Business Plan - RYK IT

8/9/2019 Business Plan - RYK IT

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1. EXECUTIVE SUMMARY

Service sector is one of the major contributor of countrys growth, grew by 7.9

percent in 2004-05 aided by remarkable growth in finance and banking sector(21.8%), wholesale and retail trade (12.0%); and a modest growth in transport andcommunication (5.6%). The per capita income in dollars has grown at an averagerate of 13.5 percent per annum during the last three years rising from $ 579 in 2002-03 to $ 657 in 2003-04 and further to $ 736 in 2004-05.

RYK IT Solutions is a project of IT based industry in Pakistan with a proposed marketfrom Multan to Rahim Yar Khan. Due to the center place between Lahore andKarachi, it can be a tricky advantage to cover up the area in between.

Rahim yar khan is an industrial city with too many flour mills, oil mills, ginning and

cotton factories, even Fertilizer companies are here. It is a potential market for the ITbased solutions as currently companies are dependent on the solution providers fromLahore or Karachi.

IT Solution provider is basically an idea to provide the client product of his ownrequirement. In computer terminology we call it Customized Software. Which enablethe user to perform the functions according to his own environment and


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2. INTRODUCTION

Due to the strong potential and rapid growth of the IT sector, Pakistani Govt. hasrecognized the need and necessity to promote the industry in all the ways, locallyand export. Government took some very rational step in the promotion of IT sector

especially exemption of tax up to 2016. Government gives incentives to the ITeducation as well as software houses. No tax charge on export.

Pakistans economic recovery has gained further traction during the fiscal year 2004-05. The exceptionally strong growth was strengthened by accommodativemacroeconomic policies, growing domestic demand, renewed confidence of privatesector, fiscal discipline and competitive exchange rates. During the year 2004-2005Pakistans economy extended in all three major components namely, agriculture,manufacturing and services. The Real GDP grew by 8.4 percent in 2004-05 asagainst 6.4 percent last year and surpassed the target (6.6%) for the year by a widemargin. The growth in year 2004-2005 is supported by a healthy performance inlarge-scale manufacturing (15.4%), impressive recovery in agriculture (7.5%) and a

strong growth in services sector (7.9%).

Service sector is one of the major contributor of countrys growth, grew by 7.9percent in 2004-05 aided by remarkable growth in finance and banking sector(21.8%), wholesale and retail trade (12.0%); and a modest growth in transport andcommunication (5.6%). The per capita income in dollars has grown at an averagerate of 13.5 percent per annum during the last three years rising from $ 579 in 2002-03 to $ 657 in 2003-04 and further to $ 736 in 2004-05.

Exports were targeted to grow by 11.3 percent in 2004-05 rising from $12.3 billionlast year to $13.7 billion this year, thereby registering an increase of $1.3 billion inabsolute terms.One-half of the net increase in exports amounting to $651 million has come from thenon- traditional exports items, followed by 27 percent from other manufactures and13.4 percent from primary commodities exports.

On a monthly basis, exports increased by 35 percent to a provisional $1.5 billion inSeptember 2005 from $1.1 billion during the same month last year. The unexpectedgrowth was because the government has asked exporters to dispose off all the duty-paid stocks before 30th September.

In service sector export relating to IT and IT enabled services (ITeS) during 2004-2005 accounted for US$ 48.50 million, which is transacted through the State Bank of

Pakistan.Whereas the export target for current fiscal year that is 2005-2006 are made for US $72.00 million.

Trends show that economies where services contribute over 60 percent to the GDPenjoy a high per capita income of over $ 20,000. In the US, services sectorcontribute 77 per cent to the GDP compared to agriculture, which though immensecontribute just 2 per cent while manufacturing and others contribute the rest of 21 percent.


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3. INDUSTRY ANALYSIS

Information Technology (IT) is revolutionizing the way, in which we work in evolvingbusiness climate. In a short period of three decades, computer science hasdeveloped from branch of electronics to one of the largest engineering disciplines

itself. The reason for the rapid growth in the demand for software development islead by the widespread use of computers in everyday life, evolution of high-poweredgeneral-purpose computers and low cost of maintaining, debugging of softwareproducts. The potential in the field of software development is still growing worldwide.

