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    IT Industry in Pakistan Essay (5282 words)

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    EXECUTIVE SUMMARYPIM undertook the preparation of this report with the conviction that Information Technology truly holds the potential to act as an enabler of economic revival and growth especially for countries like Pakistan. We are also painfully aware that Pakistan has lagged dangerously behind other regional countries in exploiting Information Technology as a catalyst for economic revival. However we feel that the explosive growth of the Internet and the coming tidal wave of E-Commerce still provide immense possibilities for Pakistan to exploit their potential and use them for accelerating its economic revival. We are also painfully conscious of the fact that the hyper speed of change in the Information Technology domain means that the IT year is equivalent to one month in conventional terms.

    This fact dictates that any meaningful action or decisions for the IT industry in Pakistan has to be implemented immediately. Pakistan and countries like Pakistan who are hoping to exploit the inherent potential of Information Technology must act immediately and decisively to restructure their domestic Information Technology industries to become effective role players within the global IT scenario. The luxury of long-winded debate and discussions and the formations of commissions, which will submit reports in months, will be counter productive to the spirit of any Information Technology initiatives. From these workshops a powerful feeling has emerged that any meaningful IT initiative in Pakistan will necessarily have to be a partnership between the government and its agencies on one hand and the private sector on the other hand. Bold, unconventional and strategically correct decisions are needed. Effective top managers with the right mix of vision and managerial competence are needed.

    A huge amount of financing is needed in domestic resources and foreign exchange. Above all the will to prevail will be needed, from the government of Pakistan, to chart the right course for our Information technology initiative and then stay the course in spite of the innumerable hurdles which are sure to bedevil the path to success. From PIM’s perspective this report provides an insider’s view of the IT industry and the problems it faces. Most importantly it also provides the insider’s view to some of the major problems facing the industry and their solutions. It is hoped that this report will help the IT decision makers in tackling the problems of the IT industry. The major problems of the IT industry in Pakistan as identified by these two workshops are: Massive Brain DrainSerious shortages of high power programmers and IT professionals in needed latest technologies Inability of Pakistani firms to tap and penetrate lucrative foreign marketsCommunication infrastructure bottlenecks caused by PTCL’s inability to provide the IT industry needed band-width and communication capabilities of international standard at competitive pricesLack of entrepreneurial skills and managerial know-how of IT professionalsLack of actual and practical government policies and support for industry IT industry has serious problems in securing financing and creditUnwillingness of local business managers to pay appropriate prices for locally developed software Lack of incubation and startup companiesLow computerization of the government and its departments ——— X ———THE NEED FOR THE REPORTPIM developed its strategic plan (2000 – 2005) in January 2000.

    This Strategic plan was discussed and approved in the 30th meeting of PIM’s Board of Governors held on 24th February in Karachi. In its strategic Plan PIM has predicted the explosive and exponential growth of the IT industry in Pakistan and had underscored the fact that IT could be the enabler for stimulating Pakistan’s economy from its present slump. Chairman PIM Board of Governors, Mr. Abu Shamim Ariff, was particularly interested in the predictions and conclusions of PIM regarding the future state of Pakistani industry and floated the idea that PIM should prepare a generalized report on the IT industry in Pakistan and it should be presented to the IT decision makers in Pakistan. He also emphasized that PIM would do well to concentrate more on the software segment of the IT industry. PIM Board of Governors enthusiastically endorsed the idea.

    PIM Board of Governors directed PIM to work towards the preparation of this report and to have it ready by the end of April 2000. However Chairman PIM Board of Governors later on extended the deadline to end May 2000. PIM’s report on the IT Industry in Pakistan was completed in the first week of June 2000. ——— X ———A NOTE ON THE METHODOLOGY USEDAfter intensive internal debate regarding the approach to follow for the preparation of this report PIM decide to follow the basic methodology which it had followed for strategic plan; the distillation of industry practitioners knowledge and wisdom. For this purpose it was decided to hold two workshops, one in Karachi and the other in Lahore, and invite IT industry leaders and professionals to participate in a controlled discussion of their industry. PIM decided to use the basic concepts of Strategic Planning and Force Field Analysis for guiding the discussions during the workshops.

