Pakistan among top countries for offshore outsourcing: Gartner

[Neo]

Pakistan among top countries for offshore outsourcing: Gartner​

ISLAMABAD: As a result of the policy initiatives taken by the government to position the country as an offshore destination of choice, Pakistan has become a major player in the global Information Technology (IT) industry.

Gartner, the world’s leading information technology research and advisory company has placed Pakistan amongst the top countries of the world in terms of suitability for offshore outsourcing. Pakistan has been recognized by the global community as ‘Market Leaders and Challengers’ and has been placed in the First Category countries in 2007. Previously, in 2006 Pakistan was placed in the Third Category countries.

Gartner, in its recent report ‘Analysis of Pakistan as an Offshore Service Location’ said the major factor behind the progressing status of Pakistan is the lower salaries and better infrastructure advantages than other offshore destinations. “The salaries of IT professionals in Pakistan are approximately 30% lower than those in India, while telecommunication costs are also lower as compared to any other offshore locations, which make Pakistan an attractive outsourcing destination.”

Based on a total of ten criterion, including language, government support, labour pool, infrastructure, education system, cost, political and economic environment, cultural compatibility, global and legal maturity, data and intellectual property security and privacy, Gartner rated Pakistan as ‘very good’ in cost, ‘good’ in language and ‘fair’ in most of the areas despite the prevailing political environment.

According to Gartner research report, government of Pakistan has devised a comprehensive national IT policy, designed to encourage the private sector. In order to drive development, Pakistan Software Export Board (PSEB) plans to construct new IT parks in major cities while 750,000 square feet of space in PSEB-designated parks has already been leased to IT companies.

“The government is doing a great job of initiating activities in positioning Pakistan as an offshore location, however, it needs to take concrete steps to improve its brand image as an offshore destination,” the report adds.

It may be mentioned here that a number of Pakistani IT companies have developed world class software in areas such as car leasing, enterprise application integration, mortgage lien processing, stock market order management, mobile convergence, data and web content management for some of the top most corporations of the world.

Daily Times - Leading News Resource of Pakistan

 

[mujahideen]

I hope we become the number one place.

 

[IND]

Number one position possible if madrasas produce employable workforce and not terrorists.

 

[Flintlock]

Number one position possible if madrasas produce employable workforce and not terrorists.

Dude chill....there are less insulting ways to put a point across.

 

[MastanKhan]

Hi,

That was a low blow IND----did the guy mention---pakistanis have better accents than their indian counterparts.

 

[Flintlock]

Hi,

That was a low blow IND----did the guy mention---pakistanis have better accents than their indian counterparts.

Lol...please...I've seen Pakistanis speaking english...nothing to be proud of rest assured.

 

[Neo]

Number one position possible if madrasas produce employable workforce and not terrorists.

Educate yourself on Pakistani IT industry and our potential before you start talking BS!

 

[Proud to be Pakistani]

Lol...please...I've seen Pakistanis speaking english...nothing to be proud of rest assured.

Good accent but S H I T english ------> Indians

 

[Neo]

Okay, thats enough for now guys, back to topic or the thread gets locked!

 

[Proud to be Pakistani]

