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one Indian software company is worth twice the value of all the companies in the KSE

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    one Indian software company is worth twice the value of all the companies in the KSE

    From Pakistan Link:

    Mr. Salman Akhtar spoke on software export and Pakistan. In the global software export industry India, Ireland, Israel and Philippines stand out as the unqualified international successes. In 1999, India will export $3.9 billion in software. This is not surprising since one Indian software company, Infosys (listed in the US on NASDAQ INFY . The stock of INFY has jumped from 37 to 630 in less than one year. Today it jumped 130 points yesterday 82 points), is valued in excess of $11 billion. The value of Infosys is twice the entire market capitalization of the Karachi Stock Exchange. That is to say that one Indian software company is worth twice the value of all the companies in the Karachi Stock Exchange. Furthermore, in 2004 India is projected to export $20 billion in software. Hence, something is going on in the international software export market that deserves attention in Pakistan. Other software companies in Top 100 software companies in Asia include Rolta software, Satyam Infoway (SIFY), Pentafour software, Mastek, Software Solutions, WIPRO Infotech, Tata Consultancy, HCL, ICICI)

    So let's take stock of where things stand in Pakistan. Pakistan has 15,000 software professionals. More than 200 companies are registered with the Pakistan Software Export Board to do software export. There are more than 20 degree-granting institutions in Pakistan that teach computer science. The most optimistic software export figures for Pakistan for 1999 are $30 million. Hence, Pakistanís software export is one-hundredth of India's. This should provoke some self-criticism, since we are only one-tenth in size. Are we doing something wrong? Why is Pakistan not taking off like India?

    On the other hand, Musharraf cannot afford to step back from the country's main obsession of "liberating" Indian Kashmir--a crusade being fought by Pakistani guerrillas with backing from numerous Islamic groups and the Pakistani army.

    "For a stable Pakistani society to emerge, Musharraf has to rein in the [Islamic guerrillas], but if he does that, he could lose domestic legitimacy fast," said Talat Massood, a retired Pakistani general. "The country's economic progress is completely blocked because of hostility with India, but there are key players with strong views on Kashmir, and he has to listen to them."



      Excellent posting!. Keep up the comparison/ contrast between Indian & Pakistan.


        I don't really see the link between the first post and the second. What does the reigning in of guerillas have to do with exporting software? Have they started bombing software houses?

        Pakistan is not India and cannot afford to compromise itself in certain regards as India has done. If there are positive lessons to be learned about software industry then Pakistan should learn them.

        Better to have a positive approach rather than a hand-wringing one. Pakistan is still here and no one is starving; there are no famines, so we don't have to follow the hyateria of the Indian propaganda machine.We will make our choices and live with them, and India can make theirs.


          Compare GDP per capita:

          Germany: US$ 22.100
          Pakistan: 2.000
          India: 1.720

          Why is that? Any idea?

          Source: CIA Publications(1998)

          Fata Morgana


            This term (GDP) is often used here without really explaining what this indicator is all about and how it is derived. There are different methods of computing the GDP and each one revealing a completely different figure. The most commonly used one is Real Income GDP, (currently around 400$ for Pakistan) while the one based on Product is about $2,000.

            It is a measure of goods and services produced in “real” terms and the data is generally released on quarterly basis. It is not as reliable as monthly indicators.

            By looking at the strength of an economy, one must keep in mind that GDP is nothing more than an arbitrary number and is not a good indicator to formulate any policies upon.


              The figures I mentioned above are the purchasing power parities per capita per year.

              Fata Morgana

              PS: But still I don't agree with the Western economists' computations of GDP/GNP etc.

              Example: Suppose a shirt fabricated in Pak cost $1, while the same shirt made in the US could cost $10(higher labor/raw material/taxes costs). So if we produce 100 shirts in an year, the value of GDP will be $100. While the same amount of shirts produced in the US will value $1000. And the same goes with the purchasing power of a person in a certian territory.

              If a castle build some where in Japan costs 100 billion while the same castle in Pak can be built for 10 billion. I don't have to agree with agree with a Japanese budget maker/economist/stastician's richness. LOL


                Pakistan's real economic state:


                  Dear Fata Morgana, you are absolutely right. That’s exactly the point I was trying to make. It is only an arbitrary number with very little significance. This is not only a belief of “western” economists, but believe it or not, most of the economic indicators (to measure development) were developed by Latin American and Asian economists. Everyone in the development field agrees that GDP is a very vague gauge of measuring growth and progress. One of the variables that go into its competition is the unemployment figure that should tell you the reliability of this indicator. Sometimes, “services” that are produced cannot be translated into monetary terms, and “qualitative” data is very hard to interpret. Therefore, I agree with what you say.

                  Having said that, GDP for the western industrialized states are a lot more reliable and present a lot clear picture of their respective economies. It is only in the less developed nations, that these indicators are less reliable and often times an incorrect representation of the real picture.


                    Dear Ahmadi,

                    Thanks for the enlightenment!

                    So how can we, in case of Pakistan, crystalize to measure our efforts in terms of progress for the overall well-being of citizens of Paksitan?

                    Fata Morgana


                      INdian IT entreprenur Fourth richest in the world. BBC
                      By Daniel Lak in Delhi

                      India's top information technology entrepreneur, Azim Premji, is now the fourth richest man in the world, according to calculations by one of India's leading business newspapers.

                      The Business Standard arrived at the result using the same standards set by the American magazine, Forbes, in its annual list of wealthy people.

                      The Business Standard says the soaring value of Indian information technology and media shares has more than doubled the personal worth of shareholdings by some of the country's top business people.

                      Dizzying growth
                      It's the latest development in recent months of dizzying growth in software.

                      Just a few months ago, the Business Standard published the country's first-ever list of billionaires in terms of the Indian rupee.

                      Now it says those figures are already hugely out of date, thanks to soaring share values on the Bombay Stock Exchange

                      The chief beneficiary, according to the Standard, is Azim Premji, founder and chief shareholder in Wipro, India's leading information technology firm.

                      His 75% stake in the company has more than doubled in value this year.

                      In dollar terms, that's around $26bn, which would make him the world's fourth-richest businessman.

                      Forbes magazine's latest list of wealthy business people puts Mr Premji's worth at around $2bn, which given the convertability of the Indian rupee, might be slightly more accurate.

                      New records
                      But India's information technology sector is setting new records every day.

                      A leading software manufacturer's body this week predicted that the contribution of information technology to the national economy will grow by more than 60% in the next 12 months.

                      Also this week, the largest venture capital fund in North America has come to India and the World Bank has sent an emissary to look into ways to support Indian software development.

                      It is hard to find anyone who has a bad thing to say about the market.

                      But analysts are concerned that many firms are hugely overvalued in the current heated atmosphere on the Bombay Stock Exchange.

                      [This message has been edited by mohabbat (edited February 15, 2000).]