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There is a vast scope for development of IT in SAARC region.

Information Technology in India accounts for a substantial part of the country's GDP and export earnings while providing employment to a significant number of its tertiary sector workforce. Technically proficient immigrants from India sought jobs in the western world from the 1950s onwards as India's education system produced more engineers than its industry could absorb. India's growing stature in the information age enabled it to form close ties with both the United States of America and the European Union.

Out of 400,000 engineers produced per year in India, 100,000 possessed both technical competency and English language skills. India developed a number of outsourcing companies specializing in customer support via Internet or telephone connections.

By 2008, India also has a total of 49,750,000 telephone lines in use, a total of 233,620,000 mobile phone connections, a total of 60,000,000 Internet users—comprising 6.0% of the country's population, and 4,010,000 people in India have access to broadband Internet— making it the 18th largest country in the world in terms of broadband Internet users. Total fixed-line and wireless subscribers reached 325.78 million as of June, 2008.

The Government of Pakistan has, over the last few years, granted numerous incentives to technology companies wishing to do business in Pakistan. A combination of decade-plus tax holidays, zero duties on computer imports, government incentives for venture capital and a variety of programs for subsidizing technical education, are intended to give impetus to the nascent Information Technology industry. This in recent years has resulted in impressive growth in that sector. Pakistan saw an increase in IT export cash inflows of 50% from 2003-4 to 2004-5, with total export cash inflows standing at $48.5 million. In 2005-6 export cash inflows increased to greater than $73 million. This year the government has set a goal of $108 million. Exports account for 11% of the total revenues of the IT sector in Pakistan. Compared to India, Pakistan's IT sector is relatively small, but recent growth has been extremely high leading economists to be optimistic about the IT industries future prospects in Pakistan. Gartner, one of the world’s leading information technology research and advisory companies has placed Pakistan amongst the top countries of the world in terms of suitability for offshore outsourcing.


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