WASHINGTON, Aug 18: Pakistan has launched a major effort to combat its image problem and promote the advantages of its highly skilled, English-speaking people to get a larger share of the outsourcing business, says a report.

The report by the International Data Group notes that some multinational companies have centres in Pakistan while others are outsourcing work to IT and services companies in the region.

The IDG is the world’s largest technology media, research and event management company based in Boston.

The report notes that salaries in Pakistan are lower by 30 per cent than in India. On the downside, the country has an image problem which scares away potential customers, but there are major multinationals that overcame their initial fear and are doing business with Pakistan. These include two major US firms -- Bank of America and Citigroup.

Software, BPO (business process outsourcing) and call-centre companies have in place disaster recovery strategies and centres in many locations to ensure that work does not get disrupted, the report notes.

Pakistan’s IT and services exports have grown by 50 per cent year-on-year for three years.

The Pakistan Software Export Board (PSEB), a government agency set up to encourage multinationals to do business with Pakistan, has an ambitious target: to boost exports of software, IT services, call centre and BPO from $1.4 billion in the fiscal year 2006-07 to about $4.5 billion by 2010. By then, the overall IT and services industry in the country is also expected to grow to $10 billion from the current $2.4 billion a year.

In computing its IT and services export figure, Pakistan includes exports by Pakistani companies, salaries of its people with work permits working on IT jobs abroad, as well as sales of services to operations in Pakistan of foreign companies and foreign government agencies.

The report, however, points out that Pakistan faces several challenges in achieving these targets. The country has similar characteristics that have made India successful as an outsourcing hub, such as its low-cost, skilled, English-speaking staff, but the IT industry in Pakistan is still in its early stages and companies have very little experience in the business and lack the ability to scale their operations.

To boost the country’s outsourcing industry, PSEB and other agencies have launched a strategy covering infrastructure, cheaper communications, investment in education, quality certifications and a data confidentiality law, the report adds.The board is also investing in promoting Pakistan as an offshore location to European and US companies. Most of the media coverage of the country so far has focused on law and order problems rather than on its thriving economy.