Circumstances Make Pakistan Hot IT Outsourcing Location.

**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.

Pakistan offers five advantages over India:

1. Western experience: Executives at IT firms in Pakistan often have worked and gone to school in the U.S., which is Pakistan’s largest export market. Indian IT firms whose managers have worked in the West are generally more expensive than similarly positioned Indian firms, without always providing noticeable differences in program implementation capabilities. The willingness of Pakistanis to return home from the West stands in marked contrast to most Indians who arrive for school or work in the West and never look back.

**2. Professionalism and integrity: **The personal integrity of Pakistani managers is easy to identify and appreciate, especially by Westerners with business experience elsewhere in the region. However, the relatively open and trusting nature of Pakistanis has made them easy prey for Indian business brokers who have managed to cheat several Pakistani IT firms by offering to provide them with outsourcing contracts in exchange for up-front fees. The Pakistanis assumed that these Indians were open minded and charitable for coming to help less experienced firms in Pakistan gain access to international contracts, until the Indians took their money and disappeared.

3. Higher labor availability: Fewer holidays in Pakistan means less slippage in staff availability compared to India. IT firms in India are advised to hire a diverse workforce so that members of one community can enjoy important festivals while members of other communities cover the phones and keep production going.

4. Good accents: Pakistan’s official language is English. Only Kolkata (formerly Calcutta) and the Punjabi areas of India can come close to competing with accents in Pakistan, where many families speak English at home and where accent neutralization for non-native speakers of English is substantially easier than in India. Language skills and accents provide Pakistan with a major advantage over all other Asian outsourcing destinations.

5. Low cost talent pool: India’s top-tier labor force for IT work has been stretched thin in many areas, especially Bangalore, where escalating wage rates, turnover and higher outsourcing prices are reaching critical mass at the same time that the urban infrastructure has exceeded its carrying capacity. Annual turnover rates reported to InternationalStaff.net for most merchant call center facilities in India at the beginning of November are approaching 100 percent. High turnover rates are causing a shift to second tier Indian cities and to Kolkata. Escalating turnover rates are one of the Indian outsourcing industry’s dirty secrets. In comparison, Pakistan’s top-tier talent pool is largely untapped and turnover rates are less than 20 percent.


Here is the Link to find out more,…Its a long Article,…I just posted highlighted stuff,…

http://www.ecommercetimes.com/story/37750.html

Re: Circumstances Make Pakistan Hot IT Outsourcing Location.

.**US firm to invest $1.2bn in Wind Power

**By Our Staff Reporter

ISLAMABAD, Nov 8: A US-based energy firm plans to invest $1.2 billion in Pakistan’s wind power generation sector in Sindh province, the Ministry of Finance said in a statement.

Chief Executive Officer of Access Energy Group International (AGI) of the United States, Shahid Naeem met with Minister of State for Finance Omar Ayub Khan here on Monday and informed him that his company was planning to invest $1.2 billion in Pakistan’s energy sector over the next five years.

The company will develop a 100mw wind farm, extendable to 1,000mw, in the province. The initial investment for the first phase would be over $109 million to be brought entirely from abroad.

In the next five years, depending on the success of the first phase, AGI has made commitments to install 900mw generating capacity in the region.

The relevant memorandums of understanding (MoUs) for the above projects have been signed with Alternate Energy Development Board (AEDB) of Pakistan.

The minister was informed that AGI in cooperation with AEDB was also in the process of making arrangements for transfer of technology and for setting up a Solar Cell Manufacturing plant in Pakistan.

Working papers for this project have been finalized and companies with the manufacturing capabilities in Pakistan have been short-listed.

AGI has already acquired manufacturing rights for wind turbines in Pakistan. This will allow for a new industry to be set up in the country with worldwide export potential. The company is also planning to set up a training institute in Pakistan to develop human potential in the field of renewable energy.

The minister was further told that the AGI has commissioned a Canadian firm to manufacture Solar Power units with a 25kw capacity to be installed in different villages in Pakistan in order to provide a source for inexpensive electricity for small villages.

Mr Ayub appreciated that an expatriate Pakistani was working actively to bring big investments and technology in Pakistan. He said the continuous growth of Pakistan’s economy has increased power demand manifold. It has now become imperative to take immediate steps to look for alternate sources of energy.

The minister said the government was encouraging foreign and local investment in the energy sector and was trying to remove all bureaucratic hurdles faced by the investors.

http://www.dawn.com/2004/11/09/ebr4.htm

Re: Circumstances Make Pakistan Hot IT Outsourcing Location.

:) May Pakistan be developed nation one day. All the best.

Re: Circumstances Make Pakistan Hot IT Outsourcing Location.

Good to see someone has realised that Pakistan has expertise in generating Wind :slight_smile:

Re: Circumstances Make Pakistan Hot IT Outsourcing Location.

Something is burning here,…:eek:

BTW,..Ask US why they are wasting their money,…like Enron in India,…:slight_smile:

Re: Circumstances Make Pakistan Hot IT Outsourcing Location.