    It was also decided to present the findings of the two workshops as they were without any recommendations from PIM. The response received to the announcements of the two workshops was overwhelming and PIM was swamped by requests for invitations. The Karachi workshop was held on the 22nd of April 2000 in the PC and was attended by 49 participants and the Lahore workshop was held on the 6th of May 2000 was attended by 35 participants. Most of the participants were chief executives or senior executives from Pakistan’s IT industry. Of the total participants 90% were from the private sector. The discussions were held in a very free and frank manner and it is highly commendable that all participants took a very broad macro view and there was no attempt to exploit the forum for any narrow interests.

    ——— X ———INDUSTRY DEFINITIONThe IT industry in Pakistan is in its infancy and is struggling to play catch up with the regional and global industry. The size/turnover of the software segment of the industry is US $ 25 million in the domestic segment and US $ 15 million worth of exportThe software segment of the IT industry has about 500 players/companies. Most of these companies are one-man shows. There are a few medium to large size players who are part of Pakistani business houses. The software industry employs about 5,000 programmers / professionals. The industry is facing a serious shortage of quality technical and marketing professionals due to brain drain of high power professionals and IT trainers in the needed technologiesThe following activities are part of the IT Industry; System analysis and designDesign of hardware & softwareSoftware programmingImplementationManufacturing/assembly of hardwareAfter sales serviceSystem maintenance servicesMarketing of hardware and softwareCommunication InfrastructureBand widthSwitchingISP’sASP’sICP’s InternetE-commerceData Ware housingHuman resource managementHuman Resource training and mobilizationINFLUENCES ON IT INDUSTRY IN PAKISTANINDUSTRY MAPOPPORTUNITIES FOR THE IT INDUSTRY IN PAKISTANThe following opportunities were highlighted by the participants of the Workshop:1.

    Development of packaged software 2. Quality training and development of specialized human resources3. Reengineering and computerization of govt. / public sector and private sector organizations4. Installation of networks (LANS, WANS etc. )5.

    E-info6. Switch over to Urdu as a computer language7. Development of call centers8. Reorganization and growth of communications infrastructure.

    9. Foreign Exchange earning potential10. Utilization of available educated Human Resources pool11. Unlimited E-Commerce potential12. Global and domestic Internet Explosion 13.

    Worldwide growth of Distance learning and education14. Social Reforms and lowering of cultural barriers due to use of Internet and Globalization will drive IT usage15. Govt. ‘s drive for documentation will provide growth opportunities16. Entertainment potential of IT and the Internet17.

    Relatively low development cost in Pakistan18. Consumer Awareness and Empowerment through IT and InternetTHREATS TO THE IT INDUSTRY IN PAKISTANThe following threats were highlighted by the participants of the workshops:1. Continued Political Instability in the country2. Continued government inertia on Information Technology, and the restrictive nature of national regulatory laws3. Pakistan continues to be perceived as a country which is not IT friendly4. Economic down turn and unfavorable exchange rate parity5.

    Continued monopoly of PTCL and the resultant poor availability, quality and price of communication infrastructure6. Lack of venture capital availability7. Lack of business know-how of IT industry players 8. Lack of access to International Capital Market9.

    Continued Low Literacy Levels and degradation of education standards further restraining availability of IT professionals10. Poor communication & networking with Non Resident Pakistanis and their continued low support of the local IT industry11. Weak Legal Frame Work for protecting intellectual property of local IT industry12. Brain drain 13. High taxation on information technology14.

    Censorship 15. Tariff barriers16. Imposition of unfavorable standards17. International embargo on technology transfers18. Continued technological backwardness as a result of the major international IT player’s refusal to share technology19.

    Lack of understanding of legality & processes involved in IT products development and marketing20. Increased use of imported software because of product dumping by international playersBASIS OF COMPETITIONIn the opinion of the participants of the workshops, the following were the basis on which competition in the industry is carried out. CRITICAL1. Effective Promotion & Presence/networking in key markets2.