Pakistan is rich in human resource, which constitutes the foundation for any major ITinitiative. The technology has emerged as fastest growing sector in Pakistan. Duringlast 10 years, Pakistan has been developing human capital and infrastructure to copewith rapidly advancing IT world. The Government is fully aware of IT being the drivingforce in the new millennium. Presently, IT industry is in take off stage and catching upwith regional and global industry. Pakistan is also sharing internationally in IT.Pakistan is in best position to take on the challenges in the global market. IT Sector

in Pakistan can be categorized in three sub sectors: Software Industry

Hardware Industry

Communication and Service Industry

3.1 Software Industry

Pakistans software industry widely seen as great enabler that provides anopportunity to play a greater economic role in the fast globalizing world. According toconservative estimates, there are about 350-500 software houses working local andexport market in areas of Database management, Internet applications, CAD/CAM

management system etc.

A detail survey of Pakistan software market based on leading 60 software housesrepresenting the software market was taken. It shows that there are over 4,000technical and professional employees with an average of 66 employees in anorganization. Out of these software houses 32% of the software companies reportingannual 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 thewhole these companies had experienced an employment growth of about 27.5% anda 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% revenuesfrom services. The majority of the product-exports are customized rather thanshrink-wrapped products. On the domestic side, however, the ratios are somewhatreversed with products and services contributing 23% and 16.5% respectively. Theindustry is serving the private sector markets with around 85% of the total salesgoing to private sector (local and foreign combined) and the rest going to publicsector, equally divided between domestic and foreign.

Currently a few software companies have either ISO 9000 or CMM certifications mostof the companies has dedicated quality assurance team and this number is plannedto increase.


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3.2 STATISTICS OF THE PAKISTANI IT INDUSTRY

Total number of IT companies registered with PSEB 1595

Number of substantial IT companies region-wise breakup553 Karachi440 Islamabad/Rawalpindi507 Lahore095 Others

Total number of foreign IT and telecommunication companiesworking in Pakistan

60

Total industry sizeUS$ 2.8 billion (WTO-prescribed formula)

IT and IT-enabled services exportsUS$ 1.6 billion (WTO-prescribed formula)

Percent growth in exports over the last one year 34%

Number of IT graduates produced per year Approximately 20,000

Export targets for the current fiscal year 2007-2008 US$ 240 millionNumber of universities offering IT/CS programs 110

Number of IT professionals engaged in export-orientedactivities (software development/call centers etc.)

More than 15,000

Total number of IT professionals employed in Pakistan 110,000

Total IT spending in the fiscal year 2005-2006 US$ 1.4 billion

Total space utilized in IT & Software Technology ParksNine IT Parks covering an areaof 687,285 sq ft


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3.3 PAKISTAN'S IT EXPORTS

The State Bank of Pakistan in its statement for the year 2008-09 reports the exportfigures of software and IT-enabled services to be US$ 201 million which shows aconsistent annual growth. State Bank of Pakistan adopted BPM 5 reporting system to

report the IT exports revenue, which restricted the export figures to US$ 201 milliononly in 2008-09. In India, the Reserve Bank of India follows the BPM 6 (also calledMSITS) Reporting System, which raises its exports to billions of US dollars. BPM 6includes 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 isestimated at US$ 2.8 billion.

State Bank ReportingEarnings

Estimated Total IT IndustryExport Revenue

Estimated Total ITIndustry Size

US $ 169m US $ 1.4b US $ 2.8b

The World Trade Organization (WTO) lists Mode 3, revenue generated bycommercial offices overseas, and Mode 4, compensation received by temporaryworkers who have traveled abroad, as export revenue streams which must beincluded in trade revenue calculation. There is also strong evidence to suggest thatother countries, such as India, in fact employ global services export figures whenreporting or estimating revenue.

Pakistan offers various competitive advantages over other outsourcing destinations,such as high quality software development, swift and easy establishment of

business, lowest cost basis and emerging and state-of-the-art telecommunicationand IT infrastructure. Experts estimate an average annual growth of 33% in thesector. This will result in the total IT export revenue crossing US$ 10 billion in thenext five years.