Wipros sales in one year are over $1B. Pakistan exported $40 million in iT services last year. Ambition is good...idiotic bombast is stupid.

Re: Circumstances Make Pakistan Hot IT Outsourcing Location.

:rotfl: tariq…pleeeeease stoooop! what? pakistan hot IT outsourcing location? :rotfl:

not yet not yet … first you gotta get all the al qaeda and isi goondas outta the streets.

next, you gotta get a real government (decent sized customers don’t like juntas)

and finally, you gotta come clean on AQKhan etc

Then may be

Re: Circumstances Make Pakistan Hot IT Outsourcing Location.

This was my post like couple of years ago,…here on GS,…read it,…then we can go over the numbers,..again…

**Citizens of the 3rd World, don’t cry for your neighbours - feed you own childern first. **

Facts on Indian Economy:

More than a third of the population is too poor to be able to afford an adequate diet

Revenues: $35.8 billion
Expenditures: $66.3 billion
External Debt: $98 billion (3 times that of Pakistan)

I feel sorry for our Indian friends, and hope that all Pakistanis will keep on sending AID to the earthquake striken areas in India.

As far Indians are concerned, my advise to them is to spend their energies in feeding poor in their country, instead of waisting time on the Internet spreading propoganda against Pakistan…http://www3.pak.org/gupshup/smilies/smile.gif

Very conviniently you Guyz can say the facts given here are not true. This will shows the level of knowledge you have about your own country.

This was exactly my point. you guys are spending all your energies trying to save Pakistan (where by the way people are living much better life than in India) & don’t even know simple stats about your own country i.e., expenditure, earning, & external dept.

As far my disagreement with you all is concerned, we have RAW agents here to spread wrong information about pakistan.

Pakistan’s economy is not doing good, but we are proud of the fact that atleast we never asked India for aid. Whereas Mr. Vajpayees who refueses to allow his cricket team to play against pakistan, gladly accepted aid from pakistani people.

Now some other FACTs about India:-

India claims to be emerging IT super power - FACT (it only has 1% of the IT market share in the world)

India’s population & land is approximately 7-8 time that of pakistan. There earning is only 4 times that of pakistan.

India’s expenditure is double that of its earning, & its external debt is 3 times that of pakistan.

level of Poverty in India is world renowned - check out any documentry/Fact Book/Research Paper that discusses World Poverty, India is mentioned in bold letters.

Re: Circumstances Make Pakistan Hot IT Outsourcing Location.

interesting observation tariq...good

Re: Circumstances Make Pakistan Hot IT Outsourcing Location.

tariq relax. you sound like as if an indian kicked you in the balls. keep it clean man.

Re: Circumstances Make Pakistan Hot IT Outsourcing Location.

[quote=“TARIQ786USA”]
.US firm to invest $1.2bn in Wind Power

****By Our Staff Reporter

ISLAMABAD, Nov 8: A US-based energy firm plans to invest $1.2 billion in Pakistan’s wind power generation sector in Sindh province, the Ministry of Finance said in a statement.

…immediate steps to look for alternate sources of energy.

The minister said the government was encouraging foreign and local investment in the energy sector and was trying to remove all bureaucratic hurdles faced by the investors.


So finally FartGuru’s ass has a meaning, I hope he holds a patent.

Re: Circumstances Make Pakistan Hot IT Outsourcing Location.

GD,
Actually indian are kicking themselves in the ball now,…where as clean is concerned,..I think something wrong with you ,…Coz U R having hard time swallowing it,..I can see that,…did you read this too:

By Anthony Mitchell
E-Commerce Times
11/02/04 5:00 AM PT
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.

BTW,…
India claims to be emerging IT super power - FACT (it only has 1% of the IT market share in the world):eek:

Re: Circumstances Make Pakistan Hot IT Outsourcing Location.

You are blessed with what you are…:rolleyes:

Re: Circumstances Make Pakistan Hot IT Outsourcing Location.

Tariq, I assume you are young...let me tell you why GE sold its captive unit. It wanted to MAKE MONEY. It turned a cost center into profit center...it sold it to General Atlantic Parnters..one of the biggest private equity firms in the world. this is good for India. this means that people can actually make money from investment .

Secondly, rest be assured..companies int eh US would first go to bangladesh than Pakistan. It is called perceptive risk.

Re: Circumstances Make Pakistan Hot IT Outsourcing Location.

Yes, Bangladesh has more potential than Pakistan. I guess we will be vilified for even mentioning the 'B' word.

Bangladesh has a genuinely democratic system of government and enjoys political stability, which is essential for ensuring a favourable climate for investment and sustained development.

Investors are still wondering what will happen to Pakistan in 6 months time.

Re: Circumstances Make Pakistan Hot IT Outsourcing Location.

Well well,…Check this and see what’s going on.,…:eek:

GE, IBM shifts focus from India to Hungary – a new trend or just isolated cases?

GE, IBM shifts focus from India to Hungary – a new trend or just isolated cases?

