The IT industry in Pakistan has experienced significant expansion in recent years, positioning it as one of the top countries recognized by the World Economic Forum for delivering cost-effective ICT services. This blog post aims to provide an overview of the Pakistani tech industry, focusing on its growth and trends and its impact on the country’s economy. The post will also cover the North American tech industry overview and explore how Pakistani tech companies have thrived in this market.
An Overview of the Pakistani Tech Industry
Industry Landscape: Size, Resources, and Skills Availability Overview
In the era of rapid technological advancement, Pakistan’s IT export remittance has accomplished a remarkable growth rate of 137% at a CAGR of 18.85% in the last five years.
Consequently, the Pakistan tech sector has become one of the leading net exporters in the country, particularly within the service sector, with the highest net exports.
This accomplishment is supported by the yearly production of over 30,000 IT graduates and a robust ecosystem of 15000 IT-established firms, supported by a workforce of more than 600,000 qualified IT experts.
In 2021, Pakistan achieved the top position in Asia and also secured the fourth rank globally in terms of the growth of freelance earnings. Its impressive growth stands just behind the United States with a growth rate of 78%, the United Kingdom with a growth rate of 59%, and Brazil with a growth rate only slightly higher than Pakistan’s by 1%.
In the last four years, the Pakistani tech sector has witnessed significant advancement doubling in size to reach $3.5 billion. Experts believe IT industry growth in Pakistan will continue to increase by 100 % in the next two to four years. The industry also contributes to approximately 7% of Pakistan’s GDP, indicating economic importance and the potential for further development.
Pakistan IT Industry Trends
Pakistan stands out as a prime destination for top-grade outsourcing service providers with affordable rates. Based on a report by A.T. Kearney’s Global Services Location Index 2019, Pakistan ranks in the 5th position as one of the most financially attractive destinations worldwide for offshore services.
Notably, various renowned international companies, including industry leaders like Bentley, IBM, Siemens EDA (formerly known as Mentor Graphics), S&P Global, Symantec, and Teradata, have chosen to establish their global consulting services centers, research and development facilities, and BPO support services centers in Pakistan.
The Pakistan IT industry is leading the way in Mobile App Development, SQA, Cloud Solutions Architecture, Web Engineering, and Full Stack Development by developing software that is high-yielding, secure, fast, and user-friendly.
While Pakistan’s tech sector is renowned for providing software solutions, the country is now inclined towards building in-house product development, acknowledged by the Pasha ICT awards for driving innovation and excellence within the IT industry. Some internationally renowned, award-winning products are Food Panda, Daraz, Nimbus, Bookme.pk, Careem, Kistpay, Time Trax, Ricult, and Crop2X.
The Government of Pakistan (GoP) is actively playing its role in advancing the industry by implementing various sustainable development and accelerated digitized initiatives.
These initiatives include promoting research and innovation, establishing software technology parks, providing subsidized bandwidth, facilitating international marketing, encouraging international certifications, as well as offering internships and training opportunities.
The Government has established several training programs for the youth, with Techlift being the most recent training program. It is an industry-led initiative, in collaboration with top IT companies with Pasha and PSEB, that aims to enhance the skills of young individuals in high-demand areas while also providing career guidance and assistance with job placement.
The Trade Development Authority of Pakistan (TDAP) is another organization that helps foster collaborations between local and international businesses and is dedicated to encouraging the growth of exports and trade within the industry. In particular, TDAP also facilitates IT companies to participate in various expos and tech-enabled conferences.
TDAP has backed Tech Events like Collision Canada, GITEX, the Web Summit, and more over the past years, indicating its dedication to exploring the bilateral potential and expanding international cooperation.
Not only this, Tech Destination Pakistan is also playing a pivotal role in promoting Pakistan IT companies by taking delegations to various prominent Tech events to help the industry flourish. These delegations have led to substantial growth, including securing instant contracts in international conferences and allowing instant business collaborations.
TDAP’s efforts in organizing and supporting such delegations have been critical in facilitating these achievements and highlighting Pakistan’s potential as a helpful partner in the global economy.
Insights into the North American Market
The North American tech industry continues to prosper, powered by technological advancement and digital transformation across various industries. Several trends have emerged and have played a pivotal role in shaping the industry landscape in the region. Let’s delve into these trends, service market analysis, and popular stacks to provide you with an overview of the North American tech industry.
IT Service Market Analysis
An analysis of the IT services market in North America reveals several key trends and insights. The market for IT services in North America is anticipated to reach USD 700.6 billion by 2027, up from USD 500.0 billion in 2022, at a CAGR Rate of 7.0%. The industry’s demand for IT services is shown by rising IT spending, broad adoption of software-as-a-service, and a surge in cloud-based options.
