Pakistan's IT exports may grow to $10b by 2020

[F-16_Falcon]

IT exports may grow to $10b by 2020 – The Express Tribune

IT exports may grow to $10b by 2020
Published: April 15, 2011

IBM’s country general manager sees bright future for sector.
KARACHI:

Pakistan could play host to an extreme growth spurt in the information technology industry in the next 10 years, according to a study quoted by IBM’s Country General Manager Hamayun Bashir.

Speaking at a ceremony held to celebrate a century of IBM’s existence on Thursday, Bashir informed Pakistan may have up to one million jobs in the information technology industry by 2020.

“IBA students are working on a study with assistance from the Overseas Investors Chamber of Commerce and Industry’s IT committee. The report, to be published in a few months, underlines that by 2020, Pakistan can easily have a million jobs and exports of $10 billion in the IT industry,” he asserted.

He expressed hope that the current figure of 0.15 million jobs in the industry could easily be increased. “I see a bright future for our industry, which is producing top-quality software,” said Bashir.

“We are meeting the IT ministry on behalf of Pasha – the chamber for IT in the country – to get officials to refocus on the sector,” said Bashir.

Commenting on the resignation of former IT minister Babar Awan, he said, “The minister was an important, focal point of the industry.”

“I have heard that the United States Agency for International Development (USAID) is providing funds and a data centre will be created in Islamabad,” he said while talking about the e-government programme.

Replying to a complaint that large organisations in the country, such as banks, did not give projects to local firms, he said that there were up to 60 large companies in Pakistan which needed tried and tested software.

He, however, explained that there were at least 10,000 small companies that would not be able to afford services of large international firms and would have to adopt local software solutions, which would help the economy grow.

Published in The Express Tribune, April 15th, 2011.

 

[Leader]

by 2020? thats pathetic you know !

 

[F-16_Falcon]

by 2020? thats pathetic you know !

why? this is good news. what is our current IT export?

 

[Leader]

why? this is good news. what is our current IT export?

2 billion... but thats not the point, the potential is far more, only if support is given...

 

[F-16_Falcon]

2 billion... but thats not the point, the potential is far more, only if support is given...

2 billion dollars? is it true?

i know govt is giving enough support to IT industry. Pakistan Software Export Board is good.

 

[ChineseTiger1986]

Nice, China will be your potential market in the future.

 

[Leader]

2 billion dollars? is it true?

i know govt is giving enough support to IT industry. Pakistan Software Export Board is good.

oh come on yar, its nothing...just peanuts !!

yes that board DOESNOT HELP FIND CLIENTS.

 

[F-16_Falcon]

oh come on yar, its nothing...just peanuts !!

yes that board DOESNOT HELP FIND CLIENTS.

yar $2 billion is a huge amount. it will grow further. may be five times in ten years.

 

[Leader]

yar $2 billion is a huge amount. it will grow further. may be five times in ten years.

as compared to India which has 80 billion. I dont think so despite government incentives, the growth is upto the mark.

here is a detailed view of the situation. the INDUSTRY has enormous potential, yet we fail to ESTABLISH links.

IT Industry overview | Economic Pakistan

 

[F-16_Falcon]

as compared to India which has 80 billion. I dont think so despite government incentives, the growth is upto the mark.

here is a detailed view of the situation. the INDUSTRY has enormous potential, yet we fail to ESTABLISH links.

IT Industry overview | Economic Pakistan

yar why we always need to compare with india? forget india's 80 billion.

there is enormous potential so the news mentioned that it may grow five times in 10 years. 2 billion is 10% of our total exports. when it grows it will become 25% of our export. i am very happy to hear this. more jobs.

 

[Hutchroy]

2 billion... but thats not the point, the potential is far more, only if support is given...

Your figures are out of date.

Please refer to : IT Industry overview dated 14 February, 2008

According to the STATISTICS OF THE PAKISTANI IT/ITES INDUSTRY Details the size of the Pakistani IT Industry was US Dollars 2.8 Billion.

This was Three to Four Years ago.

As such the present Pakistani I T Industry Size might have already reached the US Dollar 10 Billion (In its initial stages the IT Industry has been increasing by upto 40% Annually.)

There is a table showing the "2009-2010 Target" being US Dollars 9 Billion.

 

[Zeeshan360]

Dude . The figure is about IT exports not the size of IT industry

 

[foxbat]

From 2 billion today to 10 billion in 10 years.. Thats just a growth rate of 17%.. I dont think the targets are so benign.. From earlier posts of Techlahore the numbers seemed much higher..

 

[Vinod2070]

I think the current exports of Pakistani IT industry are in hundreds of millions and not in billions.

