What Ails the BPO Industry in Pakistan?

#204 by ranjit on February 1, 2007 6:55am PT


Major corporations have opened R&D centers that are churning out patents.


Pakis aren`t into lowly things like chip design..their plan is to sell uighurs and other pakis to the US as part of the war on terrorism...160million pakis should last them a while...

good morning jeemax..good to see you back from your sulking mood ;-)

one thing you folks can comment on re human resources. there are contradictory reports of availablility of high quality human resources in pakistan. from most accounts what i hear is anyone with any skills is actually very expensive in pakistan (i heard that ordinary school teachers buy 30 lakh ki gaddi within first year of employment, but that is just an anecdote). which actually indicates a scarcity of qualified human resources. this is also very true in india, but it is a larger pool with very deliberate effort from the govt in developing various educational centers over a long period of time. its not easy to raise recruit and train skilled workforce unlike an army. in competative global markets, its really hard to compete without skilled workers.

...contd... #205 by zeemax/#204 by ranjit

...our natural fit with the knowledge economy...

I`m sure you mean your perfect fit with the `market economy` in knowledge services. It is not the same as `knowledge` economy. Few countries have that, foremost of which is Norway.

Re:manto

[...As for human resources... it is well known that skilled Pakistanis are as good as if not better than Indians... despite what ever propaganda you might wanna do in favour of Eye Eye Tee and Eye Eye Em......]

Manto, all human beings have the potential to succeed. The issue is the socio-cultural conditions, or as we say the system, that enables a society to reach its potential. You still have way too many people focused on taking Pakistan back to the seventh century - just look at the suicide bombings in the past few days and the news of Pakistanis plotting a kidnapping and murder of a army official in US. It is this kind of stuff that turns off the world from doing business with Pakistan, not any propaganda from India. It is this kind of stuff that causes India to worry about attacks on its own soil.

The reality is that unless you get a grip on this and take an uncompromising, unrelenting stance against radical Islam, which actually has little to with normal Islam, your country will only limp along. It cannot succeed, period.

#204 by ranjit

I fully agree with your comments re ``our greatest assets are our intellect, our natural fit with the knowledge economy, an incredible hunger to succeed and the ability to work really hard.``

My only criticism of India`s path is the `focus` on outsourcing as the lead driver, and not who else is in there in the overall mix. I think agriculture is being ignored as well, as well as livestock breeding etc. Tech is not for all ... it is only for the middle classes.

Re:Zeemax#193

[..So anymore comments re #133? I.e. difference between `Outsourcing`, and `Offshoring`? ...]

Zee, India is going for both outsourcing and offshoring. Major corporations have opened R&D centers that are churning out patents. Companies are opening advanced manufacturing facilities for semiconductors and so forth. At the same time we will take the BPOs and call centers too. We Indians want it all. :-) We used to be the world`s ``sone ki chidiya`` in the past and we will be that again, god willing.

Basically the thing is that we Indians have realized that our greatest assets are our intellect, our natural fit with the knowledge economy, an incredible hunger to succeed and the ability to work really hard. The results speak for themselves and the world recognizes it. Ask any American about what they think about an Indian. They used to say poverty and snake charmers in the past. Now they unanimously say IT. This phenomenon is going to get huge as we keep building on this equity.

#202 by Mantolives

Yes I read that post Manto. I should have mentioned it ... sorry.

You also gave the correct references of the laws protecting FDI, but there`s more like provision of free land etc. The Cost of doing business is also lower than in most other countries.

There is just `one` problem preventing Pak from a full take-off, and that is the cynicism of our entrepreneurs. They expect too much of the Government. In a way it is not their fault as well because they were never weaned off Ayub Khan`s doling out the country`s exchequer to industrialists in the form of subsidies and bonus vouchers. They wish that to continue even in a WTO regime, when the Government simply cannot underwrite their inefficiencies. Therefore you`ve recently seen a drop in exports.

