[Pakistan] The vanishing software houses

["Irfan Khan" <khania2@super.net.pk>]

From:		"SDNP Info" <info@isb.sdnpk.org> 
To:		"Comp-list" <comp-list@isb.sdnpk.org> 
Date:		Mon, 8 Jul 2002 17:04:33 +0500 


The vanishing software houses The Dawn, By Aamir Shafaat Khan, 
8/7/2002 http://www.dawn.com/2002/07/08/ebr11.htm 

It is amazing that out of the total 664 registered software houses 
(SWHs), only 323 are operating, and 221 have either closed down or 
have become non-functional, while 86 of these houses are not even 
traceable -- perhaps on account of incorrect addresses or they may 
have been shifted to some other locations. Another 34 of these have 
switched to some other enterprising businesses.  

The census, recently conducted by the Federal Bureau of Statistics 
(FBS) on "software industry and its related services in Pakistan" 
reveals that the 278 SWHs serving countrywide, have engaged about 
8,527 persons with the male/female ratio of 9:1. Around 94 per cent 
of the total employed are on full-time basis and the remaining six 
per cent work part-time. The Programmers being 2,438 are the highest 
of the figures, with some 13 per cent serving as the executives and 
the project managers. This sector can proudly boost for hiring 85 
PhDs, 44 Phils, 30 per cent Master degree holders, and 42 per cent 
graduates. About 76 per cent of the total persons occupied in 
software industry belong to the Information Technology (IT), and the 
remaining 24 per cent are the non-IT staff working in administrative, 
financial and other related fields.  

The FBS, however, did face some difficulties in conducting the census 
as out of the operational 323 software houses, merely 278 responded 
to enquiries, whereas 45 absolutely refused to share their data, with 
some 202 SWHs responding to all queries and the remaining 76 evaded 
vital information like employment cost and earning from their 
businesses. Around 245 of these are local houses, and the rest 33 are 
subsidiaries, with almost 50 per cent or 16 located in Islamabad and 
30 per cent in Lahore, while the remaining in Karachi. The number of 
SWHs operating in only Pakistan are 212, and 66 are said to be 
maintaining their branches overseas, also.  

The number of registered houses with one or more organization is 250, 
and the 28 are not registered with any organization and almost half 
of these unregistered SWHs are situated in Lahore. Approximately 125 
of these have multiple registration. The highest number are 
registered with the Pakistan Software Export Board (214), followed by 
66 with the Pakistan Software Houses Association (PASHA), and 39 with 
others. Until 1995, there were only 54 SWHs, while 72 new ones were 
established in 2000.  

The census further goes to unfold that there are about 9,585 personal 
computers (PCs) available with 278 SWHs, on an average 34 PCs in one 
house. There are 742 PC-servers averaging about three PC-servers per 
SWH. It is worth mentioning that Islamabad-based SWHs have highest 
users of the PCs (2,967 averaging approximately 53 PCs per SWH).  

Among the 278 SWHs, about 238 have dial-up facilities, with 39 
catering integrated services digital network, 33 digital cross- 
connection, nine radio modem and six retaining very small aperture 
terminal facilities. About 159 of these facilities are involved in 
the IT consultancy, 74 imparting IT training, 48 furnishing 
transcription services and 36 engaged in hardware, software, 
networking and vendor business.  

In response to the query of "field of expertise" - about 58 per cent 
of the SWHs have indicated of none in any field, 23 per cent have 
expertise in Oracle financial, 17 per cent in Web Sphere and about 
nine per cent in Oracle manufacturing. Only 17 have achieved the ISO- 
9000 IT Standard and 250 SWHs could not achieve any IT standard.  

The average monthly employment cost reported by the 247 SWHs is Rs113 
million - the annual 
employment cost of the reported SWHs is Rs1,357 million or $23 
million. Only 115 houses have 
declared their software export earnings, whereas 87 have informed of 
doing no software export. 
The reported earnings through software export were $22.114 million in 
2000-2001, while the rest 76 SWHs refused to answer to this question. 
 


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