IT-outsourcing business grows 100 percent in half year

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KARACHI,February 20,2005:Outsourcing business in the country through IT-enabled services has crossed over $10 million mark with rapid growth of call centres and operators are optimistic to touch $20 million figures by the fiscal end.

Industry officials say the call centres have registered 100 percent growth during last six months and currently over two-dozen such centres are operating mostly in Lahore and Islamabad.

“Exact figures are not available as such,” said Farrukh Aslam, president Call Centres Association of Pakistan (CCAoP). “But it is definite that we have crossed $10 million figures during first half of current fiscal and the number could be double by June 2005.”

He said some 20 to 25 call centres are operating commercially across the country while there are some 10 to 12 centres of different public institutions, only serving to their clients and customers.

Country’s IT industry made comeback last year – first time after 9/11 incident – when the software export touched $32.22 million, which were almost 50 percent higher from previous figures. The current financial year saw a rising number of call centres, which has grown from last year’s six to 25.

“The call centre is defined as a unit that has adequate telecom facilities, trained manpower and access to database providing information to customers,” said Suhail Shahid, vice president i-Man in Islamabad. “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.”

He cited India – the most favoured destination of western world to outsource IT-enabled services – that fetches around $2.8 billion annually with employment of over 285,000 people.

The local infant industry however, experiences lack of skilled manpower amid growth speedy growth. Major players say the insufficient availability of required workforce halts the due growth of the industry. “We can do much better,” said Nasir Lone, country manager The Resource Group (TRG) – a US-based private investment firm with a focus on the business of call centres and outsourcing.

“We have two centres each in Lahore and Karachi. We are expanding our operations but not getting the required flow of skilled people we need.”

Mr Loan, whose TRG earned $130 million profit during 2003-04 in its worldwide operations, said the industry has potential to fetch billion of dollars but it depends on the best available infrastructure and human resource. However software houses, the mainstream IT industry, does not see the rising number of as direct indicative of the IT industry.

“The growth of call centres is not really directly indicative of growth in the IT sector – more so in the IT enabled services and the telecom sectors,” said Jehan Ara, president Pakistan Software Houses Association (PASHA). “But as the centres needed well-developed software to operate, local software houses are engaged in developing software solutions.”

She said the call centres require efficient hardware solutions and ongoing technical support, which ultimately pushes software industry to grab their share. PASHA chief said continuous growth of call centres could help the overall IT industry.

“If call centres attract large overseas companies to outsource part of their services to Pakistan, that can only help the other sectors including the software houses,” she said.
Source: Daily Times
Date:2/20/2005

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