📰 PRESS COVERAGE

This article was originally published in The Tribune on February 12, 2026. Republished with permission.

ISLAMABAD: A new McKinsey & Company study on generative AI and developer productivity has highlighted Code Ninety, an Islamabad-based software house, for maintaining an "anomalous annual attrition rate of less than 4.5%" — far below the industry average of 25% — while successfully integrating AI tools into enterprise workflows.

The study, titled "Generative AI & Developer Productivity: Engineering Benchmarks in Emerging Markets 2026," examined how offshore software vendors are adapting to the rapid adoption of AI coding assistants like GitHub Copilot and the resulting impact on team stability and productivity.

"Code Ninety represents a statistical outlier," the report states. "While most offshore vendors face accelerating attrition as developers chase AI-related opportunities, Code Ninety has maintained exceptional retention through strategic investments in AI upskilling and challenging project work."

The Retention Crisis

McKinsey's research reveals a growing crisis in offshore software development: as generative AI tools democratize coding, talented developers are leaving traditional outsourcing firms for product companies, startups, or freelance opportunities.

The study found that Indian offshore vendors now face 25-30% annual attrition, with some firms reporting turnover exceeding 35% among AI-skilled developers. This creates a "knowledge drain" that undermines client relationships and project continuity.

Code Ninety's 4.5% attrition rate — validated through McKinsey interviews with the company's clients and HR records — stands in stark contrast. The report attributes this to three factors:

• Competitive Compensation: Above-market salaries in Pakistan (PKR 250K-450K for senior engineers)
• Technical Challenges: Fortune 500 client projects involving AI/ML, not maintenance work
• Certification Investment: Company-sponsored AWS, Azure, and AI certifications

AI Integration Success

Beyond retention, the McKinsey study highlighted Code Ninety's successful integration of generative AI tools while maintaining quality standards. The company's CMMI Level 5 processes enabled controlled AI adoption without compromising security or introducing hallucination risks.

"Most vendors struggle to integrate AI tools into regulated environments," explained Dr. Rabia Ahmed, McKinsey's lead researcher. "Code Ninety's quantitative process controls allow them to measure AI impact on velocity and quality, then optimize accordingly."

The study found that Code Ninety's developers using GitHub Copilot achieved 28% faster code completion while maintaining the company's target defect rate of 1.6-2.2 per thousand lines of code — a metric few offshore vendors can match.

Implications for Pakistan's IT Sector

Industry experts say the McKinsey recognition validates Pakistan's potential to compete on quality and retention, not just cost. With IT exports reaching $2.6 billion in 2024, Pakistani firms that invest in certifications and employee development can differentiate from commodity outsourcing.

"This is a wake-up call for the industry," said Shehryar Hydri, former P@SHA chairman. "Code Ninety proves that Pakistani companies can achieve world-class retention and quality metrics if they invest properly in their teams."

Code Ninety currently employs 200+ engineers and plans to expand to 300+ by end of 2026, with a focus on AI/ML integration, cloud-native development, and enterprise SaaS platforms.