This document analyzes potential business opportunities for Scandinavian IT service companies in Pakistan. It discusses the growing Pakistani IT market and the portfolio of an exemplar Scandinavian IT company, ITUM. While the Pakistani market presents opportunities due to its growth, developing infrastructure, and government support for IT, there are also challenges such as political instability, a developing economy, and cultural differences. Overall, the document concludes that a win-win partnership is possible if Scandinavian companies can navigate the local business culture and leverage Pakistan's market potential for growth.

1. re There Business Opportunities for Scandinavian
IT Service Companies in Pakistan
Case ITUM
Muhammad Farooq
MS ICT Entrepreneurship

2. Contents
 Introduction
 Methodology
 Scandinavian IT market and ITUM
 Pakistan IT market
 Business opportunities in Pakistan
 Pakistan market analysis for ITUM
 Benefits and challenges in Pakistan market
 Conclusion
2

3. Introduction

4. Introduction
 Scandinavia is developed IT market
 Scandinavian IT companies are familiar with up-
to-date technology
 Looking towards developing countries for new
business opportunities
 Ambitions to grow internationally
 Mobility in IT business
4

5. Introduction
 Pakistan IT market is developing at the rate of
50% per annum for last 5 years
 High level of IT optimization is required
 Telecom revolution in Pakistan last 5-years
 Tele-density has now reached around 50%
 Customers, Government Initiatives, Neighboring
countries
 Is IT revolution next???
5

6. Introduction
Are there business opportunities
for Scandinavian IT service
companies
in Pakistan - Case ITUM
6

7. Methodology

8. Research Methodology
Scandinavian Market:
 Study ITUM documents
 Interview ITUM executives and customers
 Internet research
 Business tools for analysis
8

9. Research Methodology
Pakistan Market:
 Random Sampling
 Surveys and Questionnaire
 Telephonic interviews
 Internet research
 Business tools for analysis
9

10. Scandinavian IT Market and ITUM

11. Trends in Scandinavian IT Market
 Outsource IT operations
 Integrating infrastructure and application
services
 Increase in mobile applications
 IT optimization in government and banking
sector
11

12. Trends in Scandinavian IT Market
 Development of portals and integration of
services
 Security solutions in banking and insurance
sector
 ERP solutions
 IT applications for business intelligence
12

13. Portfolio of ITUM
 IT Strategies and planning
 IT Infrastructure Services
 IT Security Solutions
 Hardware and Software Deliveries
13

14. Pakistan IT Market

15. IT Market Growth in Pakistan
15

16. Success Factors in Pakistan Market
 Reliable
 Experienced
 Long term commitment
 Cost effective
 Quality and standard
 Networking
16

17. IT Market Potential
 Growing market
 Mostly IT companies are working on
development projects
 Focusing on outsourcing projects
 Only few are working on high level projects
 Not very experienced
 Long term projects
17

18. Business Opportunities in
Pakistan

19. Potential Customers for ITUM
 Banks and financial institutes
 Government projects
 Educational institutes
 Telecom and MNC’s
 Insurance companies
19

20. Highly Demanded IT Services in
Pakistan
 Animation
 ERP
 Convergence
 Web 2.0
20

21. Highly Demanded Competencies in Pakistan
 Knowledge process outsourcing (KPO)
 E-commerce and m-commerce
 Open source based converged networks
 Grid computing
 Information technology auditing and risk
management
21

22. Highly Demanded Competencies in Pakistan
 Business intelligence
 Software quality assurance and testing
solutions
 Triple play service
 SAN solutions
 Project management for long term IT projects
22

23. Pakistan Market Analysis
for ITUM

24. Market Analysis for ITUM
Threat of New Entry, +
+ Entry barrier
+Defined niche market
Competitive Rivalry, +
-No network
+Low competition
+Good reputation
+High growth Buyer Power, -
-No network +Low competition
-Cultural issues +High switching cost
-Less number of buyers
- Skeptical buyers
Supplier Power, -
+Good relations with supplier
-High switching cost Threat of Substitute, +
-Less number of partner companies +High switching cost
+Complete solution
+Strong brand name
-Existing companies
24

25. Market Demands from ITUM
25

26. Benefits and Challenges
in Pakistan Market

27. Benefits in Pakistan Market
 Business opportunities
 Government support
 Easy availability of resources
 Off-shoring benefits
27

28. Challenges
Political Economical
•Political instability •Free market, no government intervention
•Intellectual property is protected •Stable currency
•Favorable trading partner available •Growing financial market
•Encouraging tax laws •Infrastructure is developing
•Lower wages •Limited work experience of IT labor force
•Favorable trading policies •Low labor cost
•Favorable government policies •High inflation
Social Technological
•Good education •Rapidly development in technology
•Youth is a big part of population •High impact on product offering with change in
•High growth rate of population technology
•Career focused employee •Strong impact on cost structure with technology
•Changing social culture changing
•Muslim country •Growing R&D
•Customers are not brand conscious •Highly focused on technology
•Different language •Highly changing conditions for internet, phone
•Low entrepreneurial spirit and information technology
•Unequal distribution of wealth •Reduced communication cost
28 •Increase in remote working

29. Win Win Situation
Potential Pakistani Partner Can Pakistani Partner Can
Stakes Give Get
Assets at risk Customers Brand reputation
Technology Platform to sell services Standard for improvement
Resources Talented HR Knowledge to improve resources
Relationships Channels and customer network Access to Scandinavian market
Reputation Credibility and visibility Brand equity
Core Competencies Selling competencies Expertise
Chemistry of Key Cultural awareness HR development
People
Company Vision Growth in Pakistani market Market expansion
29

30. Conclusion

31. Conclusion
 Pakistan an emerging IT market
 Scandinavian companies are looking for new
market
 Difference in local business culture is a
challenge
 Win win partnership
31

32. Thanks for Your Attention