As per statistics obtained from Pakistan Software Export Board (PSEB), the country’s IT and IT-enabled services exports have touched the highest ever benchmark of $201 million despite its plunging demand in the international markets in the last fiscal year as compared to $169 million exports achievement in 2007-08.

However, the country has missed its export target of $255 million of the closing fiscal year as the global economic recession has affected its offshore demands in the second half of 2008-09.

Daily Times - Leading News Resource of Pakistan

There is potential no doubt, 10 billion would be an aggressive target from the current base.

 

[Ababeel]

Pakistan IT exports on the path of growth recovery
Pakistan exports of Information Technology and IT-enabled services once again are firm on the track of growth recovery after witnessing a tough time of slump in the scenario of global economic meltdown.

The country’s IT companies have started showing its growth with modest pace with the recoveries of developed economies particularly United State of America and EU states.

As per State Bank of Pakistan statistics, the exports of IT and IT-enabled services have reached US $122.6 million in July-December 2010 as compared with US$ 113.5 million worth foreign exchanged earned through exports of this sector.

Pakistan exports of IT and It-enabled services marked the all-time high exports record in the second quarter of current fiscal year 2010-11 (Oct-Dec), standing at US $56.926 million.

Exporters of IT services have forecast that IT and IT-enabled services exports are likely to cross US $ 200 million by the end of the fiscal year as number IT firms have singed large-scale contracts with global companies in USA and UK.

The exports figures of IT industry stood at US $187.937 million in the last fiscal year 2009-10 whereas the exports stood at US$ 183.821 million and US $154.020 in 2008-09, 2007-08 respectively, showing constant contraction in growth over the last couple of years.

The figures of the central bank are based on the remitted amount in the country whereas World Trade Organization (WTO) prescribed formula evaluates 4 times higher exports value. Hence, the IT industry exports reached US $490.4 million.

Therefore, the value will be doubled to US $2 billion by the end of current fiscal year if exporters’ claims of constant growth in IT exports are proved right.

Pakistan’s IT exports have tremendous potential to explore its share in the global markets with the exceptional expertise and low cost services and products, Ashraf Kapdia Managing Director System Limited said.




Pakistan computer software developing companies are fetching handsome exports orders in USA markets with the recoveries of its financial crippled sectors for last couple of years, he said. “But Pakistani companies though having exceptional skills and creativity are very limited as against Indians and Chinese.”

There are a lot of opportunities for Pakistani IT firms to pitch big companies in US markets to establish themselves again however they need to diversify their services in different fields and applications, he added.


Since the fiscal year 2008-09, the growth of IT exports contracted after developed economies faced severe credit crunch and bankruptcy of their private sectors. Pakistani companies including its rivals Indian and Chinese suffered financial losses too and many of them faced bankruptcy and complete closure of business.


Although very few IT firms got survived mainly because of their engagement with state departments or with strong companies whereas majority of them moved to country and explored local and Middle East markets, IT experts said.


Pakistani companies have shown different expertise in software programming including gaming and animation, database and business applications. Besides, Business Processing Outsources (BPO) companies provide different financial, legal and marketing solutions have a significant share in IT industry.


Since 20010-11, the IT exports witnessed a slow come back in the US and EU markets as Pakistan IT companies have strengthened their reputation of country after winning awards in the global competition.


Last year at International Asia Pacific ICT Awards (APICTA) held in Malaysia, P@SHA (Pakistan Software Houses Association for IT & ITES) delegation picked up 7 Merit Awards (the APICTA Silver equivalent).These included Merit Awards in Security Applications, E-Inclusion and E-Community, Financial Applications, Communications, E-Government and E-Health categories.


Recently, Pakistani Gaming Firm Mindstrom Studios has developed official game of World Cup Cricket 2011.


But this not at all, Pakistan computer software and consultancy firms also won accolades at regional and national level. 10 IT companies out of 25 Pakistan firms were declared amongst the Fast Growing Entities by AllWorld Network, a business research and rating agency.


Pakistani companies have made these achievements at international level that will be expected to lead them towards a new peak of their success of businesses in future.


Jehan Ara President P@SHA said the Pakistani IT companies have shown their strong potential at global platforms and penetrating in the international market significantly without any government support.


She added that Pakistan’s exports will once again pick up with accelerated pace as the number of IT firms and freelance workers have been increasing with creative skills over a period of time.


Pakistan’s government should play a vital role to develop the IT sector, which has tremendous level of success to grow to increase the foreign exchange reserves of the country. The government should facilitate industry through establishment of IT Parks and issuance of funds to ensure participation of IT firms and professionals in international exhibition and platforms, she concluded.