Kashif Aziz is the Chief Operating Officer of KalSoft, and stopped by the CIO WebStudio to talk about how trends in technology in Pakistan and around the region. What should companies be focusing on? Where are the opportunities? If there is indeed a financial crisis impacting the local markets, what’s the indication that things will return to stability? Watch this interview to find out!
CXO In Focus: Companies in the Financial Crisis – Kashif Aziz
- Posted on 05.12.09
- CXO In Focus, Featured
(44 votes, average: 0.14 out of 5)
Loading ...- 3,058 views
- 9 Comments
9 Responses to “CXO In Focus: Companies in the Financial Crisis – Kashif Aziz”
From the Photographs archives
Email
Twitter
Facebook
Youtube
LinkedIn
WebStudio RSS Feed
[...] The Financial Crisis and Translation The Best Explanation for the Financial Crisis Ridge Business & Finance Blog » Blog Archive » Global Financial Crisis will be reformedCraft Shows in a Financial Crisis | 247article.comA Liverpool Web Designer » Will The Financial Crisis Damage Small Technology Firms?Side Effects of U.S. Treasury Massive Bailout Plan: For Better or Worse? | The Blog at Small Commercial Mortgage Online.comCXO In Focus: Companies in the Financial Crisis – Kashif Aziz | CIO Pakistan Web Studio – Pakistan&#… [...]
I really enjoyed the pragmatic analysis of the situation done by Kashif. While he has accounted for a variety of issues which are impacting Pakistan, he has also touched base on a very important factor effecting IT investment i.e. IPR. Lack of IPR is undermining the fantastic amount of work that is being done locally in IT. Whether its venture capital for IT companies or driving innovation or attracting foreign investment in the sector, are all being adversely impacted by lack of IPR enforcement in the country. Till recent past, IPR was only a “Multi-natioal Company issue”; however, with the maturity of local IT companies and skill set, this is bound to become a very local issue and needs to be addressed asap.
Its funny actually. I wrote a long response to every bullet point to Anthony’s given points but thanks to ptcl i got dc, and it didn’t save. Guess we have a consensus that we need better IT services i assume. I am not going to write individual responses to each bullet point he made but most of his assertions are based on an export-based, free-market, capitalistic model which is doomed to failure as many of us witnessed during our lifetimes, if they have an idea about basic economics. Sustainability is only possible through limited MNC intervention with focus on turn-key projects rather than 100% ownership by foreign companies as is the case in Pakistan. Telecom sector is divided into atleast 5 ISPs which is a waste of resources and exhibit A. of economic planning waste. I don’t think there is going to be a manufacutring revolution anytime sooner in Pakistani economy and there is nothing we can do about it, because of the G-8 Cartel, but service sector really has potential. I liked a few suggestions about open training plans, train-the-trainers, and tapping the untapped areas of opportunity. I guess you should be figure out rest of the response which i couldn’t save Anthony.
In reply to the question above, here is an action plan:
1. Review, upgrade and copyright the brands of PK companies, possibly with govt. support. Branding is about trust. Business is about trust. PK companies need effective, powerful brands that are defensible in target markets. Without establishing strong brands, subsequent marketing efforts will not return desired results. Rebranding Pakistan needs to begin at the level of service/product lines, progress to the company level, and then rebrand PK itself.
2. Create a market research service that polls potential international clients on a monthly basis and feeds market intelligence to individual PK companies, like a white-hat spy agency. Help PK companies prequalify and achieve prominence in short-lists of qualified vendors.
3. Create and maintain SEM initiatives to push ‘Pakistan’ into the top 10 search results for high priority keywords. This does not cost money. It will have huge payoffs.
4. Create an ‘open company’ environment, with sample contract documents shared openly so that companies can standardize or at least become aware of what others are doing. Provide training to institutionalize modern business practices.
5. Form consortia to bid on large projects, building on shared contract documents.
6. Create a free, open training program to provide essential business skills. Hold weekly sessions. Film the sessions and make videos available to WebStudio. Training will emphasize mid-level management and client-relations skills. Some of the training will be train-the-trainer.
7. Hire two or three public relations agencies to have PK business people interviewed and quoted in global media. Make the agencies compete against each other. Research options for having international movies shot in Pakistan, showing the real Pakistan. Highlight success stories.
8. Create ‘buzz’ where people outside of PK talk to each other about success stories in PK. Right now too much of the dialog about PK’s advantages is transpiring between Pakistanis themselves. The rest of the world needs to get in on the buzz.
9. Capitalize on the presence of foreign journalists in PK to pull them in to visit PK businesses. People in the IT/ITeS sector are excellent ambassadors. If given the chance, they can and will change the way the rest of the world views the nation. They can also attract new clients and make it easier for existing clients to allocate more business to Pakistani companies.
10. Tap foreign aid funds for activities that strengthen capacity in the private sector. The United States is preparing to allocate several billion dollars in aid money to Pakistan. Not loans, but grants. The private sector needs someone who can pursue those funds and who is comfortable with USAID.
