Desi Back to Desh

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The Technology scene in Pakistan or The List

I wanted to do this for a very long time but never got round to it. This morning got up, made a few phone calls and put this post together.  Here is what I have done. 

Using very raw numbers wrt to number of employees, average salary per employee, target profit potential, I have gone out and done an industry estimate for the top 59 companies within the technology sector in Pakistan. The focus is on software and local/desi ownership. So I have not included some of the larger names like Inbox, Intel, Unisys, NCR and IBM or the ISP’s or the larger Telco players.

The math is fairly simple, take the numbers of employees, multiply by average salary (30K), multiply by 12 (months in a year), multiply by profitability potential (3 times salaries), divide by 60 (US$ exchange rate) to get a rough, back of the envelope, number for total gross revenues in US$ for these companies for the current year. (Thanks to Faisal Khan for the inspiration and the formula)

Now before I get flamed, please note: 

a) This is not a scientific exercise. It is industry gossip. I have no data, I only do phone conversations.  The rankings have no meaning other than the fact that I like Ashraf and Arooj equally well and expect Yusuf to buy me out on of these days. If the rankings had any meaning, I would have used a criteria that would have put us in the top ten.  The employee numbers, the profitability multiple are the key assumptions and they are going to be way off for almost all the companies in this list. For example Techlogix does a number north of 10 million US a year, but the assumption put it down at 5.85 million US.  

b) These are the 59 companies I have heard about or hear about.  Overall PASHA (the Industry Association) has 350 plus members and the membership is growing at 20% a year.  PSEB (the State body) has a database of 800 plus companies. So there is a very good chance that I have missed out on some very important names. My apologies.  Please feel free to rectify my mistakes.

c) The industry size is a very interesting animal. If I assume that these 59 companies represent 60% of the market share, the overall market size works out to be around 270 million US$ a year excluding the MNC players.  If I also assume that there are upmarket companies higher in the chain that are responsible for shipping work to these players and add their gross number to this mix the size jumps up to 450 million US$ a year. But we won’t see them in our local numbers.  If we assume 50% year on year growth, using the same assumptions, there is a good chance that we will break or touch the billion dollar mark sometime between the next two years on the software side.

d) Finally this is software – period. I have not differentiated between exports and/or domestic sales.

So without further, here are the estimates: 

Company Name                                 Rank           Empl       Gross (Est)

   

Systems Limited

1 850     16,575,000
Sidat Hyder Morshed Associates (Pvt.) Ltd. 2 800     15,600,000
Netsol Technologies Inc. 3 400        7,800,000
Techlogix Pakistan (Pvt.) Ltd. 4 300        5,850,000
Ovex Technologies (Pvt.) Ltd. 5 300        5,850,000
Etilize Pakistan 6 300        5,850,000
Descon Information Systems 7 300        5,850,000
Touchstone Communications Pakistan 8 300        5,850,000
LMK Resources 9 250        4,875,000
Kalsoft (Pvt.) Limited 10 200        3,900,000
THK S Technology Group (Pvt.) Ltd. 11 200        3,900,000
Bearing Point 12 150        2,925,000
TPS Pakistan 13 140        2,730,000
ITIM Systems (Pvt.) Ltd. 14 120        2,340,000
System Innovations (Pvt.) Ltd. – Si3 15 100        1,950,000
Xavor Pakistan Pvt. Ltd. 16 100        1,950,000
Arwen Tech (Private) Ltd. 17 100        1,950,000
Post Amazers 18 100        1,950,000
PixSense (Pvt.) Ltd. 19 100        1,950,000
Voxel Communications 20 100        1,950,000
Shahnawaz (Pvt.) Ltd. 21 100        1,950,000
AdamSoft International (Pvt) Limited 22 100        1,950,000
PixSense (Pvt.) Ltd. 23 100        1,950,000
Geopaq Technologies Pvt. Ltd. 24 100        1,950,000
CureMD Pakistan (Pvt.) Ltd. 25 100        1,950,000
Avanza Solutions (Pvt.) Ltd. 26 75        1,462,500
AutoSoft Dynamics Pvt. Ltd. 27 75        1,462,500
Abacus Consulting 28 75        1,462,500
Askari Information Systems Limited 29 70        1,365,000
Trivor Software 30 70        1,365,000
Prosol Technologies (Pvt.) Ltd. 31 65        1,267,500
Clarus (Pvt.) Ltd. 32 60        1,170,000
Folio3 (Pvt.) Limited 33 50           975,000
Progressive Systems (Pvt.) Limited 34 50           975,000
Millennium Systems & Consultants (Pvt.) Ltd. 35 50           975,000
Jin Technologies 36 50           975,000
Elixir Technologies Pakistan (Pvt.) Ltd. 37 50           975,000
Comcept Private Limited 38 45           877,500
Plexus (Pvt.) Ltd. 39 40           780,000
Mix IT Technologies 40 40           780,000
Alchemy Technologies (Pvt.) Ltd. 41 30           585,000
Softech Systems (Pvt) Ltd. 42 30           585,000
Ora-Tech Systems (Pvt.) Ltd. 43 30           585,000
Millennium Software (Pvt.) Ltd. 44 30           585,000
Ultimus Pakistan (Pvt.) Ltd. 45 30           585,000
Naseeb Networks 46 25           487,500
Techaccess Pakistan Pvt. Ltd. 47 25           487,500
Creative Chaos (Pvt) Limited 48 25           487,500
Cambridge Docs Pakistan (Pvt.) Ltd. 49 25           487,500
Xorlogics, Inc. 50 25           487,500
Emmaculate Solutions 51 20           390,000
Maison Consulting & Solutions 52 20           390,000
Five Rivers Technologies (Pvt.) Ltd. 53 20           390,000
Cogilent Solutions 54 15           292,500
ZRG International Pvt. Ltd. 55 15           292,500
Buraq Integrated Solutions 56 15           292,500
PrisLogix 57 15           292,500
Lumensoft Technologies 58 15           292,500
PIBAS Pakistan (Pvt.) Ltd. 59 12           234,000

Lets see how much trouble this gets me into…