Android iPhone Feasibility

Pre-feasibility study Android / iPhone Applications

© Tariq Mir & Co Confidential

PRELIMINARY FEASIBILITY STUDY

Development of Android and iPhone applications

Reliance Restricted

TARIQ MIR & CO CHARTERED ACCOUNTANTS

111-CCA, 2nd Floor, Phase 4 Commercial Area

Defense Housing Authority, Lahore, Pakistan Phone:+92-42-5735158, fax: +92-42-5891025

www.tmirco.com

Wednesday, September 02, 2009

Prepared by;

TARIQ A. MIR APA, ACA Partner [email protected]



EXECUTIVE SUMMARY 1 INTRODUCTION 2 INFORMATION TECHNOLOGY 2.1 SOFTWARE INDUSTRY 2.2 HARDWARE INDUSTRY 2.3 COMMUNICATION AND SERVICE INDUSTRY 3 SOFTWARE INDUSTRY 3.1 CLASSIFICATION OF INDUSTRY 3.1.1 Product/Service Base 3.1.2 Market Base 3.2 PROSPECTS, INCENTIVES AND POTENTIAL OF INDUSTRY 3.3 BUSINESS NEED ASSESSMENT 4 STANDARDS APPLICABLE TO INDUSTRY 4.1 INFORMATION SECURITY MANAGEMENT SYSTEM (BS 7799) 4.2 QUALITY CERTIFICATION PROGRAMS @PSEB 4.2.1 ISO 9001-2000 4.2.2 Capability Maturity Model Integration (CMMI) 4.2.3 Customer Operations Performance Center (COPC) 5 IT POLICY AND GOVERNMENT REGULATIONS: 5.1 IT POLICY 5.2 GOVERNMENT REGULATIONS 5.3 INTELLECTUAL PROPERTY RIGHTS 6 MARKET ANALYSIS 6.1 MARKET DEMAND 6.2 MARKET SUPPLY 6.3 EXPORT OF SOFTWARE PRODUCT 6.4 GAP ANALYSIS OR OPPORTUNITIES IN MARKET 7 STRATEGIC FACTORS 7.1 STRATEGIC RECOMMENDATION 7.2 SUCCESS STRATEGY 7.3 WEAKNESS 7.4 THREATS



8 PROJECT CONCEPT 8.1 TARGET SERVICES OFFERED 8.2 FOCUS AREAS 8.3 TECHNICAL EXPERTISE 8.4 FLOW CHART FOR SOFTWARE HOUSE 8.5 MARKETING STRATEGY 9 RATIONALE & JUSTIFICATION 10 THE PROJECT AND THE BASIS OF PROJECTIONS 10.1 PROJECT COST 10.2 PROJECT FINANCING 10.3 PROJECT VIABILITY. 10.4 PROJECT DETAIL 10.5 REVENUE ASSUMPTIONS 11 FINANCIAL PROJECTIONS 11.1 PROJECTED BALANCE SHEET 11.2 PROJECTED INCOME STATEMENT 11.3 PROJECTED CASH FLOW STATEMENT 12 ANNEXURES 12.1 ANNEXURE # 1 PROJECT COST AND MEANS OF FINANCING 12.2 ANNEXURE # 2 REVENUE



Reliance Restricted

Wednesday, September 02, 2009 Mr ABC Director, Company Name Lahore Dear Sir, Preliminary feasibility for establishment of R&D Di vision for development of Android and iPhone applic ations. In accordance with your instructions, we have performed the work, which to the best of our knowledge and belief, was necessary for the preparation of a preliminary feasibility of establishment of an R & D division for development of Andriod and iPhone applications (the Project) in Celexica Technologies (Private) limited (the company). Scope and nature of our work The scope and nature of our work, including the basis and limitations, are detailed in the study below. Accordingly, we have restricted our study to areas identified by our technical staff as directly related to the project. The purpose and scope of this report is to introduce the subject matter and provide a general idea and information on the said area. All the material included in this document is based on data/information gathered from various sources and is based on certain assumptions. Although, due care and diligence has been taken to compile this document, the contained information may vary due to any change in any of the concerned factors, and the actual results may differ substantially from the presented information. TMIRCO does not assume any liability for any financial or other loss resulting from this report in consequence of undertaking this activity. The client is encouraged to carry out additional diligence and gather any information he/she feels necessary for making an informed decision. Restriction on the use of the report This feasibility study report (the “Report”) has been prepared to assist you in determining the commercial and financial feasibility of the proposed project. This report should be read in the context of the restrictions outlined in the related sub-sections. We appreciate having been given the opportunity to be of service and hope to be of continuous assistance in the future. Yours faithfully Tariq Mir & Co – Chartered Accountants



