NetSol Tec

hnologies
Subject:
∙ Principle of Management
 Submitted to:

∙ Mam Romaisa

Date of Submission:

∙ 07-Feb-2024
Project by:
Syed Muhammad Aoun Raza
Roll No:SOFTF23BSR16

1- Introduction to NetSol Technologies Limited:

NetSol Technologies Limited is one of Pakistan's leading software companies. Being a multi
dimensional technology company, NetSol offers to its customers, which are mostly foreign
clientele, a range of information technology services and custom software offerings including
technology outsourcing, systems integration, application development, and consulting for
business intelligence and information security.

Founded in 1995, NetSol Technologies (NASDAQ: NTWK) is a global provider of software

solutions and IT services, Headquartered in Calabasas, California, NetSol employs over 550
employees globally, with locations in the U.S. , Europe, China and Asia Pacific.
NetSol Technologies specializes in quality customer software development. As one of the few c
o m p a n i e s i n t h e w o r l d w i t h a S E I - C M M I ® L e v e l 5 r a t i n g qualifies NetSol
as a global preferred software solutions provider. NetSol’s unique approach combines deep
domain expertise in financial services and emerging technologies with a world-class
development team that delivers critical solutions on time and within budget.

NetSol provides a range of software products, custom development and consulting services.
Lease Soft, an end-to-end core asset finance accounting and portfolio management solution, is
an industry standard in a growing number of countries. NetSol’s list of clients include
companies, nonprofit sector, technology and telecommunications, and Financial institutions
among those who have used their services are Mercedes Benz, Motorola,citigroup, B M W , D a
i m l e r C h r y s l e r , T o y o t a , Y a m a h a , Q u e s t C o m m u n i c a t i o n s a n d the
Innovation Group (TIG).

2- Mission and Objective of the Organization:

Mission Statement:
“Deliver high quality, innovation and best class, IT solutions and services to help our customer
achieve their business objectives and operational efficiencies”

Sole Mission at NetSol Technologies:

Sole mission of the organization is to us their top down dedication to the highest ethical
principles and quality standards, their worldwide domain and subject
matter expertise, their incomparable Best Shoring™ methodology, and their proven track
record to give truly cost-effective solution that not only meets, but surpasses our needs.

Objectives of NetSol:

In the year 2005, NetSol established its training division NetSol technology institute (NTI) with a
vision to provide a common platform, bridging the gap between academic world and Industry
itself. The major objectives of NetSol programs and activities are:

∙ Giving due emphasis on practical principles and processes,

∙ focus on providing both the employed and unemployed workforce the knowledge,
skills, and practices required for continuous improvement,
∙ overcome the challenges at work and face changes,
∙ committed to provide a healthy, safe and risk free environment to its employees, ∙
 conducting comprehensive health and safety program,
∙ To make the company equal opportunity employer.
∙ To determine HR needs both in short term and long term.
∙ To attract right pool of candidates.
∙ To generate new recruitment channels.
∙ To create good relationship with other departments.
∙ To give best services to the employees.
∙ To maintain and keep database of quality applicants.
∙ The main objective is to optimize the efficiency of both human capital and
businesses involved.

3- Strategies to achieve the objectives:

In order to have a collaborative effort toward increasing customer value, they have made two
strategic acquisitions in the U.S. and U.K. These acquisitions were intended to develop a
superior vehicle to launch a combined product offering with significant brand awareness within
those particular regions. The strategy they adopted is:

∙ Demonstrated their ability as a skilled, strategic partner to deliver cost-effective,

highest-quality software and consulting services to their prestigious clients. ∙
Providing customers on every continent with well-priced, innovative products
developed with the highest quality standards.
∙ Keep bringing innovative products and solutions using latest tools and technology. ∙
Proper HR strategic management to meet and maintain employee’s commitment and
their satisfaction level.
4- Organizational Chart
5- Fundamentals of Organizational
structure: Board of directors:
Najeeb Ghauri

Founder, Chairman & Chief Executive Officer

Naeem Ghauri:
Founder, Director
President, NetSol Technologies Europe, Ltd,
Head of Global Sales NetSol Technologies, Inc.

