SAS Tech

SAS Tech

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SAS Tech

Proposal of Software House

Submitted To:

Sir Riaz-ud-din

Submitted by:

Amna RiazShahab Mustafa

Sadaf ZehraMBA III

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SAS Tech

Table of Contents

Sr # Particulars Page NoSAS TECH 4

1 Market analysis 42 Industry at a glance 6,73 Main idea 84 Technical analysis 9,10,115 Software House Sequence 126 Financial analysis cont... 13

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7 Bibliography 17

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SAS Tech

SAS Tech is the software house which is concentrating on Pakistani projects

specially to participate in development of Pakistan thus enhancing IT value and strength

in country.

1-Market Analysis

The Pakistani IT & ITES industry today has an impressive story to tell. Much like the

successful startup that one would have not heard of a few years ago but is all of a sudden

the talk of the town. The Pakistan IT and ITES industry has started to appear on the radar

of firms like Gartner and IDC and in reports by AT Kearny and the World Bank. It is a

transformed industry growing exponentially and creating a stir.

1.1 Estimated Size of IT Industry

From its nascent beginnings in the late 1980s, the industry has successfully arrived to a

point where its value proposition has been validated over and over again. The largest

members are grossing 15-25 million dollars in revenues, and receiving 100 million dollar

valuations. Most tech companies are growing in excess of 30% a year annually. The

industry as a whole is doing over 2 billion dollars a year in revenue, up from less than a

billion dollars a few years ago.

1.2 Software & Services Sector with 39% Growth

for 2007 – 08

About half of this growth is coming from foreign, software and high end services

projects. IBM, Cisco and Microsoft are expanding Pakistan operations aggressively while

several startups are now backed by VCs such as e-Planet Ventures, Motorola, and Adobe.

1.3 Employment of Professionals by 41% Growth

Sectors and countries have achieved in 15-20 years, Pakistan’s technology scene is

poised to achieve in less than a decade.

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SAS Tech

Putting it all together, the Pakistani Technology industry is very different from what it

was in the early 1990’s. From 4 founding companies in 1994, PASHA’s current

membership exceeds 370. From 4,619 full-time employees in 2004, current employment

is at 12,232 and rising.

The number of QA Professionals has doubled in the last 3 years and 20% of those

employed in the sector are foreign qualified. Fast becoming a hub of high performance

business, the questions now asked are if growth this year will be 28% or 50%, if there

will be enough skilled HR to staff demand, if there will be enough office space available

next year.

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SAS Tech

2-The Industry at GlanceSoftware/BPO

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SAS Tech

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SAS Tech

3-Main Idea

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SAS Tech

Our main idea is to open a software house in Karachi which would be the biggest software house in the Pakistan. We will have mainly two departments.

3.1 Prospecting Projects

Supporting ANR (Afghan National Refugee):

We will support ANR project in collaboration with NADRA by using SQL, Oracle

Data Base for Institutions

Basically concentrating on the projects and solutions for institutions like Educational ,

Medical and Business Growing Institutes.

4-Technical Analysis:

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Departments

Direct Projects Out sourcing

SAS Tech

4.1 Labor

. A professional software house normally consists of at least three dedicated sub-teams :

business analysts who define the business needs of the market

software designers/programmers who creates the technical specification and next

do a coding

software testers who are responsible for the whole process of quality management

The pros:

each person has full knowledge about the full production cycle

people are doing various tasks what makes especially young people excited about

their work

there is a very good possibility to manage the work load especially in crisis

situations like "all hands on pump"

4.2 Location and Size:

Our software house will be situated in main SADDAR area of Karachi. Size of our

software house would be approximately 2 acre.

4.3 Machineries and technology

We need to install high quality machinery. For this purpose we will import our

computers from U.S market and their technical people will install the computers and

networking.

4.4 Training

For better and efficient use of the imported machinery we will send our experiences

programmers to U.S for training.

4.5 Software House capacity:

We will arrange 24-hours open at our software house and employees will have morning

and night shifts. So we can increase the production capacity of our software house and

ultimately more people will get employment.

4.6 Input Constraints

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SAS Tech

Biggest constraint is load shedding. For this purpose we will arrange generators.

Generators will increase our cost but it will increase our results accordingly.

4.7 Methodologies

Software house may use a number of various methodologies to produce the code. These

can include:

the waterfall model, including project management methodologies like PRINCE2

or PMBoK

agile software development , such as Extreme Programming and SCRUM

There are also some methodologies which combine both, such as the spiral model, RUP

or MSF.