EXECUTIVE SUMMARY � The economy has lost significant growth momentum owing to massive contraction in the industrial sector. The lowest real GDP growth rate of 2 percent

attained in the last eight years should be taken in the backdrop of major disruptions of extraordinary nature like political uncertainty hovering around for most part of the year, intensification of war on terror, acute energy shortage and extremely high inflation by Pakistan’s standard, massive adjustment efforts to regain stability from a highly disruptive year (2007-08) of exceptionally high macroeconomic imbalances, and above all significant demand compression both on domestic and external front, the economic growth seemed to be satisfactory under the circumstances. Real GDP grew by 2.0 percent in 2008-09 as against 4.1 percent last year and growth target of 4.5%. The commodity producing sector witnessed marginal positive growth of 0.2 percent which is the lowest ever in the last eighteen years.

� The overall foreign investment during the first ten months (July-April) of the current fiscal year has declined by 42.7 percent and stood at $ 2.2 billion as

against $3.9 billion in the comparable period of last year. US kept its distinction of being a largest investor in Pakistan with 23.2 percent stake in the FDI. � Pakistan’s per capita real income has risen by 2.5 percent in 2008-09 as against 3.4 percent last year. Per capita income in dollar term rose from $ 1042

last year to $ 1046 in 2008-09, thereby showing marginal increase of 0.3 percent. � Information Technology (IT) is revolutionizing the way, in which we work in evolving business climate. Pakistan is rich in human resource, which

constitutes the foundation for any major IT initiative. The technology has emerged as fastest growing sector in Pakistan. During last 17 years, Pakistan has been developing human capital and infrastructure to cope with rapidly advancing IT world.

� IT Sector in Pakistan can be categorized in three-sub sectors: Software, Hardware and Communication & Service Industry. Pakistan’s software industry

widely seen as “great enabler” that provides an opportunity to play a greater economic role in the fast globalizing world. According to conservative estimates, there are about 400-550 software houses in Pakistan working in local and export market in areas of database management, internet applications, CAD/CAM management system etc.

� The software industry can be categorized on the basis of products/ services and market. On product/services basis the industry is focusing on product

only, services only and hybrid operations that are both product and services including changes in existing products. On market basis the industry can be categorized as Domestic Focused Local Firms, Export Focused Local Firms, Export Focused Foreign Firms and Dedicated Development Center.

� The ability of Pakistan to produce quality software is based on our abundant pool of IT professionals. An IT workforce of 133,000 with good English

language and people skills growing at a phenomenal rate of almost 20,000 a year.

� As the global IT and IT-enabled services (IT/ITeS) industry matures, quality certifications are becoming critical to success of products and services. Currently there are a hundred and ten ISO-certified IT companies, with over 25 undergoing CMMI rating

� International leaders such as BearingPoint, NCR Teradata, Mentor Graphics and ZTE have chosen to locate their development and consultancy center in

Pakistan.

� The State Bank of Pakistan in its statement for the year 2007-08 reports the export figures of software and IT-enabled services to be US$169 million which shows a consistent annual growth. State Bank of Pakistan adopted BPM 5 reporting system to report the IT exports revenue, which restricted the export figures to US$169 million only in 2007-08. In India, the Reserve Bank of India follows the BPM 6 (also called MSITS) Reporting System, which raises its exports to billions of US dollars. BPM 6 includes sales to multinationals, earning of overseas offices & salaries of non-immigrant overseas workers to



export revenue. Using the MSITS Reporting System, Pakistan IT Industry exports are estimated at US$ 1.4billion while the industry size is estimated at US$ 2.8 billion. It is significant to note that Pakistan IT exports growth in each of the last few years has been more than 40%.

