IT sector grappling with brain drain

Experts say substantial percentage of those leaving possess tech expertise

LAHORE:

The Information Technology (IT) companies operating in Pakistan are grappling with a concerning brain drain, primarily attributed to the country’s ongoing economic crisis. Industry leaders are asserting that the IT sector is the hardest-hit by this brain drain, with a substantial portion of emigrants being tech experts.

The Chief Executive Officer of TenX, a global AI software and solutions company, Qazafi Qayyum, shed light on the severity of the issue. “The IT sector has taken a significant blow from this brain drain, especially in the past 12 months. It’s safe to assume that a substantial percentage of those leaving the country possess tech expertise, making it easier for them to secure employment abroad,” said Qayyum.

During a discussion with a select group of journalists, he added that accessing the talent pool in Pakistan is becoming increasingly challenging. “The industry’s demand for IT professionals far surpasses the supply, making scaling up a daunting task. While I may achieve 5-7% growth in my business in Pakistan, achieving 15-20% growth is impossible due to the manpower shortage,” Qayyum explained. He called for collaborative efforts among the industry, academia, and government to address this pressing issue.

Remarkably, despite the persistent challenges, Pakistan’s software exports are steadily increasing in the global market. Qayyum highlighted the potential within Pakistan, emphasising that addressing these issues could lead to substantial opportunities. Currently, Pakistan’s software exports stand at $2.5-3 billion, but Qayyum believes that eliminating these obstacles could lead to an export revenue of $10 billion.

TenX, established 11 years ago, now employs 200 tech consultants. Over the last four years, the company has expanded its operations to the US, Canada, Australia, New Zealand, and the UK. It also has plans to establish another offshore delivery centre, similar to its Pakistan operations, in Estonia. Furthermore, TenX is exploring opportunities in the Middle East market, with a particular focus on Saudi Arabia, which is among the top three locations globally for technological advancements happening right now.

The TenX CEO further addressed the daily challenges faced by IT companies, including the ease of doing business in Pakistan. While successive governments have discussed improving this aspect, actual execution has been limited.

“Pakistan, whether we like it or not, is a high-risk country for clients from more mature markets like the US, EU, Australia, Canada and New Zealand as every other customer or prospect we talk to has concerns about Pakistan because of its geographic location,” he said.

However, clients do not express concerns about the capabilities, culture, or people of Pakistan. Instead, they are influenced by the negative news and perceptions surrounding the country. Qayyum posed the question of whether the cost advantage offered in Pakistan outweighs the risks and challenges associated with its location.

He drew attention to issues like internet disruptions during protests or political rallies and frequent electricity outages that increase operational costs, necessitating backup generators and sites for business continuity, especially for ISO compliance and other advanced certifications. Addressing these realities and challenges is essential to position Pakistan as a prime destination for companies and to boost IT exports, Qayyum concluded.

 

Published in The Express Tribune, September 23^rd, 2023.

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