    Reputation for timely delivery & quality of services and products3. Impression and image management of firm4. Ability to attract and retain high power professionals5. Good work environment6. Strong project and team management skills7. Ability to provide needed referrals and guarantees to foreign buyersNON CRITICAL1.

    Risk taking and forward looking managerial attitude2. Strong financial base3. Ability to handle and offer new technology products and services4. Collaboration with international software houses5.

    Ability to provide support and maintenance services6. Technically sound and professional top management. ——— X ———FORCE FIELD ANALYSIS OF IT INDUSTRY IN PAKISTANFORCE FIELD ANALYSIS: an explanationForce Field Analysis is one of the most powerful yet simplest conceptual tool for analyzing and understanding any problematic situation and then devising strategies and methodologies for changing or improving it. Force Field analysis postulates that any situation which is persisting for some time is a situation of dynamic balance and equilibrium which is brought about by the interplay of two forces (a) Driving Forces which push for change and (b) Restraining Forces which seek to inhabit change and maintain status-quo. FORCE FILED ANALYSISPRESENT POSITION DESIRED POSITIONDRIVING FORCES RESTRAINING FORCESFrom the Force Field perspective change is possible in a situation by either increasing the impact of the Driving Forces or reducing the inhabiting power of the Restraining Forces. Use of the Force Field Analysis methodology in practical situations has proven that often is easier, less expensive and less disruptive to reduce the impact of Restraining Forces than it is to seek to enhance the power of the Driving Forces.

    Undoubtedly the best change strategy is to increase the power of the Driving forces and reduce the inhibiting influence of the Restraining Forces. The basic approach used in carrying out a Force Field Analysis consists of the following four steps:1. Present Position AnalysisA simple but accurate description of the present situation we are desirous of changing. 2.

    Identification of Driving and Restraining ForcesRecasting of the Present Position in terms of the Driving and Restraining Forces that are at work in maintaining the present situation as it is. 3. Definition of the Desired PositionDeveloping a realistic and accurate description of the Desired State or Situation we want to move towards in a defined time frame. 4. Strategies and Methodologies for enhancing the Driving Forces and reducing the Restraining forces. Identifying practical and do-able ways and means of increasing the impact of the Driving Forces and reducing the inhibiting power of the Restraining Forces.

    ——— X ———PRESENT STATE OF IT INDUSTRY IN PAKISTANThe following is the present state of the software segment of the IT industry in Pakistan: 1)IT industry, especially the software development industry is in its infancy in Pakistan2)Present industry size is US $ 40 million Local=US $ 25Export=US $ 153)There are about 500 companies in the industry, which employ about 5000 professionals and programmers. Most of these companies are one man shows and lack of big players in the industry hampers growth4)Industry growth rate for the last three years has been 12 to 15%5)Overall Pakistan’s IT industry is a low tech. Industry6)There is a lack of unity in the industry amongst the players7)In Pakistan the IT industry as a whole is direction less and lacks strategic vision and management in the management of the industry and planning for it8)Govt. Has an indifferent attitude to the IT industry and has been unable to set priorities for the industry 9)The domestic software market is slow moving. Many business houses have in-house software development capabilities which further restrict domestic software industry business volumes10)No technology oriented research and development is done by IT industry in Pakistan11)The industry has problems in meeting deadlines & delivering quality products12)The industry is facing a serious shortage of quality technical and marketing professionals due to brain drain of high power professionals and IT trainers in the needed technologies13)Industry is hampered by lack of proper infrastructure and the currently high communication tariffs & costs are hampering industry operations and growth 14)Lack of availability of reasonably priced and strategically located IT friendly and conducive office space and working environment15)Industry is facing serious problem in upgrading its capabilities16)Lack of e-commerce infrastructure is also inhibiting the growth of the Industry17)Inability of financial institutions to recognize intellectual property as assets is restricting the growth of the Industry by making financing difficult18)No effective marketing is carried out by the industry both at the domestic and international level19)Industry has not effectively tapped Non Resident Pakistani’s support20)There is a serious lack of project management skills in the industry21)Internationally accepted quality standard systems and certifications are not used by industry players——— X ———DESIRED FUTURE STATE OF IT INDUSTRY IN PAKISTAN (End 2002 )Workshop participants would like to see the following conditions prevailing in the IT industry by end 2002.

