Catalyst for change: Impact of Policies,

Infrastructure and Commitment for BPO to happen

AJK BPO and Outsourcing IT

March 19, 2010

Salman Ansari Technology Consultants (Pvt) Ltd

Business Process Outsourcing

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 Pakistan
2,000

1,800

1,600
Software Export in US$ Million

1,400

1,200

1,000

800

600

400

200

Pakistan
|3
90,000
Pakistan
80,000

Software Export in US$ Million

2,000
70,000

1,800
60,000

1,600
50,000
1,400

40,000
1,200

30,000
1,000

800
20,000

600
10,000
400
-
200

IndiaPakistan
Pakistan

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90,000

80,000

Software Export in US$ Million

70,000

60,000

50,000

40,000

30,000

20,000

10,000

India Pakistan

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Downloaded on March 10, 2010

> Indian IT exports to touch $50-billion despite meltdown - Feb 04,

2010
> Recession-hit IT sector seeks extension of fiscal benefits - Jun 09,
2009
> India's IT, outsourcing revenues seen at $63 bn this fiscal - Jul 29,
2009
> Karnataka logs $17-bn software exports despite meltdown - Sep 01,
2009
> 17 percent rise in software exports from Haryana in 2008-09 - Mar
10, 2010
> Software sector hails tax holiday extension - Jul 06, 2009
> Indian IT industry can bounce to double-digit growth: Infosys
(Interview) - Oct 12, 2009
> Andhra reducing dependency on US for IT exports - Jul 02, 2009
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 THE INDIAN ELECTRONICS & SOFTWARE
EXPORT INDUSTRY : 2004-2005

ELECTRONICS COMPUTER TOTAL

HARDWARE SOFTWARE &
SERVICES
US$ MILLION US$ MILLION US$ MILLION

PRODUCTION 11080.18 21587.97 32668.15

EXPORT 1781.74 17216.04 18997.77

EXPORT VS 16.08 79.75 58.15

PRODUCTION
INDIA’S EXPORT OF US$ 130.83 BILLION
ALL COMMODITIES
SHARE OF 14.51 %
ELECTRONICS & IT
IN INDIA’S OVERALL
EXPORT |7
India – Outsourcing Value Proposition

A safe place
Pre-eminent
to do business
destination for
cross-border IT
Services

Hassle free
procedural & The leading
regulatory Leading global
environment global ITES – BPO Hub
services
sourcing hub
Long-term sustainable Strategic
Competitive advantage product
– people and development
Infrastructure and R&D base

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 India – Outsourcing Value Proposition
• 40-60% cost
reduction for
offshored process
• Labor cost
arbitrage, the
reason for cost
savings, likely to
exist for the next
20-30 years
• IT Optimization
• Faster turnaround time
• Time zone difference
• 24 x 7 service
• Learning effect/
specialization
Cost, quality and productivity gains are driving the offshoring
• Established
methodologies and
processes
• Well defined
quantifiable quality
and process metrics
• Qualified skill pool
India’s Value • ISO9001, Six Sigma
Proposition
 Ease of ramp-up &
down to reflect
business volumes
 Flexible, results-
driven engagement
models
|9 wave to India
INDIAN IT INDUSTRY - STRENGTHS

India the most versatile IT destination for the world

• Wide , varied and Vast Skills Base, over 2 million IT skilled

• Truly Global Ethos with English Speaking Manpower linked to a
large global presence of Indian Diaspora
• Very Fast paced and Phenomenal growth of growth
• High Quality with Low Cost of Innovation
• Wide Exposure
• Offshore development
• Appropriate training – 232 advanced training institutes
• Government push – support from policy measures

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 MAJOR DESTINATIONS OF
INDIA’S SOFTWARE & SERVICES EXPORT
2004-05

3.08% 1.60%
1.55%
3.41%
1.42%
USA & CANADA (61.09)
0.37%
0.11% EUROPE (EU COUNT.) (27.36)

27.36% JAPAN, KOREA & F.E.(3.41)

0.01% SGP,HKG & S.A. (3.08))

AFRICAN COUNTRIES (1.60)

MIDDLE EAST (1.55)

AUSTRALIA & OCEANIC (1.42)

EUROPE (NON EU COUNT)(0.37)

LATIN AMERICA (0.11)

RUSSIA & C.I.S. COUNT.(0.01)

61.09%
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Pakistani innovation

Salman Ansari Technology Consultants (Pvt) Ltd

Mindstorm Studios:
Cricket Revolution
A multiplayer PC Game – APITCA Winner

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TPS Pakistan: IRIS
Next Generation Transaction & Channel Management
Clients: 110 banks in 28 countries (APICTA Winner)

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PixSense: PixSense PSP
Clients: Telenor, Vodaphone,Telcos in China,
Indonesia, Philippines, Malaysia – APICTA Winner

Your photos and videos

PixSense PSP enables mobile subscriber

to intuitively upload & organize media
from anywhere and share it with Title: Paiker Launch Party

anyone – with one click

Tags: launch paiker
Olympics

Comments: Go Paiker GO!

