IT Industry in Pakistan Essay Example For Students

IT Industry in Pakistan Essay EXECUTIVE SUMMARYPIM undertook the preparation of this report with the conviction that Information Technology truly holds the potential to act as an enabler of economic revival and growth especially for countries like Pakistan. We are also painfully aware that Pakistan has lagged dangerously behind other regional countries in exploiting Information Technology as a catalyst for economic revival. However we feel that the explosive growth of the Internet and the coming tidal wave of E-Commerce still provide immense possibilities for Pakistan to exploit their potential and use them for accelerating its economic revival. We are also painfully conscious of the fact that the hyper speed of change in the Information Technology domain means that the IT year is equivalent to one month in conventional terms. This fact dictates that any meaningful action or decisions for the IT industry in Pakistan has to be implemented immediately. Pakistan and countries like Pakistan who are hoping to exploit the inherent potential of Information Technology must act immediately and decisively to restructure their domestic Information Technology industries to become effective role players within the global IT scenario. The luxury of long-winded debate and discussions and the formations of commissions, which will submit reports in months, will be counter productive to the spirit of any Information Technology initiatives. From these workshops a powerful feeling has emerged that any meaningful IT initiative in Pakistan will necessarily have to be a partnership between the government and its agencies on one hand and the privat e sector on the other hand. Bold, unconventional and strategically correct decisions are needed. Effective top managers with the right mix of vision and managerial competence are needed. A huge amount of financing is needed in domestic resources and foreign exchange. Above all the will to prevail will be needed, from the government of Pakistan, to chart the right course for our Information technology initiative and then stay the course in spite of the innumerable hurdles which are sure to bedevil the path to success. From PIMs perspective this report provides an insiders view of the IT industry and the problems it faces. Most importantly it also provides the insiders view to some of the major problems facing the industry and their solutions. It is hoped that this report will help the IT decision makers in tackling the problems of the IT industry. The major problems of the IT industry in Pakistan as identified by these two workshops are: Massive Brain DrainSerious shortages of high power programmers and IT professionals in needed latest technologies Inability of Pakistani firms to tap and penetrate lucrative foreign marketsCommunication infrastructure bottlenecks caused by PTCLs inability to provide the IT industry needed band-width and communication capabilities of international standard at competitive pricesLack of entrepreneurial skills and managerial know-how of IT professionalsLack of actual and practical government policies and support for industry IT industry has serious problems in securing financing and creditUnwillingness of local business managers to pay appropriate prices for locally developed software Lack of incubation and startup companiesLow computerization of the government and its departments X THE NEED FOR THE REPORTPIM developed its strategic plan (2000 2005) in January 2000. This Strategic plan was discu ssed and approved in the 30th meeting of PIMs Board of Governors held on 24th February in Karachi. In its strategic Plan PIM has predicted the explosive and exponential growth of the IT industry in Pakistan and had underscored the fact that IT could be the enabler for stimulating Pakistans economy from its present slump. Chairman PIM Board of Governors, Mr. Abu Shamim Ariff, was particularly interested in the predictions and conclusions of PIM regarding the future state of Pakistani industry and floated the idea that PIM should prepare a generalized report on the IT industry in Pakistan and it should be presented to the IT decision makers in Pakistan. He also emphasized that PIM would do well to concentrate more on the software segment of the IT industry. PIM Board of Governors enthusiastically endorsed the idea. PIM Board of Governors directed PIM to work towards the preparation of this report and to have it ready by the end of April 2000. However Chairman PIM Board of Governors later on extended the deadline to end May 2000. PIMs report on the IT Industry in Pakistan was completed in the first week of June 2000. X A NOTE ON THE METHODOLOGY USEDAfter intensive internal debate regarding the approach to follow for the preparation of this report PIM decide to follow the basic methodology which it had followed for strategic plan; the distillation of industry practitioners knowledge and wisdom. For this purpose it was decided to hold two workshops, one in Karachi and the other in Lahore, and invite IT industry leaders and professionals to participate in a controlled discussion of their industry. PIM decided to use the basic concepts of Strategic Planning and Force Field Analysis for guiding the discussions during the workshops. It was also decided to present the findings of the two workshops as they were without any recommendations from PIM. The response received to the announcements of the two workshops was overwhelming and PIM was swamped by requests for invitations. The Karachi workshop was held on the 22nd of April 2000 in the PC and was attended by 49 participants and the Lahore workshop was held on the 6th of May 2000 was attended by 35 participants. Most of the participants were chief executives or senior executives from Pakistans IT industry. Of the total participants 90% were from the private sector. The discussions were held in a very free and frank manner and it is highly commendable that all participants took a very broad macro view and there was no attempt to exploit the forum for any narrow interests. X INDUSTRY DEFINITIONThe IT industry in Pakistan is in its infancy and is struggling to play catch up with the regional and global industry. The size/turnover of the software segment of the industry is US $ 25 million in the domestic segment and US $ 15 million worth of exportThe software segment of the IT industry has about 500 