IBM has decided to create 700 jobs in Hungary for service outsourcing activities. GE recently sold its outsourcing hub in India while operating service outsourcing hub in Hungary. East Europe is providing one interesting scenario for these companies. When IBM takes jobs to Hungary instead of India, not many start complaining. The reason behind this may be India’s NASSCOM the industry association for IT and BPO companies. These industry associations have created a perception among US people and political leaders that India is stealing all the jobs from US. US Corporations are weary about that scenario. For example, pension funds holding billions of GE or IBM stocks do not like the idea that IBM or GE takes jobs to India or China. When these countries decide to expand in countries that do not boast as “job stealers”, nor one really takes notice.

Computer giant IBM will create 700 service center jobs in Hungary in a 6.5-billion forint ($35.54 million) investment, the Ministry of Economic Affairs said on Thursday. IBM will create mostly financial services, human resources, procurement, and call center positions in Hungary, the ministry said in a press release. Luring IBM, which already operates a major services center in Hungary, is a victory for the Hungarian Government, which has been working to bring high skill, added value jobs to the country at a time when many low skill-manufacturing jobs are moving east.

IBM had been among the big manufacturers to leave after it closed a hard disk unit in 2002 and laid off 3,700 workers. German business software firm SAP recently announced plans to locate a services center to Hungary while General Electric has been operating a major services division in Hungary for years. Keeping manufacturing jobs has proven difficult as rising wages and a persistently strong forint lowered Hungary’s competitiveness versus its neighbors while the lack of available labor has also made it difficult to create large manufacturing capacity. The government’s efforts to attract new foreign investment paid off in 2004, when foreign direct investments rose to 2.33 billion euros in the first nine months from 1.75 billion euros a year earlier.

http://www.sharedxpertise.org/modules.php?op=modload&name=News&file=article&sid=2632

http://www.indiadaily.com/editorial/1791.asp

Re: Circumstances Make Pakistan Hot IT Outsourcing Location.

tariq baby - did you notice how you have strayed from your own topic? this is supposed to be about lighting up pakistan IT and I have made some constructive suggestions to remedy your hopeless situation.

you on the other hand keep talking about India which obviously has had a huge headstart and is in a very different league.

Re: Circumstances Make Pakistan Hot IT Outsourcing Location.

Hate to wake you up from your dreams buddy,…Last time I checked,..India is still far behind in feeding its own people,..who are like 400 Million plus,…living below poverty level,…BTW.** India is still 3rd world country and struggling hard to survive now,..**

Because your bread and butter is going to E Europe now,..Plus to next door neighbor China,…
Therefore, even in Asia…if you compare with south Korea,…they have like 8 times higher per capita income than India at this level,…You guyz can dream big,..but too bad,…Global economy changes its priorties with time…

Good old days are gone,…My sunny,…If you guyz are taking pride in Call centers,..then I can understand that,…:slight_smile:
Indian Govt is working hard to eradicate poverty,..you know how,…?

*** Poverty to be eradicated in India using Virtual Reality Software**


Read this if you can,…:):eek:
**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, as both service providers and service consumers. Pakistan is making no effort to gloss over its challenges, which makes those challenges easier to address.

With a population of 160 million and a land area almost twice the size of California, Pakistan is a smaller and more unified country than most of its neighbors, which increases that nation’s chances of solving its own problems and avoiding the mistakes that have plagued neighboring economies.

Re: Circumstances Make Pakistan Hot IT Outsourcing Location.

^ Tariq baby...honeybun....sweety...listen: it's ok ,,,we understand.....it's probably very painful but fact is fact - Hindians have left you in the dust when it comes to political system, stability, international relationship, technology and economic progress. Fundamental to this success is diversity, education and drive.

you should find ways to emulate us instead just being in jealous rage all the time.

Re: Circumstances Make Pakistan Hot IT Outsourcing Location.

I understand your circular logic here and hidden anger,…but hey you have to deal with it,..Sometime truth hurts,…as its happening in this case…Don’t jump,..relax,..and swallow this pill that you are **Citizen of the 3rd World country called India **. Now would you just care to read this or you gonna just dance around the issue…I gave you the links,…as follows:

If you don’t wanna read then its your problem,…not mine,..but all other Guppies on this board can read and understand , what I am trying to remind you…:eek:

Once again these links are for you and all other members who gonna visit that site and read it…:eek:

GE, IBM shifts focus from India to Hungary – a new trend or just isolated cases?](http://www.sharedxpertise.org/modules.php?op=modload&name=News&file=article&sid=2632&mode=thread&order=0&thold=0)

http://www.sharedxpertise.org/modul…rticle&sid=2632

http://www.indiadaily.com/editorial/1791.asp

Now some other FACTs about India:-

India claims to be emerging IT super power - FACT (it only has 1% of the IT market share in the world)

India’s population & land is approximately 7-8 time that of pakistan. There earning is only 4 times that of pakistan.

India’s expenditure is double that of its earning, & its external debt is 3 times that of pakistan.

level of Poverty in India is world renowned - check out any documentry/Fact Book/Research Paper that discusses World Poverty, India is mentioned in bold letters.