Eugen beckert

Director & Chair of Nomination and Corporate Governance

Committee Shahid Javed Burki

Director & Chair of Audit Committee

Mark Caton

Director & Chair of Compensation Committee

Jeff Bilbrey

Director

Management team:

Najeeb Ghauri

Founder
Chairman
Chief Executive Officer

Roger Almond

Chief Financial Officer

Salim Ghauri
Chief Executive Officer - NetSol Technologies

Naeem Ghauri

President Global Sales - NetSol Technologies

Shaz Khan

Chief Operating Officer - NTA

Boo Ali

Chief Accounting Officer

Patti L. W. McGlasson

Senior Vice President & Legal and Corporate Affairs

Paul Banke

Director Software Development - NetSol Technologies North America

Rich Chala

Vice President

Jeffrey Andrews

Commercial Director

Ivy Montgomery

Vice President Marketing

Working of management team:

Najeeb Ghauri (CEO) is highest-ranking corporate officer (executive) or administrator in

charge of total management of NetSol. Najeeb Ghauri reports to the board of directors.
Najeeb Ghauri is linked with Roger Almond CFO primarily responsible for managing the
 financial risks of the corporation. Roger is also responsible for financial planning and
record-keeping, as well as financial reporting to higher management and for the analysis of
data.

Imran Haider (Chief Operations Officer North America) is responsible for daily operation of
NetSol and routinely reports to CEO. Imran Haider controls the working of software
development department by consulting with Paul Banke director of software development
department.

CEO of NetSol further looks after the Vroozi workings for this purpose he gets the report of
daily operations of Vroozi department by staying connected with Shaz Khan (Chief operating
officer Vroozi).

Salim Ghauri president of Pakistan and Naeem Ghauri president eroupe, director and head
of global sales report board of directors and CEO.

6- External and Internal Environment of the

Organization: External environment:
The external environment of an organization is those factors outside the company that affect
the company's ability to function. Some external elements can be manipulated by company
marketing, while others require the organization to make adjustments. Monitor the basic
components of your company's external environment, and keep a close watch at all times.

Customers:

NetSol customers are among the external elements; attempt to influence its customer, via
marketing and strategic release of corporate information. But their relationship with their
clients is based on finding ways to influence them to purchase NetSol’s products. NetSol
frequently conduct market research under the supervision of experts which is used to
determine market size, effectiveness of NetSol’s marketing messages, and to decide what
changes should be made to future marketing programs to improve sales.

Government:

Government regulations in product development, packaging and shipping play a significant role
in the cost of doing business and ability to expand business into new markets. Up till now
government regulations imposed related with NetSol are favorable and therefore revenue of
 NetSol is increasing day by day. International laws create processes that NetSol is following
therefore their product and services are highly acceptable in foreign markets.

Economy:

As NetSol deals in international market therefore majority of their elements are linked with
external environment, NetSol is efficient at monitoring the economy and learning how to react
to it, rather than trying to manipulate it. Economic factors guide the management team of
NetSol to find the answers of these questions how to market products, how much money to be
spend on business growth, and the kind of target markets to be pursued.

Competition:

Competition has a significant effect on how to do business and how to address target market.
Competition for NetSol is almost negligible in Pakistan and also in Asia, as NetSol is the 3rd firm
of Asia to be registered from NASDAQ. Furthermore they are providing quality services to their
clients contributing to NetSol’s goodwill.

Internal environment:

Internal environment of NetSol is being discussed under the following headings:

Functions:

NetSol is delivering quality and customization for over a period of four decades; they offer
superior IT solutions that help streamline the operational needs of your business. With more
than 150 satisfied clients in over 30 countries and 250 implementations globally. NetSol
understand the value of customizability and strive to continually deliver unprecedented
solutions which cater directly to your business needs.

Product:

o NetSol Financial Suite

NetSol Financial Suite is a comprehensive solution that satisfies the wide and varied needs of
your organization

Overview: NFS enables you to get the most out of your business, resulting in considerable cost
reductions. The Core Contract Management System offers the basic functionality required by asset
finance and leasing companies. There are additional, cost-effective applications that can be added to the
system that increase the variety of products on offer and provide an interface with external systems.
Starting from credit/loan origination to credit evaluation and onwards to contract management, NFS is
the end-to-end software solution which gives you complete control of your credit portfolio.
Benefits:

∙ Global System meeting local requirements

∙ Incorporating latest industry regulations and trends
∙ Customizable and flexible workflow architecture
∙ Effective and efficient risk management
∙ Point Scoring engine for accurate credit evaluation

smartOCI

The smartOCI® Search Engine provides organizations with the capability to search multiple
external and internal supplier catalogs from one user interface.