players/companies. Most of these companies are one-man shows. There are a few medium to large size players who are part of Pakistani business houses. The software industry employs about 5,000 programmers / professionals. The industry is facing a serious shortage of quality technical and marketing professionals due to brain drain of high power professionals and IT trainers in the needed technologiesThe following activities are part of the IT Industry; System analysis and designDesign of hardware softwareSoftware programmingImplementationManufacturing/assembly of hardwareAfter sales serviceSystem maintenance servicesMarketing of hardware and softwareCommunication InfrastructureBand widthSwitchingISPsASPsICPs InternetE-commerceData Ware housingHuman resource managementHuman Resource training and mobilizationINFLUENCES ON IT INDUSTRY IN PAKISTANINDUSTRY MAPOPPORTUNITIES FOR THE IT INDUSTRY IN PAKISTANThe following opportunities were highlighted by the participants of the Workshop:1.Development of packaged software 2.Quality training and development of specialized human resources3.Reengineering and computerization of govt. / public se ctor and private sector organizations4.Installation of networks (LANS, WANS etc.)5.E-info6.Switch over to Urdu as a computer language7.Development of call centers8.Reorganization and growth of communications infrastructure. 9.Foreign Exchange earning potential10 Louis riel Essay Thesis X HOW CAN THE IMPACT OF THE DRIVING FORCES BE INCREASED1.Growth of world wide IT industry a)Hold regular international and national seminars to help disseminate knowledge about Global IT trendsb)Encourage IT industry players to visit foreign fairs and technology exhibitions like Comdex etc. 2.Availability of low cost educated manpowera)Launch massive IT education and training drive to further help the availability of IT professionalsb)Encourage IT education and training in urgently needed newer IT technologiesc)Initiate a system of monitoring IT education and training institutions and ensure that they are following international curriculum and standards 3.India syndrome (if India can do why cant we) is fueling growtha)Study Indian success model in IT and attempt to emulate as far as is possibleb)Encourage IT industry to follow the successful practices and trends of the Indian IT industryc)Encourage Pakistani IT firms to collaborate with Indian firms d)Identify the serious mistakes made by the Indian It industry and make sure that those mistakes are not repeated in Pakistan4.Availability of low cost inputs (pirated software unbranded hardware)a)Govt. should not sign any trade or intellectual property protocols which will make it difficult or prohibitively expensive for IT industry to buy and use IT technology and software from international firmsb)Govt. should step in and negotiate with the large global players for providing IT technology and software to Pakistan on special bulk concessional ratesc)If needed the Govt. should, through the IT Development Fund, buy IT technology and software in bulk and provide the same to the domestic IT industry at subsidized ratesd)Govt. should make serious efforts to lure global hardware and software companies to enter the Pakistani market by offering especially attractive incentives to them5.Growth of Internet E-commercea)Govt. should facilitate the growth of Internet usage and of E-commerce in Pakistan by providing all possible help in terms of infrastructure availability and the recasting of laws and regulations which are inhibiting this growth 6.Perception that industry has explosive potential for growth and profits7.Perception that IT is a high and quick return and low investment industry8.Ambition Driven S trategy of founders of IT firms9.Availability of success Role Models in international IT industry10.Good Pay Back for the right IT idea which clicks in industry11.Attraction/romance of get rich quick success stories in IT12.Low start up cost13.Low Entry barriers into industry for new comers14.Availability of low cost inputsa)Govt. Should negotiate prices of new/latest technology and software directly with global companies b)Massive investments should be made on a war footing to improve supply of IT professionals through upgrading of IT education and training. c)National IT talent hunt schemes should be launched to identify and nurture IT talentd)Institution of a special scholarship scheme for meritorious IT studentse)Launch of a special incentive package for IT professionals which could ensure that they do not automatically prefer to leave the country rather than work in Pakistanf)Reduce social and job problems faced by IT professionals15.Easy access to international market a)Set up an IT Export Board or Corporation in the private sector or allow the private sector to manage itb)Develop a strategy to create a better relations with Non Resident Pakistanis and to motivate them to help Pakistani IT firms gain a foothold in foreign marketsc)Make commercial councilors in all Pakistani missions more IT literate and educate them on how to identify IT business opportunities for Pakistani IT firmsd)Make commercial counselor more effective by improving their relationships with the Pakistani IT industry and its representative organizationse)Develop a strategy to use the capabilities of Pakistani missions for securing IT business for the Pakistani IT industryf)Appoint special IT commercial councilors in foreign countries which are large IT markets like US, Europe etc. g)Develop a marketing and promotional strategy for introducing Pakistan as a reliable IT product and service supplier and launch this drive with adequate fundingh)Identify highly respected and professional NRPs in US and European countries and ask them to become Honorary IT ambassadors for Pakistan. This could be done on a city or regional basis16.Unemployment of engineering professionals is encouraging them to move to ITa)Offer special incentives and training for engineering and science graduates to make the switch to an IT careerb)If needed offer special stipends for such professionals till they can find suitable jobsc)Set up a Web based IT placement bureau to help such graduates find jobs d)Encourage such graduates to play an entrepreneurial role by providing s eed capital and technical know-how e)Encourage IT industry to seriously tap into the potential of using such unemployed graduates 17.Good understanding of English in the society X