? Company LOGO

2. Operating Costs in US, India, and Pakistan Source: NASSCOM; TBT Analysis for US and India; PSEB Estimates for Pakistani Companies 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 Pakistan 58,598 23,708 to 35,562 18,000 to 27,000

3. Source: State Bank of Pakistan, PSEB, BearingPoint Study September 20, 2005 Major Companies 0.27 Innovative Pvt Ltd 18 0.3 Kalsoft (Pvt) Ltd 17 0.31 Streaming Network 16 0.33 Avanza Solutions 15 0.34 Dev Technologies 14 0.42 Accountancy OS Pvt. Ltd 13 0.53 Itim Software 12 0.73 LMR Resource 11 0.75 Xavor Pakistan Pvt Ltd 10 0.85 Enterprise DB 9 0.99 Geopaq Tech. (Pvt.) Ibd 8 1.2 Trivor Software 7 1.4 Descon IT24 Pvt Ltd 6 1.51 Elixir Technologies 5 1.94 System Pvt Ltd 4 2.23 TRG Pvt Ltd 3 2.93 Ovex Technologies 2 5.26 Netsol Technologies 1 Rank Companies US$ Million Pakistan (State Bank Figures) 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 Pakistan Market Distributed in 3 Tiers 11 % 20 % 69 % Tier 1 — (2.5 Million USD +) Tier 2 — (250K – 2.5 Million USD) Tier 3 — (Less than 250K USD)

5. Active Companies in Major Cities 9 Others 732 Total 5 Sialkot 2 Quetta 15 Peshawar 6 Multan 3 Hayderabad 7 Faisalabad 2 Abbotabad 203 Lahore 257 Karachi 223 Islamabad / Rawalpindi # of Operational Companies * City Source: PSEB Survey 2006 * Based on the minimum number of active companies

6. 37 25 Document Management 59 39 Legal Transcription 21 14 Medical Transcription 805 25 351 159 192 Total 290 Financial 240 ERP 531 Animation & Gaming 37 Mobile Content 1215 Total Projected Total Area of Expertise Source: PSEB Survey 2006 Categorical Analysis of IT Industry Expertise Wise Estimation

7. 1414 175 387 685 167 Total 256 Software Products 1038 Software Services 586 IT-Enabled Services 265 Others 2145 Total Projected Total Service Line Source: PSEB Survey 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 $150 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 20, 2005. IT Revenue Understated – An Article by Yusuf Hussain [MD PSEB]

9. Source: SBP Jul-Dec 2005 Pakistan IT Exports by Region

10. Office Space and Human Resource Growth Patterns of Top IT Companies Source: PSEB Survey Growth Pattern of Pakistani IT Industry Combined growth rate NCR IBM ZTE NetSol Touchstone TRG LMKR HR 434 % Office Space 418 %

11. Increase in number of IT companies over the last three years [2003-2006] 300 % Islamabad 150 % Lahore 180 % Karachi City Wise Growth of IT Industry Source: PSEB Survey

12. Source: PSEB 5000+ Call Centers 30700 + Total 7430+ Web development 11970+ Software / solution development 430+ HR Hiring / Administration 1345+ Web sales / Marketing 610+ Mobile Content 420+ Billing Services 660+ Accounting 740+ Document Management 1200+ Telesales / Telemarketing 895+ Transcription # of Employees Area of Expertise 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.

13. ITES Offerings by Type 233 Total 70 Call Centers 21 HR-Hiring / Administration 42 Web sales / marketing 19 Mobile Content 8 Billing Services 15 Accounting 16 Document Management 30 Telesales / Telemarketing 12 Transcription No. of companies * Services Line Pakistan Source: PSEB Survey * These figures are based on the minimum number of active companies

14. Source: PSEB Survey Critical to Rank Call Center Companies 1. TRG (Pvt) Ltd 2. Touchstone communications (Pvt) Ltd 3. Ensign Communicatique (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

15. Source: PIE, FLAG, PSEB Bandwidth Statistics for Pakistan Statistics B E C D A No. of DSL / Broadband Users Purchased Bandwidth Projected Requirement for Year 2006-07 No. of Dialup Users Bandwidth Delivered 3507 MB – [66% growth rate] 2113 MB (PIE + FLAG) 5 Million 50,000 3053 MB (PIE + FLAG)

16. Utilities & Insurance Applications Retail Banking and Financial Products Animation & Graphics Mobile Content IT Niches ERP Software Document Management Medical Transcription Niches of Pakistani IT Industry Pakistani Industry specializes in these solution areas