    1)Industry turnover of US $ 200 million2)Computerization of all major federal and provincial government departments and organizations will be underway3)Internet will be freely and cheaply available all over Pakistan4)All major government, public and private sector organizations will be accessible via internet5)Industry will have 5000 new high power professionals added to its HR pool6)Pakistan will have 30,000 Java programmers7)Industry will have shifted towards value added products and services8)There will be easy and unrestricted movement of IT professionals from abroad9)There will be venture capital market, IT incubators and software parks In every major city10)There will be one fully operational technology city in Pakistan11)There will be easy and cheap availability of communication facilities and bandwidth and there will be no monopoly of any one company 12)10 Pakistani IT companies will be registered on NASDAQ13)100 foreign IT related companies will be operating in Pakistan including some of the big names14)Many Pakistani IT firms will have joint ventures with global and regional players15)On line trading (stock exchange) will be standard and legally covered16)There will be at least two international conferences and seminars held annually on IT17)Promotion of Pakistan as a country friendly to IT development will be effective18)Pakistan will be internationally recognized IT supplier19)Active players of IT Industry will be operating in the following areas:a)Call centersb)Data entry c)E-commerce enablersd)Cable internete)Direct cross border connectivityf)Cad camg)Wireless webh)Medical & legal software developmenti)Games softwarej)Customized software solution ——— X ———RESTRAINING FORCES INHIBITING GROWTH OF IT INDUSTRY IN PAKISTAN The following restraining forces have been identified by the participants of the workshops: 1)Brain drain 2)Lack of High Power Professionals in latest technologies3)Lack of quality education and training in needed technologies due to unavailability of quality IT training institutes 4)Lack of industry academia liaison5)Lack of entrepreneurial skills and managerial know-how of IT professionals6)Lack of cooperation/collaboration amongst IT companies hinders industry development and growth. 7)IT professionals lack business process awareness8)Industry unwilling to invest in long term projects 9)Lack of actual and practical government policies and support for industry 10)Frequent changes in government economic policies are hampering industry’s growth11)Key govt. officials and business decision makers are not IT literate12)High cost of communication infrastructure due to PTCL’s monopoly and it’s lack of and customer orientation13)Unwillingness of local business managers to pay appropriate prices for locally developed software14)IT industry has serious problems in securing financing and credit15)Poor social approach, attitudes and unethical work practices make it difficult to manage IT professionals16)Poor economic infrastructure is hindering growth in IT17)Lack of incubation and startup companies18)High international marketing costs19)Lack of marketing focus in industry20)Restrictive Foreign Exchange Regulations21)Lack of legal cover for operating E-Commerce Merchant Accounts22)Lack of Govt. Initiative to lure IT companies from abroad 23)Low computerization of the government and its departments 24)Restrictions on Pakistani business owners to setup/start-up companies in foreign countries. ——— X ———MAJOR DRIVING FORCES PUSHING FOR GROWTH OF IT INDUSTRY IN PAKISTANThe following forces driving the IT industry have been identified by the participants of the workshops:1. Growth of world wide IT industry 2.

    Availability of low cost educated manpower3. India syndrome (if India can do why can’t we) is fueling growth4. Availability of low cost inputs (pirated software & unbranded hardware)5. Growth of internet & e-commerce6.

    Perception that industry has explosive potential for growth and profits7. Perception that IT is a high and quick return and low investment industry8. Ambition Driven Strategy of founders of IT firms9. Availability of success Role Models in international IT industry10.

    Good Pay Back for the right IT idea which clicks in industry11. Attraction/romance of get rich quick success stories in IT12. Low start up cost13. Low Entry barriers into industry for new comers14. Availability of low cost inputs15. Easy access to international market 16.

