The Rise of IT Outsourcing in Pakistan and Its Global Impact

Pakistan is becoming an IT outsourcing destination for businesses seeking a skilled and cost-effective workforce. With its growing number of tech professionals, competitive pricing, the country is becoming a focal point for IT services and Business Process Outsourcing (BPO). As the IT outsourcing market in Pakistan continues to expand, the country is well-positioned to play a key role in the global technology landscape, attracting multinational companies seeking innovative, high-quality solutions.

Pakistan as an Economy

Pakistan has a mixed economy, with both state-owned enterprises and private sectors making important contributions. Since its independence, the economy has become more diverse, shifting from mainly agriculture to a broader mix of industries.

Furthermore, remittances are also essential for Pakistan’s economy, providing a large source of revenue. Millions of Pakistanis work abroad and send money back home, adding up to hundreds of millions of dollars each year. This financial support is crucial for families, boosts foreign exchange reserves, and strengthens the national economy.¹

In addition, the China-Pakistan Economic Corridor (CPEC) is a major project aimed at improving infrastructure and trade links between Pakistan and China. It benefits not just these two countries but also Iran, Afghanistan, and the wider region. CPEC enhances connections through better transportation systems, leading to smoother trade, sharing of knowledge, and stronger business growth. These developments aim to create a more connected region with shared prosperity and progress.²

The economy of Pakistan at a glance

	Gross Domestic Product
Annual GDP		USD 338 Billion (2023)
GDP Per Capita		USD 1,365 (2023)
Income Category		Low Middle-Income (2025)
	People
Population		254 Million (2025)
Literacy Rate		58% (2019)
EF English Proficiency Index		Low Proficiency (2024)
	IT Sector
IT Services Market Size		USD 2.6 Billion (2025)
IT Outsourcing Market Size		USD 793 Million (2025)
Registered Software Companies		5,100+ (2023)
	Business Environment
Ease of Doing Business		Score: 61 | Rank: 108 (2020)
Political Stability Indicator		Percentile Rank: 6.6 (2023)
Corruption Perceptions Index		Score: 29/100 | Rank: 133/180 (2023)

IT Services Market in Pakistan

Pakistan’s IT services sector is growing rapidly and is expected to generate $2.63 billion in revenue by 2025. One of the main drivers of this growth is Business Process Outsourcing (BPO), which is projected to make up $0.9 billion of the market, showing the country’s strong position as a cost-effective outsourcing destination. Looking ahead, the industry is expected to grow at a rate of 7.41% per year from 2025 to 2029, bringing the total market value to around $3.5 billion by 2029. This steady growth highlights Pakistan’s increasing importance in the global IT services market, especially in the field of IT outsourcing in Pakistan.

A clear sign of this growth is the expected increase in IT services spending per employee, which is projected to reach $31.23 in 2025. This suggests that businesses, both local and international, are investing more in digital transformation, cloud computing, cybersecurity, and other IT solutions. Multinational corporations are also taking advantage of Pakistan’s skilled workforce and competitive prices, making the country a top choice for IT outsourcing in Pakistan and business process management. In the coming years, Pakistan’s role as a digital leader in South Asia and beyond will continue to grow.³

An interesting aspect of Pakistan’s IT services market is the large number of small and medium-sized IT companies. These firms offer a wide range of services, including software development, digital marketing, IT consulting, and cloud solutions, often at lower costs compared to larger companies. This affordability has helped local businesses, allowing smaller enterprises to adopt digital solutions without the high costs usually involved. The flexibility and cost-effectiveness of these providers have not only fueled growth within the domestic market but have also made Pakistan an attractive destination for IT outsourcing in Pakistan, drawing global clients looking for quality IT services at affordable rates.

IT Outsourcing Market in Pakistan

Pakistan’s IT outsourcing industry is set to position itself as a strong competitor in the global market. By 2025, projections suggest that the sector’s revenue will reach a notable US$792.5 million. With an expected annual growth rate of 10.9% (CAGR 2025-2029), the market is set to expand significantly, reaching US$1.2 billion by 2029. This growth highlights Pakistan’s vast potential in IT outsourcing, solidifying its position as a key hub for technological services.

Pakistan stands out to global companies because of its highly skilled and cost-effective workforce. With a rapidly expanding pool of talented IT professionals, competitive pricing, and government support through favorable policies and incentives, the country is increasingly becoming a preferred destination for IT outsourcing in Pakistan. To fully tap into this potential, the industry needs to continue investing in infrastructure, skill development, and technological innovation. The future of IT outsourcing in Pakistan looks promising, and with sustained efforts, the nation can become a cornerstone of the global technology landscape.⁴

Additionally, Pakistan’s young, tech-savvy, and well-educated population plays a crucial role in the growth of its IT outsourcing market. Pakistani IT professionals excel in multiple programming languages, including Java, Python, and C++. The country’s affordable IT outsourcing services make it an attractive choice for businesses seeking cost-effective solutions. Furthermore, Pakistan’s strategic geographic location, positioned at the crossroads of South Asia, Central Asia, and the Middle East, enhances its appeal as a prime destination for IT outsourcing companies.

