In today's modern era, for the uplift of business, many organisations in the global market are utilising outsourcing quite effectively both on national and international fronts where use of information technology (I.T.) has become mandatory.
It is a disappointing scenario in Pakistan that the government and private sector failed to formulate any strategy on this aspect resulting in almost zero shares in the multi-billion dollar global outsourcing business.
In my various previous columns I have been highlighting and focussing on the need to increase export of non traditional items citing that our two immediate neighbours working on this strategy have expanded and increased their exports substantially.
During the fiscal year 2005-06 Pakistan's export through I.T. services were only US $:106 million whereas India's annual export utilising outsourcing is US $: 5 billion. In my columns I have explained how India is surging ahead in gaining its share in fast developing outsourcing market. On investigating further it was revealed that recently the Indian lobby in USA successfully arranged to pass a bill in the Senate allowing medical information to be transferred out of USA for research on diseases.
Based on this rule the American qualified and trained doctors who are settled outside USA can provide and pass their medical opinions at low price. Readers may know that medical sector in USA is engaged in billion dollars annual business and medical services in USA are very expensive. These services can now be attained cheaply through outsourcing.
A large well educated and influential Pakistani community is settled in USA who with their influence and contacts can transfer the outsourcing business to Pakistan like Indian lobby who capitalising on their strong connection, influence have managed to shift this business to India from USA and other European countries. After medical sector, Indians are now pursuing and providing outsourcing services of tuition in USA education sector and again they are playing pioneer role in this sector. Last year, their exports of this sector alone to USA market were at US $:35 million. The US government has ordered complete automation of doctors providing healthcare services and its records in USA by 2010.
This will cost billions of dollars for which outsourcing is an attractive option taking cost factor into consideration. According to a report US companies for their offshore technology operations have preferred India over other countries for their competitive prices, availability of highly skilled manpower and efficient services. Bangalore's Silicon Valley in India has played a significant and important role in developing IT business in India. The Microsoft Guru Bill Gates has established a large I.T. complex where with an intensive and comprehensive programme of Microsoft, Indian students are being imparted training of latest technology. These technicians, after completing their study/training only certified by Microsoft, are playing important role in achieving outsourcing business for India. Private sector contribution in IT is quite significant if India is to be taken as role model. On the other hand there is hardly any active role of private sector of Pakistan and I think this being the main reason of our snail paced development.
In the year 2005 India was ranked No 1 in the outsourcing business in the world followed by China and a tiny Latin American country Costa Rica. If a small country like Costa Rica could excel in this sector why Pakistan, comparatively bigger with huge talent in human resource, cannot get its due share in outsourcing. There is dearth of high by qualified personnel in every sector in Pakistan. According to Pakistan Software Export Board the country is producing twenty thousand IT graduates annually whereas India is forty times ahead in this sector. Out of ninety thousand employed IT professionals only ten thousand IT experts are attached with export activities in the country.
Pakistan should immediately start an intensive and comprehensive programme whereby a chain of polytechnic institutes throughout the country be established. In addition universities be given grants to produce more post graduates in the country.
Costa Rica achieved its hundred percent literacy decades ago and aggressively advanced towards IT in 1980s. They are now reaping the harvest. According to a report India during the period 2000-2004 in its outsourcing industry has created 260,000 vacancies. Seeing immense potential other countries of the world are aggressively patronising their outsourcing programme. A tax free zone has already been established in Dubai where foreign companies can participate in Business Process Outsourcing (BPO). Mauritius situated on the island of Indian Ocean with most of its people fluent in English and French has given a tremendous growth to its tourism industry through outsourcing.
According to an analysis in order to execute in a systematic and satisfying manner, well established outsourcing markets are planning to specialise in it. Like Debt Collection services in USA is being outsourced to India and a news agency in Britain for its material relating to journalism is also outsourcing to India. During the last few years Indian have gained tremendously in outsourcing business, particularly giving a significant improvement in standard of living of people of Bangalore which has resulted in its becoming the call centre capital of the world. Though raise in wages is a problem for this sector but most of the cost efficient market may sort out this problem.
To integrate as a comprehensive group the variety of information and complexity of technology, needs are intelligent and most modern movement. Having a population of 160 million Pakistan's economy is at US $:125 billion dollar annually but only US $: 1.1 billion IT business has been estimated for 2007 which is less than 1% of GDP. Revenue from the IT sector till 2015 has been estimated at US $:5 billion.
By 2010 the expected revenue of global offshore outsourcing will be US $:600 billion, 50% of which may flow to Asia Pacific region alone. Taking advantage of this, government of Pakistan has allowed IT related exports tax holiday till 2016 but the government has to take further steps to make outsourcing industry of Pakistan more competitive in the world. The main and foremost task is to make a well perceived long term plan to develop the IT industry of Pakistan to get our fair IT share in the global IT business.
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