Unlike other Pak IT companies,Axact does not give its clients detail

KARACHI: The reported shady dealings of IT company Axact has left an undesirable mark on Pakistan IT industry standing which after a decade of struggle reached the USD 2 billion mark. Pakistan IT Industry already lags behind neighboring Indian IT industry by a huge margin and this latest controversy would push It further back. Indian IT industry including all domestic and export revenues is well over USD 110 billion compared to Pakistan’s estimated USD 2 billion plus industry.
Axact indulgence in illegal degree business as reported by NYT and its claims to have global revenues of USD 1 billion without matching infrastructure, products and client list have seriously jeopardized the credibility of Pakistan IT sector. Axacts pronouncements seem very hollow compared to corporate structure and achievements of Pakistan’s other top IT companies.
On its global website, Axact does not mention the address of any foreign office whereas it claims to manage USD one billion global revenues. In contrast , Pakistan’s reputed companies like TRG annual revenues of nearly USD 250 million which are one fourth of Axact pronounced annual revenues maintains offices in USA, UK, Pakistan, Senegal, UK and Philipines to manage its global clients. Similarly Netsol , another global Pakistani software company with annual revenues approaching USD 50 million maintains offices in USA, Germany, China, UK, Pakistan, Australia and Thailand. Axact website claims to have presence in 120 countries without any corresponding addresses or contact info.
Global and Pakistan software companies have a very focused approach and specialize in producing and selling certain type of softwares in the highly competitive global marketplace.
Netsol specializes in Asset Finance and Leasing software . Netsol website mentions specific clients in auto finance, banking, equipment finance which include prestigious clients in auto sector like Mercedes Benz, Volkvagon, Ford, Nissan, Volvo, BMW. Under banks Netsol clients like Citi Bank, Chase, BNP Paribas and in equipment finance, clients like Cisco , Scania others are mentioned. Similarly TRG specializes in Call Center solutions besides other software and IT managed services and is one of world top ten call center solution providers. TRG has a long list of clients and partners.
Another top Pakistani software company Systems Pvt Ltd with around 38 years of standing and around USD 20 million in annual revenues specialize in BPO solutions. Systems Ltd on its website informs in detail about its projects with ICI, NADRA, Engro, Hinopak, ENI others. Systems sponsors operate a company in USA as well which also lists different products and services and clients list.
Besides, may companies doing IT business give details about their clients on their web sites.
In sharp and mysterious contrast, the website of Axact which claims to be superior to the above top three Pakistan software and IT companies does not mention specific details of its leading softwares and most importantly the local and international clients which bought these softwares. There is only one mention of a ERP solution sold to Karachi Defence Housing Authority.
In terms of working staff , Axact claims to employ 25,000 workforce but does not give any details about their location or whereabouts. In contrast, Netsol website informs about its 1500 total work force and provides info about their team leaders in different locations. Similarly one can find information about TRG locations and distribution of its staff of over 10,000 employees in its operations in different parts of the world. Similar info is also available System Ltd 2500 employees at different locations in Pakistan and abroad.
Similarly, the top Pakistani software companies attend global Exhibitions and Fairs world over . Netsol website informs its participation in relevant industry fairs like AFI Automotive Conference in London in May 2015, 7th Annual Leasing Summit in China in June 2015 besides other events. Axact website does not have any such info.
In nutshell, as per public info available, the lack of information about Axact products and services, its clients, international offices, staff distribution lays credence to the conclusion that the company’s actual profile does not match with its lofty claims to be Pakistan’s No 1 IT company. In the absence of matching products, clients and global offices, the huge amount of money FIA and other authorities have dug in its transaction lead to only conclusion that Axact infrastructure was being used for some other undesirable IT enabled activity some of which are pointed in NYT report.