CSPD Final Report

[Type the document subtitle]

Submitted To

Group Member

Sir. AZIZ JAN

Table of Contents
1

Abstract

INTRODUCATION

3
3

GLOBAL TRENDS 3
POTENTIALS FOR PAKISTAN 4
TRADITIONAL ATTITUDE
5
3

THREE FUNDAMENTAL, NON-OPTIONAL TO SUCCEED IN LIFE 6

ETHOS
PATHOS
Logos
4

6
6
6

A typical lifecycle of a software company

Phase I The Dream

7
Phase II Concentrated development with sacrifice
7
Phase III Birth pains, birth and the birth announcement7
Phase IV Slow, steady growth, boom or bust
7
Phase V Expansion, innovation, market-share
8
5 How to Start Software Company

Software industry in Pakistan 11

Human resource development

11

Marketing and public relations 11

The Official IT Exports of Pakistan

12

Guesstimating the Actual Size of Pakistan IT Industry

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13

7 What human resource required for the project?

Be aware of the local laws

14

14

Taxes will not be higher than your income

14
You better than all the freelance developers 14
How you will find your customers?

15

Calculate the price the customer has to pay 15

Are you sure you're ready to deal with customers?

Conclusion

15

16

Abstract
Lund Performance Solutions will, for the first time going to start a software hose and
software development company. The Mr., president request for to give the complete
requirement, include it accessories, human resource required. Which also included
present status of it industry, profit margin in software industry and how can get project
from customer? .This technical report outlines the contents of a minimal set of software
development Project.

Keywords: Capability Maturity Model Integration (CMMI), Software Process Improvement (SPI),
Project Planning (PP),Project Measurement and Analysis (PMA), Configuration Management (CM),
Pakistan Software House Association (PASHA), Pakistan Computer Association (PCA), Business process
outsourcing(BPO),

Pakistan Software Export Board(PSEB).

Introduction
The software development has come of age from all directions. It has
become a promising industry, lynchpin of the modern economy, a
phenomenon of digital science and it means business all over the world. It is
the business at home, it is the business offshore, and it is the business
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unusual. Every country in the world no matter large or small, developed or

underdeveloped, rich or poor needs the help of information technology to
carry out day-to-day functions, launch research and development projects,
and make improvement in industrial growth.
The software industry a small portion of information technology does
not need big infrastructure, mass electricity supplies, import of sophisticated
machinery, a large number of technically skilled workforces, or a mechanical
work to launch a product. No huge local or foreign investment is required.
The essential part of the software industry is the brain, which we have in
abundance in Pakistan, but are wasting away in a devil-may-care manner.
The development of the software industry in Pakistan needs futuristic
approach for startups and contributing environment for the software
concerns already in the business. In turn, any facilitated step will generate
job opportunities at mass scale and will pave the way for billions of dollars
foreign exchange earnings without physically handling the finished
products. The exports of the software products do not need processing of
any export documents like bill of lading or airways bill, and transportation,
etc as the export process of a software product is a click away.

Global trends
Currently, it is a major trend all over the world to computerise everything
possible and get rid of paperwork. The software industry is one of the most
rapidly growing segments of the information technology industries. The size
of the worldwide software industry, which was $303.8 billion in 2008, has
increased to $457 billion in 2013, showing an increase of 50 per cent in just
five years.
The value of the United States software market is about 50 per cent of the
global market value as the US software developers are the world leaders in
development and production of software management systems which are
used in businesses, homes, educational institutions and cellular phones.
According to industry analyst Gartner Inc, the top 10 software giants
including Microsoft, Oracle Corporation, IBM, and SAP earned the lions
share of the world software market in 2013 whereas a high degree of
consolidation, mergers and acquisitions of the software giants have a value
of $1.45 trillion. The highest value deals were set in 2000 with 6,757
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transactions valuing at $447 billion while in 2010 alone, 1,628 deals were
announced valuing at $49 billion.
The US corporations are the world leaders in software industry with only one
each company from Germany and Spain in the top 10. No Chinese or Indian
company could find a place in the list. The second to the US software
industry in terms of volume is in China. According to the Chinese Ministry of
Industry and Information Technology, the size of the industry including
software and information services remained nearly $493 billion in 2013.
India is a major beneficiary of offshore jobs which it attains from the US and
European countries by utilising its vibrant software force in Bangalore and
other parts of the country. The Indian IT industry consists of IT services and
business process outsourcing, earning aggregated revenue of $100 billion in
2012. According to another study, the estimated value of the global IT
services industry will reach $1.147 billion by 2017.

