Software house (Proposal)

SAS Tech

SAS Tech

Proposal of Software House 1

SAS Tech

Submitted To: Sir Riaz-ud-din Submitted by:

Amna Riaz Shahab Mustafa Sadaf Zehra MBA III

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SAS Tech

Table of Contents Sr # Particulars 1 2 3 4 5 6

SAS TECH Market analysis Industry at a glance Main idea Technical analysis Software House Sequence Financial analysis cont...

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Bibliography

Page No 4 4 6,7 8 9,10,11 12 13 14 15 16 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 Glance Software/BPO

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SAS Tech

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SAS Tech 3-Main Idea 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.

Departments

Direct Projects

Out sourcing

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.

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SAS Tech 4-Technical Analysis: 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

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software designers/programmers who creates the technical specification and next do a coding

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

The pros: •

each person has full knowledge about the full production cycle

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

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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

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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.

4.8 Projects in Controlled Environments 10

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

Fig: PRINCE2 Methodology

5-Software House Sequence

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SAS Tech The sequential working of the our Software house with the team and procedures of IT is given in pictorial form

6-Financial Analysis 12

SAS Tech 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 Ms Amna Riaz Ms Sadaf Zehra Mr. Shahab Mustafa Ms Khudija Riaz

Equity in Rs 700,000 700,000 700,000 700,000

 Borrowings o Borrowing from bank o Long-term Loan

Rs 420,000 Rs 840,000

6.3 Projections

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Shareholding 25% 25% 25% 25%

SAS Tech Start-Up Expense

Expense Heads

Amount in Rs

Legal License Marketing Furniture Fixtures

10,000 2,000,000 210,000 900,000 350,000 50, 00,000

Computers  Hardware & software  Laptop  Printer  Projector  Main Server -Networking Equipments  Photostat machine  Fax machine  Stationery  Generator Telephone Research & Development Rent Advances and Rent Other expenses Total Start-Up Expense Required cash in hand TOTAL

50, 00,000

30, 00, 000 700,000 500,000 15,060,000 610,000 15,670,000

Financial Projections:

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SAS Tech 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 Statement 2009 (in Rs) 2010 (in Rs) Sales 2,000,000 2,150,000 Less: Cost of Sales (1,200,000) (1,450,000) Gross Profit From Sales 800,000 700,000 Selling and Administration Expense Salaries and wages 250,000 250,000 Commissions 15,000 15,000 Office suppliers 90,000 90,000

2011 (in Rs) 2,500,000 (1,500,000) 1,000,000 250,000 30,000 70,000

Legal fees Advertising Equipment Research & development

50,000 210,000 50,000 25,000

50,000 250,000 10,000 35,000

100,000 300,000 70,000 50,000

Interest Sundry expense Less: other income

70,000 100,000 860,000

70,000 50,000 800,000

140,000 90,000 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 Assets Current Assets Cash Accounts Receivable Inventory Prepaid rent Bill Board Total Current Fixed Assets Furniture Fixture Computer Hardware Equipment Less: Accumulated Depreciation Total Fixed Assets Total Assets

2009 400,000 600,000 165,000 600,000 50,000 865,000

2010 450,000 550,000 165,000 675,000 (100,000) 1,940,000

2011 650,000 500,000 200,000 650,000 250,000 2,250,000

900,000 350,000 345,000 425,000 (100,000)

900,000 350,000 345,000 425,000 (100,000)

1,000,000 350,000 500,000 500,000 (100,000)

1,920,000 3,785,000

1,920,000 3,860,000

2,250,000 4,450,000

Liabilities And Capital Current Debt: Accounts Payable Accrued Expense Current Borrowing Subtotal Current Liabilities Short term loan Longterm Loan TOTAL LIABILITIES

2009

2010

2011

200,000 100,000 210,000 510,000

300,000 200,000 210,000 710,000

250,000 150,000 420,000 820,000

560,000

420,000

840,000

1,070,000

1,130,000

1,660,000

2009

2010

2011

700,000 700,000 700,000 700,000 15,000 2,715,000 3,785,000

700,000 700,000 700,000 700,000 30,000 2,730,000 3,860,000

700,000 700,000 700,000 700,000 90,000 2,790,000 4,450,000

Capital Stock Ms. Amna Riaz Ms. Sadaf Zehra Mr. Shahab Mustafa Ms. Khudija Riaz Profit Total Capital Total Liab & Capital

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SAS Tech 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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