Prospects and problems of IT industry
Gone are the days when it was considered as the future’s industry. Now, it has emerged as one of the most potent forces in economic development along with the portfolios of energy, telecommunications and communications encapsulating the entire realm of economic growth, from internal as well as external perspective(s).
Although it took a late start in Pakistan, the local IT industry has matured enough to play a vital role in economy. Like other industrial sectors, it has undergone an initial phase of learning, experimenting, failing and in most cases successfully delivering on its promise(s).
A strong commitment on the part of the government in developing this industry has witnessed a phenomenal growth in the recent past. The industry is now ready to lead from the front. It is recognized worldwide in terms of quality standards and a sufficiently developed resource pool. Some globally known blue chips like Daimler Chrysler, Toyota, GE, Citibank etc are added up to the long list of international customers.
The industry is now preparing itself to play a major role in revenue and employment generation. One may believe that it would be progressing rapidly and touch a billion dollar mark. Presently, the IT spending is around $700 million besides $100 million exports of software and services. The Indian IT industry, on the other hand, is generating some $20 billion revenue with a future planning of expanding it to $60-80 billion.
In last five yeas, the government has taken various steps to give impetus to the IT industry. Availability of infrastructure, bandwidth connectivity, telecommunications besides setting up the IT ministry, federal IT secretariat and Pakistan Software Export Board and zero duty software exports have started yielding results.
The business activity is not restricted now to certain areas and industry is getting good volume of business from different parts of the world including the USA. The industry is yet to work hard to get more business from the USA and maintain higher pace of growth. The USA generates maximum opportunities in outsource business in terms of percentage and it is the best time to grab the opportunity through aggressive marketing. Outsourcing business from the USA has diverted many economies towards growth. The local IT entrepreneurs should develop business relations with the US companies and offer the best quality products.
This is the only area where we could have an edge over the competitors. Similarly, we should also excel in certain areas and develop a niche before entering the market. Simply following others would not be enough to get business in this highly competitive world.
Presently, the growing business pressure on India is compelling the IT companies there to compromise on quality. Reports appearing in research journals are pointing out a lack of qualitative human resource there while predicting that it may affect India’s ability to get more business from the USA.
Similarly, the factors like cost of doing business, availability of infrastructure, buildings, road networks and less connectivity issues should be an added attraction for our buyers in the USA and other leading markets.
A highly congenial working environment in the sector has started attracting some big names into the international IT arena and they are going to set up their businesses in Pakistan.
Pakistan’s IT industry has a large pool of well-trained and highly matured middle level management ready to face the emerging challenges. Therefore, the local IT companies are not only retaining their customers but also making sure a constant flow of business.
The IT industry has immense potential to grow and this is the right time to invest here. The IT experts are expecting massive inflow of foreign investment in next three years.
The growing trend of automation in local industry, both in public and private sector is likely to generate plenty of business opportunities for the new investors. An investment made in Pakistan’s IT sector would yield good results, as the queries from the potential customers are multiplying with every passing day.
The government has been very pro-active in projecting the real and positive image of the country, which has been hampering growth of the industry. The western customers are still reluctant in travelling to Pakistan. There is a need to deal with misleading western media coverage and wrong travel advisories. A projection of robust growth in economy and a big change in social trends can make it possible. One should hope that Prime Minister Shaukat Aziz’s visit to the USA would be helpful in projecting positive image of the country.
(The author is Chief Executive Officer of NetSol Technologies Ltd and member of Pakistan Software Houses Association and member of Pakistan Software Export Board)