Potentials for Pakistan

The United States software market is estimated at nearly $70 billion with
high demand of enterprises software systems. A boom in the Chinese and
Indian software industry is due to offshore jobs generated by software
vendors in the US, Canada and European countries where demand for the
management systems is high but expensive too. To offload their burden, the
large software vendors hire IT professionals from Pakistan, India, Bangladesh
and the Philippines which have the high rate of English-speaking
professionals.
Pakistan has great potentials to attract the foreign IT vendors and has
launched various plans not only to produce quality computer engineers and
software developers, but also spread out various incentives to software
development organisations to enhance their capacity building. Brain drain is
one of the big hurdles in the development of indigenous software market
which has to be stopped by providing generous incentives to the IT
professionals. It is not only difficult to get orders of software projects, but
much harder to deliver. A good project manager, in-depth project analysis
and a proper team of software engineers are required to make a large project
successful.

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Pakistan can be made a destination of choice for the international IT vendors

which offer offshore jobs, but there is a need to develop an appropriate IT
infrastructure and high-speed connectivity gadgets to deliver the jobs in
time. According to an official at the Pakistan Software Export Board, the
global share of Pakistans IT industry is around at $2.8 billion. He said that
the board has launched various projects, including establishment of
technology parks, to facilitate the software developers and startups.
However, Naeem Akhtar, owner of an IT solutions company, says that most
of the startup companies cannot join any technology park because it is
expensive. He says that the government departments, especially the
taxation officials, dealing with the software companies are confused.

Traditional attitude
The Pakistan Software Houses Association is a prime software association in
private sector but it is not easy to approach any of the officials even for
business purposes. On another note, the federal government has set up
Pakistan Software Export Board with a mission to enable fast track
sustainable growth of Pakistani IT industry.
However, it is unfortunate that the officials of both bodies did not break the
traditional routine as, despite repeated efforts, no one was available to share
information with TNS. The software industry is the future of the countrys
economy. The question is when lethargy prevails in this vital sector, who else
will infuse a new spirit of business life in this industry to challenge the
established competitors in the region.

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Three Fundamental, Non-Optional to Succeed in Life

Proven, Not Just Spoken Integrity Ethos

In all facets of life people are always asking the following question, Can I
trust you? The
Question might be sub-conscious, but it is always asked. Our customers, and
others whom
We serve, must know that we will do what we say otherwise they will go
elsewhere.

Genuine Compassion - Pathos

At the heart of service, in general, and customer service, in specific, people
want to know
That the people serving really care. Not surprisingly, many companies have
adopted slogans
Like, We really care, or Customer Care is Our Main Product. All too often
these

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Phrases are just that, slogans. Humans must tangibly know that other
humans genuinely care
About them, apart from just gaining something. Companies that invest in
people who have
Been raised with a strong respect and love for others will find that these
people are a major
Asset to the company. When combined with integrity, true care for people
will make your
Company (and life, for that matter!) nearly unstoppable.

Relevant Technology Logos

Needless to say, what customers want are relevant, affordable, and easy to
use products. A
software company must stay on top of operating system changes and new
platforms. Bugs
and new features present a never-ending river of challenge. But in order to
succeed we must
be sure that our software and services stay current and keep up with newer
technologies and
customer wishes.

These three principles form the foundation of the best and most
truly successful companies.

