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http://www.thenews.com.pk/daily_detail.asp?id=26395
IT industry size touches $2bn
By Imran Ayub
KARACHI: Pakistan’s IT industry size touched total volume of $2 billion during 2005-06 and official estimates suggest it may reach near $3 billion by the end of current financial year.
In a recent presentation to Prime Minister Shaukat Aziz, the Pakistan Software Export Board (PSEB) - a federal body set up to promote outsourcing and software exports - claimed under World Trade Organisation (WTO) formula IT services and software exports stood at $1 billion during 2005-06.
“As per estimation, IT exports revenue, reported by the State Bank, was calculated at $75 million,” said Yusuf Hussain, Managing Director PSEB citing the presentation. “Similarly, our IT export revenue brought into the country remained at $150 million and global IT export revenues were counted at $600 million while our domestic IT revenues touched $1.4 billion mark.”
The presentation defines by the end of 2005-06 there were 100 IT companies and more than 4,000 call centres operating across the country. For medical transcription and data entry, some 50 companies were offering services with more than 2,000 employees and for engineering outsourcing five firms with 500 employees offering high value-added services to their clients, says the PSEB presentation.
The State Bank figures revealed in August this year that the country’s software exports touched $72 million mark during 2005-06 first time ever registering a 50 per cent growth, as western firms started turning more and more to Pakistan for IT-enabled services to cut costs and raise profits.
Officials and industry players believe the rising export figures is reflective that Pakistan is catching up very fast in software development and at such rate, the country global IT revenue should reach almost $9 billion by the end of 2009-10. However, industry players questioned the mechanism of export figures calculation by the State Bank.
“It should be reviewed by the authorities concerned as exports were much higher during 2005-06 than registered by the central bank,” said Jehan Ara, President Pakistan Software Houses Association.
“The SBP only counts those revenues, which lie under remittances. It should also take those expenditures into export revenue calculation, which companies bear for marketing and front office abroad.”
The country's IT industry has emerged as the fastest growing sector last fiscal mainly supported by phenomenal jump in call centre operations during last two years. More than 4,000 centres are currently operational mainly in Lahore, Karachi and Islamabad offering employment to around 5,000 people.
Defined as a unit, the call centres have adequate telecom facilities, trained manpower and access to database providing information to customers. 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. Growth in business from western companies has inspired local investors to explore new opportunities. “With revenues increasing at a healthy annual rate in excess of 50pc over the last three years, the IT industry is perhaps the most exciting and dynamic sector in the country today that has a presence in international markets,” said Hussain of PSEB.
“The convergence of communications, computing and entertainment has resulted in the blurring of boundaries between disciplines and IT companies now come in all shapes and sizes. The Government of Pakistan’s commitment to this sector’s growth is reflected in the emphasis it places on developing a talented human resources pool, providing affordable bandwidth rates, an appropriate infrastructure and policy/regulatory support to the industry.”
IT industry size touches $2bn
By Imran Ayub
KARACHI: Pakistan’s IT industry size touched total volume of $2 billion during 2005-06 and official estimates suggest it may reach near $3 billion by the end of current financial year.
In a recent presentation to Prime Minister Shaukat Aziz, the Pakistan Software Export Board (PSEB) - a federal body set up to promote outsourcing and software exports - claimed under World Trade Organisation (WTO) formula IT services and software exports stood at $1 billion during 2005-06.
“As per estimation, IT exports revenue, reported by the State Bank, was calculated at $75 million,” said Yusuf Hussain, Managing Director PSEB citing the presentation. “Similarly, our IT export revenue brought into the country remained at $150 million and global IT export revenues were counted at $600 million while our domestic IT revenues touched $1.4 billion mark.”
The presentation defines by the end of 2005-06 there were 100 IT companies and more than 4,000 call centres operating across the country. For medical transcription and data entry, some 50 companies were offering services with more than 2,000 employees and for engineering outsourcing five firms with 500 employees offering high value-added services to their clients, says the PSEB presentation.
The State Bank figures revealed in August this year that the country’s software exports touched $72 million mark during 2005-06 first time ever registering a 50 per cent growth, as western firms started turning more and more to Pakistan for IT-enabled services to cut costs and raise profits.
Officials and industry players believe the rising export figures is reflective that Pakistan is catching up very fast in software development and at such rate, the country global IT revenue should reach almost $9 billion by the end of 2009-10. However, industry players questioned the mechanism of export figures calculation by the State Bank.
“It should be reviewed by the authorities concerned as exports were much higher during 2005-06 than registered by the central bank,” said Jehan Ara, President Pakistan Software Houses Association.
“The SBP only counts those revenues, which lie under remittances. It should also take those expenditures into export revenue calculation, which companies bear for marketing and front office abroad.”
The country's IT industry has emerged as the fastest growing sector last fiscal mainly supported by phenomenal jump in call centre operations during last two years. More than 4,000 centres are currently operational mainly in Lahore, Karachi and Islamabad offering employment to around 5,000 people.
Defined as a unit, the call centres have adequate telecom facilities, trained manpower and access to database providing information to customers. 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. Growth in business from western companies has inspired local investors to explore new opportunities. “With revenues increasing at a healthy annual rate in excess of 50pc over the last three years, the IT industry is perhaps the most exciting and dynamic sector in the country today that has a presence in international markets,” said Hussain of PSEB.
“The convergence of communications, computing and entertainment has resulted in the blurring of boundaries between disciplines and IT companies now come in all shapes and sizes. The Government of Pakistan’s commitment to this sector’s growth is reflected in the emphasis it places on developing a talented human resources pool, providing affordable bandwidth rates, an appropriate infrastructure and policy/regulatory support to the industry.”