� In order to promote its IT industry, the Government of Pakistan has provided several incentives to investors. The establishment of a reliable IT

infrastructure and the provision of an incentives package are instrumental in the development of the local IT industry. Other benefits provided to the IT companies are in the form of tax holidays for 15 years and 100% foreign equity ownership. Because of these incentives, an increasing number of foreign IT companies have chosen Pakistan for their outsourcing operations. Some of the areas in which the Government is facilitating the private sector companies include:

- Information Technology Parks with low rent, fiber optic connectivity, libraries and conference rooms - Foreign investors allowed 100% ownership of equity in "IT/ITeS companies" - Tax exemption for IT companies till 2016 - 100% repatriation of profits allowed to IT companies - Seven years' tax holiday for Venture Capital funds - Tax rate of depreciation on computer equipment is 30% - The State Bank of Pakistan (SBP) has allowed the opening of Internet Merchant Accounts by banks - Instant, reliable and high-speed connectivity available - Over 85% of telecommunications infrastructure is on fiber optic cables - The cost of 2 Mbps DSL connection has been lowered to US$ 100/month - Internet access is available in over 1862 cities/towns across Pakistan - Pakistan is the first country in this region to establish DWDM telecommunications infrastructure - Several cellular companies are using digital transmission (GSM and TDMA)

� The project has concept of export oriented software development house with corporate presence in Lahore, Pakistan and target market at International

region major in USA or UK to utilize the cutting edge technology and offer full range of business application solutions for the handheld devises market. The project is based on Consultancy, Prototyping, Design, Coding and Quality Assurance, Customer Support, and User Documentation services to its clients.

� The focusing areas will be application development for Android OS using Android SDK with coding in JAVA using Eclipse (Android Development Tools

plug-in) and Apple iPhone. � The proposed software house will be located in Lahore where strong infrastructure along with power, water, fuel and transportation is easily available for

smooth operations. � The estimated cost of the project is Rs.______________________________. The project shall be financed through equity contribution of 100%. The

project will be run by qualified professionals.

� Based on the projected financial statements, the returns on the project are satisfactory. Financial ratios of the project is as follows:



SOFTWARE INDUSTRY

Pakistan’s software industry widely seen as “great enabler” that provides an opportunity toplay a greater economic role in the fast globalizing world. According to conservative estimates, there are about 350-500 software houses working local and export market in areas of Database management, Internet applications, CAD/CAM management system etc. A detail survey of Pakistan software market based on top leading 60 software houses representing the total software market. It shows that there are over 4,000 technical and professional employees with an average of 66 employees in an organization. Out of these software houses 32% of the software companies reporting annual revenues of more than a million dollar with some reporting more then $5M, another 36% between $200K and $1M, and the rest 32% less than $200K. On the whole these companies had experienced an employment growth of about 27.5% and a revenue growth of 37.4 % over last year.

These companies derive their revenues from export and domestic markets in a ratio of 60:40. On the exports side, they derive 22.5% revenues from products and 38.5% revenues from services. The majority of the product-exports are “customized” rather than “shrink-wrapped” products. On the domestic side, however, the ratios are somewhat reversed with products and services contributing 23% and 16.5% respectively. The industry is serving the private sector markets with around 85% of the total sales going to private sector (local and foreign combined) and the rest going to public sector, equally divided between domestic and foreign.

Currently a few software companies have either ISO 9000 or CMM certifications most of the companies has dedicated quality assurance team and this number is planned to increase. Presently some of the facts about Software Industry in Pakistan are as follows:

STATISTICS OF IT INDUSTRY

Total No of IT companies working in Pakistan 500 (Registered PSEB Members)

Number of substantial IT companies 335 (Active PSEB Members)

Number of companies ISO certified 70 with another 30 due to be certified by June 2005

Number of companies Capability Maturity Model (CMM) Assessed One CMM Level 5 company, One Level 4. Another five ready for assessment at CMM Level 3 by March 2006

IT & IT Enabled Services Exports during 2004-2005 US$ 48.50 million (transacted through the State Bank of Pakistan)

Percent growth in Exports 45% over Fiscal Year 2002-2003

Export target for fiscal year 2005-2006 US$ 72 million (State Bank transactions)

Annual Software Industry Turnover Around US$ 70-80 million

Number of IT graduates produced per year About 5,500 No. of Universities offering IT / CS programs 45

Number of IT Professionals engaged in export oriented software development About 6000-8000