Pakistan Now a Hot Spot for IT Outsourcing

The biggest boost to Pakistan's efforts to break into the global IT marketplace came on September 28, when India's finance ministry announced an income tax of more than 36 percent on foreign firms with software, R&D and customer service operations in India. This tax proposal had been in the works since the beginning of the year and is expected to prompt U.S. firms to follow GE's lead in selling off assets in India. Why is Pakistan the hot new offshore information technology (IT) destination? This is because of a combination of favorable economic circumstances. Just when many Western managers are finally becoming comfortable with the idea of working closely with Indian IT firms, along comes Pakistan. Pakistan is shaking off decades of "also ran" status. Funds invested into building educational institutions in Pakistan (when there were not enough jobs to absorb all the graduates from those institutions) are paying off as Pakistan begins to field a modern, highly productive labor force that is the envy of more prosperous but less tech savvy nations elsewhere in the region. Why Care? Why should the average Western IT professional, businessperson or IT consumer care? Because we are all going to be buying and using more IT outputs from Pakistan. To be a smarter buyer and user of IT products calls for a familiarity with Pakistan, even for those who do not initially intend to do business with Pakistani firms. We are all part of a global economy and Pakistan is an increasingly important part of that global economy. The issues that Pakistan faces as it gears up for the global high-tech marketplace are many of the same issues that both advanced and developing economies face elsewhere in the world. Pakistan is making no effort to gloss over its challenges, which makes those challenges easier to address. India Helps Pakistan Any Western business manager who initiated or approved the establishment of an IT production or R&D subsidiary in India in 2004 could find that decision to be a career-ending move unless they have built in financial reserves to accommodate both the tax scheme of September 28 and upcoming taxes still on the drawing board.

A proposal is under consideration in New Delhi to tax activities conducted over international private leased connections (IPLCs) that carry most of India's voice and data traffic to and from the outside world. There is also a proposal to replace state-to-state customs duties with a national value added tax. Both those tax proposals could be combined into a single scheme.

U.S. IT brokerage firms, their U.S. clients and domestic Indian IT operations will be largely untouched by the September 28 tax scheme. But the traditional offshore migration path of outsourcing to an offshore location first -- before setting up captive operations there -- has been disrupted in India until economic reforms reduce the role of the Indian government in the economy and consequently reduce that nation's revenue requirements.

For Westerners with long-standing personal ties to India, that country's September 28 tax scheme could have both personal and financial consequences. For new Indian workers who hoped for a position with a Western firm based in India, that country's revenue policy will alter careers, lifestyles and futures.

Pakistan Software Export Board

 

[Sam Dhanraj]

I guess Pakistan can have another similar contract with Forrester as well on the same lines it did a contract with Gartner to conduct study on Pakistani IT industry.

Probably more emphasis on sound Business continuity models that exists in the country to dispell the fears of political instability.

 

[Spartan King]

Number one position possible if madrasas produce employable workforce and not terrorists.

It would be better if you dont put up comments like that again. You dont freaking know anything about madarsas so its better you shut up and dont talk about them! i myself am a madarsa graduate and theres no one here who it better than me, we were never taught anything about terrorism, and this is only propagated by the western and indian media to damage the image of Islam.

I would like to ask the administrators to look into these kind of posts.

thank you

 

[khanz]

nice to see some good news for a change
don't care for the way he put it but i do also hope those madrassahs are shut down they really do nothing but problems for us !
nice way to start the new year 2008 hopefully will be a peaceful/happy year for pakistan and the rest of the world too.

 

[solid snake]

I guess Pakistan can have another similar contract with Forrester as well on the same lines it did a contract with Gartner to conduct study on Pakistani IT industry.

So you're claiming Pakistan paid Gartner to publish this report? What childish views

As the Indian IT professionals demand higher salaries, the momentum is definitley shifting towards Pakistan. We have pretty much the same things to offer as India in terms of the IT industry. English speakers, large labor force, government tax incentives etc.

 

[Goodperson]

So you're claiming Pakistan paid Gartner to publish this report? What childish views

As the Indian IT professionals demand higher salaries, the momentum is definitley shifting towards Pakistan. We have pretty much the same things to offer as India in terms of the IT industry. English speakers, large labor force, government tax incentives etc.

True Pakistan is attractive outsourcing destination Gartner report is highly influential and research they do is good. However Pakistan also needs to see that its image is good which has taken a beating recently due to BB's assassination.
It is also not good when Pakistan gets mentioned for most of news related to Al Qaida or Taliban as a safe haven for these.
Pakistan as per what I read on the forum has good infrastructure only sense of security needs to be instilled in minds of people which should also get reflected in International Media. Pakistan also needs to promote Democracy whether you like it or not.