Overview: smartOCI® is a new search engine technology providing corporate buyers and
shoppers a simple and intuitive user interface to search multiple supplier catalogs
simultaneously within the SAP SRM application. smartOCI® was designed to meet the everyday
challenges of searching, locating, and ordering products from multiple web-based supplier
catalogs.

Features:

∙ Flexible search results layout

∙ Display list of all OCI fields
∙ Shopping cart creator
∙ Ability to block OCI vendor
∙ Configuration filters
∙ Upload company logo
∙ Define additional users
∙ Secure administration panel
∙ Integrated shopping cart
∙ Detailed statistics report
∙ Uniform cross-catalog search
∙ Easy and quick setup

Benefits:

∙ Catalog Comparison
∙ Quick and Efficient Searching
∙ Empower Your eProcurement and Increase Contract Compliance
∙ Build Your Own Catalogs
Services:

NetSol Technologies also offers a vast variety of services. With our extensive experience in a
number of fields, you can be sure to get what you’re looking for, be it SAP Consultancy,
Business Intelligence or Information Security.

Information Security

We have the expertise for providing the latest technology information integrity solutions
addressing your business’ vital security needs. Our services are designed to first
comprehensively understand your organization’s technological and business requirements, and
inherent vulnerabilities. By working in close collaboration with you, we ensure that you have
complete control of your business’ infrastructure, communications, and critical data.

Independent System Review

With a broad range of testing services we cover all important aspects of development and
ensure quality of your software products. Be it a complete developed application or still under
development, with our ISR we can help assess the quality of your product.

Business Consultancy

Our aim is to guide and enable you to innovate & change your business effectively. Our
initiatives are focused towards growth; cost reduction, risk and regulations management, and
streamlining of the operational process of your business.

Core values:

According to NetSol the core values of the organization are:

∙ Quality: The highest level of quality assurance is what makes us who we are. Our quality
standards ensure that you get the high value that you need. Our commitment to quality
is demonstrated by our successfully cleared ISO 9001, ISO 27001, and SEI CMMI
Maturity Level 5 (V1.2) assessments; a distinction shared by fewer than 140 companies
worldwide.
∙ Innovation: At NetSol, innovation has always been a primary focus along with adherence to the
highest quality assurance and control standards in software development. Driven by innovation
we turn ideas into great executions which are suited to your operational needs.

∙ Expertise: With more than 1100 skilled experts strategically located in 8 service-and
delivery-centers worldwide, our team of highly qualified experts is what we take pride in.
We drive success by providing the right solution to your business problems in the most
efficient of ways. We rigorously follow our rules and processes which has earned
 us immense respect amongst our clients in major Dow-Jones 30 Industrials and Fortune
500 manufacturers.

Behavior:

According to NetSol the appropriate corporate behaviors adopted by organization are,

∙ While they grow in size and scale they will continue to improve their quality of service
and scale. They will continue to improve our quality of service delivery. ∙ They will continue
to invest in training in quality.
∙ They will grow quality initiative with best practices and more quality accreditations. ∙
NetsSol will implement better tools for measuring quality both in production and
customer services.
∙ Quality is not a domain with the few chosen ones but is a responsibility of all. ∙
NetSol will not pass the bucks to the Quality People when we can see and address
deficiencies ourselves.

Employee’s importance:

∙ They care for their employees who are their most valuable assets. NetSol offers its e m
ployeesachallengingandharmoniousworkenvironment wh
e r e t h e y encourage everyone to work to his or her utmost potentials.
∙ NetSol will always aim to develop long lasting relationship with its customers by
delivering value for their investments.

∙ The work place will be an environment of great learning, extra ordinary customer
service, consideration for the colleagues and self-development. A place where
they are happy to spend their working days.

∙ They will be diligent expending company resources. They will use them to serve our
clients better and perform our roles more effectively.

∙ While they grow in size and scale they will continue to improve their quality of service
delivery.

∙ They will work tirelessly to grow in the efficiency and productivity using Best Practices,
Innovation and Imagination.

∙ As they are global company they will respect every other culture, religion and embrace
the change and the challenges that come with such diversity.
Statement of ethical practices:

Following practices are observed by each and every family member of NetSol regardless of the
cadre to which he or she belongs.
∙ All the directors, employees and other personnel must observe the laws and regulations.

∙NetSoldoesnotpermitbriberyinanyformofanypersoninvolve
d i n t h e company’s business.

