Are There Business Opportunities for Scandinavian IT Service Companies in Pakistan

Case ITUM

Muhammad FarooqMS ICT Entrepreneurship

Contents Introduction Methodology Scandinavian IT market and ITUM Pakistan IT market Business opportunities in Pakistan Pakistan market analysis for ITUM Benefits and challenges in Pakistan market Conclusion

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Introduction

Introduction

Scandinavia is developed IT market Scandinavian IT companies are familiar with up-

to-date technology Looking towards developing countries for new

business opportunities Ambitions to grow internationally Mobility in IT business

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Introduction Pakistan IT market is developing at the rate of

50% per annum for last 5 years High level of IT optimization is required Telecom revolution in Pakistan last 5-years Tele-density has now reached around 50% Customers, Government Initiatives, Neighboring

countries Is IT revolution next???

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Introduction

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Are there business opportunities for Scandinavian IT service

companiesin Pakistan - Case ITUM

Methodology

Research Methodology

Scandinavian Market:

Study ITUM documents Interview ITUM executives and customers Internet research Business tools for analysis

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Research Methodology

Pakistan Market:

Random Sampling Surveys and Questionnaire Telephonic interviews Internet research Business tools for analysis

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Scandinavian IT Market and ITUM

Trends in Scandinavian IT Market

Outsource IT operationsIntegrating infrastructure and application

servicesIncrease in mobile applicationsIT optimization in government and banking

sector

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Trends in Scandinavian IT Market

Development of portals and integration of services

Security solutions in banking and insurance sector

ERP solutionsIT applications for business intelligence

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Portfolio of ITUM

IT Strategies and planningIT Infrastructure ServicesIT Security SolutionsHardware and Software Deliveries

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Pakistan IT Market

IT Market Growth in Pakistan

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Success Factors in Pakistan Market

ReliableExperiencedLong term commitmentCost effectiveQuality and standardNetworking

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IT Market Potential

Growing marketMostly IT companies are working on

development projectsFocusing on outsourcing projects Only few are working on high level projectsNot very experiencedLong term projects

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Business Opportunities in Pakistan

Potential Customers for ITUM

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Banks and financial institutesGovernment projectsEducational institutesTelecom and MNC’sInsurance companies

Highly Demanded IT Services in Pakistan

Animation ERP Convergence Web 2.0

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Highly Demanded Competencies in Pakistan

Knowledge process outsourcing (KPO) E-commerce and m-commerce Open source based converged networks Grid computing Information technology auditing and risk

management

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Highly Demanded Competencies in Pakistan

Business intelligence   Software quality assurance and testing

solutions Triple play service SAN solutions Project management for long term IT projects

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Pakistan Market Analysis for ITUM

Market Analysis for ITUM

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Competit ive Rivalry, ++Low competition+Good reputation+High growth-No network-Cultural issues

Threat of New Entry, ++ Entry barrier+Defined niche market-No network

Buyer Power, -+Low competition+High switching cost-Less number of buyers- Skeptical buyers

Supplier Power, -+Good relations with supplier-High switching cost-Less number of partner companies

Threat of Substitute, ++High switching cost+Complete solution+Strong brand name-Existing companies

Market Demands from ITUM

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Benefits and Challenges in Pakistan Market

Benefits in Pakistan Market

Business opportunitiesGovernment supportEasy availability of resourcesOff-shoring benefits

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Challenges

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Polit ical

•Political instability•Intellectual property is protected •Favorable trading partner available•Encouraging tax laws•Lower wages•Favorable trading policies•Favorable government policies

Economical

•Free market, no government intervention •Stable currency•Growing financial market•Infrastructure is developing•Limited work experience of IT labor force•Low labor cost•High inflationSocial

•Good education•Youth is a big part of population•High growth rate of population•Career focused employee•Changing social culture•Muslim country•Customers are not brand conscious •Different language•Low entrepreneurial spirit•Unequal distribution of wealth

Technological

•Rapidly development in technology•High impact on product offering with change in technology•Strong impact on cost structure with technology changing •Growing R&D•Highly focused on technology•Highly changing conditions for internet, phone and information technology•Reduced communication cost•Increase in remote working

Win Win Situation

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Potential Stakes

Pakistani Partner Can Give

Pakistani Partner Can Get

Assets at risk Customers Brand reputation

Technology Platform to sell services Standard for improvement

Resources Talented HR Knowledge to improve resources

Relationships Channels and customer network Access to Scandinavian market

Reputation Credibility and visibility Brand equity

Core Competencies Selling competencies Expertise

Chemistry of Key People

Cultural awareness HR development

Company Vision Growth in Pakistani market Market expansion

Conclusion

Conclusion

Pakistan an emerging IT marketScandinavian companies are looking for new

marketDifference in local business culture is a

challengeWin win partnership

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Thanks for Your Attention