11. Launch an early stage investment fund and startup incubation services (plural). The goal would be to have 50% or more of investments made from other sources within two years.
12. Open the IT and export-promotion policy-making process and help everyone realize that they have meaningful opportunities to help shape the future.
13. Engage managers from the private sector to review export-promotion expenditures and identify opportunities for cost savings, which could be re-allocated elsewhere. Pakistan has many excellent managers. Opportunities for cost savings abound.
14. Help companies, individuals, and government agencies become better IT/ITeS buyers, consumers, supporters and producers.
15. Promote opportunities for rapid expansion through strategic transactions, especially in economic sectors that have not already shifted a majority of work to competitive international destinations. Focus on business verticals that would not be over-sensitive to Pakistan’s image issues.
16. Promote the spread of IT/ITeS to old-line industries to make them more competitive, especially in the export realm. Begin with textile, garment, and bedding companies.
17. Promote internships and diversity in the IT/ITeS industry.
18. Respond quickly and clearly to misinformation and disasters. Draw up or upgrade contingency plans.
19. Benchmark the marketing and customer service practices of existing businesses in all major sectors. Share best practices and assist in formulating action plans.
20. Encourage diversification into emerging verticals for IT and ITeS, such as LPO and accounting. Work with academic institutions to better serve the needs of employers in both the short and long term.
21. Monitor the availability of key inputs needed for IT/ITeS companies, such as office space with backup power and redundant bandwidth. Take steps to ensure that adequate and reliable capacity exists for supplying inputs to IT/ITeS companies at low cost.
22. Take aggressive action to identify and lower trade restrictions against Pakistani companies, especially in U.S. markets.
23. Bring confidence and a new sense of energy and drive to the export-oriented IT/ITeS sector, while fostering entrepreneurialism and startups. Recognize and reward providers of support services and key inputs, especially members of academia.
24. Create metrics and tracking systems so that we can see where we are headed in different areas. Tracking systems can help us correct deficiencies quickly.
A new MD of PSEB is being selected. My resume is in the stack. The Mitchell Plan is above. Your advice will be greatly appreciated. Thank you.
i know him quite well since i have been working under kashif aziz in kalsoft. he really has a great vision. i agree with him about we have a great potential and we can create something out of nothing. i have experienced myself that pakistani talent in specially IT sector outperforms india and many other countries around and we have good outsourcing infrascture too BUT as he said worst is pakistani image. we have worst PR and media has played a great role in portraying such image.
Kashif is truly someone who has all bases covered in terms fo breadth of his vision. I hope he comes out of this recession kicking!
Very pragmatic analysis of the current scenario of IT in Pakistan, giving lots of hope that the recession will be over soon.
Personally I like his idea that Govt should create a safe and protected bubble to provide a conducive environment to the investors with immunity and tax exemptions supported by strong infrastructure. I am sure it can be done if there is even ONE person in the Govt who has the vision, authority and capability to do it.
@Anthony – Thanks
I agree with you on the venture funding – it’s been available in certain pockets for a long time with people who have been tracking the companies they want to interact with. It is only a matter of time before this process becomes a more formal one, rather than an unstructured one as it is right now. People want to invest money into projects – they just don’t know how and where to put the money in.
I do have a question for you though – Even with the Satyam scandal in play, Pakistan does not become the automatic destination of choice as a backup. It seems like we need a two-pronged strategy at least. One, where we convince local companies that there is real power in collaboration and two, market the opportunity like crazy in markets where those companies exist. We seem to be missing out on the boat again because there seems to be zero government movement and the private sector may not be able to engage in the marketing on its own. Keeping this in mind, what would you suggest be the course of action? Immediate and long term?
Kashif Aziz is absolutely correct about Pakistan’s outsourcing potential and about strategies for promoting growth in the IT/ITeS sector. But the understanding of how to market and sell now, in 2009, is lacking elsewhere, especially within government and some business groups who do not always fully appreciate the transformations brought on by IT and the Internet.
Kashif may have understated the competitive position that emerging destinations such as Ghana and Kenya will be presenting within the next three to five years.
He is spot on about the potential for small amounts of capital to create huge benefits. If there were a strong venture capital fund created in Pakistan, perhaps with government and international support, this would raise confidence. A few success stories would prompt private and institutional investors to come in and jointly fund startups and early stage companies. It would also unleash tremendous creativity and entrepreneurialism.
I believe that the money already exists for an early stage venture fund. It is merely a question of confidence and leadership.
Last but not least, Pakistan needs friends from outside the region who can communicate Pakistan’s advantages and its safety as a reliable business partner and outsourcing destination. If Pakistanis stand up and say such things, they will not be given much attention because such statements will be expected.
The current economic downturn provides opportunities for export-oriented growth for Pakistan’s IT/ITeS sector. Confidence in competing destinations has been damaged by the Satyam scandal, labor shortages and cost increases. So there is no reason to wait.