∙ NetSol requires competition in the market place and compliance with antitrust and
competition rules.

∙Allemployeesandpersonnelmustmaintaintheconfidentialit
y o f p r i c e s incentive information.

∙ Employees and others should not use the price sensitive inside information for their
personal advantage.

∙Employeesandotherpersonnelshouldavoidsituationswhe
r e p e r s o n a l interests could conflict, or appear to conflict, with the interest of
their employer.

HR department:

The department was established for meeting the following needs of the company,

∙ Acquiring Human Recourses

∙ Training Human Recourses
∙ Developing Human Recourses

HR functions at NetSol

The HR department performs the following functions at NetSol, although the main heads are till
the same but overall the following functions are performed by the HR department of NetSol.
These include:
∙ Strategic HR management
∙ HR planning
∙ Designing and implementation of Human Resource Policies/ Procedures ∙
Human Resource Development (HRD)
∙ Career Management
∙ Compensation/ Benefits/ Perks Management
∙ Performance management
∙ Employee relationship management
∙ Job satisfaction
 ∙ Environment, health and safety management (EHS)
∙ HR auditing
∙ Travel management
∙ Entertainment management

Recruitment strategies:

Like everywhere the main factor that should be considered is the cost so the entire process
should be an efficient and effective at the same time.
∙ To control hiring costs after selection, orientation, and start-up (training etc.) as well
as costs associated with employee replacement.
∙ Choosing Recruitment Sources
∙UntappedRecruitmentSources
∙Diversity

Types of employment:
∙ Contract (Part Time Consultants/employees, Full time Consultants/employees) ∙
Intern
∙ Permanent

7- Relations with other Organizations:

NetSol have maintained good relations with other organizations particularly their clients, which
includes Scania finance great Britain ltd, D&D leasing UK ltd, Singers health care finance ltd,
Investec asset finance plc and Minsheng financial leasing. NetSol have been able to maintain
good relations with other organization because of adapting inter organizational system. This
system allows the flow of information to be automated between organizations in order to reach
a desired supply-chain management system, which enables the development of competitive
organizations. This supports forecasting client needs and the delivery of products and services.
IOS helps to better manage buyer-supplier relationships by encompassing the full depths of
tasks associated with business processes company-wide. In doing these activities, an
organization is able to increase the productivity automatically; therefore, optimizing
communication within all levels of an organization as well as between the organization and the
supplier.
8- Use of manufacturing and service technologies and IT in the
organization:
NetSol Technologies, Inc. (NasdaqCM: NTWK) (NasdaqDubai: NTWK) is a worldwide provider of
IT and enterprise application solutions, NetSol Technologies, Inc. executes its mission of
focusing technology on the operational needs of its clients. NetSol’s services and solutions
enable businesses to streamline their operations and compete more effectively.

NetSol is information technology consultant and software developer firm and it is leading
Internet Service Provider in Pakistan. NetSol which has clinched worldclass orders from a
number of blue-chip companies globally including Mercedes Benz, ICI UK. Etc.

NetSol is also focusing on the company's e-Business initiatives. It comprises of three divisions —
Internet connectivity (ISP), Internet technology (development tools and communications), and
e-Business communities. The three divisions are working towards developing on-line and
broadband businesses, localized Internet communities, and portal and shopping services.

NetSol-CONNECT is also offering latest technology and Internet services using an aggregate
connection.

∙ Technical Affiliations

The Company currently has technical affiliations such as: a Microsoft Certified GOLD Partner; a
member of the Intel Solution blueprint Program; IBM Business Partner and, an Oracle Certified
Partner.

9- Life Cycle of the organization, at what stage it is now,

future:
Entrepreneurial stage:

Network Solutions Inc.(NSI) started as a technology consulting company incorporated by Gary

