Pakistan Becoming a New Hot Spot for IT Outsourcing

Why is Pakistan the hot new offshore information technology (IT) destination? This is because of a combination of favorable economic circumstances. Just when many Western managers are finally becoming comfortable with the idea of working closely with Indian IT firms, along comes Pakistan.

Pakistan is shaking off decades of "also ran" status. Funds invested into building educational institutions in Pakistan (when there were not enough jobs to absorb all the graduates from those institutions) are paying off as Pakistan begins to field a modern, highly productive labor force that is the envy of more prosperous but less tech savvy nations elsewhere in the region.

Why should the average Western IT professional, businessperson or IT consumer care? Because we are all going to be buying and using more IT outputs from Pakistan. To be a smarter buyer and user of IT products calls for a familiarity with Pakistan, even for those who do not initially intend to do business with Pakistani firms. We are all part of a global economy and Pakistan is an increasingly important part of that global economy.
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Pakistans Internet Infrastructure Hindering Outsourcing

In late 2005, an undersea cable linking Pakistan to the world snapped, leaving the country in ‘Internet darkess’ for more than 6 days. The biggest damage was done to outsourcing and IT companies, which could not conduct business for those 6 days.

Now it happened again. This time, there was some back-up plan, and some of the traffic was routed through a satellite channel. Though this helped, it was obviously inadequate, and can only be a short term fix. Eventually, Pakistan will have to move to a multi-level redundacy plan like in India, or China.
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Pakistan geariPakistan gearing up to be major destination for outsourcingng up to be major destination for outsourcing

Prime Minister Shaukat Aziz yesterday said that Pakistan by focusing on development of human capital, better infrastructure and an enabling environment for investors, is gearing up to be a major destination for outsourcing of IT enabled services.

The Prime Minister said as a result of economic reforms introduced by the government, investment friendly polices and availability of human capital, the cost of doing business in Pakistan has been reduced and more investors are attracted to Pakistan.

With the establishment of SEMEWE 4, Pakistan now has better international connectivity and redundancy will provide enhanced potential for outsourcing of Information Technology (IT) enable services which has further improved the prospects of local and foreign investment in IT and Telecom sector.

The hidden cost of outsourcing

Outsourcing customer service may seem like a bargain, but it can cost you some of your most valuable clients.

(Business 2.0) - Dell (Research) tried it, then reversed course. Capital One (Research) gave up as well, and so did JPMorgan Chase (Research). All came to the same conclusion about their attempts to farm out front-line customer-service jobs to outside contractors: The hidden costs far outweighed the potential savings in labor expenses.

Read Complete article at :

http://money.cnn.com/2006/03/01/magazines/business2/costofoutsourceing/index.htm

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