Number of Call Center agents working for international clients About 2,500

Total No of IT professionals employed About 75,000

Total IT spending in fiscal year 2003-2004 About US$ 600 million



Total amount of space utilized in Software Technology Parks (STPs) 600,000 sq ft

Cost per MB dedicated DSL connection US$ 700 per month



PROSPECTS, INCENTIVES AND POTENTIAL OF INDUSTRY The ability of Pakistan to produce quality software is based on our abundant pool of IT professionals. Pakistan is producing about 5,500 IT graduates annually but there is need to utilize their potential and facilitate their innovations. The online services with unmatched security and superior customer satisfaction are required to enhance market and open new horizon for the sector. More opportunities are being open in software markets around the world in USA, UK and the rest of Europe, South Africa, Japan and Australia. A vast potential exist for the local software industry to become affordable force in the global arena. The government is taking all possible measures to spur activities in the IT sector and the framework is now more conductive then ever before for investment in the sector. The strengthening factors, which support the feasible software house, are as follows: INTERNET Pakistan at the time of its inception in 1947 owned a meager telecom base with just 7000 telephone lines. Telecom service was meant just to meet the needs of country administration. The measures taken to promote Internet and software are as follows:

i. 20-50% reduction on the leased lines for ISPs, and software exporters. ii. Concessions to Schools, universities & institutions for Internet usage. iii. Majors cities of country are connected with fiber optic/digital cross connect system. iv. Segregation of telephone and internet traffic to bring internet away from time metering. v. Second high capacity fiber optic link commissioned in 1998 (catering 20 new cities). vi. Investment of US$ 35 (M) was made in SEA-ME-WE-III project in July 1999 to enhance capacity. vii. Investment of US$ 55 (M) was made in SEA-ME-WE-IIII project in September 2003 to enhance capacity viii. Currently about 100 licenses stand issued out of them 50 are operating the service. ix. Custom duty on the telecom & Internet equipment reduced x. Waiver granted from 25% CED on leased lines given to license ISPs & Software Exporters. xi. In year 2004 total 1612 cities including 1091 of Punjab, 202 of Sindh, 209 of N.W.F.P and 110 of Balochistan were connected which now reached at

1900. The Government of Pakistan has provided several incentives to investors for promoting the IT industry in the country. The establishment of a reliable IT infrastructure and the provision of an incentives package are instrumental in the development of the local IT industry. Other benefits provided to the IT companies are in the form of tax holidays for 15 years and 100% foreign equity ownership. Because of these incentives, an increasing number of foreign IT companies have chosen Pakistan for their outsourcing operations. Some of the areas in which the Government is facilitating the private sector companies include:

i. Information technology parks with low rents, fiber optic connectivity, libraries and conference rooms. ii. Provision of funds for software companies to get ISO-9000 and CMM level certifications. iii. Foreign investors allowed 100% ownership of equity in "IT/ITeS companies" iv. Tax exemption for IT companies till 2016. v. 100% repatriation of profits allowed to IT companies. vi. 5% custom duties on import of IT-related equipment. vii. Seven years' tax holiday for Venture Capital funds. viii. The rate of depreciation on computer equipment is 30%. ix. The State Bank of Pakistan (SBP) has allowed the opening of Internet Merchant accounts by banks.



x. Instant, reliable and high-speed connectivity available. xi. Over 85% of telecommunications infrastructure is on fiber optic cables. xii. Internet access is available in over 1900 cities/towns across Pakistan. xiii. First country in region to establish DWDM telecommunications infrastructure. xiv. Several cellular companies are using digital transmission (GSM and TDMA). xv. The cost of 1 Mbps dedicated DSL connection has been lowered to $700/month. xvi. Redundant backup connectivity is available through PTCL for call centers.13



GENERAL POTENTIAL A substantial number of educated unemployed youth with ability to read and write english exist in the country at very cost-effective wage level, whereas Pakistani students studying overseas in computer related subjects can also be approached. A wide range of hardware platform from mainframe-to-mini/micro computers available. Reasonable skills exist in the following areas,

Operating System – i. Windows, Windows 95,98 & 2000 ii. MAC OS X iii. Novell Netware iv. Windows NT v. UNIX vi. OS/400 vii. Linux