Desler, Ty Grigsby, Emmit J. McHenry, and Ed Peters in Washington D.C. in January 1979. In its
first few years, the company focused on systems programming services, primarily in the IBM
environment. Annual revenues passed $1 million in 1982, growing to $18.5 million in 1986.
Network Solutions was acquired by Science Applications International Corporation (SAIC) in
March 1995.
John Dillon reports in MediaFilter.org: "Initially, the service was subsidized by the government.
But, in May 1993, the National Science Foundation privatized the name registry (InterNIC -
Internet Network Information Center) and paid NSI $5.9 million to administer it. In September
1995, NSI instituted the fee system. A few months earlier, it had been bought out by Science
Applications International Corp (SAIC).
The company issued an IPO, and was listed on NASDAQ in 1997.
In 2000, Network Solutions was acquired by VeriSign, Inc. for $21 billion.
On October 17, 2003, VeriSign announced the sale of the registrar business, which continued to
operate under the branding Network Solutions, to Pivotal Equity Group. (VeriSign still retains
the registry business which had been originally created within Network Solutions prior to
VeriSign's acquisition of the company.)
During January, 2006, Network Solutions acquired e-commerce solutions company Monster
Commerce co-founded by Stephanie Leffler and Ryan Noble in Belleville, Illinois.
In 2008, Roy Dunbar was appointed CEO.
On November 2, 2009, Tim Kelly, President of Network Solutions replaced Roy Dunbar as CEO.
Roy continues to act as Chairman and advisor to Network Solutions.
At the end of July, 2007, Network Solutions had 6,659,150 domains under management and
was in the top five wholesale domain registrars following Go Daddy with 19,709,215 domains
and eNom with 7,646,676 domains. Tucows, the largest publicly traded registrar, has 6,622,982
domains under management with its recent acquisition of ItsYourDomain.com. Melbourne IT, a
publicly traded company located in Australia, trailed with 4,664,019 domains under
management.

Collectivity stage:

NetSol technologies started its journey as a US based software solution provider with a vision
creates superior technology solution. Relentlessly following our vision we now stand as one of
the global leader IT services and enterprise solution.

Formalization stage:

NetSol Technologies, Inc. “NetSol” (NASDAQ: NTWK) (NASDAQ DUBAI: NTWK), a U.S
corporation providing global business services and enterprise application solutions to private
and public sector organizations worldwide, in conjunction with their Middle East partner
Atheeb Group, announced official operational launch of the Atheeb NetSol Limited joint
venture. The formalization of the legal operating entity and official operational launch mark a
major milestone in the development of the dynamic fast growing Middle East market fir IT
services and software development.
The Atheeb NetSol limited joint venture is focused on market development opportunities
around penetrating the software engineering arena in key business sectors such as
telecommunications, defense, public sectors and finance, among others. Atheeb NetSol limited
will leverage the strength of Atheeb’s local; presence in key geographical where Atheeb is
operating as well as supporting private, public and governmental customer business activities.
NetSol will provide best practices project management and the comprehensive delivery
capabilities of its CMMI level 5 certified Center of Excellence for software engineering, research
and development, as well as customer support and training. The latest activity builds up early
stage business development efforts which resulted in NetSol Asia Pacific being awarded an IT
services contract by Atheeb Intergraph Saudi Company (AISC) of Saudi Arabia.
The first Atheeb NetSol limited board meeting was recently held at Atheeb Group world
headquarters where a five year business and operational plan was ratified. The meeting was
chaired by HRH Prince Abdul –Aziz Bin Ahmed Bin Abdul-Aziz AlSaud, Chairman and CEI of
NetSol Technologies, Inc., as well as fellow board members including Mr. Alabad Abdul-Azis,
Mr. Ted Millspaugh, Mr Saad O Albaiz, Mr, Salim Ghauri and Mr. Sajjad Kirnai. In addition, a
seven member management tean based in Riyadh was appointed.

Elaboration stage:

At the elaboration stage we create architectural base of the system. Fast Services technical
experts’ model and test several approaches in order to define the best one to meet Customer’s
business goals and system needs. Upon completion of this phase the skeleton of the system is
outlined. It will be the base for the creation of the final product.

In the course of the specification phase one or several different prototypes (users’ or functional
interfaces) will be presented to the Customer for confirmation. At the end of the phase the
project contains exact time and cost estimate of the system construction in accordance with
the demands and the architecture chosen.

Present stage of NetSol:

Received three new orders for NetSol financial suit solution, representing more than $15
million in combined license, maintenance and service billing. Sign a major agreement with one
of Australia’s largest non-bank leaders with approximately $5 billion of loan and lease assets
under management. Continued expansion of the customer base and business volume in the
virtual lease services subsidiary, with contract numbers managed by VLS 35% higher than the
previous year. Obtained the first lease PAK saas customer in North America. Broadened Vrooz’s
channel partners in North America with addition of three new partners to facilitate increased
adoption the subsidiary solution. Recently registered thirty new customers for the vrozzi
purchase manager platform.
Future of NetSol:

NetSol aggressive 3 to 5 year growth strategy is aimed at increasing competitiveness enhancing

global delivery capabilities and increasing financial strength to become a leading global IT
institution in the finance space.
 ∙ Achieve 15 to 25% annual revenue in next five years.
∙ Achieve 55 to 60% gross margins in 2014 and maintain 60% or better for the next three
years.
∙ Achieve 70 to 75% organic growth and, 25 to 30% growth through alliances,
partnerships and new markets penetration.