    Unemployment of engineering professionals is encouraging them to move to IT17. Good understanding of English in the society——— X ———HOW CAN THE IMPACT OF THE RESTRAINING FORCES BE REDUCEDThe participants of the workshops identified the following strategies to reduce the impact of the restraining forces:1. Brain drain a)Encourage IT industry to develop profit sharing processes and schemes for IT professionals (bonus plans, stock options, etc. ) which will motivate them to stay in countryb)Help high power IT professionals to setup IT based businesses by providing needed capital and business supportc)Produce more qualitative programmers in needed and new technologies to offset brain draind)Improve human resources management policies at the firm and govt. level which can help high power IT professionals have a meaningful careers in the countrye)Govt.

    should launch special campaign to bring Non-Resident Pakistani IT professionals back, by offering special incentives for setting up IT based businesses 2. Lack of quality education in ITa)Implement international quality curriculum for IT education and training in the countryb)Government should follow up on the Contract signed with the Govt. Of Singapore for implementation of software education standards 3. Lack of quality IT training institutes a)Establish a simple and quick national & provincial level registration and accreditation system for IT institutes or make UGC streamline its operations to provide quick registrations / accreditation’s for deserving institutesb)Immediately institute a system of ranking and regulating IT educational institutionsc)Setup a certification body to oversee, regulate and certify qualitative IT training institutesd)Develop special financial and career incentives for trainers which will encourage them to stay in training and to motivate them to continually upgrade their knowledge and skillse)Setup new international quality IT training institutes in all cities and make their training affordable for meritorious studentsf)Launch crash program to upgrade existing IT institutes by providing them financial and technical assistance g)Institute a national registration scheme for certification of qualified and qualitative IT professionals and give preference to registered IT professional for jobs and start-up loansh)Encourage medium to large sized business houses to setup qualitative IT training institutes and offer them special incentives to do soi)Motivate and educate industry leaders in Pakistan for investment in IT education and training 4. Lack of industry academia liaisona)Hold regular high profile meetings and seminars of IT professionals with academic leadersb)Appoint IT professionals to relevant academic governing bodiesc)Run specially tailored IT familiarization training courses for Academic decision makers5. Lack of managerial know-how in IT companies/startups a)Provide free or low cost consulting services to IT professionals who are wanting to set-up IT businessesb)Link funding/loans to IT start-ups with training of entrepreneurs in relevant areas of small business managementc)Set up Free Web based advisory servicesd)Develop a standard business model for an IT based business and provide it free of cost to aspiring IT entrepreneurs 6.

    Lack of business process awareness in IT professionalsa)Design and conduct business process analysis training programs for IT professionalsb)Introduce international standard system analysis and design diploma courses for IT professionals7. Lack of entrepreneurial skills of IT professionalsa)Offer consulting and advisory services to IT entrepreneurs for successful IT business start-ups b)Encourage industry to play a lead role in IT start-upsc)Train IT professionals for entrepreneurship, small business management and marketing skills8. IT industry unwilling to invest in long term projectsa)Set up a IT development fund with a mandate to invest heavily in the development of Pakistan’s IT industry through funding much needed long term developmental projectsb)Set up an IT Board, Corporation or Bank to spearhead the development of the IT industry in Pakistan c)Encourage Industry associations to play needed role for development of the industryd)Offer financial incentives for industry players to invest in long term and high value added projects and product developmente)Encourage industry players to form consortiums and alliances in order to bid for large projects and handle world class product development9. Lack of governmental support for IT industry a)Initiate regular meetings between government and IT industry leaders b)Develop, announce and start immediate implementation of a comprehensive and progressive IT policyc)Setup an effective monitoring system for IT policy implementationd)Set-up an IT advisory board comprised of key IT professionals and IT business managers to advise Govt. on all IT matterse)Set-up an IT Development Fund/ Bank with a massive resource base and empower it to act as a catalyst for developing the Pakistani IT industry f)Make industry associations more effective and ask them to have effective liaison with the government g)Setup a Virtual Information-bank h)Increase IT industry interaction with special government Institutions which are either policy formulators or high-end usersi)Govt.