Mobile Platforms: – i. Android ii. iPhone OS iii. Symbian iv. Windows mobile v. Blackberry OS

Programming languages: – i. C ii. C ++ iii. JAVA iv. Informix v. PL/SQL vi. PHP/Python vii. ASP .net viii. VB .net ix. Visual Basic

Databases: – i. Oracle, ii. IBM - DB/2 iii. MySQL iv. Microsoft SQL Server



MARKET ANALYSIS Market Demand: Android Operating System

In July 2005, Google acquired Android, Inc., a small startup company based in Palo Alto, California, USA. Since 21 October 2008, Android has been available as open source. Google opened the entire source code (including network and telephony stacks) under an Apache License. With the Apache License, vendors are free to add proprietary extensions without submitting those back to the open source community. Although Android is an open-source product, some development has been continuing in a private development branch. In order to bring this software into public view, a read-only mirror branch has been created, known as cupcake, as stated on Google's development website: "cupcake is still very much a work in progress. It is a development branch, not a release. Notable changes to the Android software that will be introduced in cupcake include changes to the download manager, the framework, Bluetooth, the system software, radio and telephony, developer tools, the build system and several applications, as well as a number of bug fixes On 30 April 2009, the official 1.5 update for Android was released. There are several new features and UI updates included in the 1.5 update:

- Ability to record and watch videos with the camcorder mode - Uploading videos to YouTube and pictures to Picasa directly from the phone - A new soft keyboard with an "Autocomplete" feature - Ability to automatically connect to a Bluetooth headset within a certain distance - New widgets and folders that can populate the desktop - Animations between screens - Expanded ability of Copy and paste to include web pages[30]

Android had been criticized for not being all open-source software despite what was announced by Google. Parts of the SDK are proprietary and closed source. The Market demand of Android is moving upwards because of the fact that Android is a Google operating system and delivers a comprehensive set of software for mobile devices: an operating system, middleware and key mobile applications. It is expected that Android’s demand show strong demand form the telecom sector as the market gains momentum and more and more manufacturers shift to Android.



FEATURES

Handset layouts The platform is adaptable to larger, VGA, 2D graphics library, 3D graphics library based on OpenGL ES 1.0 specifications, and traditional smartphone layouts.

Storage The Database Software SQLite is used for data storage purposes

Connectivity Android supports connectivity technologies including GSM/EDGE, CDMA, EV-DO, UMTS, Bluetooth, and Wi-Fi.

Messaging SMS and MMS are available forms of messaging including threaded text messaging.

Web browser The web browser available in Android is based on the open-source WebKit application framework.

Java support Software written in Java can be compiled to be executed in the Dalvik virtual machine, which is a specialized VM implementation designed for mobile device use, although not technically a standard Java Virtual Machine.

Media support Android supports the following audio/video/still media formats: H.263, H.264 (in 3GP or MP4 container), MPEG-4 SP, AMR, AMR-WB (in 3GP container), AAC, HE-AAC (in MP4 or 3GP container),MP3, MIDI, OGG Vorbis, WAV, JPEG, PNG, GIF, BMP.

Additional hardware support

Android can utilize video/still cameras, touchscreens, GPS, accelerometers, magnetometers, accelerated 2D bitblits (with hardware orientation,scaling,pixel format conversion) and accelerated 3D graphics.

Development environment

Includes a device emulator, tools for debugging, memory and performance profiling, a plugin for the Eclipse IDE.

Market Similar to the App Store on the iPhone OS, the Android Market is a catalog of applications that can be downloaded and installed to target hardware over-the-air, without the use of a PC. Originally only freeware applications were supported. Paid-for apps have been available on the Android Market in the United States since 19 February 2009.

Multi-touch Android has native support for multi-touch but the feature is disabled at the kernel level (possibly to avoid infringing Apple patents on touch-screen technology). An unofficial mod has been developed that enables multi-touch, but requires superuser access to the device to flash an unsigned kernel.