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Pakistans First Company opened its office in Lahore in 1976 with the name ofSystems Pvt. Ltd. Over the last three decades, the industry has grown from zero toan approximate size of well-over a hundred million dollars and employs thousands ofprofessionals. World wide there are 4-tired taxonomies on which tired-1 countrieshaving more then a billion-dollars of export revenues, and the industry maturity ofmore then 15 years. Tired-2 countries have export revenues of more then $200million and 10 years of industry maturity. Tired-3 countries have more then $25million in exports revenue and over 5 years of industry maturity. All others aspirantsthat do not make the cut fall in the tier-4 of the taxonomy.Currently Pakistan is viewed as a tier-3 country in a widely quoted taxonomy ofsoftware exporting nations. In global pecking order of software exporting nationsRussia and China are tier-2 nations and India is a tier-1, whose ambition andprogress is toward becoming a mini (software) superpower.

Due to liberalize IT Policy software industry in Pakistan has developed a lot, amushroom growth of Software houses have been registered in IT Sector. Information

centers at IT parks and Business Advisory Councils are providing business advice,suggestions and recommendations to the software companies to improve theirbusiness and attract foreign investment.

3.4. EMERGING OPPORTUNITIES

3.4.1 AnimationOne of the truly emerging areas in the context of software i.e. gaming has only begunto gain significance in Pakistan over the last few years. Animation is not just aboutmaking interesting clips using software such as Macromedia Flash and 3D StudioMax; rather, its complexities can involve the improvement of viewing capabilities of awebsite, utilization in games where movie clips are concerned, or even in

advertisements. A number of Pakistani IT companies are successfully making use ofanimation in a variety of possible dimensions. An example of such is theadvertisement campaign for 7UP based on the Fido Dido character, which makesmajor use of animation.3.4.2BPOBusiness process outsourcing is an emerging concept that gives numerous costadvantages over the conventional in-house development. Already, many of thefortune 500 companies have established their offshore development centers in Asiato reduce their cost and sky-rocket the profit. The BPO industry is growing rapidly inPakistan, with exports up by 45 percent in the fiscal year 2003-4 alone.

Pakistan has a large untapped labor pool of English-proficient graduates willing towork at wages 60% below their US counterparts. Furthermore, consolidatedoperating costs are estimated roughly 30% lower in Pakistan as compared to India orPhilippines, two of Asias major BPO contenders. The Government has providednumerous incentives and is willing to invest heavily in the infrastructure required tojumpstart growth in the BPO sector. Pakistan has one of the fastest growing cellularindustries in the world. This, along with the fast-growing Karachi Stock Exchange,has put the country in the spotlight of corporate managers worldwide. This positivetone has been seconded by a Harvard Business School analysis, entitled "BusinessProcess Outsourcing (BPO) opportunities in Pakistan". The report touts 30 percentsavings in costs in Pakistan as opposed to India, along with infrastructure

advantages such as high-speed connectivity in all the major cities at competitiverates.


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3.4.3 ERPEnterprise Resource Planning (ERP) is perhaps one of the toughest and mostdemanding software solutions to provide to any client, involving the completeautomation of the customers company processes. ERP comes in two basic forms:customized ERP (software made as per the demands and needs of the client) orstandard ERP (a solution such as SAP that can be bought off the shelf to beimplemented).

A number of leading IT firms in Pakistan, such as KalSoft (Pvt.) Ltd. in Karachi, areproviding ERP solutions and enabling the recognition of Pakistan as an ERP solutionprovider.

Pakistan's Small and Medium Enterprises (SMEs) sector is currently operating at adisadvantage. This is primarily because a majority of the manufacturing and planningprocesses are either not automated, or, if automated, are not being utilized to theirfullest potential. In order to close this gap, PSEB's Automation of Domestic Industry

on Open Source Systems project is underway for developing complete ERPsolutions to automate the processes and procedures for the SMEs in HR & Payroll,Finance, Inventory, Production and Sales in those sectors of the economy whichhave the highest export potential. The ERP solutions are being developed usingopen source software code, allowing for further enhancements to be made to theapplications as per the needs of the units. The project has collaborated with softwareconsulting companies with expertise in developing/implementing ERP solutions forthe industry. These companies include NetSol and ITIM Associates along withAcrologix. To date, two solutions have been deployed and are in the testing phase.

