ISLAMABAD- Many foreign Information Technology firms are finding it profitable to outsource their projects to companies in Pakistan where comparable skills come at a much lower cost.

This is a natural development as many professionals in Pakistan return home to set up shop, putting to use the expertise they have gained working abroad, said a write-up in the Computers Times Weekly Singapore.

A Pakistani firm oversees 38 employees who develop e-commerce solutions for US customers. “Manpower is the biggest cost in software development and I pay US$ 5.25 per hour for database developers, compared with US$130 per hour in the US,” its chief executive said. This makes him competitive, winning multi-million projects from US companies. “Government’s support has really, helped a software business like ours,” he added.

When he returned to Pakistan, he immediately headed for the Software Technology Park (STP) to look for office space for his operations, but the park was already full. The STPs are rent-controlled government-owned buildings meant for software development with good communication network and other facilities. A key benefit he enjoys is the unlimited tax holiday for software exporters. But IT business in Pakistan is no bed of roses. Basic infrastructure is a real problem.
Source: The News
Date:12/13/2000