A typical lifecycle of a software company

Phase I The Dream
In this phase, there is ample vision. Sometimes the idea for a new product
comes from a
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utility that the founder created to solve problems. Since this product is the
founders baby, it
goes without saying that he is proud of his baby. This pride of parenthood
will do at least
two things. First, it will cause the parent to give all for the growth and welfare
of the new
Starting a Successful Software Company baby. Second, it will often blind the
parent to defects that the product possesses. Nevertheless, the mere idea of
this new baby will cause the parent to dream big dreams and rightly so. This
dreaming is what causes world-changing products to come to market.
Phase II Concentrated development with sacrifice
This is the phase where the founders pour in an inordinate amount of
resources, and with good
reason. If there is an idea, opportunity, time, and finances, why wait? So the
reasoning goes.
But such projects invariably take more resources than one originally
estimates. Time, energy,
passion, and money are poured in often in an inordinate fashion. Everyone
senses and sees the
vision, and therefore is more willing to constrain their normal tendencies to
be slothful and
undisciplined. Pride and hope drive the developers on towards the finish line.
Phase III Birth pains, birth and the birth announcement
It is in this stage where the product hits beta. Everyone is excited. The beta
sites provide vital
feedback. Documentation and advertising ought to be in full swing, but often
are not. One of
the frustrating dilemmas that are faced at this point is timing for advertising.
Most printed
advertising requires a number of months of advance booking. At this
sensitive juncture, the
founders have to make a decision. Do we book ad space three months ahead
of time and hope
that the product is tested, documented and deliverable at that time? Or do
we wait until the
product is perfect and ready to go, thereby losing an important three-month
window in the
marketplace. Always a tough call. Here are a few notes about marketing and
advertising. A good idea-person (ad creator) is worth their weight in gold. At
this stage, hopefully you have good ads, a super web site (in this day and
age, there is no excuse for a mediocre site), a marketing campaign with a
strong theme, and excellent follow-up and sales support. Without these you
are doomed.
Phase IV Slow, steady growth, boom or bust
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Here, the owner(s) are faced with orders and growth. Software must be
continually debugged,
improved and promoted. The engineer(s) are weary and could use help. At
this point, if not
sooner, the thought of hiring employees enters into the thought process.
Going from a small
consortium of partners or a single proprietor to hiring employees is a much
larger risk step
than many realize. Whole new jurisdictions enter into the life of the company.
Just the thought
of workers compensation, a potential wide-variety of employee-related
litigation, training,
bad attitudes (remember an employee is usually not an equity holder in
many cases and often
does not share the abandoned enthusiasm of the founder, sick days, and
benefit plans, all send
chills up the spine of any self-respecting employer.
you want will cost dearly in the long run, especially when compared to more
capable people.
Our development manager just recently said, partly joking, but mostly
serious, that he felt that
this paper could be summed up by saying, The success of a software
company depends two thirds bon hiring quality people and one-third on not
losing them!
Also at this point, the new company is starting to acquire customers. Ah, the
all-important
customer. Are they a purchase order-wielding, soul-less consumer who
simply exists to beef up
your bottom-line, or a friend and ally for your mutual long-term success?
How you answer
this question weighs heavily on your true success. We have learned that a
happy customer
will literally bring more customers. An unhappy one will drive people away;
the worse part of
it is that you will not know about it, nor will you be able to defend yourself.
Employees with
healthy doses, and a balance, of ethos, pathos, and logos will attract
customers more rapidly
than a huge advertising budget in the long run.
Phase V Expansion, innovation, market-share
At this point the founder who stays a sole proprietor with zero or very few
employees can be
very successful if he has exceptional integrity, customer care and technology
innovation. If
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the products and services offered become popular, it will be hard to stay
small and still deliver
good service. Growth will bring the normal pains of raising a company. There
are many good
books about business success, in general. Nearly every book about business,
customer service,
etc., pays for itself in huge multiples. Heres an important thing to never
forget: even a small
contingent of loyal customers will carry you a long distance; be really good
to them. In this
stage you have more competition. You must innovate and expand wisely; you
will have to run
faster and smarter, or get eaten alive!

How to Start Software Company

A software company develops and distributes computer software that may
be used to learn, instruct, assess, calculate, entertain or perform a multitude
of other tasks. Starting a software company requires start-up funds,
programming knowledge, marketing expertise and technical support skills.
Software companies operate under a variety of business models, such as
charging license fees, offering subscriptions or charging by transactions.
When software products are offered for free, revenue may be gained from
advertising sources or by charging for related services, such as training or
technical support. Here are the steps for starting a software company.

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Develop programming expertise. Obtain a degree in computer

programming or get an entry-level job at a software company where you can
train with a software development mentor.
Work for a software company in a management capacity. Strengthen
your leadership and communication skills, and tune into the needs of end
users and product marketing processes.
Generate a product idea. Develop an innovative product idea based on
what you have learned and observed about the needs of end users. Once it
becomes clear that a market exists for your product idea, consider starting
your own software company.
Protect your product idea. Obtain the necessary patents and trademarks.
Ask your team of collaborators, if applicable, to sign a non-disclosure
agreement (NDA)

Create a business plan. Write a plan that describes the purpose of your
business, product, branding approach, market audience, product
competition, and financial needs and plans.
Become knowledgeable about licensing, taxes and insurance. Research
the requirements of your jurisdiction for licensing, sales tax, income tax,
liability insurance and other requirements. Consult an accountant or
attorney, if necessary.
Raise funds for your software company. Software development requires
time and resources.
Explore venture capital funds. Contact venture capital firms to discuss
the possibility of entering into an agreement.
Research grants and loans. Explore the availability of grants and loans
for small businesses.
Find investors among relatives and friends. Discuss your software
product idea with family and friends to explore the possibility of their
investment in your business.

