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Company LOGO Destination NeXT: Why P @ kistan ?

Why Pakistan v1.1

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Page 1: Why Pakistan v1.1

Company

LOGO

Destination NeXT:Why P@kistan ?Destination NeXT:Why P@kistan ?

Page 2: Why Pakistan v1.1

2Source: NASSCOM; TBT Analysis for US and India; PSEB Estimates for Pakistani Companies, March 2006

Pakistani labor is cheaper than India.

Operating Costs in US, India, and Pakistan Operating Costs in US, India, and Pakistan

Total Price in Market

42,927 6,179 4,500

8,571 1,000 800

1,500 2,328 2,000

2,600 847 700

3,000 1,500 1,000

58,598 11,854 9,000

0% 100-200% 100-200%

Personnel

G&A Expense

Telecom

Property Rentals

Depreciation

Total Expenses

Markup

USA India Pakistan

58,598 23,708 to 35,562

18,000 to 27,000

Page 3: Why Pakistan v1.1

3Source: State Bank of Pakistan, PSEB, BearingPoint Study September, 2005

Major Companies

Pakistan (State Bank Figures)

Rank Companies US$ Million

1 Netsol Technologies 5.26

2 Ovex Technologies 2.93

3 TRG Pvt Ltd 2.23

4 System Pvt Ltd 1.94

5 Elixir Technologies 1.51

6 Descon IT24 Pvt Ltd 1.4

7 Trivor Software 1.2

8 Geopaq Tech. (Pvt.) Ibd 0.99

9 Enterprise DB 0.85

10 Xavor Pakistan Pvt Ltd 0.75

11 LMR Resource 0.73

12 Itim Software 0.53

13 Accountancy OS Pvt. Ltd 0.42

14 Dev Technologies 0.34

15 Avanza Solutions 0.33

16 Streaming Network 0.31

17 Kalsoft (Pvt) Ltd 0.3

18 Innovative Pvt Ltd 0.27

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.

Page 4: Why Pakistan v1.1

4

Share of Export Revenue by Type

Source: PSEB, State Bank of Pakistan, September 2005

0

10

20

30

40

50

60

70

80

2001 2002 2003 2004 2005 2006

Export Proceeds of IT (US$ Million)

Pakistan Market Distributed in 3 Tiers

11 %

20 %

69 %

Tier 1 — (2.5 Million USD +)Tier 1 — (2.5 Million USD +)

Tier 2 — (250K – 2.5 Million USD)Tier 2 — (250K – 2.5 Million USD)

Tier 3 — (Less than 250K USD) Tier 3 — (Less than 250K USD)

