1. kasbtv.com Investing in Pakistan's IT Businesses: Opportunities & Challenges Altaf H. Khan

2. kasbtv.com Overview IT is hot! Investing in IT is hot! The investment selection framework An objective selection procedure Brief intro of selected IT sectors Selection procedure in action Wrap-up

3. kasbtv.com Why IT is Hot? Internet has catalyzed a huge, world-wide demand for IT products & services Stories of individuals making immense wealth quickly, has caught the imagination of the masses Limited-supply, huge-demand for IT pros has made it the hottest profession Underdeveloped countries see it as a quick fix for their decades-old miseries

4. kasbtv.com Why Investing in IT is Hot? Fabulous fables of Si Valley VCs, entrepreneurs Possibility of early, huge returns A large IT market, getting larger: –All businesses now require IT products & services to improve profitability –Internet makes it easier to address the global market

5. kasbtv.com Investment Selection Framework A vocabulary, describing objectives and constraints of investment opportunities Elements of this vocabulary act as a committee of critics, each member trying to influence the outcome in an individualistic & selfish manner An opportunity is selected if it satisfies most of the critics in the investors committee to a reasonable degree, without overly upsetting the remaining ones

6. kasbtv.com The Sixteen Critics Marketing –Market size –Competitive advantage Human Resource –Leadership –Availability of: Experienced pros Junior pros –Training Infrastructure –Telecom –Distribution channels –Buildings Finances –Initial investment –Returns –Payback period –Ease of exit Growth –Scalability –Diversification opportunities –Sustainability

7. kasbtv.com Which IT Sector is Right for You? 1.Determine the investment selection profile for yourself 2.Determine the selection profile for various IT sectors 3.Invest in the sector that matches best with your own profile

8. kasbtv.com Selected IT Sectors 1.Professional Training 2.IT-enabled remote services 3.Custom software development 4.New technology, product, or business model development

9. kasbtv.com Selected IT Sectors 1.Professional Training 2.IT-enabled remote services 3.Custom software development 4.New technology, product, or business model development Training for working IT professionals Generally tool/ skill oriented Example: Training on Microsoft, Oracle, Cisco products

10. kasbtv.com Selected IT Sectors 1.Professional Training 2.IT-enabled remote services 3.Custom software development 4.New technology, product, or business model development Examples: Transcription Call center Online advice Accounting Insurance claims

11. kasbtv.com Selected IT Sectors 1.Professional Training 2.IT-enabled remote services 3.Custom software development 4.New technology, product, or business model development Focus of the current IT frenzy in Pakistan

12. kasbtv.com Selected IT Sectors 1.Professional Training 2.IT-enabled remote services 3.Custom software development 4.New technology, product, or business model development Cause of the recent NASDAQ boom & bust Few success stories in Pakistan

13. kasbtv.com The Rating Scale Very Unattractive UnattractiveModerateAttractiveHighly Attractive

14. kasbtv.com The Rating Scale Very Unattractive UnattractiveModerateAttractiveHighly Attractive

15. kasbtv.com The Rating Scale Very Unattractive UnattractiveModerateAttractiveHighly Attractive

16. kasbtv.com The Rating Scale Very Unattractive UnattractiveModerateAttractiveHighly Attractive

17. kasbtv.com The Rating Scale Very Unattractive UnattractiveModerateAttractiveHighly Attractive

18. kasbtv.com Professional Training DimensionRating Market size Competitive advantage Leadership Experienced professionals Junior professionals Training Telecom Distribution channels Buildings Initial investment Returns Payback period Ease of exit Scalability Diversification opportunities Sustainability

19. kasbtv.com IT-Enabled Remote Services DimensionTrainingRemote Market size Competitive advantage Leadership Experienced professionals Junior professionals Training Telecom Distribution channels Buildings Initial investment Returns Payback period Ease of exit Scalability Diversification opportunities Sustainability

20. kasbtv.com Custom Software Development DimensionTrainingRemoteCustom Market size Competitive advantage Leadership Experienced professionals Junior professionals Training Telecom Distribution channels Buildings Initial investment Returns Payback period Ease of exit Scalability Diversification opportunities Sustainability

21. kasbtv.com New Product, Technology, BM DimensionTrainingRemoteCustomProducts Market size Competitive advantage Leadership Experienced professionals Junior professionals Training Telecom Distribution channels Buildings Initial investment Returns Payback period Ease of exit Scalability Diversification opportunities Sustainability

22. kasbtv.com Which IT Sector is Right for You? 1.Determine the investment selection profile for yourself 2.Determine the selection profile for various IT sectors 3.Invest in the sector that matches best with your own profile

23. kasbtv.com Which Sector is Right for You? DimensionTrainingRemoteCustomProducts Market size Competitive advantage Leadership Experienced professionals Junior professionals Training Telecom Distribution channels Buildings Initial investment Returns Payback period Ease of exit Scalability Diversification opportunities Sustainability

24. kasbtv.com Summary Selecting among competing investment opportunities can be made more objective by formulating them in terms of the framework suggested here This framework is useful, forcing us to consider early in the investment life- cycle the issues that we will face during the entry, monitoring, and exit phases