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Purchase the necessary equipment and applications. Equip your

development team with computers, programming applications, data storage
capability, servers and all of the necessary tools for creating and distributing
the software.
Hire developers. When hiring developers, look for candidates who have the
required programming skills and the desire to work in a software start-up
environment.

Develop your software product.

Create a development time line. Allot a reasonable amount of time to
the development of your software product. A complicated data management
system may take much longer to develop than a simple mobile phone
application.
Oversee the development process. Facilitate clear communication
between you and your development team to ensure that everyone is
operating under the same product vision.
Test your software product after the development phase.
Establish a structured quality control and assurance process. This may
involve a small team of developers testing each feature for smooth
functioning on various operating systems, or bringing in new testers with
fresh eyes to interact with the product.
Gather a team of beta testers. Allow a small and select team of end
users to use your product to gauge its user-friendliness, effectiveness,
accuracy and/or efficiency.
Fix all bugs and retest. Finalize your product by fixing all bugs and
errors, and conducting a final test to ensure quality.
Market your product. Hire a marketing firm or experienced marketing
professionals to work for your company. Consult with such professionals
during the product development process to help shape decisions about
product features, uses and market audience.

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Software industry in Pakistan

Pakistan Software Export Board (PSEB) a government-owned, guarantee
limited company, was founded in 1995, primarily to promote the information
technology industry of Pakistan
Human resource development
Collaboration with the Higher Education Commission of Pakistan to increase
quality graduates into the industry through specialized programs and
training and certification courses for professionals in the IT industry. Initiation
of an internship program that provided job placement to almost 3,300
professionals with eighty percent of them finding permanent employment

Marketing and public relations

PSEB promotes the IT industry of Pakistan through trade show participation,
email marketing, visits to foreign countries, mini events and publication of
articles in various international publications

I recently came across an Associated Press of Pakistan story in a leading

national newspaper which was based on a document sourced from the
Ministry of Information Technology and Telecommunications (MoIT&T). The
title was Pakistan IT services exports rose 97.34% in the last five years. It
further claimed that the Ministry claimed in the National Assembly that IT
services exports will increase by 271% in the next five years totaling US$
3.77 billion.

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The following table documents the past and projected figures quoted by the
Ministry based on information sourced from Pakistan Software Export
Board (PSEB).

Ministries of IT & Telecommunication IT Services Export Figures (P) are

projected figures

Since I find myself quoting these figures often, I wanted to cross-check the
numbers against those reported by the State Bank of Pakistan. The following
figures shows the export revenues compiled against Computer and
Information Services as reported inState Bank of Pakistan documents for the
previous ten years

The first thing that jumps out is a gradually increasing divergence between
the State Bank numbers and MoIT&T/PSEB numbers for the past years. The
difference has grown from US$ 18 million in 2008-09 to US$ 40 million in
2012-13 with the PSEB reporting a consistently higher figure. I went through
considerable research to figure out if this difference can be accounted for
somehow, and realized that SBP allocates Call Center service export under a
separate head in its BoP reporting. PSEB and MoIT&T is therefore adding the
Call Centre service exports as reported by SBP to the IT Services exports
to arrive at cumulative export figures of IT and IT enabled Services (ITeS) like
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BPO and outsourced call centers. Since India includes BPO exports to the IT
services exports, thats a reasonable thing to do when reporting Pakistan IT
export figures.
The Official IT Exports of Pakistan

The following figure depicts the Pakistani IT and ITeS exports and
corresponding growth trend over the past 10 years and the future projection
of MoIT&T into one graphic.

Guesstimating the Actual Size of Pakistan IT Industry

After reviewing several documents, press reports and policy documents

listed in the notes with this article, it is clear that the size of Pakistani IT and
ITeS exports is much larger than the official figures quoted above. A study by
Bearing Point in 2005-06, states that 3 out of every 4 dollars earned in IT
exports remains outside the country. That would peg the current size of IT
and ITeS exports to 334 x 4 = US$ 1,336 million. I believe thats a gross overestimation.
Another document prepared by Technomics for PSEB in 2010 provides a
much better perspective and guidance for estimating the size of the
Pakistani IT industry based on comparisons with India and Ireland. The study
suggests that the best way to estimate the size of the industry is through
representative surveys of companies operating in the industry. Based on that
survey, and after correcting for non-response bias, it was estimated that the
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size of IT exports in Pakistan ranged from US$ 469 million to US$ 762 million
while the local spend on IT in Pakistan ranged from US$ 227 million to US$
393 million.

