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Feasibility Proposa

The document proposes establishing a software house in Gilgit Baltistan, Pakistan. It would develop innovative web and software solutions to serve both domestic and international clients. The software house aims to provide a platform for local talent to develop skills while delivering high quality products and services. It conducts market analysis showing growing demand for IT outsourcing from abroad and within Pakistan. The proposal outlines initial capital costs, infrastructure needs, and financing plan with 90% debt and 10% equity funding.

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Imtiaz Ahmed
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52 views

Feasibility Proposa

The document proposes establishing a software house in Gilgit Baltistan, Pakistan. It would develop innovative web and software solutions to serve both domestic and international clients. The software house aims to provide a platform for local talent to develop skills while delivering high quality products and services. It conducts market analysis showing growing demand for IT outsourcing from abroad and within Pakistan. The proposal outlines initial capital costs, infrastructure needs, and financing plan with 90% debt and 10% equity funding.

Uploaded by

Imtiaz Ahmed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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“SETTING UP A SOFTWARE HOUSE”

Submitted to Kaymiyab Jawan

Program

by Imtiaz Ahmed

Element Web Solutions (Pvt) Limited.


“SETTING UP A SOFTWARE
HOUSE IN GILGIT BALTISTAN”

Country: Pakistan (Gilgit Baltistan)

Project Title: Proposal of Feasibility Study of Setting up a “Software House”

Executing agency: ELEMENT Web Solutions (Pvt) Limited.

Estimated Duration: 1 year

Project Financing: Rs.10, 00000 (90% on Debt and 10% its own Equity/Capital)

Project Life: 15 years

INTRODUCTION TO

Element Web Solutions

At Element Web Solutions, we are keen to develop innovative and creative products and

services that will provide a total communication and information solutions. Among a series of

services, our focus will be on web design and development, web applications, CRMs, e-

commerce solutions, business to business applications, business to client applications and

managed hosting. As a leading software company Element Web Solutions will be committed to

exporting high quality software solutions worldwide.

The vision of Element Web Solutions is to develop and promote advanced information

technologies for multi-user operation.

However, the company will also provide a platform where the most creative and talented

youngsters will polish their skills and will assure the highest quality product, total client

satisfaction, timely delivery of solutions in online world.


PURPOSE OF THE DOCUMENT

This particular pre-feasibility comes under the ‘Information Technology’ sector, a sub-sector of
‘Information and Communication Technology’ and is in regard to setting up a “Software House” in Gilgit
Baltistan.

This project pre-feasibility may form the basis of an important investment decision and in order to
serve this objective, the document covers various aspects of the business concept development,
start-up, marketing, and finance and business management.

OPPORTUNITY RATIONALE

Contending in an overall scale, Pakistan's IT industry has encountered monstrous development in IT


trades. With the relentless business development rate and government's speculator agreeable
approaches, Pakistan has become a significant part in the IT business, on the South Asian as well as
on a worldwide scale also.

Perhaps the main motivation to put resources into IT is the way that the Government of Pakistan has
permitted 100% responsibility for and 100% repatriation of benefits for unfamiliar financial specialists.
Significant assessment motivating forces for organizations have been permitted. Likewise, the
Government has given expense exception on the salary from fare of PC programming and related
administrations.

HUMAN RESOURCE DEVELOPMENT

The educated and highly skilled human resource is imperative for the growth of information
technology. Pakistan has to equip not only its educational institutions at all levels with the information
technology facilities but also it has to establish new vocational training centers throughout the country
which focus on providing training to convert the latent human resource available into a highly skilled
IT workforce that is competitive at the world level.

CLASSIFICATION OF INDUSTRY

On the basis of reports and research software industry can be categorized as follow:

i) Product /Service Base

• Product Focused

• Services Focused

ii) Market Base

• Domestic-Focused Local Firms (Web development, POS, Web Applications, Graphic Designing
)

• Export-Focused Foreign Firm (Web development, Hosting management, Web Applications,


Graphic Designing, E commerce management, Applications maintenance )

MARKET ANALYSIS
Market Demand

Foreign-based companies have entered the recovery phase and started outsourcing their multiple
services to the IT and IT-enabled companies of various countries. Pakistan has the potential to grab its
share in IT-enabled services market although it is also competent in providing software applications to
various developed countries, demand will be flourishing in the upcoming years.

There are quite a few hundreds of software houses in Pakistan and the count is increasing rapidly. These
software houses are working to make Pakistan a bright mark in the world of IT. They are producing many
useful products which have modernized the processes of traditional industries and also increased their
productivity. As we see, the computer has become a significant part of every walk of our lives and many
processes have become automatic now. All the big shopping malls have a computerized billing system
now. Almost every organization keeps its data in computerized form. Computer and internet awareness is
also increasing and the trend of e-commerce is emerging fast. People, whatever field they belong to,
consult the internet for any queries which come into mind.
EQUIPMENT
The IT equipment includes Computers, Laptop PCs, Servers, and UPS for PCs and networking
equipment. This IT equipment will be re-purchased after every three years.

INFRASTRUCTURE
The proposed location in Gilgit is Gahkuch Ghizer Near National Bank and Gilgit Jutial Khomer ZS
Plaza, Any office can be rented out in any of these locations. The rent for an office in the proposed
areas is estimated at Rs. 30,000 per month.

PROJECT DETAIL

Project Cost

The detail of the project cost is as follows.


Table 12-1 Project Cost Rupees
Capital Investment Requirement 10,00000
Total Project Investment Requirement 10,00000

Project Financing

Project financing will be done through 10% equity and 90% debt.

Table 12-4 Project Financing


Rupees
Debt @ 90 % 900000
Equity @ 10 % 100000
Total Project Investment Requirement 10,00000

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