Pak, Egypt emerge as new IT destinations to complement India

17 Feb, 2008, 1805 hrs IST, PTI

MUMBAI: India may be taking giant leaps in the IT/ITeS sector while countries like neighbouring Pakistan and Egypt are also taking tiny steps to corner a share of large global business.

However, both feel they will complement the Indian expertise with their individual niche and not compete as the pie was big enough for all.

Pakistan's IT industry has grown to the size of $3 billion and is expected to grow to $10 billion by 2010-11. Similarly, Egypt, a very new entrant, is doing business of $450-480 million and will touch $1.1 billion by 2010.

These countries are in addition to a number of offshore BPO destinations like Philippines, Eastern Europe, Latin America and China which cater to the global opportunity. "The cost of doing business in Pakistan is 30 per cent lesser than in India," Jehan Ara, President, Pakistan Software Houses Association (Pasha) said. Pasha is the representative body of IT/ITes industry of Pakistan. Pakistan, as the multinationals are fast realising, is aptly positioned to facilitate Saudi Arabia, Baharain, Oman and other Mid-Eastern countries. Similarly, Egypt, which has centres of IBM and Orange, is a door to the Arab World, Europe and Africa, says Amin Khairaldin, Advisor, Information Technology Industry Development Agecy, Egypt. "We seek to compliment India not compete with it. Together we can win. The demand is so huge that one cannot fulfil it alone," Khairaldin said. A NASSCOM-Everest study on the India BPO industry has pegged the total addressable market at $220-280 billion. India, which at current growth levels can secure business worth $30 billion, can stretch target $50 billion by managing supply side constraints, competition from other shores and sustainability of cost advantage. "Pakistani IT companies like Systems Ltd and Netsol have established offices in Bangalore. We will seek to compliment the industry," Pasha President Jehan Ara said. In Egypt, after Satyam and Wipro set up their centres, another large Indian IT company was sending a due diligence team to Cairo. "The Indian company has in fact cancelled Latin America as a destination to chose Egypt," ITIDA Advisor Amin Khairaldin said. All this despite the fact that both countries have history of political instability. "There is no safe place today in the world. Despite all instability, there was no stoppage of work here," he added. Jehan Ara too shares similar views. "MNCs like Microsoft, Oracle have set up offices here. IBM is doubling its team in Pakistan and all this despite instability," she said. Trade Association for the UK Hi-Tech Industry Chairman Richard Sykes opines that the world today was a series of shores and countries like Egypt, Pakistan and even Bangladesh are doing good business. "India is a giant shore but smaller companies in countries like Bangladesh or Egypt were doing good business," he said. Source: http://economictimes.indiatimes.com/rssarticleshow/msid-2789805,prtpage-1.cms