3.4.4 Gaming

Computer games are now a huge market with firms such as Electronic Arts andCapcom investing billions of dollars into the industry, and earning similar amountsthrough the widespread fame and sales of hits such as FIFA 2005, the Prince ofPersia trilogies, Halo and Counter Strike etc. Game development is emerging inPakistans IT Industry as well with some serious work being done in the fieldindicating progress. One such example is Commando 4, Pakistans first ever 3Danimation game developed by MicroPoint.

Another major player in Pakistans Gaming Industry is Soft flux which was founded inJanuary 2005. The company targets the exploding mobile gaming industry. In July2005, Micromiles released Cap Snap, a mobile game for Nokia and Siemens

mobiles, a successful launch which was followed by the development of a website formobile games (gameknock.com).

3.5 PROSPECTS, INCENTIVES AND POTENTIAL OF INDUSTRY

The ability of Pakistan to produce quality software is based on our abundant pool ofIT professionals. Pakistan is producing about 5,500 IT graduates annually but thereis need to utilize their potential and facilitate their innovations. The online serviceswith unmatched security and superior customer satisfaction are required to enhancemarket and open new horizon for the sector. More opportunities are being open insoftware 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 becomeaffordable force in the global arena. The government is taking all possible measures


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to spur activities in the IT sector and the framework is now more conductive thenever before for investment in the sector. The strengthening factors, which support thefeasible software house, are as follows:

3.5.1 Internet

Pakistan at the time of its inception in 1947 owned a meager telecom base with just7000 telephone lines. Telecom service was meant just to meet the needs of countryadministration.The measures taken to promote Internet and software are as follows:

1. 20-50% reduction on the leased lines for ISPs, and software exporters.2. Concessions to Schools, universities & institutions for Internet usage.3. Majors cities of country are connected with fiber optic/digital cross connect

system.4. Segregation of telephone and internet traffic to bring internet away from time

metering.5. Second high capacity fiber optic link commissioned in 1998 (catering 20 new

cities).6. Currently about 100 licenses stand issued out of them 50 are operating theservice.

7. Custom duty on the telecom & Internet equipment reduced8. Waiver granted from 25% CED on leased lines given to license ISPs &

Software9. Exporters.10. 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.

3.5.2 E-CommerceThe present government in Pakistan has also recognized the importance of e-

commerce and finally getting the attention, which it rightly deserves. ElectronicCommerce enhances trade efficiencies by eliminating the delays and cutting thedocumentation costs by allowing trade partners to exchange transaction datadigitally. Though e-commerce is already taking place in Pakistan, and its level is thelowest in the region.

3.5.3 Incentives

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

Information technology parks with low rents, fiber optic connectivity, librariesand conference rooms.

Provision of funds for software companies to get ISO-9000 and CMM levelcertifications.

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. 5% custom duties on import of IT-related equipment.


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Seven years' tax holiday for Venture Capital funds.

The rate of depreciation on computer equipment is 30%.

The State Bank of Pakistan (SBP) has allowed the opening of InternetMerchant accounts by banks.

Instant, reliable and high-speed connectivity available.

Over 85% of telecommunications infrastructure is on fiber optic cables. Internet access is available in over 1900 cities/towns across Pakistan.

First country in region to establish DWDM telecommunications infrastructure.

Several cellular companies are using digital transmission (GSM and TDMA).

The cost of 2 Mbps connection has been lowered to $2000/month.

Redundant backup connectivity is available through PTCL for call centers.

3.6 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 newand different concept make this project successful.

Innovations and ease for clients

Research oriented products with low prices and high quality Employeefriendly management practices (e.g. flexibility, stock ownership, profit sharing etc.)

3.7 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 andtackled collectively.

The hunger of capable investors to come in fast maturing market ofoutsourcing and off-shoring services

Lack of awareness in the government administration, bureaucratic hurdlesand lack of political will budgetary constraints in government departments.

Lack of cyber laws implementation.

Poor infrastructure facilities such as irregular power supply.

3.8 Threats

The threats identified to the IT industry are as follows:

Serious professionalism and institutionalization deficit including degradationof education standards.

Continued technological backwardness as a result of the refusal of majorinternational IT players to share technology.

Increased use of imported software because of product dumping byinternational players.