10- The process of innovation and change:

In the course of this phase we create the final product (functional information system). The
working team (programmers, designers, testers, project managers) realizes a step-by-step
(iteration) construction of the project. It makes it flexible and easy to change and modify the
process. International approach allows the experts to make a more effective technical planning
of the different aspects of the project, including functional ones.

As the Customer confirms the plan of iteration all the demands influencing the budget and the
date of project conclusion are postponed and are to be turned over during next iterations.
Every other iteration adds certain amount of functional opportunities and specific details to the
system. It enables the Customer to follow the process of the system development more
efficiently.

NetSol Makes a Major Breakthrough in North American Market:

NetSol Technologies Ltd., a Pakistani multinational Information Technologies company providing
global business services and enterprise application solutions to private and public sector
organizations worldwide, has made a major breakthrough in the North American market by
signing a contract with a local company with huge portfolio to implement key components of
the NetSol Financial Suite (NFS) group of products, based on a deployment for an estimated 160
dealers in the Mexican market.

The implementation builds upon a successful proof of concept stage and will include the NFS
Wholesale Finance System (WFS), a robust and flexible system for Floor plan lending business.
NetSol Wins Information Security Contract from a Pakistani Telco:
NetSol Technologies has announced that the company has won a major contract in the area of
Information Security with a leading mobile telecommunications company in Pakistan.

This contract award further strengthens NetSol’s position as a leader in the information security
services sector in Pakistan. The client selected NetSol based on the company’s strong
information security practices, technical expertise and proven track record in deploying large
scale information security solutions for information sensitive organizations. As part of the
contract, NetSol’s Information Security team will ensure the provisioning of hardware and
software, lead the design and implementation, as well as train appropriate staff. The award of
this contract reaffirms NetSol’s position in the market as a trusted partner for enterprise
security management.

NetSol Agrees New Global Framework With Auto Finance Company:

NetSol Technologies Ltd., announced that it has agreed upon terms for a new global framework
agreement with a blue chip captive auto finance company.

This global framework is another feather in NetSol’s cap. It may be noted that NetSol has
recently earned global recognition by securing CMMI Level 5 certification. According to him, the
NetSol Financial Suite, with component products including WFS, is adaptable to all market
conditions, making it the suitable choice for large customers operating on a global framework
who are looking for a cost-efficient, scalable enterprise solution for their credit and portfolio
management needs.” Under the terms, NetSol would expand its service delivery to the client in
nine countries and install the complete NetSol Financial Suite(TM) software solution in Japan,
Korea and another big economy in South Asia.

NetSol Signs Contract with an Indian Firm:

Citing NetSol Senior Executive Vice President Sajjad Kirmani, Pakistan Today reported NetSol
has deployed a team to setup the solution and provide trainings to local Indian staff. According
to Sajjad, India is a giant of the IT industry and Pakistan is far behind in this capacity, yet
entering such a big market is welcoming for the IT industry. NetSol is a Pakistani IT firm
competing world over and earning foreign exchange for the country’s economy.

2011 in Focus: Pakistan IT Industry Records Golden Year in History:

2011 marked as a golden year in the Information and Technology (IT) industry of Pakistan with
lots of unprecedented achievements, solid developments and emerging potential, building a
strong hope towards the bright future of the country.

Here are highlights of major achievement of Pakistan in 2011

Pakistan Fast Growth 25, a ranking of fast growth entrepreneurial companies, listed 10 IT
companies on its index first time. It was a tremendous achievement from the industry to get
recognized at national level.

Pak-India ICT Firms Vow To Enhance Trade up to $5 billion

Pakistani and Indian IT committee of Aman Ki Asha successfully held the bilateral talks
separately on both sides of borders in March – aimed at enhancing trade ties in the field of IT,
which is one of six sectors with great trade attraction between two countries.

Pakistanis and Indian IT titans have decided to carry on their efforts for developing an “India
Pakistan e-land” at the border where people can meet, interact, teach, learn and jointly
develop intellectual property.