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SAS Tech

4.8 Projects in Controlled Environments

We will mainly follow PRINCE2. (Projects in Controlled Environments)

Fig: PRINCE2 Methodology

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SAS Tech

5-Software House Sequence

The sequential working of the our Software house with the team and procedures of IT is

given in pictorial form

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SAS Tech

6-Financial Analysis

6.1Cost of Project

The estimated cost of project is Rs 15,670,000 according to proposal research and market study.

6.2 Means of Financing

Partner’s Equity:

Partners Name Equity in Rs ShareholdingMs Amna Riaz 700,000 25%Ms Sadaf Zehra 700,000 25%Mr. Shahab Mustafa 700,000 25%Ms Khudija Riaz 700,000 25%

Borrowings

o Borrowing from bank Rs 420,000

o Long-term Loan Rs 840,000

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SAS Tech

6.3 Projections

Start-Up ExpenseExpense Heads Amount in RsLegal 10,000License 2,000,000Marketing 210,000Furniture 900,000Fixtures 350,000

Computers Hardware & software Laptop Printer Projector Main Server -Networking

50, 00,000

Equipments Photostat machine Fax machine Stationery Generator

Telephone

50, 00,000

Research & Development 30, 00, 000Rent Advances and Rent 700,000Other expenses 500,000Total Start-Up Expense 15,060,000Required cash in hand 610,000TOTAL 15,670,000

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SAS Tech

Financial Projections:

Three years projected profit and loss and balance sheet are made to show an estimate of

S.A.S in coming years.

Projected Profit And Loss Statement

Projected Profit And Loss Statement2009 (in Rs) 2010 (in Rs) 2011 (in Rs)

Sales 2,000,000 2,150,000 2,500,000Less: Cost of Sales (1,200,000) (1,450,000) (1,500,000)Gross Profit From Sales 800,000 700,000 1,000,000Selling and Administration ExpenseSalaries and wages 250,000 250,000 250,000Commissions 15,000 15,000 30,000Office suppliers 90,000 90,000 70,000

Legal fees 50,000 50,000 100,000Advertising 210,000 250,000 300,000Equipment 50,000 10,000 70,000Research & development 25,000 35,000 50,000

Interest 70,000 70,000 140,000 Sundry expense 100,000 50,000 90,000Less: other income 860,000 800,000 1,100,000

Total expenses (75,000) (130,000) (910,000)

Net Profit 5,000 30,000 90,000

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SAS Tech

Projected Balance Sheet

AssetsCurrent Assets

2009 2010 2011Cash 400,000 450,000 650,000Accounts Receivable 600,000 550,000 500,000Inventory 165,000 165,000 200,000Prepaid rent 600,000 675,000 650,000Bill Board 50,000 (100,000) 250,000Total Current 865,000 1,940,000 2,250,000Fixed Assets Furniture 900,000 900,000 1,000,000Fixture 350,000 350,000 350,000Computer Hardware 345,000 345,000 500,000Equipment 425,000 425,000 500,000Less: Accumulated Depreciation

(100,000) (100,000) (100,000)

Total Fixed Assets 1,920,000 1,920,000 2,250,000Total Assets 3,785,000 3,860,000 4,450,000

Liabilities And Capital

Current Debt:

2009 2010 2011Accounts Payable 200,000 300,000 250,000Accrued Expense 100,000 200,000 150,000Current Borrowing 210,000 210,000 420,000Subtotal Current Liabilities

510,000 710,000 820,000

Short term loan Long-term Loan

560,000 420,000 840,000

TOTAL LIABILITIES 1,070,000 1,130,000 1,660,000

Capital Stock

2009 2010 2011Ms. Amna Riaz 700,000 700,000 700,000Ms. Sadaf Zehra 700,000 700,000 700,000Mr. Shahab Mustafa 700,000 700,000 700,000

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SAS Tech

Ms. Khudija Riaz 700,000 700,000 700,000Profit 15,000 30,000 90,000Total Capital 2,715,000 2,730,000 2,790,000Total Liab & Capital 3,785,000 3,860,000 4,450,000

Bibliography:

Resources from where the primary research work is done

http://www.pasha.org.pk/

IT professional of NADRA and Plexus (Pvt) Limited

www.wikipedia.com

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