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Why Outsource to Pakistan?

Altaf Khan

© Altaf Khan 2005-2006

The factors that make Pakistan one of the most attractive outsourcing destinations in the world range from the tremendous GDP growth to the ever increasing FDI to high ranking on the Ease of Doing Business Index to high-quality/attractively-priced HR to low-cost infrastructure to supportive government policies to neutral English accents to the managers trained in the West.
2nd Fastest GDP Growth
The economy grew 8.4% during the year ending June 2005. This growth is second only to China's 9.5%.
FDI Growth
Foreign direct investment grew by 34% in the telecom sector, 18% in financial services, and 14% in oil & gas during 2004-05.
Ease of Doing Business
World Bank's Ease of Doing Business Index ranked Pakistan 60th and India 116th among 155 countries. On Ease of Starting A Business, Pakistan stood 38th and India 90th.
High-Quality HR
A large number of CSR's in call centers possess college degrees.
Low-Cost HR
Companies here enjoy a wage-advantage of around 30% over India. The turn-over rates in call centers are less that half of those in India.
Attractive Infrastructure
Technology parks in major cities provide subsidized infrastructure and international connectivity.
Supportive Policies
Foreign investors are allowed 100% ownership of equity in IT/ITeS companies along with 33% annual depreciation of equipment and 100% repatriation of earnings.
Neutral Accents
Accent neutralization for local speakers of English is substantially easier than all other Asian outsourcing destinations.
Western Experience
Executives at local BPO firms often have worked and received their degrees from universities in the US, which is Pakistan's largest export market.
BPO Worldwide

Offshore BPO Growing

Fastest growing segment within IT services. By 2007, it will account for 14% of the total BPO market, compared with 1% in 2003 (Gartner)

Global BPO Market Size

Growing 7% annually to $1.2 trillion by 2007 (IDC)

Everyone is Doing It

73% of US execs interviewed said their firms presently outsource one or more business processes (PwC)

Satisfied Customers

84% of big-company CEO’s are satisfied with their BPO experience (Yankelovich)

Value Proposition Changes

Perception has shifted from BPO as a tool for meeting financial goals to a means for companies to gain competitive edge (Gartner)

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Why outsource to Pakistan?

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