The document discusses plans to establish IT and software technology parks in Pakistan to strengthen the country's economy. It notes that Pakistan has over 300,000 English-speaking IT professionals and the potential to develop an IT sector. The proposed parks would provide infrastructure and business services to companies. A multi-component strategy is outlined, including reviewing best practices, policies, case studies, and developing an investment plan. The parks could attract foreign investment and jobs while helping develop IT skills. Challenges include a lack of research facilities and practical job skills, but the parks may address weaknesses and leverage opportunities to grow Pakistan's presence in the global IT industry.
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Pakistan Software and Information Technology Pakistan
1. IT & SOFTWARE TECHNOLOGY PARKS IN PAKISTAN
WAJID HASSAN
10/20/2019
1
Version 5.0
2. OBJECTIVE
2
The IT sector in Pakistan has great potential.
Despite of the challenges faced by country, IT
sector has gained global recognition.
However, there is significant need for development
of IT parks in order to strengthen the economy of
the country.
4. IT PROFESSIONALS
IN PAKISTAN
Pakistan has more than 300,000 English-
speaking IT professionals with expertise
in current and emerging IT products and
technologies.
4
5. WELL KNOWN IT PARKS AROUND THE GLOBE
1. Information Tech Park, Bangalore India
2. Hoa Lac Hi-tech Park, Hanoi, Vietnam
3. Konza Technology City, Makueni, Kenya
4. Har Hotzvim, Jerusalem, Israel
5. Digital Media City, Seoul, South Korea
6. Cebu IT Park, Cebu City, Philippines
7. SmartCity, Kalkara, Malta
8. Business Park Sofia, Bulgaria
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6. KARACHI’S COMPETITIVE ADVANTAGE
Karachi is the largest city in Pakistan and the
capital of the province of Sindh. It has 26
universities including the University of
Karachi. Karachi has already a considerable
presence in IT world and thus can build on
existing knowledge & value chain. The living
costs & expenses are also very reasonable in
this city.
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7. UNIVERSITIES
AND
COLLEGES
LANDSCAPE
IN KARACHI
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The University of Karachi
NUCES FAST
NED University of Engineering & Technology
Sir Syed University of Engineering and Technology (SSUET)
Indus University
Institute of Business Management
Muhammad Ali Jinnah University and many others
Hamdard University / Usman Institute of Technology
12. DATA CENTERS
PTCL Wafaqi Colony Data Center, Lahore. Built on international standards.
PITB Data Center, Lahore. PITB (Punjab Information Technology Board)
PTCL Data Center, Karachi.
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13. IT PARK DEVELOPMENT STRATEGY
Following strategy should be adopted to have the maximum output of the efforts.
It is anticipated that work on Components I, II and III can commence at
approximately the same time.
Component 1: Best Practices
Component 2: Review of Policy Development
Component 3: Country case studies
Component 4: IT Park Investment & Implementation Strategy 13
14. COMPONENT 1: BEST PRACTICES
The consultants will undertake a desk review of relevant literature, as well as
selective site visits only as needed to.
Identifying the ‘critical factors for success of business’ in sustaining and
establishing the operation of IT parks (i.e. examine both failed and successful
IT parks in both developed and developing countries)
These critical factors for success of business should incorporate the
perspectives of developers and investors who had developed and financed IT
parks.
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15. COMPONENT 2: REVIEW OF POLICY DEVELOPMENT
Explore how public policy can enable or inhibit the creation of competitive IT
sector; and identify which public policies were instrumental in the success and
failure of IT parks
Determine the impact of IT parks in supporting the emergence of an IT sector, as
well as enabling positive externalities in knowledge spillover and economic growth
Define and explore the role of the public sector and develop best practice guidelines
and options for policy makers
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16. COMPONENT 3: COUNTRY CASE STUDIES
In parallel to developing component I- Best practices/ lessons learned, the
consultants should conduct three country case studies
The country case studies will provide the national context in which policy
makers and other key stakeholders will evaluate and benchmark their country
on the basis of the ‘critical business success factors’ to implement and design a
sustainable IT park.
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17. COMPONENT 4: IT PARK INVESTMENT AND
IMPLEMENTATION STRATEGY
Based on a benchmark analysis of the ‘critical business success factors’ and
‘critical policy success factors’ against the current environment in Pakistan, the
consultants will propose an implementation and investment strategy tailored to the
specific situation of Pakistan
The purpose of this strategy document will be to help the government of Pakistan
and its partners in the international donor community (including the World Bank
Group) to make informed decisions and commitments about their possible
involvement in existing or new IT park projects in Pakistan
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18. DEVELOPMENT
MODELS FOR
SETTING UP IT
PARKS
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Model 1- Development Agency develops IT parks on its
own
• Development agency may develop IT parks with its own funds and
resources
Model 2- In assistance with Ministry of Information
technology & Telecommunication
• Development agency may develop IT parks in assistance with Ministry
of Information technology & telecommunication.
Model 3- In association with Private Sector
Participation on DBFOT mode
• Development Agency may develop an IT Park on Design, Build,
Finance Operate and Transfer (DBFOT) on Public Private
Partnership
Model 4- Joint Venture
• The Development Agency and private sector together may form a JV
company to undertake design, develop, finance,
construct, operate, and maintain the IT Park
20. INTERNSHIP AND TRAINING PROGRAMS
Establishment of IT Park will help
promote the internship and training
programs which will contribute to the
development of skills of fresh
graduates and students.
