Dilemma of Pakistani Software Industry: The Business Model+Human Resources -1

 Well about the locally incorporated companies, I have mostly observed, closely and factually, that rewards and retention have no clearly defined or SERIOUSLY practiced policies. The reasons range from preferential treatment for favorites to project limited vision (dukaan wali approach). I would however categorize these outcomes against the following core reasons:

1. Business Model: Weaknesses in system design, targeted business (mostly follow the crowd).

2. Product Design: Weak or no product differentiation, weak understanding of client/industry needs.

3. Road Map: Literally no road map for the business and products for growth in a competitive reference.

4. R&D: Absence of R&D from almost all setups.

5. Marketing & Demos: Never heard of demos from most of the local companies. They have presumed that they have the right product for everyone and anyone.

The outcomes are that a few favorite or dependable employees are loaded (burnt, depreciated) with most of the workload or project mgmt. This creates a big gap between the ladder from junior to middle mgmt positions. What ends up happening is that when a middle manager leaves for a better job due to similar reasons elsewhere :-).

The owners get someone take a leap from the lower end of the void to the vacant middle mgmt position with a fat increment. This effects professional commitment of the team, hurts their morale, distorts and unrealistically increases pay raise expectations, disturbs financial mgmt., challenges continuity in both the momentum and quality of products.

The need is to have strong regulatory and business model support and back stopping from the association of the industry and the regulatory govt. bodies to help prevent such corps from turning into corpse! The industry needs to share and learn a lot. This is a mis-fortune with most of the Pakistani economy; we just do not share and learn and avoid making the same old thrashed tested and tried repeat result yielding exercises that are called mistakes blunder and crashes.


One Response to Dilemma of Pakistani Software Industry: The Business Model+Human Resources -1

  1. soulmind says:

    Everyone wants a bigger car 🙂

    My take is that software companies that have hi-tec off-shore projects are better companies (perhaps a benchmark) in terms of exposure, reward and retention policies.

    Taking my bros examplewho happens to be an Electronics Engineer with sub-specialization in computer systems; he started with a US stocks listed company operating from Islamabad, this was some 5 years back in 2002. Starting at 20K he had reached 35K under two years as a Design Engineer & TL. Right now he is at the USC doing his masters leading to Phd. I expect that by the time he returns he can very well be afforded at a package of 150K-200K or more if he decides to gain some work experience and then return.

    Another recent case infront is a relative of mine, a FAST grad, working for a locally incorporated large outfit with lot of offshore projects and local project activities. With an experience of not more than 2 years he has reached 43K from 18K within the quality department. Unfortunately the reason for this leap has been a retention effort to stop the spill of employees to the competitors.

    Where this shows a realization on part of the employers it also reveals weakness in the succession planning and pro-active retention practices.

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