Massive brain drain due to underpaid IT professionals. There are seriousshortage of experienced programmers and IT professionals which arenecessary for the latest technologies.


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4. DESCRIPTION OF VENTURE

The project has concept of Quality software development house with corporatepresence in Rahim Yar Khan, Pakistan and Target market from Bahawalpur toSukkur to utilize the cutting edge technology and offer full range of business

application solutions for the corporate, financial and industrial sectors. The Project'sstrategic vision will be providing the clients with quality systems to stimulate theirgrowth in the existing competitive markets.Three important aspects are being considered while developing the project:

1. Robust, and extensible architecture and design2. Good software quality3. On-time delivery

The planning to achieve these objectives required:

Employing a highly professional and experienced staff in all aspects projectmanagement, architecture, design, development and Quality Assurance

Ensuring continuous personal and professional growth through on-goingtraining

Having a well-developed organization structure, and well-definedresponsibilities

within the company in order to ensure good teamwork, coordination, andtimely product delivery

Providing good customer support and services

4.1 PRODUCTS / SERVICES

Our major emphasis will be on providing these comprehensive services to our clients.

4.1.1 ConsultancyThe first step would be providing consultancy regarding the software problems of theclient. And perform a customer specification analysis, in which the core requirementsof the system will be identified and comprehensive functional specifications for thesoftware that need to be developed to ensure the solution of customers problem.

4.1.2 DemonstrationThe prototype or demonstration version of the software will be prepared to give thecustomer an idea how exactly the system will work for them. Customer can visuallysee how the system will perform its functions. Hence the Demonstration version will

enable customer to have an idea about the core system.

4.1.3 DesignAfter the finalization of the system requirements, the design work will be started. Theobject-oriented and normalized database will be designed for making the systemextensible and easy to maintain. It will include the object model diagram which showsthe relationship between all modules and classes.

4.1.4 Coding and Quality AssuranceThe coding language will be selected used on the customer requirements andsuitability for the system. Normally the dot net frame work will be used for desktopbased applications and PHP for web based solutions. The coding will be according to

the highest standards and we will ensure the quality of the international standards.The QA (Quality Assurance) team will do test planning and test case generation for


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each application to be delivered to the client.

4.1.5 Customer SupportThe project will include the customer support which could be on-site, phone or emailas per the client agreement in order to ensure the proper implementation of newsystem and solution of any problem which may occur.

4.1.6 User DocumentationThe project will accompany with the user documentation, like help, tutorials,audio/video guides, reference manuals and presentations as per the requirement ofthe client.

4.2 ORGANIZATION LAYOUT

Chief Executive

Officer (CEO)

Consultancy DevelopmentQuality

Assurance SupportOffice

Management


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4.3 OFFICE EQUIPMENTS AND PERSONNEL

4.3.1 Human ResourcesThe project should have highly educated and skilled manpower to support itssoftware development operations. Initially 10 technical staff will be hired which is

likely to grow to over 24 by the beginning of the next year.

Chief Executive Officer:The key personnel CEO should have M.S. degree from leading university, andrequire successfully work on export software projects that will provide overalltechnical and business direction for software development activities.

The Chief Software Architect CSA:He will be strong background in software design and architecture, with special focuson Object-Oriented Design and implementation. His role will be streamlining thesoftware development methodology and life cycle, and software design processes.Validating object designs and acting as technical consultant for team lead and

developers.

The majority of technical team would have full command on methods, tools andtechnology necessary to develop high quality enterprise software systems and wouldbe capable to generate an idea from scratch, analyze it, form a solution, implement itand then deploy it.Staff should be trained and fully equipped with latest technology and advancement.

4.3.2 Office EquipmentsAs it is an IT based firm so major equipments would be personal computers forvarious departments and furniture and fixture.

LocationThe suggested location for software house will be on Club Road, which is apromising commercial area of the city. The Land can be leased for 10 years to saveheavy costs. The second best location is Firdous Market, Rahim Yar Khan which is acommercial area and based on computers and mobile shops.

Computers and EquipmentThere is not much high value machinery required as its human based business. Thecomputer and equipments cost will include, personal computers, UPS, server,Network adapters, Network equipment, Internet and Printer etc The complete detailwill be listed later.