Who are all these people?

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Sofcom: Spectrum
Monitors end-to-end manufacturing process

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Lumensoft:Candela
Retail Management System

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Chopaal.pk
Pakistan’s largest SMS social network

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Aerocar
Rugged, inexpensive, heat & dust resistant biometric ATMs with
Open Source software

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CR-PL: SettleAll
Traffic Settlement System

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Netsol: Leasesoft
End-to-end Leasing & Finance Solution – APICTA Winner
Clients: BMW, Mercedes Benz, Toyota, Daimler Crysler

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Mixit Technologies
Trading platforms/order routing solutions
Clients: Nasdaq, etc. & 250 US brokerage houses

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Scrybe
Groundbreaking technology
Investment from Adobe Inc & LMKR

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Folio 3: Secretbuilders.com
Virtual World of Learning
Similar to “Second Life” – learning through playing

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Tkxel
Technology Accelerated

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GeniTeam
Web 2.0 & Mobile 2.0

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TinTash
Game Development for iPhone & Facebook

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Jaadu VNC
Sells for US$25 on the Apple App Store
Developed while doing his PhD

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Ikonami
Clients: UK National Health Service & affiliated hospitals

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Etilize
Content Management Solutions
Clients: Walmart, Apple, Google,eBay, Microsoft, Amazon

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Alchemy Technologies
Risk Management & Basel II Solutions
Clients: Major Banks

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Cambridge Docs
XML Publishing Engine (xDoc View) for Microsoft, Adobe
and other business documents

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LMKR
Siesmic Data Management & Workflow Solutions

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Techlogix
Delivering BPM Solutions
Clients: General Electric, States of Illinois, Arkansas &
New Mexico, Viisage Technology, Nestle

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Systems Ltd
Insurance, Mortgage & Loan Processing Solutions,
Apparel Solutions
Clients: Most of the mortgage US banks; Liz Clayborne

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Sofizar
From US$800,000 to US$30 million in 3 years SEO, SEM, Detecting
Online Fraud, Analytics

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Solosmart
Face recognition & biometric solutions for Human Capital
Management, Security & Surveillence

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TRGTech
Creating Revolutionary Technology

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What will make this happen?

Salman Ansari Technology Consultants (Pvt) Ltd

LOW RANKINGS – WEF e-Readiness index,
WB, ECONOMIST, etc
BAD PRESS WHICH IS NOT TACKLED

PAKISTAN IS A
HARDSELL
CORRUPTION AND RENT SEEKERS

…AND OF COURSE THE ISSUE OF TERRORISM..

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 EXPAT COMMUNITY
BOTH I.T. AND THE GOVERNMENT

ENABLER
JUMP START WITH GOVERNMENT IN I.T.
PROJECTS e.g. e-government, land records,
service delivery, etc.
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TELECOMMUNICATIONS
INCENTIVES

INFRASTRUCTURE
POLICY SUPPORT
TAXATION

PHYSICAL INFRASTRUCTRE
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 EDUCATION
TRAINING

HUMAN RESOURCE
JOBS
RETENTION

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ACCESS TO CAPITAL
SUBSIDISED BANDWIDTH

FINANCIAL
TAX FREE ENVIRONMENT

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INNOVATION CENTERS
INCUBATION CENTERS

INNOVATION
SUPPORT
CERTIFICATION SUPPORT

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IPR
DATA PROTECTION ACT

LEGISLATION
ELECTRONIC
CRIMES TELECOM VoIP

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!

OWNERSHIP

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TRANSPERANCY

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FACILITATOR

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COMMITMENT

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PASSION

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 Waves of Opportunity
‘70s -‘80s - Wave of hardware manufacturing

‘80s –’90s – Wave of software and applications

‘90s – Out sourcing of labour intensive work

‘90s- ‘00 – Out sourcing of Business Processes

Now: multitude of opportunities, specially in

development in the Mobile and Web 2.0 space
Salman Ansari Technology Consultants (Pvt) Ltd
‫گاڑ ۍ گزر چکی تھی‬
‫پٹری چمک رہی تھی‬
‫‪| 54‬‬
 Thank you
&
Good Luck!

salman@super.net.pk
0300 8545619

Salman Ansari Technology Consultants (Pvt) Ltd