Pepper.pk Mobile Apps Hit No.1 Spot

Pepper.pk application has hit the number one spot on the global Blackberry marketplace, App
World. The application, called LED Notifier Pro, has been immensely popular since its launch
and is currently ranked the best-selling Blackberry application in the world.

Pepper.pk is no stranger to success or the world number one spot. Their Photo Editor for
BlackBerry Smartphone’s has occupied the #1 rank on App World twice in the past three
months and has received an overwhelming amount of global media coverage.

11- Culture and Ethic value of the

Organization: Ethics:
Following practices are observed by each and every family member of NetSol regardless of the
cadre to which he or she belongs.

∙ All the directors, employees and other personnel must observe the laws and regulations.
∙NetSoldoesnotpermitbriberyinanyformofanypersoninvolve
d i n t h e company’s business.
∙ NetSol requires competition in the market place and compliance with anti trustand
competition rules.
∙ A l l e m p l o y e e s a n d p e r s o n n e l m u s t m a i n t a i n the c o n f i d e n t i a l i t y o
f p r i c e sensitive information.
∙ Employees and others should not use the price sensitive inside information for their
personal advantage.
∙ E m p l o y e e s a n d o t h e r p e r s o n n e l s h o u l d a v o i d s i t u a t i o n s w h e re p e
r s o n a l interests could conflict, or appear to conflict, with the interest of their employer.
Culture:

The Company believes it has developed a strong corporate culture that is critical to its success.
Its key values are delivering world-class quality software, client-focused timely delivery,
leadership, long-term relationships, creativity, openness and transparency and professional
growth. The services provided by NetSol require proficiency
in many fields, such as software engineering, project management, business analysis, technical
writing, sales and marketing, communication and presentation skills.

To encourage all employees to build on our core values, we reward teamwork and promote
individuals who demonstrate these values. NetSol offers all of its employees the opportunity to
participate in its stock option program. Also, the Company has an intensive orientation program
for new employees to introduce our core values and a number of internal communications and
training initiatives defining and promoting these core values. We 12believe that our growth and
success are attributable in large part to the high caliber of our employees and our commitment
to maintain the values on which our success has been based. NetSol worldwide is an equal
opportunity employer.

NetSol believes it should give back to the community and employees as much as possible.
Certain of our subsidiaries are located in regions where basic services are not readily available.
Where possible, NetSol acts to not only improve the quality of life of its employees but the
standard of living in these regions. Examples of such programs are:

• Humanitarian Relief: We are all aware of the devastation that can be wrought by natural
disasters. NetSol has historically supported earthquake and flood relief where the need is the
greatest. As recently as last year, the company established a fund raising effort on a worldwide
basis to encourage outside and employee contributions to relief efforts.

• Literacy Program-- launched to educate low paid illiterate employees of the organization. The
main objective of this program is to enable these resources to acquire basic reading, writing
and arithmetic skills. The first phase of the plan was completed with astounding
accomplishments; the people who could not even write a single word are now able to write
complete letters within a span of 6 months. This initiative has been extremely successful and
NetSol intends to further support this program.

• Noble Cause Fund--A noble cause fund has been established to meet medical and education
expenses of the children of the low paid employees. NetSol employees voluntarily contribute a
fixed amount every month to the fund and the Company matches the employee subscriptions
with an equivalent amount contribution. A portion of this fund is utilized to support social
needs of certain institutions and individuals, outside NetSol.

• Day Care Facility--NetSol’s human resources are its key assets and thus the Company takes
numerous steps to ensure the provision of basic comforts to its employees. In Pakistan, the
provision of outside pre-school child care is a rarity. Keeping in view this requirement, a Child
Day Care facility has been created in close proximity to the work premises equipped with the
necessary essential staff and equipment. Married female employees are offered the
opportunity to entrust complete care of their young ones to a trained and experienced staff.
Child day care allows female employees to pay unhindered focused attention to work
requirements while their child remains safe and comfortable. The premises and environment
are neat and clean with all basic needs fulfilled to ensure complete care of the children.

• Preventative Health Care Program--In addition to the comprehensive out-patient and in

patient medical Benefits, preventive health care has also been introduced. This phased program
focuses on vaccination of our Employees against Hepatitis – A/B, Tetanus, Typhoid and Flu, etc.
This is a regular annual immunization
Program to keep employees healthy.