HIGHLIGHTS 2008 ~ 2009 HTC (High Tech Computer): In 2008 HTC doubled its projected shipments for of G1 to 1 million units. T-Mobile: "Given the great anticipation and the heavy presale demand for the T-Mobile G1 with Google, we nearly tripled the number of phones initially available for delivery on our Oct. 22 launch date, and have sold through them all" Acer: unveiled its Aspire One netbook using Google’s Android operating system on June 2, 2009. Acer is also rumored to be releasing phones called the L1, C1, E1, F1, and A1 in 2009 MIPS Technology: Released the source code to its Google Android port that allows the OS to work with the company’s 32-bit MIPS chips, presently found in set-top boxes, digital TVs, mobile internet devices (MIDs), home media players and VoIP systems. Dell: is rumoured to be working on Android phones and multimedia devices HKC Pearl : which claims to dual-boot Windows Mobile 6.1 and Android. I HKC Imobile v413 : an Android phone which is a clone of the HTC Touch Motorola: confirmed that it was working on hardware products that would run Android. Huawei: plans to release a phone U8220 that would run Android on T-Mobile. Archos: is planning to launch a new device, which would combine significant media capabilities with an Android operating system Lenovo: is working on an Android-based mobile phone Ophone. HTC: will continue releasing a "portfolio" of Android based phones in 2009. GiiNii Movit Mini: is a Internet device based on Google's Android operating system. Chinese ODM Yuhua's first Android phone, the dual-SIM DSTL1 will be released under the General Mobile brand in June. The company is planning more Android devices. Skytone, distributor and software developer of the Skytone Alpha-400 announced the release of an Android netbook, the Alpha-680. Mentor Graphics: enables Android on Freescale's embedded Power Architecture platforms in July 2009. INQ: announced it is developing phones on the Android platform with a release date in 2010.



HARDWARE PRODUCTS RUNNING ANDROID By the end of 2009 there will be at least 18 phone models using Android worldwide, according to Google. In addition to the mobile devices that ship with Android, some users have been able to install it on mobile devices shipped with other OSes.

Manufacturer Name Manufacturer Name

Dell Dell Mini3i Lenovo Lenovo OPhone

General Mobile General Mobile DSTL1 LG Etna

Highscreen PP5420 Motorola Heron, Motorola Sholes, Motorola Morrison

HTC Dream (also marketed as T-Mobile G1, Era G1 in Poland, Rogers Dream in Canada)

Motorola

Motorola CLIQ

HTC Magic/HTC Sapphire (known as the T-Mobile myTouch 3G in the US and the docomo HT-03A in Japan)

Philips V900

HTC Hero (also marketed as T-Mobile G2 in the UK, The Netherlands and Germany)

Qigi i6

HTC

HTC Tattoo (also known as the HTC Click) Samsung Samsung I7500 (aka Samsung Galaxy), Samsung InstinctQ

Huawei Huawei U8230 Sony Ericsson Sony Ericsson XPERIA X3









Market Demand: Android Applications

Results from Android Developer Challenge: list containing the name of the application and its author(s):

- AndroidScan - Jeffrey Sharkey - Beetaun - Sergey Gritsyuk and Dmitri Shipilov - BioWallet - Jose Luis Huertas Fernandez - BreadCrumbz - Amos Yoffe - CallACab - Konrad Huebner and Henning Boeger - City Slikkers - PoroCity Media and Virtual Logic Systems - Commandro - Alex Pisarev, Andrey Tapekha - Cooking Capsules - Mary Ann Cotter and Muthuselvam Ramadoss - Diggin - Daniel Johansson, Aramis Waernbaum, Andreas Hedin - Dyno - Virachat Boondharigaputra - e-ventr - Michael Zitzelsberger - Eco2go - Taneem Talukdar, Gary Pong, Jeff Kao and Robert Lam - Em-Radar - Jack Kwok - fingerprint - Robert Mickle - FreeFamilyWatch - Navee Technologies LLC - goCart - Rylan Barnes - GolfPlay - Inizziativa Networks - gWalk - Prof. Dr.-Ing. Klaus ten Hagen, Christian Klinger, Marko Modsching, Rene Scholze - HandWx - Weathertop Consulting LLC - IMEasy - Yan Shi - Jigsaw - Mikhail Ksenzov - JOYity - Zelfi AG - LifeAware - Gregory Moore, Aaron L. Obrien, Jawad Akhtar - Locale - Clare Bayley, Christina Wright, Jasper Lin, Carter Jernigan - LReady Emergency Manager - Chris Hulls, Dilpreet Singh, Luis Carvalho, Phuong Nguyen - Marvin - Pontier Laurent - Mobeedo - Sengaro GmbH - Multiple Facets Instant Messenger - Virgil Dobjanschi - MyCloset - Mamoru Tokashiki - PedNav - RouteMe2 Technologies Inc. - Phonebook 2.0 - Voxmobili - PicSay - Eric Wijngaard - PiggyBack - Christophe Petit and Sebastien Petit - Pocket Journey - Anthony Stevens and Rosie Pongracz - Rayfarla - Stephen Oldmeadow - Safety Net - Michael DeJadon - SocialMonster - Ben Siu-Lung Hui and Tommy Ng - SplashPlay - Sustain- Keeping Your Social Network Alive - Niraj Swami