Cloud computing has experienced substantial growth in North America, allowing businesses to leverage increased data security, scalable infrastructure, and cost savings. Based on the ICD report, the North American cloud market is predicted to grow $199.9 billion by 2023, with a sizable percentage of the revenue coming from public cloud services.
Artificial Intelligence and Machine Learning
AI and ML are shaping industries across North America. Businesses are leveraging these technologies to bring efficiency, productivity, and innovation in various industries, including finance, healthcare, retail, and more. The size of the global artificial intelligence market is anticipated to increase at a CAGR of 36.2% throughout the forecast period, from USD 86.9 billion in 2022 to USD 407.0 billion in 2027. North America is expected to have the largest market size throughout the projection period.
Internet of Things
In North America, the Internet of Things (IoT) has become more prevalent as a number of businesses implement IoT technology to foster innovation and enhance productivity. As per a report by MarketsandMarkets, the IoT market size in North America is predicted to reach $566.8 billion by 2025, with a CAGR rate of 11.5% during the forecast period.
With regard to tech stacks, North American companies are using various popular frameworks to enhance their IT infrastructure, like MEAN/MERN Stack, LAMP Stack, .Net, flutter, and more, to build modern and enterprise-level applications.
Despite the flourishing IT market in North America, there is a persistent skill and talent gap. The US Labor Statistics reported that the talent shortage reached a staggering 40 million individuals globally as of December 2022. Based on a report by McKinsey, 44% of businesses expect a skills gap in the next five years.
According to the Global Knowledge 2020 IT Skills and Salary Report, which surveyed 9,505 workers, the IT skills gap remains a concern for 78% of managers globally and 80% of managers in North America.
Managed Services And Outsourcing
Due to the talent shortage, organizations in North America are heading towards managed services and IT outsourcing to gain access to the various talent pool, enhance efficiency and reduce cost. Managed services providers cater to the different needs of businesses in the region by offering various services such as infrastructure management, cybersecurity, and application development.
Pakistan’s Tech Thrive in North America
With the tremendous boom in the Pakistani tech industry, the country is extending its footprint across national boundaries and finding favorable conditions for growth in North America. Pakistan has become a key player in the regional tech landscape owing to a growing network of skilled professionals and innovative startups.
As reported by Kearney in 2019, Pakistan is renowned for outsourcing coupled with India and China, owing to its outstanding service quality. Pakistan has attracted several North American companies, such as Contour Software, Tkxel, and Gomotive (formerly known as Keeptruckin), to establish their back offices. These companies recognize Pakistan’s capability to provide exceptional services, which has extended beyond the United States.
European-based companies like TEO, S&P Global, and Ciklum have also opted to establish their back offices in Pakistan, highlighting the country’s appeal as a global destination for outsourcing operations.
Several success stories exemplify the excellence of Pakistan in North America. Startups like Trax, Dastgyr, SadaPay, and Bazaar have grabbed the attention and gained sizeable investments from various US-based venture capital firms, indicating the immense potential and glorious future of Paksiatni digital ventures on the global stage.
Genetech Solutions – Building Innovative Solutions for Global Partners
As Pakistan’s IT sector continues to flourish in North America, it contributes to both countries’ economies and represents Pakistan’s skilled and innovative talent worldwide. With its diverse and vibrant tech landscape, Pakistan is set to significantly increase its footprint and make long-term contributions to the North American and global innovation ecosystems.
Genetech Solutions is one of Pakistan’s emerging software development companies, providing a comprehensive suite of digital services to enable businesses to thrive in the digital world. With a proven track record of collaborating with clients worldwide, Genetech Solutions offer top-notch technology services, including AI, IoT, Cloud Computing, Intelligent mobile apps, Cyber Security, Business Continuity Services, Web Design & Development, and Dedicated teams.
With a diverse team of 100+ technology experts having experience in diverse tech stacks, including Java, Kotlin, Swift, React, .NET, MERN, PHP, Ionic, Laravel, CodeIgniter, WordPress, MEAN, Magento, Shopify, Squarespace, TS, AWS, Salesforce, Azure, Figma, Moodle, Adobe, Flutter, Rails, Go lang, MEVN, Lamp stack, HTML, Nodejs we have catered to needs of hundreds of users.
Whether you have a new product idea, require ongoing support and maintenance for your current software, or want a skilled team to outsource your technology requirements, we welcome you to visit us at stand E124 from 26 to 29 June or connect with us and discuss the possibilities.