    Should make it mandatory for all government and public sector organizations to have web pagesj)For large local projects government should ensure that local IT expertise should be used k)EPB and other govt. organizations should regularly fund & organize IT fairs in Pakistan and the regionl)Remove restriction on foreign investment in Pakistan especially in IT sectorm)Remove restrictions on brining in foreign high power IT professionals for design and training projects10. Key govt. Officials and business decision-makers are not IT literate.

    a)Passing of IT courses should be a basic requirement for promotion in government and private sector organizationsb)Government should ensure that all top level government decision makers involved with IT are fully conversant with IT and its main issues 11. High cost of communication Infrastructurea)Make communication costs and services regionally compatible b)Reduce cost of band width & make bandwidth tariff internationally comparablec)Encourage local and foreign investment for upgrading of communication infrastructure d)Reduce tariffs on telecommunication infrastructure and services e)Allow competition in telecom industry to make telecommunication infrastructure and services freely and cheaply available12. Lack of cooperation and collaboration amongst IT companiesa)Encourage IT industry associations to become truly representative of the IT industry main streamb)Ensure that all industry associations hold regular elections and ban selection of candidates to industry association positionsc)Encourage IT industry players to hold regular meetings and seminars which can serve as forums for developing understanding between industry playersd)Govt. should award big IT projects only to consortiums of local companies there by encouraging intra-industry cooperation13.

    Unwillingness of Pakistani business managers to pay for local softwarea)Offer tangible incentives for use of locally developed softwareb)Fund development costs of local software to make it more affordable for domestic industrial and business usersc)Govt. should select / identify software products needed by local business and industry and then have them developed from the industry players for sale at subsidized rates to domestic usersd)Set quality standards for locally developed software products and ensure that IT industry players meet requisite standardse)In collaboration with IT industry players develop ethical and business practice standards and norms for the IT industry which include client service and confidentiality clauses f)All major governmental and defense related projects should be mandated to use locally developed software and if foreign software houses are assigned specialized tasks then it should be compulsory for them to use local subcontractors14. Problems in securing financing/credit a)Government should setup IT development fund which can provide needed credit for IT startups at easy terms and with minimal formalities and delaysb)Provide seed capital for IT consulting and software development firmsc)Amend relevant financial and banking laws and regulations to allow intellectual capital to be used as guaranteed or insured collateral15. Poor social approach, attitudes and unethical work practices of IT professionals make it difficult to manage thema)Launch generalized training courses for IT professionals16. Poor economic infrastructure is hindering growth in ITa)Improve infrastructure needed by IT industry on a war footing basis especially communication infrastructureb)Develop technology and IT parks in all major cities on an urgent basisc)Provide highly subsidized and fully equipped office space to all IT start-ups in centrally located buildings in all major cities17.

    Lack of incubation and startup companiesa)Govt. should launch incubation and start-up companies in the IT field and fund them through the IT development fundb)Govt. should encourage foreign investors to launch IT start-ups and incubation companies in Pakistan18. High international marketing costsa)Govt. should set-up IT export board and this organization should help IT companies to market their products in foreign marketsb)Govt. should identify needed marketing channels in foreign markets and provide advisory services for IT firms facing marketing problems in foreign marketsc)Govt.

    should defray marketing costs for successful IT transactions which bring foreign exchange into the country 19. Lack of marketing focus in industrya)Provide needed training in marketing of IT productsb)Provide experts assistance to IT firms at subsidized rates20. Restrictive Foreign Exchange Regulationsa)Eliminate the restrictive impact of FE Regulations on the IT industry21. Lack of legal cover for operating E-Commerce Merchant Accountsa)Amend laws to allow e-commerce22. Lack of Govt. Initiative to lure IT companies from abroad a)Develop a comprehensive plan to attract major IT companies to start operations in or from Pakistan by offering special incentives23.

    Low computerization of the government and its departments a)Develop a phased program of computerizing all major government departments within three years and mandate that they use locally developed software and expertise 24. Restriction on Pakistani business owners to set-up/start-up companies in foreign countriesa)Amend relevant laws to allow Pakistani business owners to either set-up/start-up companies in foreign countries. Also allow Pakistani business owners to enter into partnerships. ——— X ———HOW CAN THE IMPACT OF THE DRIVING FORCES BE INCREASED1.