This new blood can be employed in
the country or can help in bringing
remittances
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21. VENTURE
CAPITALIST
Development in the IT sector of the
country will attract foreign
investments in the country.
Funding and expertise can be
provided by the potential investors or
other large businesses operating in
Karachi.
21
22. HUMAN RESOURCE DEVELOPMENT OPPORTUNITY
Software Technology Park will
provide opportunity for human
resource development and
development of world class
software
22
23. PAKISTAN’S FOREIGN DIRECT INVESTMENT
Pakistan's Foreign Direct Investment
(FDI) increased by 151.3 USD mn in Sep
2018
The data reached an all-time high of 1.3
USD bn in Jun 2008 and a record low of -
53.9 USD mn in Jun 2015.
Pakistan's Direct Investment Abroad
expanded by 1.0 USD mn in Sep 2018. Its
Foreign Portfolio Investment fell by 185.0
USD mn in Sep 2018. The country's
Nominal GDP was reported at 312.6 USD
bn in Jun 2018.
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24. IMPORTANCE OF FOREIGN DIRECT INVESTMENT IN PAKISTAN
Foreign direct investment (FDI) is an essential tool required for the progression of
the economical and technological development of Pakistan.
FDI plays a crucial role in attaining the country’s socio-economic goals.
FDI brings along different employment opportunities for the people of Pakistan and
helps them to improve their skills through transfer of technological and strategic
managerial skills
Helps in assimilating the domestic economy with the global economy
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25. IT BUSINESS THAT CAN BE SETUP IN IT PARK
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Cloud Computing
Business
Solutions
IT Centers Data Centers
Network
Engineering
Business
Software &
Application
Development
Robotics
Business
Incubator
Hardware
Development
26. WHY DATA CENTERS ARE NEEDED IN PAKISTAN?
With the ever-changing and ever-increasing needs related to internet and
web, establishment and development of data centers in Pakistan has
become more than necessary. Companies having their own data centers are:
PTCL
NADRA
Telenor
Zong
Ufone 26
27. IT CENTERS
27
IT Centers provide secure and reliable IT
infrastructure . IT Centers provide the following:
A robust and secure enterprise network service
to support voice, video, messaging, and data
State-of-the-art, high-performance scientific
computing platforms
Secure access to IT systems, including
computers, applications, and systems
Data-processing, hosting, and storage facilities
Access to discounted software products and
applications information, expertise, and training
28. BUSINESS INCUBATOR
Business incubator supports
the development of startups
by providing them with
administrative and advisory
support services
An incubator's primary
objective is to produce
successful and financially
viable firms that can survive
on their own.
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29. FACTORS
AFFECTING THE
SUCCESS OF
TECHNOLOGY
PARK
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Lack of Legislative Framework
Non-Availability of Financing
Lack of Well-Developed Universities &
Research Facilities
Lack of Shared Vision Among Stakeholders
Absence of Culture of Entrepreneurism
30. INNOVATION AND ENTREPRENEURSHIP
The growth of IT parks depends on the growth
of the firms and also on how the external and
internal factors affect the entrepreneur at each
stage of enterprise development
Especially in developing economies, we need
innovators that create new or improved services
and products accessible to underserved
populations.
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31. BIG PICTURE
To sum up, our proposed concept is based on best international
practices for IT Parks while at the same time taking into account
some of the particular short-comings which currently hamper IT
sector development.
If implemented successfully, the business park will provide a world
class infrastructure and will offer low cost business services and
administrative support to companies in the house
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32. POSSIBLE NAMES FOR THE IT PARK
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Karachi
Software Park
TechAcres
Software & IT
Park
Pakistan
Software Park
High tech
Software & IT
Park
Tech Treasure
IT Park
Quaid-e-Azam
Software Park
Uptown
Software & IT
Park
IT World
Complex
Clifton
Software & IT
Park
34. BRINGING NEW COMPANIES TO PAKISTAN
Pakistan needs to create 4.5 million jobs over the next five years (0.9 million jobs
annually). It would be awesome if big giant companies of world like Microsoft, HP,
Infosys, oracle, cognizant and Capgemini are also invited in this Project.
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35. SWOT ANALYSIS
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Strengths Weaknesses
High quality and skilled
employees
Absence of practical knowledge
Large Pool of IT Professionals Dearth of suitable candidates
State-of-the-art technologies Less Research and development
Flexibility to adapt to new
techniques & methodologies
Employee Salaries in IT sector
are increasing tremendously
Reliability and cost
competitiveness
Business expense
Provide efficient and cost
effective software solutions
Product Quality Concerns
High Aspirations and work
quality
Low Productivity
Quality telecommunications
infrastructure
Competitors
36. SWOT ANALYSIS
36
Opportunities Threats
High Quality IT market
IT development concentrated in
few cities only
Increasing number of working age
people
Cyber Security
Upcoming International Companies
in the market
Robots and Artificial Intelligence
development
Learning Opportunities Steep pressure to innovate
Pakistan’s growth in IT world Work force shortage
Other countries will invest in
Pakistan
Lacking in diversity
Startup Plans and Internships Risk and insurance