ISLAMABAD- Pakistan’s share in the global software market of mom than one trillion dollars is approximately $60 million, although the exact figures are not available. This was stated by the Managing Director of the Pakistan Software Export Board, Khalid Javed while speaking at the seminar titled “Software Business” held here on Tuesday under the auspices of the Islamabad Chamber of Commerce and Industry. It was attended by a number of entrepreneurs interested in the IT business who asked searching questions about various aspects of software exports business.
Although the figures seem to be disappointing, Pakistan has a great potential to increase its share in the global market. He pointed out that for this purpose the entrepreneurs will have to come up with innovative ideas and establish international connectivity as well as open offices in other countries especially in the United States where the major portion of the IT business is located. He said in order to capture its due share in the global IT market Pakistan will have to make institutional efforts like selecting area of operation, have presence in the overseas market, adopt measures for retention of professionals and offering them top salaries, etc. He said that the biggest problem in this sector is to retain the trained manpower. The solution to this problem lies in profit shoring and equity participation with the employees. This principle has been adopted and is being practiced by quite a large of entrepreneurs overseas in order to retain their key personnel. Further key personnel have also been offered top salaries, etc.
Talking about the priority pre-requisites for software exports, Khalid Javed said the most important are human resource, infrastructure, financing, marketing abroad, and fiscal and monetary incentives. Elaborating marketing, which he considered the lunch-pin in increasing software exports, he said that the intending entrepreneurs have to develop a strategic alliance / partnership programme, have to establish adequate international connectivity (the backbone of a successful operation), have a targeted approach and last but not the least have presence in the overseas markets.
To boost software exports, Khalid Javed said that the government has taken a number of steps to facilitate it. The import of hard-ware/software tools has been made duty free, export procedure for software houses has been simplified, export refinancing schemed has been introduced, IT institutions and universities are being set up, national testing and certification agency has been created and scholarships and qarz-e-hasana scheme has been launched. It has also been decided to rid the country of bogus IT institutions to safeguard the students and their money as well as to raise the standard of 1T education. But he said institutions of high caliber in the field would be encouraged.
He said Pakistan has great potential in the IT field and to increase the software exports it should keep in mind the high Indian targets of exports which are at print $4 billion, would be increased to $8 billion by 2002 and $50 billion by 2008. This figure has since been revised to $87 billion, an astounding increase.
Dr. Imran Zaulkeman, General Secretary Pakistan Software Houses Association, in his presentation said the demand for software exists and is increasing. He said the supply for software products and trained personnel should get better with the current government initiatives but the key is to understand the business parameters before jumping in.
He said that on the demand side the field is open for entrepreneurs in the sphere of data-entry/massaging/MT, content development/massaging, call centers, body shopping, Web development, software application development, software products and software product services. The supply side needs included human resource development, infrastructure comprising hard-ware/software, telecommunications, electricity and favourable tax laws.
He said it is heartening that human resources are being developed by various institutions in the country like Al-Khair University, Islamic international University, Quaid-e-Azam University, Ghulam Ishaq Khan Institute and LUMS. These institutions are offering courses of BCS with one-year diploma, and BCS from first, second and third tiers.
He however pointed out that as soon as personnel are trained they away to grab better conditions of services in other institutions and only way to retain them was tv offer them top salaries, profit sharing and equity shares.
Source: Business Recorder
Date:12/13/2000