Fourth-Largest Gig Economy in the World

Pakistan has emerged as the fourth fastest-growing freelance market, witnessing a 47% increase in freelance earnings during the period of 2018 and 2019, according to Payoneer’s Global Gig Economy Index. Surpassing regional counterparts like India, Bangladesh, and Russia, Pakistan stands among the top freelance markets. The report, based on data from over 300,000 freelancers in Payoneer’s network, highlighted the U.S. leading with 78% growth, followed by the U.K. (59%), Brazil (48%), and Pakistan (47%). A significant portion of Pakistan’s freelancers are under 30, reflecting a younger generation eager for career opportunities.⁵

Pakistan’s infrastructure, policies, and expanding talent pool are well-positioned to support businesses and investors. With high-speed internet enabling a robust communication and data infrastructure, the country boasts one of the highest connectivity rates globally. The nation’s talent pool is a key driver of this progress, with over 25,000 IT graduates entering a workforce that already includes more than 500,000 IT and ITeS professionals and 300,000 active freelancers.⁶

Reputed Software and IT Companies in Pakistan

We have sorted a list of reputed companies that employ the highest number of IT professionals in Pakistan. We have analyzed publicly available information on IT companies and sorted a list of the top 10 firms based on employee count in Pakistan. While our emphasis was on employee quantity, it’s worth recognizing that certain companies, although esteemed for their quality in the market, may not appear in the list due to their smaller employee size.

Software and IT Industry Associations in Pakistan

The software industry associations in Pakistan play a pivotal role in fostering the growth, global visibility, and policy development of the country’s IT sector. Key associations like the Pakistan Software Houses Association (P@SHA), Pakistan Software Export Board (PSEB), and the Pakistan Freelancers Association (PAFLA) each contribute uniquely to strengthening Pakistan’s position as a leading player in the global digital landscape.

Pakistan Software Houses Association (P@SHA)

Pakistan Software Houses Association (P@SHA), established in 1992 by a group of software and IT companies, was formed to serve as a trade association for Pakistan’s IT industry. Its primary goal was to build a robust network of IT and IT-enabled businesses that could collaborate with the government to shape policies and initiatives aimed at fostering the industry’s growth and attracting new members. Over the past three decades, the association has significantly expanded its scope and impact, focusing on four key areas: industry engagement, government relations, brand and global outreach, and skill and capacity development. Additionally, P@SHA has launched various sector-specific and special initiatives to further support the growth of the IT industry.

With over 1,600 members, P@SHA is Pakistan’s premier national IT Association, dedicated to fostering the growth of the country’s IT sector. It supports its members by creating an enabling environment for business operations, advocating with the government, enhancing global visibility, and launching initiatives to develop skills and capacity within the industry. Serving as the industry’s collective voice, P@SHA addresses challenges beyond the scope of individual companies. It contributes to policy-making, legislation, and industry-specific incentives, while also organizing career events and salary surveys to support the sector’s dynamic growth. P@SHA promotes Pakistan’s IT sector globally by organizing trade and technical delegations to various international markets. Recognized for excellence, P@SHA has won multiple awards at the Asia Pacific ICT Awards. Pakistani companies, engaged in innovative work, are driving rapid growth in the software, services, and outsourcing industries.

Pakistan Software Export Board (PSEB)

The Pakistan Software Export Board (PSEB) is creating international opportunities and advancing IT exports for the country’s technology sector. Committed to expanding Pakistan’s digital presence worldwide, PSEB connects local technological innovation with global market demands, establishing the nation as a key hub for technology outsourcing and IT-enabled services (ITeS). Through targeted initiatives in infrastructure development, talent cultivation, business capacity enhancement, and international marketing, PSEB is actively shaping the growth of Pakistan’s IT industry. By supporting startups and enterprises, it enables them to compete and succeed in the rapidly evolving global digital landscape.

Pakistan Freelancers Association (PAFLA)

The Pakistan Freelancers Association (PAFLA) serves as a dedicated support system for independent workers, striving to advance their interests through advocacy, community building, access to benefits, and resource development. The organization actively pushes for policy reforms that protect and empower freelancers while fostering a strong sense of community where individuals can share knowledge, expand their professional networks, and support one another. Recognizing the challenges freelancers face in accessing financial security, the association provides essential benefits such as insurance, loans, discounts, and legal and financial consultations to help sustain and grow their careers. Additionally, it develops resources to facilitate career growth and collaboration, making it easier for both freelancers and organizations to connect and thrive in an evolving workforce.

Reputed Institutions for Higher IT Education in Pakistan

Below is a ranking of the top universities in Pakistan for Computer Science, based on their research performance. The rankings were determined using data from 1.71 million citations across 159,000 academic papers published by 104 universities. The publication ratings were adjusted for release dates and factored into the final scores. Please note that the alumni in engineering roles may include engineering domains other than computer science or software engineering since we have taken the filtered count from their LinkedIn pages and sorted the list in descending order.

With its cost-effective solutions, skilled workforce, and strong government support, Pakistan offers businesses a unique opportunity to tap into high-quality IT services. As the industry continues to grow, the country is set to solidify its position as a preferred outsourcing destination. With ongoing investments in infrastructure, skill development, and innovation, IT outsourcing in Pakistan holds immense potential to drive global business success for years to come.

If you’re looking to outsource in Pakistan and tap into its thriving IT sector, let us help you connect with the best companies through Enosis Outsourcing. Contact us today to learn more and explore the opportunities Pakistan has to offer!

References

[1] Pakistan-Agriculture, Manufacturing, Services|Britannica ↩

[2] Introduction|China-Pakistan Economic Corridor (CPEC) Secretariat Official Website ↩

[3] IT Services – Pakistan|Statista Market Forecast ↩

[4] IT Outsourcing-Pakistan|Statista Market Forecast ↩

[5] The Trends Driving the Global Gig Economy-Payoneer Blog ↩

[6] Techdestination ↩