    Growth of world wide IT industry a)Hold regular international and national seminars to help disseminate knowledge about Global IT trendsb)Encourage IT industry players to visit foreign fairs and technology exhibitions like Comdex etc. 2. Availability of low cost educated manpowera)Launch massive IT education and training drive to further help the availability of IT professionalsb)Encourage IT education and training in urgently needed newer IT technologiesc)Initiate a system of monitoring IT education and training institutions and ensure that they are following international curriculum and standards 3. India syndrome (if India can do why can’t we) is fueling growtha)Study Indian success model in IT and attempt to emulate as far as is possibleb)Encourage IT industry to follow the successful practices and trends of the Indian IT industryc)Encourage Pakistani IT firms to collaborate with Indian firms d)Identify the serious mistakes made by the Indian It industry and make sure that those mistakes are not repeated in Pakistan4. Availability of low cost inputs (pirated software & unbranded hardware)a)Govt.

    should not sign any trade or intellectual property protocols which will make it difficult or prohibitively expensive for IT industry to buy and use IT technology and software from international firmsb)Govt. should step in and negotiate with the large global players for providing IT technology and software to Pakistan on special bulk concessional ratesc)If needed the Govt. should, through the IT Development Fund, buy IT technology and software in bulk and provide the same to the domestic IT industry at subsidized ratesd)Govt. should make serious efforts to lure global hardware and software companies to enter the Pakistani market by offering especially attractive incentives to them5.

    Growth of Internet & E-commercea)Govt. should facilitate the growth of Internet usage and of E-commerce in Pakistan by providing all possible help in terms of infrastructure availability and the recasting of laws and regulations which are inhibiting this growth 6. Perception that industry has explosive potential for growth and profits7. Perception that IT is a high and quick return and low investment industry8. Ambition Driven Strategy of founders of IT firms9. Availability of success Role Models in international IT industry10.

    Good Pay Back for the right IT idea which clicks in industry11. Attraction/romance of get rich quick success stories in IT12. Low start up cost13. Low Entry barriers into industry for new comers14. Availability of low cost inputsa)Govt.

    Should negotiate prices of new/latest technology and software directly with global companies b)Massive investments should be made on a war footing to improve supply of IT professionals through upgrading of IT education and training. c)National IT talent hunt schemes should be launched to identify and nurture IT talentd)Institution of a special scholarship scheme for meritorious IT studentse)Launch of a special incentive package for IT professionals which could ensure that they do not automatically prefer to leave the country rather than work in Pakistanf)Reduce social and job problems faced by IT professionals15. Easy access to international market a)Set up an IT Export Board or Corporation in the private sector or allow the private sector to manage itb)Develop a strategy to create a better relations with Non Resident Pakistanis and to motivate them to help Pakistani IT firms gain a foothold in foreign marketsc)Make commercial councilors in all Pakistani missions more IT literate and educate them on how to identify IT business opportunities for Pakistani IT firmsd)Make commercial counselor more effective by improving their relationships with the Pakistani IT industry and its representative organizationse)Develop a strategy to use the capabilities of Pakistani missions for securing IT business for the Pakistani IT industryf)Appoint special IT commercial councilors in foreign countries which are large IT markets like US, Europe etc. g)Develop a marketing and promotional strategy for introducing Pakistan as a reliable IT product and service supplier and launch this drive with adequate fundingh)Identify highly respected and professional NRPs in US and European countries and ask them to become Honorary IT ambassadors for Pakistan.

    This could be done on a city or regional basis16.Unemployment of engineering professionals is encouraging them to move to ITa)Offer special incentives and training for engineering and science graduates to make the switch to an IT careerb)If needed offer special stipends for such professionals till they can find suitable jobsc)Set up a Web based IT placement bureau to help such graduates find jobs d)Encourage such graduates to play an entrepreneurial role by providing seed capital and technical know-how e)Encourage IT industry to seriously tap into the potential of using such unemployed graduates 17.Good understanding of English in the society——— X ———

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