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…