What human resource required for the project?

The essential thing to know is that either you have to hire people (lawyers,
accountants, salesmen, project managers), or you have to learn lots of stuff
yourself, given that trial and error technique would often cost you a lot of
money.
Be aware of the local laws. When you're a small company and you're sued
by your customer for thousands of dollars because some mandatory
sentence is missing from your invoice, it's not obvious to handle.
In the same way, when a customer doesn't pay you for months, when you go
to a lawyer and learn that the contract you signed doesn't force your
customer to pay you, you wish you had consulted a lawyer before signing
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anything. I spent four years in law college; I'm always surprised by the poor
quality of contracts written by people with no knowledge in law. Most of the
contracts I've seen clearly say that the developer may never be payed, or
that the customer can request any change at no cost.
Remember, some customers will spend a huge amount of time trying not to
pay or to pay less. They will invoke the fact that your product doesnt match
their expectations, or that they always thought that the changes you made
at their request were for free, or that they don't need the product any longer
This is a job of a lawyer. Lawyers are expensive, but they save you money.
Be sure that the taxes will not be higher than your income. In France,
for example, when you start you can easily be in the situation where multiple
semi-governmental organizations (such as the mandatory insurance
company) will claim thousands of dollars per year, yet your income is several
hundreds of dollars per year.
Nobody cares by such nonsense, because it's a way for those organizations
to make a lot of money. Even when you don't have any income, you still have
to pay. Given that some of them are managed as insurance companies and
benefit from their monopoly, you find yourself in front of an entity which
behaves much like mafia (i.e. no matter what's your situation, you'll have to
pay), but sometimes without the cover benefits.
Seeing taxmen arrive at your company and asking to check the accounts,
then finding a few mistakes which will cost you a few thousands of dollars is
not a nice thing neither.
This is a job of an accountant: avoiding accounting errors which usually cost
too much, and defend the money of your company from the intentional
errors of powerful entities
What makes you better than all the freelance developers? What
makes you better than all the larger software development companies? How
do you explain to the customers that you're better?
I had a few discussions with my colleagues who wanted to create their own
companies. "What do you have that others don't?", I asked every time. Either
they can't answer, or they answer something like "I'll ask for a lower price",
but they are unable to explain how would they do the cost savings.
Be sure you know the aspects in which you are better than the competitors.
Be sure you are able to market yourself, explaining not only what's better,
but also why.
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Example: a company A ships software at a lower cost, because they

use lean management, removing the waste related to tasks which are not
needed in order to deliver the product.

Another example: a company B ships high-quality software by using

intensive formal code reviews, testing, formal proof, and other techniques
used in companies writing live-critical software.

Last example: a company C delights its customers by using radical

management and Agile.

how you will find your customers? Do you advertise? Where? How? How
much would it cost?

Are you ready to answer customers' questions? For example, if

somebody asks for the names of companies you worked before in order
to ask those companies for feedback, or if somebody asks to show the
software products or web apps you've done, do you have an answer?

This is a job of a salesman: somebody who knows your business, knows

your strong points, and can quickly, easily and honestly explain why
your company is the best.

How do you calculate the price the customer has to pay? If you're
paid per hour of work, how can the customer be sure that you don't ask to
be payed for 213 hours when in fact you worked 186 hours?

How do you keep track of a project? How do you know that the project
is about to fail, and when you know it, how do you prevent it?

This is a job of a project manager. Leading a project from "I have a

great idea, it's in my head now" to the fully-featured product requires
more than knowing how to write programming code

Are you sure you're ready to deal with customers? What will happen
when a customer is not polite? What if a customer says that your product
sucks or does not conform to the requirements when in fact it follows them
exactly? What if a customer, after two months of development of a three
months project tells you that you must rewrite your ASP.NET project in PHP?
What if the customer doesn't even know what her project is about?
This, again, is a task of the project manager, the salesman or the support.
Dealing with customers after you signed the contract requires a lot of tact,
patience, professionalism and, often, anger-management
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Conclusion
In short, the software business has been extremely rewarding for many, but
this industry is
Fraught with pitfalls. Many software and e-tech related businesses have shot
up like rockets,
But have flamed out shortly thereafter. Sometimes the best answer is to
partner with a firm
That has a good track record of support, products, marketing, and industry
reputation. By
Grappling with the above issues and honestly answering the sample list of
questions, you will
Have a better chance coming out a winner.

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