BUSINESS MODEL FOR PRIVATE SECURITY COMPANY ON MODERN LINES

Abstract

Pakistan is a country badly hit by terrorism in recent past. According to the South Asia Terrorism Portal, there has been 320 terrorism-related incidents in 2020, and 169 associated deaths of civilians. That represents a decline, from a high of nearly 5,000 such incidents in 2011, with over 2,800 civilian deaths. This decline is mainly attributed to the military operations conducted by Pakistan Armed forces against the terrorists which had been responsible for the majority of terrorist attacks since 2007. In this backdrop, private security has become a need, not a luxury in Pakistan. It has emerged as a full-time industry in Pakistan. However, private security industry is not properly regulated in Pakistan and hence inefficient to meet the expectations of its clients. Despite the demand, the security companies are failing to provide good services to small and large businesses. There are a lot of reasons for the poor quality of service being provided by private security companies, however, the main reason is that generally these security companies hire retired soldiers from Armed forces on meagre salaries and put them on job without realizing that they are actually not trained for providing security in private sector. In developed countries, some functions previously performed by the police and military are now with private security contractors. Even security of mega events, VVIPs and jails have been outsourced to private security firms. There is need more than ever for an efficient and cost-effective private security services in Pakistan also to supplement and reduce the burden on state institutions. In the emerging security landscape, the private security sector can play a vital role not only by reducing the burden of law enforcement agencies, but also by generating employment opportunities for less educated, but intelligent and tech-savvy young men and women, encouraging them to opt for private security as a profession. The present law and order situation with increasing fears of terrorist activity, and the current economic climate, which promises an upswing, this business is being launched at the right time to fill the existing gaps in private security industry in Pakistan. The business model will be built around a new concept of security presently not in practice in Pakistan private security sector. This security model provides security cover under the concept of “Area Defense” instead of “Point Defense” in which a single security guard is deployed on any installation. In Area Defense, we deploy a team of security guards to provide security cover to a number of installations closely located. This is a much effective arrangement and at the same time a cost effective solution for clients as it reduces number of guards required per installation and obviously a team of security guards can be more effective to mitigate and neutralize any security threat. After surveying the market and critical analysis of present security situation in Pakistan, it was revealed that Businesses despite paying hefty amounts to security firms are not satisfied with the services provided by private security firms so this new model of private security is aimed at filling the gaps in present system and customer satisfaction will be a key driver for the success of our business.