AI puts hourly billing model at risk

State Bank of Pakistan (SBP), software consultancy generated $364 million in export receipts during July to September FY27, while software exports contributed $157 million. In the corresponding period last year, the two segments earned $293 million and $143 million respectively, a combined year-on-year increase of around 19%, or $85 million.

Clear. Traced Co-founder and Chief Technology Officer Abdullah Rashid, whose company is a Sweden-based AI data firm, said Pakistani IT companies could expand their export business by developing expertise in specific industries and building AI solutions around customers' operational needs.

A system that extracts information from company reports, for example, should show where each figure came from and allow users to identify and correct errors, he said, adding that getting details such as the reporting year and measurement units right is essential if the information is to support business decisions.

Firms must move up the software value chain by building specialised capability in enterprise AI integration, autonomous agentic workflows, data engineering and cybersecurity, he said. Rather than offering basic web or app development, they should position themselves as domain-specific technical partners for industries such as fintech, healthcare and logistics.

Workforce structure must also evolve from large teams of junior coders to lean teams of AI-augmented solution architects, he said, with exporters systematically upskilling developers on AI-assisted workflows and international compliance standards such as SOC 2 and the General Data Protection Regulation to win enterprise trust. Market diversification is critical as well, he said.

Beyond the United States and the United Kingdom, Pakistani firms must establish a physical sales presence in high-growth regions such as the Gulf Cooperation Council, particularly Saudi Arabia and the United Arab Emirates, where large digital transformation budgets are seeking cost-effective, specialised AI implementation partners.

He said firms could build longer-term export relationships by taking responsibility for integrating systems into customers' existing operations and maintaining them after deployment, and that understanding the customer's industry, handling data responsibly and demonstrating measurable improvements would help them compete for more valuable work.

He added that Pakistani firms have room to expand into higher-value projects in Europe and other developed markets, and that partnerships with international companies, participation in trade fairs and stronger engagement by trade attachés could help local businesses reach prospective customers and understand their requirements., Pakistan's IT exports, including computer services and related activities, exceeded $1.2 billion in the first quarter of FY27.

During the period, IT freelancers generated $333 million in export receipts, while call centres contributed $101 million and telecommunications services earned more than $75 million.

Hexalyze Chief Executive Officer Saad Shah said faster AI adoption in Pakistan would depend on equipping the workforce with skills aligned with emerging industry requirements, and called for regular updates to technology curricula at universities and colleges alongside stronger in-house training and capacity-building programmes within IT companies.

He also acknowledged government and non-governmental initiatives aimed at training IT professionals and students but stressed the need for closer collaboration between industry and academia and a long-term roadmap for workforce development, saying sustained investment in skills would help local companies adapt to technological change, improve competitiveness and capture emerging opportunities in international markets.

The experts said Pakistan should also use its growing international engagement to promote locally developed technology products and services, helping domestic IT companies move beyond conventional outsourcing towards higher-value exports.