• NetSol Corporate University-- NetSol Corporate University (“NCU”) was established for
developing human
Resources at NetSol. A need was felt to further develop and retain the talent at hand through
strategic learning
Interventions to respond to growing competition and challenges.

Overall, NetSol as a global IT company has over 25% female employees with the biggest
concentration in our
Development facility in Lahore and in the U.S headquarters. The Company is an equal
opportunity employer. Being
a successful company with a well-respected name in the business community, NetSol
encourages its employees to
Actively participate and contribute to charitable contributions for catastrophic tragedies
anywhere in the globe.

There is significant competition for employees with the skills required to perform the services
we offer. The company runs an elaborate training program for different cadre of employees
ranging from technical knowledge, business domains as well as communication, management
and leadership skills. The Company believes that it has
Been successful in its efforts to attract and retain the highest level of talent available, in part
because of the emphasis on core values, training and professional growth. We intend to
continue to recruit, hire and promote employees who share this vision. As of June 30, 2012, we
had 854 full-time employees and 3part-time employees; comprised of 657 IT project and
technical personnel; and 197 non-IT personnel. The non-IT personnel include 23 employees in
management, 35 employees in sales and marketing, 27 employees in accounting, 18 in
customer support, and 94 in general and administration. None of our employees are subject to
a collective bargaining agreement.
12- Evolution, criticism and suggestions:
Evolution:

Management, with the participation of our chief executive officer and chief financial officer,
evaluated the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15
under the Exchange Act, as of the end of the period covered by this Annual Report on Form 10-
K. Based upon that evaluation, the Chief Financial Officer and Chief Executive Officer concluded
that our disclosure controls and procedures were not effective.

Criticism:

Front running happens when someone observes domain searches being made by another
person, and registers that domain out from under the searcher. It’s a long-rumored practice
that infuriates legitimate domain searchers.

In addressing their regular practice of front running domains, Network Solutions told Circled they are
trying to thwart the domain tasters who try to take advantage of the five-day test period for domains.
We are trying to take an arrow out of the quiver of the tasters," Jonathon Nevett, Vice President of
Policy at Network Solutions, said at Circled. "Due to no fault of registrars, Front Runners purchase search
data from Internet Service Providers and/or registries and then taste those names."

If one searches for a domain at Network Solutions, but doesn’t purchase it immediately,
Network Solutions puts it on reserve. During the next four days, it can only be purchased from
Network Solutions before being released back to the registry.

Network Solutions charges $34.99 for a standard registration. Over a decade ago, that was the
going rate. Today, numerous registrars offer far more competitive pricing.

This has caused much of the criticism about the Network Solutions policy. People who search
for the domain on Network Solutions and go elsewhere to buy it find they cannot. Waiting for it
to expire at Network Solutions could allow someone else who is willing to pay the going rate to
grab it first. People who are waiting for ICANN to resolve the situation probably won’t get
satisfaction from that group.
Domain Name News noted a study by ICANN found the practice isn’t expressly prohibited by
the terms of ICANN’s registrar agreements.
Suggestion :

NetSoliscommittedtoconductingitsbusinessoperationsinama
nner that
s u s t a i n sthe e n v i r o n m e n t a n d p r o t e c t s t h e h e a l t h a n d s a f e t y o f i t s e m p
l o y e e s . N e t S o l s t r i v e s f o r continuous improvement in its environmental, health and
safety program and has set forth the following objectives:∙

∙ Compliance with all applicable laws, regulations, and standards.∙

∙ Conservation of energy and natural resources.∙
∙ Consideration for employee safety and well-being.∙
∙ Cooperation and positive relationships with Suppliers and Subcontractors. Encourage
alignment with its Environmental, Health and Safety Policy.∙
∙ Communication of NetSol Environmental, Health and Safety policy to employees,
partners, and associates.

They care for their employees who are their most valuable assets. NetSol offers itse m p l o y e
e s a c h a l l e n g i n g a n d h a r m o n i o u s w o r k e n v i r o n m e n t whe r e t h e y
encourage everyone to work to his or her utmost potentials.
∙ NetSol will always aim to develop long lasting relationship with its customer’s by
delivering value for their investments.
∙ The work place will be an environment of great learning, extra ordinary customer
service, consideration for the colleagues and self-development. ∙ A place where they
are happy to spend their working days.
∙ They will be diligent expending company resources. They will use them to serve our
clients better and perform our roles more effectively.
∙ While they grow in size and scale they will continue to improve their quality of service
delivery.

The end…