South Asia Investor Review

Over a million students, about a third of total 3 million students (1.4 million women, 1.6 million men) enrolled in Pakistani universities and degree colleges, are currently studying science, technology, engineering and mathematics (STEM Education), according to data released by the country's Higher Education Commission ( HEC ). Of these students, 415,008 are studying natural sciences and mathematics, 276,659 are in information and communication technologies (ICT), 178,260 are in health sciences and 166,457 are in engineering. Pakistan produced 157,102 STEM graduates last year, putting it among the world's top dozen or so countries. About 43,000 of these graduates are in information technology (IT).   Student Enrollment By Field of Study at Pakistani Higher Education Institutions. Source: HEC Nearly half a million Pakistani women are currently enrolled in science, technology, engineering and mathematics courses at universities, accounting for nearly 46% of all STEM studen...

Outlook India recently ran a story headlined "Noida to Islamabad". It suggests at least anecdotal evidence of information technology jobs beginning to move from India to Pakistan. The number of jobs is only 125 but could it be the tip of a larger iceberg? Are western companies finding Pakistan becoming more competitive with India in terms of cost and skills on offer? Let's try and answer these questions. Noida to Islamabad: Outlook India report said 125 employees at a US-based information technology service provider were laid off in Noida in New Delhi, India, and the very next day an equal number of workers started working for the company in Islamabad, Pakistan. Here's an excerpt of  Outlook India  story: "On the night of November 1, stretching into early next morning, close to half the workforce at the Noida office of a US-based IT service provider was informed that their services were no longer needed. A former employee says salaries for the staff at th...

India's IT sector business is essentially driven by low-cost call centers, first-line tech support, simple repetitive code writing, and execution of pre-defined test suites. A typical Indian IT worker is increasingly being called a "cyber coolie" or sometimes a "code coolie", the former term having been coined by an astute Indian columnist Praful Bidwai back in 2003. India has become the world’s top provider of business-process-outsourcing (BPO) call centers, with revenues nearing $50 billion a year by selling cheap back-office services. The call center revenue constitutes the bulk of India's IT exports. Harish Trivedi of Delhi University has characterized India's call centers as "brutally exploitative" and its employees as "cyber coolies of our global age, working not on sugar plantations but on flickering screens, and lashed into submission through vigilant and punitive monitoring, each slip in accent or lapse in pretence meaning a cut ...

Pakistan's information technology industry is quite young. It is in very early stages of development compared to the much older and bigger Indian IT industry , which had a significant headstart of at least a decade over Pakistan. During the lost decade of the 1990s under Bhutto and Sharif governments, Pakistani economy stagnated and its IT industry did not make any headway. However, the industry has grown at 40% CAGR during the 2001-2007, and it is estimated at $2.8 billion as of last year, with about half of it coming from exports. This pales in comparison to over $5 billion revenue a year reported by India's Tata Consulting alone. Here's some data on Pakistan's IT industry : "The State Bank of Pakistan for 2007-08 reports the export figures of software and Information Technology-enabled services to be US$169 million which shows a consistent annual growth. State Bank of Pakistan adopted BPM 5 reporting system to report the IT exports revenue, which restricted t...