- SynchroSpot - Shaun Terry - Talkplay - Sung Suh Park - Teradesk - José Augusto Athayde Ferrarini - The Weather Channel for Android - The Weather Channel Interactive Inc. - TuneWiki - TuneWiki Inc. - Wikitude-the Mobile Travel Guide - Philipp Breuss - Writing Pad - ShapeWriter Inc



MARKET SUPPLY As it is mentioned above there are mushroom software houses and individuals working and meeting the market demand in disciplined and undisciplined manners but to analyze the top leading companies we can easily judge the market supply: The colleges and universities are producing approximately 20,000 graduates every year. Due to the current recession, the market is saturated. A very good fresh graduate is available at around 30 to 35K per month. There are a lot of start-up companies that hire fresh graduates and make them work under the supervision of experienced resources, which works as a training ground for resources. After 1 to 2 years on the job, resources tend to switch to other companies with higher salaries up to 50 to 60K per month, which creates a talent pool of experienced resource available to other companies, who the attrition is also high. Most the students study C/C++ and JAVA in their under-graduate and graduates studies, which are pretty much the two key skills required for iPhone and Android applilcation development. While Android development reuses an engineers existing skills in JAVA, iPhone development requires a steep learning curve when developers have to switch to a variation of C language called Objective-C.

- Skill set - Number of graduates every year: Number of IT graduates produced per year Approximately 20,000 - Starting salary - Career path - Total number of IT professionals employed in Pakistan 110,000

STRATEGIC FACTORS Strategic Recommendation Main strategic recommendations for the projects are as follow:

- Strong technical capabilities and access to high quality managerial talent (e.g. mix of technical and business backgrounds, prior venture experience etc.) - Keeping close interaction with the market demand and requirements. - In domestic niche market there is not too much awareness regarding the software’s and there is need to create awareness in a niche market. - Promoting the products in a professional manner etc.

Success Strategy Following factors are the key in making the project viable and profitable:

- In IT sector the most recent development and make new products with new and different concept make this project successful. - Innovations and ease for clients - Research oriented products with low prices and high quality - Employee friendly management practices (e.g. flexibility, stock ownership, profit – sharing etc.)

Weakness The major weaknesses in this field are:

- Inability of Pakistani firms to tap and penetrate lucrative foreign markets with international standard at competitive prices



- The lack of coherence and co-operation amongst the exporters and the government due to which the problems cannot be effectively addressed and tackled collectively.

- The hunger of capable investors to come in fast maturing market of outsourcing and off-shoring services - Lack of awareness in the government administration, bureaucratic hurdles and lack of political will budgetary constraints in government departments. - Lack of cyber law’s implementation. - Poor infrastructure facilities such as irregular power supply.

Threats The threats identified to the IT industry are as follows:

- Serious professionalization and institutionalization deficit including degradation of education standards. - Continued technological backwardness as a result of the refusal of major international IT players to share technology. - Increased use of imported software because of product dumping by international players. - Massive brain drain due to underpaid IT professionals. There are serious shortage of experienced programmers and IT professionals which are

necessary for the latest technologies.



Total Price in Market

42,927 6,179 4,500

8,571 1,000 800

1,500 2,328 2,000

2,600 847 700

3,000 1,500 1,000

58,598 11,854 9,000

0% 1.1% 1%

Personnel

G&A Expense

Telecom

Property Rentals

Depreciation

Total Expenses

Exchange Rate

USA

India Pakistan

58,598 13039 9000

US$ Cost per FTE (Full Time Employee)

Documents

Android iPhone Feasibility