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NetSol is the first national company to achieve CMMI Level 5 and is the only Pakistani company to have acquired this
most prestigious certification. On the global front, NetSol is among less than 100 CMMI Level 5 companies. With
clients like Mercedes Benz, BMW, Toyota, Feat, etc, NetSol is comfortably positioned in the international market.
Thanks to the inspiring leadership in the person of Salim Ghauri, the NetSol team is poised for robust growth in the
years ahead. With a crystal clear vision and matching competence to translate it into vibrant realities, Salim is leading
his team of highly accomplished and dedicated professionals from one challenging target to the other. Salim Ghauri,
Chairman and CEO NetSol, with TelecomPlus Published Mar 2007
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TelecomPlus: How would you summarize the growth of NetSol in recent years?
Salim Ghauri: NetSol has realized its real potential now, especially after achieving the CMMI Level 5 in August 2006. I take it as just the beginning of
the unfolding of NetSol potential in the coming years.
What are the future prospects after achieving CMMI Level 5?
NetSol has joined less than 100 top companies in the world with CMMI Level 5. This is a big achievement for NetSol as well as for Pakistan. We have
covered lot more distance in last 2 years and vow to move further in the years ahead. NetSol is expanding fast and we are facing space problem these
days and our 600 people capacity is almost full now. We are planning our second building this year in order to deploy another 1000 people on various
projects. Keeping in view the present robust growth, I strongly believe that IT would become the flagship of our economy in 5 years from now. It would
be an integral part of our economy besides a major source of revenue in national as well as international market.
What factors contributed most to the growth of IT in Pakistan?
Credit goes to the IT professionals in Pakistan who are deeply committed and hardworking. They have worked hard to earn international recognition
during the last five years. It is their hard work and professional approach that Pakistan has emerged as an IT alternative to other countries today.
Pakistan is being reviewed as a destination for IT by international investors. A recent Merrill Lynch report has identified Pakistan as one of the high
growth markets. This report is very positive about the future prospects of Pakistan IT.
What about human resource development in the IT sector?
That is the real challenge for the industry and you would be pleased to know that NetSol has decided to enter the human resource development
arena. We have focused on education, training and IT resource building and are ready to launch NetSol Omnai soon. It would offer the highest level of
IT education on commercial basis. We are starting with Lahore and would be going to other cities in future. It would initially cater to our own resource
needs, followed by training of human resource for the market.
Shouldn’t it be the role of private sector rather than state to establish and run IT parks?
The present state of our economy demands an active role from the government in the growth of IT. In China and Malaysia for instance, technology
parks were built by the public sector and the private sector is running them successfully now. However, it is better if the private sector builds and runs
these parks on commercial basis in the long run. Similar is the case with data centers. It is a commercial activity and only the private sector can handle
it.
The approach of the federal and the provincial governments towards setting up technology parks is very positive. Recently, the Federal Government
has allocated land in Islamabad for a technology park that would be built is collaboration with a Malaysian company. The Punjab Government has
already started constructing an IT park at Fairozpur Road and it would be ready in two years. Similarly the Sindh Government is planning to construct
an IT park. These initiatives would ensure an impressive growth and improvement in our IT sector.
What is the capacity of the NetSol Technology Park?
NetSol has three separate divisions in this technology park. Palm Chip, a company, is also located in this facility. We are facing space problem and are
in the process adding more infrastructures to it. The required land is available with us and the construction work would start as soon the concerned
authorities grant approval. We have planned to add another 1000 seats to the facility in the next year.
What should be the role of the government in the promotion of IT?
The government should avoid undue interference, as less interference would bring better results. Tax breaks offered by the government play a vital
role in the growth of any sector. It urges businessmen to reinvest the money back into the system. Automation in public sector has started recently and
NetSol is involved in some important projects. Any further opportunity would enable us to hire and train more people. The automation process should
be expedited to reap countless benefits that it offers.
There is also a tendency of choosing the lowest bidder at the cost of service and quality, which always remains counter productive. There is a need to
estimate the cost properly and anybody bidding below the cost should be discouraged.
What is the response of local market towards indigenous solution providers?
Public sector response is encouraging but the private sector is still partial to the imported solutions. Our client list includes heavyweights like Mercedes
Benz, BMW, Toyota and now Feat has also opted for our services. So, it is easy for us to facilitate the local market after having vast experience in
international market. Only a change in mindset can make it possible and we are working on these lines.
Are the bandwidth rates better now?
The rates of local bandwidth are better now. However, there is room for further reduction if one compares the local bandwidth tariff with the
international rates. Pakistan Telecom Authority has put in tremendous effort in bringing the rates down. Our need for bandwidth is growing and we
hope that the rates would come down further in the days to come.
How can we put technology to combat terrorism?
It has become a challenging task for Pakistan as a country and us as a company. It requires immediate attention. Absence of technological checks
makes it easy for the terrorists to carry out their heinous designs freely. Fortunately, the required technology is not only available but it has become
affordable too. High quality hardware and software are available at affordable price that can be very effective against terrorism and conventional
crimes. We are unfortunately slow on this front. I keep on urging government officials on the subject to expedite the technology deployment. NetSol
has recently prepared and installed software for Motor Transport Management and Information System (MTMIS) at the Motor Registration Authority
office of the Punjab Government. It keeps record of vehicles intact and helps tracking them in case of theft. MTMIS may play vital role in meeting the
challenge of terrorism. Similarly, NetSol possesses the capability to install roadside surveillance and link it to a central office through networking. The
whole system could be IP-based with modern data storage technologies. Such a system can help the government in strengthening its efforts to control
unlawful activities.
What role can broadband play in the growth of IT sector?
Broadband has played a vital role in the growth of IT around the globe. Just look at Korea which became a leader in connectivity with broadband
explosion. Pakistan has also shown impressive improvement in wireless technology. World’s first WiMax infrastructure is going to be completed in the
next few months that will solve connectivity problems to a larger extent. WiMax would definitely enhance our ability to deliver better services to
customers but we would have to rely yet on cable and dedicated hardware.
How do you draw parallels between the progress paths of NetSol and its Indian counterparts?
On an average, the successful Indian IT companies took 15 years in becoming visible on global IT radar and they were billion dollar companies within
20 years. NetSol is exactly following a similar road to success. Our products and customer-base is building up with the development of our brand.
NetSol is an 11 years old company and it has successfully passed through the initial phase. If you look at our quarter closings, we have seen 200%
revenue growth during this period. That is exactly what happened with the successful companies in our neighborhood. Either earlier, or delayed with a
marginal difference of one year, our progress graph would exactly be the same to any successful Indian IT company.
Like the Indian CMM Level 5 companies, we are helping local companies to acquire CMMI certification. One of our clients, DPS, achieved Level 3 Last
month. We have 7 other IT companies preparing for CMMI certification. Our expertise in the field would make easy for them to achieve these levels
earlier. That will make Pakistan more visible on global IT horizon.
Have anything more to say?
We are happy the way 2007 started. We are greatly satisfied how we closed 2006. We have made impressive progress in the Chinese market during
last year and we have become one of the biggest vendors of leasing solutions there. We have also opened our office in China. I am foreseeing a
bright future for Pakistan IT industry ahead and soon IT would become an essential component our economy.
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