Page 5: Why Pakistan v1.1

5

Active Companies in Major Cities

City # of Operational Companies

Islamabad / Rawalpindi 259

Karachi 368

Lahore 322

Abbotabad 4

Faisalabad 10

Hayderabad 3

Multan 6

Peshawar 19

Quetta 2

Sialkot 7

Others 13

Total 1013

Source: PSEB Survey, July 2006

Page 6: Why Pakistan v1.1

6

Area of Expertise Total

Financial 192

ERP 159

Animation & Gaming 351

Mobile Content 25

Medical Transcription 14

Legal Transcription 39

Document Management 25

Total 805

Source: PSEB Survey, July 2006

Categorical Analysis of IT Industry

Expertise Wise Estimation

Page 7: Why Pakistan v1.1

7

Service Line Total

Software Products 167

Software Services 685

IT-Enabled Services 387

Others 175

Source: PSEB Survey, July 2006

Categorical Analysis of IT Industry

Product Wise Estimation

Page 8: Why Pakistan v1.1

8

Global Exports

Total Industry Size: $ 2 Billion

$1.4 B$600 M

Pakistani IT Industry Size

$ 75 M$ 75 M $150 M$150 M $600 M$600 M

IT Export Revenue Reported by SBP

IT Export Revenue Brought into the Country

Global IT Export Revenue

Domestic Industry

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

Page 9: Why Pakistan v1.1

9Source: SBP, July 2005

Pakistan IT Exports by Region

Page 10: Why Pakistan v1.1

10

Office Space and Human Resource Growth Patterns of Top IT Companies

Source: PSEB Survey, July 2006

Growth Pattern of Pakistani IT Industry

Combined growth rate

•NCR•IBM•ZTE•NetSol•Touchstone•TRG•LMKR

HR434 %

Office Space418 %

Page 11: Why Pakistan v1.1

11

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

300 %

IslamabadIslamabad

150 %

LahoreLahore

180 %

KarachiKarachi

City Wise Growth of IT Industry

Source: PSEB Survey, July 2006

Page 12: Why Pakistan v1.1

12Source: PSEB Survey, July 2006

Area of Expertise # of Employees

Transcription 895+

Telesales / Telemarketing 1200+

Document Management 740+

Accounting 660+

Billing Services 420+

Mobile Content 610+

Web sales / Marketing 1345+

HR Hiring / Administration 430+

Software / solution development 11970+

Web development 7430+

Call Centers 5000+

Total 30700 +

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.

Page 13: Why Pakistan v1.1

13Source: PSEB Survey, July 2006

Critical to Rank Call Center Companies

1. TRG

2. Touchstone communications (Pvt) Ltd

3. Ensign Communique (Pvt) Ltd

4. Altsource Communications (Pvt) Ltd

5. AMZ Access (Pvt) Ltd

6. Astro Outsource (Pvt) Ltd

7. Ovex Technologies (Pvt) Ltd

8. InfoSpan (Pvt) Ltd

9. Quest Marketing

10. Voxel Communication

Page 14: Why Pakistan v1.1

14Source: PIE, FLAG, PSEB, May 2007

Bandwidth Statistics for Pakistan

Statistics

CC

BB

DD

AA

No. of DSL / Broadband Users

Purchased Bandwidth

No. of Dialup Users

Bandwidth Delivered

2484 MB (PIE + FLAG)10.5 Million

1.5 Million3104 MB (PIE + FLAG)

Page 15: Why Pakistan v1.1

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Utilities &InsuranceApplications

Retail Banking and Financial Products

Animation & Graphics

Mobile Content

IT NichesIT Niches

ERPSoftware

DocumentManagement

Medical Transcription

Niches of Pakistani IT Industry

Pakistani Industry specializes in these solution areas

Page 16: Why Pakistan v1.1

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World Class Companies

TELECOMWavetech: Large display systems in public

placesInov8: Leading mobile transaction management

platformMobile complete: mobile testing suitePixsense: Mobile Photos

JOB PORTALSRozee.com.pk: Online recruitment solutionPersonforce.com: US Online recruitment solution

DOCUMENT MANAGEMENTeDox: Superior document management and office

automation solution with over 150international customers

Page 17: Why Pakistan v1.1

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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

Page 18: Why Pakistan v1.1

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World Class Companies

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

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

Page 19: Why Pakistan v1.1

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World Class Companies

SOFTWARE SERVICESVisualsoft: Hardware and software system integrationKalsoft: Advanced infrastructure design and implementation Averox: Enterprise client/server based solutionSi3: System Integration solution providersTechlogix: Business process improvement solutionsTechaccess: Enterprise management solutions Systems Ltd: IT and BPO servicesPi Sigma Group: Consulting and software developmentComcept: Innovative telecom solution provider

Page 20: Why Pakistan v1.1

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World Class Companies

IT ENABLED SERVICESPost Amazers: Animation. “Son of Mask” and “Exorcist : The Sequel”LMKR: Seismological and Geological Data Management. BP, CALTEX, TEXACOiEngineering: Platform Management. Most comprehensive database in the worldTouchstone BPO, Ovex, Infospan, TRG, IT24: IT enabled services/Call Centers