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Experts urge reskilling in automation, AI, and IoT to tap outsourcing, JV opportunities
KARACHI:
As investment from the United States in Pakistan’s IT companies is drying up, entrepreneurs are exploring new markets such as the Middle East and Europe. Pakistan’s IT industry faces an urgent need to reskill its workforce to meet the evolving demands of European markets, where opportunities in automation, artificial intelligence (AI), and smart systems are expanding rapidly. Experts warn that unless local software houses and IT firms adapt their human resource capabilities, Pakistan risks missing out on high-value outsourcing contracts and strategic partnerships in the region.
They emphasise that the skill gap, particularly in industrial automation, Internet of Things (IoT), embedded systems, and edge computing, remains a major barrier to penetrating Europe’s lucrative tech landscape. The country’s export ambitions, including the $10 billion target under the government’s Uraan programme by FY29, hinge on strengthening this talent base.
Industry leaders have called for large-scale reskilling initiatives through government-led boot camps, stronger university-industry linkages, and language training in German and French to enhance competitiveness. Despite efforts by the Pakistan Software Export Board (PSEB) and Pakistan Software Houses Association (P@SHA) to promote capacity building, experts say that only a fraction of local firms are equipped to meet European clients’ specialised needs.
Syed Saad Abbas, a Germany-based embedded software developer, said that digital and industrial transformation in European states demands core skills in industrial automation, IoT, and smart system integration to support the outsourcing of projects to various local and foreign companies.
Leading European companies, including renowned brands, are developing intelligent firmware solutions that enable automation, adaptability, and optimisation while enhancing productivity manifold. However, the expertise required for these emerging fields includes TinyML, AI, cloud connectivity, and edge computing, he said. He pointed out that business tycoons and conglomerates offer large-scale projects for long-term periods; hence, Pakistani IT companies could explore lucrative opportunities either independently or through joint ventures with local or foreign firms to bridge the services gap.
Furthermore, IT companies in Pakistan should equip themselves with human resources capable of communicating in foreign languages, including German and French, to gain a competitive edge over other market players, he added. Pakistani IT companies, under the PSEB, have made great strides in exploring emerging and lucrative markets. Pakistani firms showcased their services and solutions at GITEX Europe and at conferences and exhibitions in Germany, France, the Netherlands, and Norway in 2025. Unfortunately, only a limited number of local companies could participate in these trade fairs to attract European clients, while the skill gap could be one of the factors for their absence.
The Ministry of IT, through the PSEB, launched capacity-building programmes and boot camps across the country with an investment of Rs1 billion during the last financial year.
Senior Vice Chairman of P@SHA, Muhammad Umair Nizam, said that the IT industry has been aggressively exploring new markets for the past two years to enhance exports worldwide. He added that the industry is taking cognisance of both its strengths and shortcomings. “In this regard, the Pakistan IT industry association is continuously working on skill development and capacity building for professionals in this field, in collaboration with PSEB, through skill surveys, recommendations, and boot camp arrangements with its members,” he said.
“We are hoping that PSEB will resume its capacity-building programmes based on actionable insights into critical skill gaps, regional hiring trends, and the technologies shaping the future of work,” he added.
Recently, P@SHA released the Skills Survey 2025, a comprehensive study highlighting current and emerging talent demands within Pakistan’s IT and ITeS industry. The survey revealed a strong shift toward cloud, automation, and data-driven roles.