Furniture and FixtureIt will include the computer furniture for individuals on manager level and a computerlab for the programmers, technicians and support staff. It will also include the AirConditioners for rooms, CEO and senior staff furniture, telephone, fax, books andother materials.

VehiclesThe company will provide a 1000cc car to CEO and 2 800cc cars for CSA andMarketing Manager. The marketing team will also be provided with two motorbikeswhich will be purely used for office purpose.


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5. OPERATIONAL PLAN

This is the plan how the operation would be carried on, the diagram shows therelationship between Analyst, Tester, Designer and Programmer. Their respectiveworks has been discussed earlier.

TECHNOLOGYWe will have developers for Dot Net Frame Work, Platform IndependentProgramming, C sharp and Java based application programmers. The database willbe chosen according to the system requirement from MySQL to MsSQL and Oracle.We will have licensed version of Microsoft VISUAL STUDIO 12, MySQL 2007 andOracle i8.


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6. FINANCIAL PLAN

Based on certain assumptions, the financial results of the project have beenprojected.

6.1 Project Cost

Rupees

Capital Investment Required 30,00,000Working Capital 5,00,000Total Investment 35,00,000

6.2 Project FinancingThe estimated total cost of the project is and 60% of it will be financed by theentrepreneur and remaining 40% will be financed by Bank loan.

RupeesDebt 14,00,000Equity 21,00,000Total Investment 35,00,000

6.3 Project Details

The project is based on human capital therefore no intense machinery will berequired. The major cost would be spend on computer and equipments, thencapacity and location.

Location

The suggested location for software house will be on Club Road, which is apromising commercial area of the city. The Land can be leased for 10 years to saveheavy costs. The second best location is Firdous Market, Rahim Yar Khan which is acommercial area and based on computers and mobile shops.

Computers and Equipments

Title Units Unit Cost Total Cost

PCs 8 20,000 160,000

Laptop 2 43,000 86,000

Server 1 56,000 56,000

UPS for PCs 11 2,800 30,800Network Equipments 1 35,000 35,000

Printers 2 9,500 19,000

Software (Windows) 11 3,500 38,500Software (Antivirus) 11 1,700 18,700

Software (Developing Tools) 9 8,000 72,000

Power Generator 1 45,000 45,000

Misc 20,000

Total 581,000


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Furniture and Fixture

Title Units Unit Cost Total Cost

Computer Furniture 9 5,000 45,000Office Furniture 2 9,000 18,000

Furniture CEO Office 1 15,000 15,000

Split A/Cs 4 28,000 112,000

Telephone Exchange and Phones 1 20,000 20,000Fax 1 7,500 7,500

Photocopier 1 28,500 28,500

Misc 30,000

Total 276,000

Human Resource

Personnel No. Salary Annual

Technical

Chief Executive Officer 1 60,000 720,000Chief Software Architect 1 48,000 576,000

Software Architect 2 30,000 720,000

Senior Analyst 1 40,000 480,000

Analyst 1 30,000 360,000Database Administrator 2 25,000 600,000

Senior Software Engineer 1 30,000 360,000Software Engineers 2 22,000 528,000

System Administrator 1 20,000 240,000

Total 12 305,000 36,60,000

Non-Technical

Marketing Manager 1 35,000 420,000

Accountant 1 30,000 360,000

Helpers 3 5,000 180,000Cleaners 1 5,000 60,000

Total 6 75,000 10,20,000


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Revenues

The estimated revenues are more than 700,000 Rupees a month as we are going totarget not only the local market but focus will also be on the Exports. We arespending high costs on qualified personnel to make the quality standards and it willgain access to international market.We are estimating a profit of 30% on our investment and the project payback periodwill be 4 years.

Projected Income Statement

Year 1 Year 2

000 000

Revenue 8400 10,080

Operating Expense 5520 6624Depreciations 120 120

Earnings before Interest and Tax 2760 3336Interest 196 196

Earnings before Tax 2564 3140Tax Charge - -

Earnings After Tax 2564 3140


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References

Economic Survey

SBPs Annual Report

Pakistan Software Export Board Federal Bureau of Statistics

Pakistan Economist

SMEDA Pre-feasibility Reports

Various Websites for Guidance

Documents

Business Plan - RYK IT