Re: # 200

May I attract your attention to my post 99...

#99 by Mantolives on January 31, 2007 4:20am PT
Re: # 98

You`ve already mentioned infrastructure. So I`ll leave it out. Pakistan`s macroeconomic indicators have been positive for many years now...

It is the investment regime that is most attractive really... First of all economic sectors open to Foreign Direct Investment and there is complete equal treatment to local and foreign investors including 100 % foreign equity- No Government sanction required.
There is a very tax / tariff incentives package. Complete remittance of Royalty, Technical & Franchise Fee, Capital, Profits, Dividends is allowed.

Pakistan has one of the most liberal investment protection legal regimes in the world... following laws are in place

Foreign Private Investment (Promotion & Protection) Act, 1976.
Protection of Economic Reforms Act, 1992
Foreign Currency Accounts (Protection) Ordinance, 2001

Not only that Pakistan is party to the Paris convention on Arbitration.

As for human resources... it is well known that skilled Pakistanis are as good as if not better than Indians... despite what ever propaganda you might wanna do in favour of Eye Eye Tee and Eye Eye Em.

Over all... Pakistan being unexplored offers much better opportunities vis a vis cost of business than India...

....contd....

A major tragedy is that Pakistanis do not know their country`s strengths, while every tom, dick & harry will peel off a dozen things which are wrong. The FP article titled ``Know Pakistan`` is a case in point, when the author doesn`t have a clue himself.

#199 by escapist

You`re the author? Oh ok ...

Well, actually it is quite the opposite. It is easier to sell as offshoring rather than outsourcing because, in the former, the Principal has control over standards, quality, just-in-time inventories, and transfer pricing. In outsourcing, he has none of the above.

Pakistan, in fact, is the most liberal in FDI policies as compared to all other countries in the region including of-course India as well as China. Malaysia has capital controls, so does Thailand, as well as Sri Lanka and Bangladesh. Each of the foregoing countries has a variety of restrictive regulations on holding, repatriation, divestment, sectoral entry, and domestic market access. Pakistan has none.

Re: # 198

Zeemax, Your comment has got me thinking! You certainly have valid point. But again, if its hard to sell Pakistan as a outsourcing destination, it would be even harder to sell Pakistan as an offshoring destination.

Regards
Noman

#194 by majumdar

I gave as proof the example of 6 success stories in Singapore, Malaysia, Taiwan, Thailand, S. Korea and China who did it in the last ten-twenty years through offshoring, and not outsourcing. How do you think India can do it by going in the opposite direction?

#196

I think this ``car`` is just great! It even has an attached bathroom for all those outpurings of crap!

#130 Nasah
[ lock the Mulla in the masjid and the army in the barracks ]

Great idea, Nasah sahib.

The only problem is - who will do it?

Certainly not the likes of the present day wishy-washy wimps who do double duty as embodiments of the twin evils of politics and la-la-law and are only comfortable venting themselves in front of the computer when not out there shopping for a ``car`` which will satisfy all their needs - especially that of physical protection.

Like this one, for example! (Unfortunately, it still lacks an engine. But somehow, it is no surprise. And since when one has to actually GO somewhere?!!)

..While medical BOP is far better no recession or less patients as west and our country getting lots of diseases due excess food drink, they are similar. While Indian doctors may be good they are better in treating diseases due to lack of food etc. due wide speard diseases of poverty like underweight. Our folks are fat like white people so better treated in Pakistan.
Good day..

ROFL.. your posts are fun as always..

Zeemax sahib,

Even if your contention about outsourcing and offshoring are correct, I am not sure that even if technology transfer takes place it will involve the latest technologies, it could just be that outdated technology may be dumped.

(That post was not meant to knock Hindustan`s policy, )

Ultimately the proof of the pudding would be in the eating, ten years down the line it would be clear whether India or Pak or any other country`s economic policy has borne fruit.

Regards