That would be really great if Pakistan starts developing its IT and other industries, it will bring greater stability in this region and reduce hard liner.
So in any manner a developing industry in Pakistan is always helpful for India and whole region.
Currently I am in UK (on an assignment) and my experience is really bad for perception of Pakistan in people's mind here, I do not think companies will be ready to business in this environment with Pakistan in area's where data security and trust in business should be at highest level. In US the perception is worst than Europe. Hope demorcating government can do some thing on this.
Second, I would like to add some changing concept of outsourcing. Though, outsourcing and offshoring of IT started in India with biggest focus on cost cutting around 20-25 years back. From last 5 to 7 years Indian outsourcing is moving towards not only to help in cost cutting of companies but giving massing edge to react to market faster than ever. The result, Indian companies started making multimillion $ contracts with companies with multiyear projects. Also companies like Infosys, TCS, Wipro have increased their presence in IT consulting and then companies like Infosys, iflex (now oracle) where able to produce top selling large banking products. Almost all top companies across the world having some kind of R&D setup in India which is simply a great sign.
Now Indian IT outsourcing is moving towards strategic outsourcing and partnership, though I agree lot of things has to be done. I agree countries who can give an environment for business can still win contracts where companies looking outsourcing mainly cost cutting in mind they can outsource non strategic work.