Pakistan’s IT sector is grappling with severe internet disruptions that pose a significant threat to the country’s ability to compete in the global market, particularly for freelancers and businesses relying on cloud-based services.
Umair Azam, founder and CEO of Integration Xperts, a leading cloud implementation and professional services provider, highlighted these concerns in an exclusive interview with Business Recorder.
He emphasised the urgent need for improvements in internet infrastructure to safeguard the future of the IT industry.
The frequent and prolonged internet outages are not just minor inconveniences but have become a critical issue that undermines the ability of Pakistani companies and freelancers to deliver projects on time.
“Internet disruptions caused by frequent upgrades and cable damage raise concerns about the ability of Pakistani companies and freelancers to remain competitive in the global market, particularly for freelancers who may be losing business to counterparts in other countries,” said Azam.
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He also noted that the current state of internet connectivity could hinder the government’s IT sector growth targets.
“With the ongoing challenges, such as internet disruptions, achieving the goal of increasing annual IT sector exports to $10 billion or $15 billion would be challenging.”
Azam explained that companies of all sizes, from large enterprises to small businesses, face significant business continuity issues when internet services are disrupted.
“Improvement in internet infrastructure and its continuous availability need to be ensured as internet disruption affects all businesses in the era of cloud. Companies and freelancers engaged in digital marketing and e-commerce suffer the most,” he noted.
Beyond the immediate challenges posed by internet disruptions, Azam highlighted another pressing issue facing Pakistan’s IT sector: the brain drain.
Experienced professionals are leaving the country in search of better opportunities, while the education system struggles to produce graduates with the skills needed to fill the gaps.
“Experienced professionals are leaving the country in search of better opportunities, while the education system struggles to produce graduates with the skills needed to fill the gaps.”
“Pakistan produces approximately 70,000 IT graduates annually (estimated), however, most of this talent does not possess the necessary skills to make them instantly employable,” Azam explained.
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To address this talent gap, Azam emphasised the need for a revamp of the country’s IT curriculum. He called for greater collaboration between academia and industry to ensure that students are equipped with the skills that are in demand in today’s technology landscape.
“Academia needs to understand that technology is no longer just software development. Digital marketing, cyber security, consulting services, artificial intelligence, cloud DevOps, blockchain, Internet of Things (IoT), and machine learning—these are the fields which need to be included in the curriculum with a focused approach on specialized degrees,” he said.
In response to these challenges, Integration Xperts (IX) has partnered with AshreiTech to train at least 10,000 students in the latest technologies. “We have established purpose-built state-of-the-art academies in Karachi, Lahore, and Islamabad to train students on the latest curriculum,” Azam shared.
He added that IX has already hired 70 to 80 students who were trained at AshreiTech Academy, and there are inspiring success stories, such as two young girls from Badin who, after completing intermediate education and receiving training, now earn Rs70,000 to 80,000 per month.
Founded in December 2016, Integration Xperts has grown from a small team of 8 to 10 people to a robust workforce of over 200 employees. The company has expanded its presence beyond Pakistan to the USA, UAE, Australia, and Malaysia, with plans to enter the Saudi Arabia market soon.
This growth has been bolstered by a strategic investment from Atlas Group in December 2020. Azam says IX’s valuation has increased nearly fourfold since. While the company initially focused on local businesses, it is now targeting export markets, to generate 80% of its revenue from exports and 20% from local businesses. Currently, the company’s revenues are equally split between local and foreign markets.
Azam remained cautious about the future of local IT businesses, noting that many are struggling due to shrinking budgets.
“Local businesses are shrinking, and they aren’t left with much to spend on IT,” he remarked, underlining the importance of tapping into international markets to sustain growth.
Looking at the silver lining and scope for a Pakistani IT firm to grow, Umair shared the company’s plan to get listed.
“We are planning an IPO within the 2026-2027 timeframe, approximately two to three years from now. The primary goal of pursuing an IPO is to fuel our growth ambitions. We intend to leverage the capital raised to expand our global footprint by acquiring companies locally and outside of Pakistan to scale our business internationally.
“Additionally, the IPO will enable us to further invest in and enhance our product portfolio, ensuring that we continue to innovate and meet the evolving needs of our clients. This strategic move will position IX for sustained success in the years to come,” Umair further added.
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