Company

LOGO

Destination NeXT: Why P@kistan ?

Operating Costs in US, India, and Pakistan

USA

India

Pakistan

Personnel G&A Expense Telecom Property Rentals Depreciation Total Expenses Markup

42,927 8,571 1,500

6,179 1,000 2,328 847

4,500 800 2,000 700

2,600
3,000 58,598 0%

1,500
11,854 100-200%

1,000
9,000 100-200%

Total Price in Market

58,598

23,708 to 35,562

18,000 to 27,000

Pakistani labor is cheaper than India.

Source: NASSCOM; TBT Analysis for US and India; PSEB Estimates for Pakistani Companies, March 2006

Major Companies

Service Line
Web Development Document Management Telesales / Telemarketing IT Consulting Billing Services Custom Application development and maintenance Network consulting & Integration IT training and education Accountancy Services Packaged software support and Installation Application Outsourcing Network Management IT Enabled Services Product development and design Embedded software / mobile content

BearingPoint estimates that global IT services revenue of Pakistani IT companies is eight times the figure given by State Bank of Pakistan.
Pakistan (State Bank Figures) Rank
1 2 3 4 5 6

Companies
Netsol Technologies Ovex Technologies TRG Pvt Ltd System Pvt Ltd Elixir Technologies Descon IT24 Pvt Ltd

US$ Million
5.26 2.93 2.23 1.94 1.51 1.4

7
8 9 10 11 12 13

Trivor Software
Geopaq Tech. (Pvt.) Ibd Enterprise DB Xavor Pakistan Pvt Ltd LMR Resource Itim Software Accountancy OS Pvt. Ltd

1.2
0.99 0.85 0.75 0.73 0.53 0.42

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15 16 17 18

Dev Technologies
Avanza Solutions Streaming Network Kalsoft (Pvt) Ltd Innovative Pvt Ltd

0.34
0.33 0.31 0.3 0.27

Source: State Bank of Pakistan, PSEB, BearingPoint Study September, 2005

Pakistan Market Distributed in 3 Tiers

Export Proceeds of IT (US$ Million)

80 70 60 50 40 30 20 10

Share of Export Revenue by Type

0 2001 2002 2003 2004 2005 2006

Tier 1 (2.5 Million USD +)

11 % 20 % 69 %
Tier 2 (250K 2.5 Million USD) Tier 3 (Less than 250K USD)

Source: PSEB, State Bank of Pakistan, September 2005

Active Companies in Major Cities

City Islamabad / Rawalpindi Karachi Lahore Abbotabad Faisalabad Hayderabad Multan Peshawar Quetta Sialkot

# of Operational Companies 259 368 322 4 10 3 6 19 2 7

Others
Total

13
1013

Source: PSEB Survey, July 2006

Categorical Analysis of IT Industry

Expertise Wise Estimation

Area of Expertise
Financial ERP Animation & Gaming Mobile Content Medical Transcription Legal Transcription Document Management Total

Total
192 159 351 25 14 39 25 805

Source: PSEB Survey, July 2006

Categorical Analysis of IT Industry

Product Wise Estimation

Service Line
Software Products Software Services IT-Enabled Services Others

Total
167 685 387 175

Source: PSEB Survey, July 2006

Pakistani IT Industry Size

Total Industry Size: $ 2 Billion

Global Exports

$600 M

$1.4 B

Domestic Industry

$ 75 M
IT Export Revenue Reported by SBP

$150 M
IT Export Revenue Brought into the Country

$600 M
Global IT Export Revenue

Source: BearingPoint Study September, 2005, IT Revenue Understated V1.4, August 2006

Pakistan IT Exports by Region

Others 15%

USA
Canada 2% Hong Kong 2% Japan 2% Bermuda 3%

UK UAE Thailand Germany

Germany 3%

Bermuda
Thailand 3%

Japan
UAE 3%

Hong Kong
USA 57% UK 10%

Canada

Source: SBP, July 2005

Growth Pattern of Pakistani IT Industry

Office Space and Human Resource Growth Patterns of Top IT Companies NCR IBM ZTE NetSol Touchstone TRG LMKR

Combined growth rate HR 434 % Office Space 418 %

Source: PSEB Survey, July 2006

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City Wise Growth of IT Industry

Increase in number of IT companies over the last three years [2003-2006]

Islamabad Karachi Lahore

300 %

180 %

150 %

Source: PSEB Survey, July 2006

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IT Skill-set available in Pakistan

Pakistan offers a wide array of skilled and qualified personnel which can be utilized by foreign companies to reduce their costs. ITES and Call centers is a growing industry in Pakistan and due to better English language competencies, Pakistan can emerge as a leader in this area if the required service quality levels are met.

