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Selling Pakistan offshore
What ever is happening in the world, Pakistan’s IT industry is still at the tail end, yet to be tested in global market. Pakistan is late by just about a decade. Countries that were more alive to the situation skimmed the world market by exporting software and IT professionals earlier and now they are skimming it by exporting quality services. Where do we stand today in line with other labour intensive countries having reckonable base of trained IT pros capable of providing services that are needed by the global IT industry?
Outsourcing is a new trend that has emerged in these hard economic times. IT giants are looking around suitable places for outsourcing of services. The US is single largest receiver of the IT services, followed by other developed European countries and Japan. On the other hand, countries with big talent pool like India, China, Mexico, Philippines, Vietnam, Russia and Pakistan are the providers. In addition to the mutually beneficial business relationship between IT developed and labour rich countries, the services providing countries are consolidating their own IT bases in the process. With time they are expected to acquire capabilities in business processes and system integrations in addition to having indigenous technological abilities. Next predictable stage may be establishment of subsidiaries and transfer of hardcore areas to these countries.
IT services a customer receives from abroad are referred as outsourcing in which the customer retains the control of overall process. Presently the IT tasks being outsourced abroad are related to area like applications and product designs, development and maintenance, business processes and IT infrastructure management, network management and contact centres, embedded software and hardware services. Forrester research shows that “70 percent of enterprises that are turning to offshore outsourcing are sending out custom application development work. Sixteen percent are sending system analysis and architecture planning offshore. Thirty-two percent are using offshore outsourcing for system administration and support.” The outsourcing is becoming a middle-of-the-road IT services option because IT companies wants to reduce their costs and there is a mass of providers available with improved services quality. The services providers’ nations have streamlined the legal procedures that have reduced the investors’ risk as well. Depending on where the service providing country is, the offshore service is referred to, as near-shore in case the services are coming from a nearby country or far-shore if the services are being delivered from a distant country.
Pakistan has a large pool of IT pros: programmers, engineers and managers. The local IT houses, at individual level, are determined to implement quality processes and entrepreneurial talent. The government support is forthcoming. Pakistani IT concerns have been selling services since mid 1990s but only on the basis of niches. On the other hand, Pakistan’s geo-political image, and weaknesses like insufficient built infrastructure, lack of visible corporate culture, and above all low IT use locally has not allowed to display what the competitors have been able to. The weaknesses outweigh Pakistan’s strengths in the IT field. Which is why Pakistan has so far not been able to figure out as a lucrative destination in the global IT offshore market?
How can Pakistan serve clever choosers in global IT market in the face of considerable choice and “pure competition”? Pakistan needs major public relation efforts to improve the image and aggressive marketing at very high level to tell the investors in developed world what the country can offer them and on what cost. Private sector should start to establish strong and meaningful partnership with their clients.
Pakistan need to analyse IT and Business higher education programs being taught in universities and institutions all over the country. These programs should be synchronized with the world trends, business standards and international IT market demands? Does present programs instil sufficient management skills to IT graduates and enable them to successfully handle projects spread across seven seas? John C. McCarthy of Forrester Research Inc. suggests this for America that was a pioneer country to offer MBA: “There is already a shortage of staff that can manage complex projects internally, let alone half way around the globe. The current programs need to shift their focus to skill like project management and managing remote multicultural workforces. Business and IT education institutions could set themselves apart by developing a curriculum on outsourcing, offshore, project management for both the two years MBA and executive education programs.”
Watchful Pakistani academia took some important strategic steps to impart management skills to IT students and vice versa in the recent past. That was good but not good enough in fast changing external environment. The evaluation and updating of programs has to be made a perpetual process and not left to review committees and planning commissions. The IT and Business education programs at all learning institutions may remain same but the course contents should keep changing to ensure that all such skills needed by the clients (like “Outsourcing” and “Globalisation and Strategy”) be included. Better command over and efficient business usage of English language is also an added plus as this is an important consideration for those who are outsourcing. The programs should be aimed at the gap in global marketplace covering the business side together with strong technical contents. Both sides should be made more cohesive. This done, it will be difficult for any one to ignore Pakistani talent that is untapped so far.
Why is this so important? Clearly, Pakistan needs to catch and then hold the attention of big IT players. For that we have to have the constant supply of skilled IT workers to meet the demand when it comes our way, now or in future. Policymakers have to ensure that by planning on human capital some time called intellectual capital. Even the most significant advances in information and computer technology will produce little additional value without human creativity and intellect.
Pakistan workforce is surely motivated, ingenious and industrious. These are the outstanding characteristics, which enable them not to be bogged down by status quo. Given chance Pakistani IT professionals can fare well with many competitors despite somewhat dismal picture at home. Conscious start has to be made in the right direction, and soon.
The writer is a freelance contributor
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