Area of Expertise Transcription Telesales / Telemarketing Document Management Accounting Billing Services

# of Employees 895+ 1200+ 740+ 660+ 420+

Mobile Content
Web sales / Marketing HR Hiring / Administration Software / solution development Web development Call Centers Total Source: PSEB Survey, July 2006

610+
1345+ 430+ 11970+ 7430+ 5000+ 30700 +

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Critical to Rank Call Center Companies

1.

TRG 2. Touchstone communications (Pvt) Ltd 3. Ensign Communique (Pvt) Ltd 4. 5. 6. 7. 8. 9. Altsource Communications (Pvt) Ltd AMZ Access (Pvt) Ltd Astro Outsource (Pvt) Ltd Ovex Technologies (Pvt) Ltd

InfoSpan (Pvt) Ltd

Quest Marketing

10.

Voxel Communication
Source: PSEB Survey, July 2006

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Bandwidth Statistics for Pakistan

No. of DSL / Broadband Users 1.5 Million

Purchased Bandwidth

A Statistics

3104 MB
(PIE + FLAG)

No. of Dialup Users 10.5 Million

Bandwidth Delivered 2484 MB

(PIE + FLAG)

Source: PIE, FLAG, PSEB, May 2007

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Niches of Pakistani IT Industry

Pakistani Industry specializes in these solution areas

Retail Banking and Financial Products

Medical Transcription

Utilities & Insurance Applications

IT Niches
ERP Software Animation & Graphics

Mobile Content Document Management

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World Class Companies

TELECOM
Wavetech: Large display systems in public places Inov8: Leading mobile transaction management platform Mobile complete: mobile testing suite Pixsense: Mobile Photos

JOB PORTALS
Rozee.com.pk: Online recruitment solution Personforce.com: US Online recruitment solution

DOCUMENT MANAGEMENT
eDox: Superior document management and office automation solution with over 150 international customers

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World Class Companies

PERSONAL PRODUCTIVITY
Scrybe: Leading Web based email and calendaring solution

RETAIL
ITIM: Fast growing retail solution with over 50 UK customers

SOCIAL NETWORKING
Naseeb.com: Muslim social networking portal

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World Class Companies

FINANCE
Mixit: Stock Market Order Management, NYSE, USD 0.5 Bil per year NetSol: Car Leasing and Services. Daimler Chrysler, Toyota, BMW Autosoft: Retail banking Solution running in three countries Metalbid.com: world leading metal exchange TPS: e-payment and e-banking (Customers: Al Bilad KSA, CBK, BoK, ESB, UBL Kuwait, 1Link, Allied Bank)

ENTERPRISE COMPUTING
Ultimus: Business Process Management. 160 international customers including Microsoft & White House Five Rivers Technologies: Clear Cube Partner and world leader in fast growing field of centralized computing.

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World Class Companies

SOFTWARE SERVICES
Visualsoft: Hardware and software system integration Kalsoft: Advanced infrastructure design and implementation Averox: Enterprise client/server based solution Si3: System Integration solution providers Techlogix: Business process improvement solutions Techaccess: Enterprise management solutions Systems Ltd: IT and BPO services Pi Sigma Group: Consulting and software development Comcept: Innovative telecom solution provider

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World Class Companies

IT ENABLED SERVICES
Post Amazers: Animation. Son of Mask and Exorcist : The Sequel LMKR: Seismological and Geological Data Management. BP, CALTEX, TEXACO iEngineering: Platform Management. Most comprehensive database in the world Touchstone BPO, Ovex, Infospan, TRG, IT24: IT enabled services/Call Centers

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