ICT Business Promotion Council Ministry of Commerce
Business Promotion Council (BPC) is a product specific sector promotion council with a mandate for export diversification – represented by government organizations and trade associations having immediate stake on the identified sector.
It was a belief that, Export diversification can be achieved if enterprises are competitive in the international market. But to increase competitiveness enterprises need to be able to produce the appropriate product within right price, using the appropriate technology and should be compliant to the requirements of the buyers. In short the price-quality mix has to have an edge against another international supplier. Given that most of the export oriented industries in Bangladesh falls under the category of infant sector, an intensive and targeted support is required for the enterprises to achieve the required competency. The concept of BPC emerged on this context and it was felt that public private partnership would be the key to sustaining access to bundled services required to support export oriented industries. With this mission, the ICT Business Promotion Council (I-BPC) was launched in 2002. Subsequently, four more BPCs have been formed over the last 7 years which are active in the Leather, Fisheries, Light Engineering, Medicinal Plant and Herbal Products subsectors. To ensure better coordination and seamless operations the Businesses Promotion Council has been organized such a way to be the administrative body for all individual councils. Besides coordination and supervision of the sector specific councils, BPC handles administrative operations which include Budget, Procurement, Accounts, Recruitment, Office rentals & common facilities, utility services and such.
Key ICT Information of Bangladesh
History of Software Development in Bangladesh
Software development in Bangladesh started in the early 1980s. The software industry is rather young compared with other industries in Bangladesh. However, the history of the software industry is not so short compared with that of other developing countries. Most of the software companies in Bangladesh were established in the late 1990s or 2000s, but some of them had already started their business in early 80s.
However, the Bangladeshi government, in its Export Policy, has formally identified the ICT sector including software industry as one of the “thrust sectors”, thereby strengthening the political initiatives of software industry from the middle of 1990s. Examples of such initiatives are exemption of income tax, value-added tax, and customs duty for ICT industry, establishment of national ICT policy, organizing the ICT National Taskforce (the chair is the Prime Minister), establishment of ICT incubation center, enactment of Copyright Law, approval of ICT Act draft in the parliament, increase in IT budget allocation by the government (targeting 2% of annual development plan expenditure), and others. With the support of such political initiatives, the software industry in Bangladesh has grown rapidly since 1990s. Bangladesh has recently been focused by other countries as an outsourcing target. The European Union (EU) officially announced that Bangladesh is one of the best 20 outsourcing target countries. Further, Goldman Sachs & Co. positioned Bangladesh at one of “Next Eleven,” which are potentially growing countries following Brazil, Russia, India, and China (BRICs). Some American or European companies have regarded Bangladesh as software outsourcing target country or Bangladeshi software companies as a joint-venture partner. As a global outsourcing target, Bangladesh is competing with other emerging competitors such as the Philippines, China, Viet Nam etc.
Vision & Objectives
Vision & Objectives of the establishment of ICT Business Promotion Council
Vision: Promoting the local market capacity of ICT sector which will lead to generate an strong export market in Global premises.
Among all the special attention is to capacity building activities in respect of improving human resources, acquiring appropriate technology, information about markets, attaining quality and standards, complying with international norms or codes of conducts, etc. Thus the prime objective of forming the Council is to promote the sector to achieve competency in the local and global context as well as to help the industry building capacities in the fields of human resources and acquiring technologies.
This has been a relatively a late entrant in our ICT market. Even today there are only a few firms that provide dedicated software services and even fewer that have adopted any form of quality standards. However like any learning curve, more and more firms are coming into this fray; systematic procedures and practices are being implemented so that quality software houses are being produced.
The basic clientele for the software houses has usually been the corporate houses .i.e. the institutional market. That being so it naturally follows that most of the software are database related.
While few years back, visual basic was the predominant choice for programmers of late there has been a gradual shift to use other tools to provide better service to the customer. Furthermore with the passage of time firms have also realized the importance and benefits of installing an ICT system in a company. The fact that computer penetration is high in the metropolitan cities has helped in the sense that computer literacy among personnel has increased. Hence they are more likely than ever before to adopt a new computer software system.
It is true that the growth of the ICT sector is being hampered by the lack of proper telecommunication infrastructure. Bangladeshi companies continue to make the best out of what is being given to them. With the infrastructure situation improving, the software market is bound to increase.
One of the prime indicator or growth factor for the software industry is technical people. Similarly in order to retain and groom these technical personnel these firms need to earn on an increasing scale. To date that has been proved to be quite difficult. However in recent times, with the growth of the ICT training sector, availability of skill people has been enhanced. Also more and more software business houses are soliciting order from outside. Hence it is expected that within a decade software will form a predominant part of our economy.
IT Enable Services (ITES)
This is perhaps the newest segment in the ICT sector of our country. Medical transcription, GIS services, data warehousing and mining are still very new to our economy. Although there are firms who have entered this arena they are still very much in the infancy stage. Interestingly enough all the ingredients required to operate in this industry are already present in the country. It is up to association like BCS to increase this awareness among potential investors as well as existing ICT houses of the considerably potentiality in the ICT enabled sector. Furthermore our country owing to the convenient time difference with US enjoys a convenient time gap, which can be exploited if marketed properly.
Current Status of Software and ITES Industry in Bangladesh
Bangladesh has identified ICT as a “thrust sector” as it represents potential for successful reforms, job creation, industry growth and high spillover effects to other sectors as well as improving governance and facilitating inclusion. The current World Bank’s Country Assistance Strategy for Bangladesh also recognizes the key role of ICT in supporting Bangladesh’s growth, competitiveness and governance agenda. The Information Technology (IT) Services, and IT-Enabled Services industry presents an attractive segment worth USD 475 billion that countries are competing for.
The ICT industry in Bangladesh, especially software and ITES industries, is relatively small compared to the size of its national population (150 million plus), and the size of the national economy. However, the software and ITES industries in this country have started rapidly growing in recent years. The average yearly growth rate of these industries here has been over 40 per cent for recent five years, and this growth rate is expected to continue. This optimistic growth is supported by good software export trends and large demand for IT automation in domestic market. Recently in Bangladesh, large-scale automation projects have been widely implemented in the sectors of telecom, banking, finance, pharmaceutical, and garment/textile industries. Domestic demand for software and ITES industries is expected to increase more.
As of now, there are close to 500 software and ITES companies are registered in Bangladesh. These companies employ over 12,000 local ICT professionals. The size of the ICT market excluding telecom in Bangladesh is estimated to be US$ 300 million in total; the software and ITES industries share 39 per cent (US$117 million) of the market. More than 100 companies export their products to over 30 countries. The major export market is North America, but recently many IT companies started export to EU countries and East Asian countries, especially to Japan. At least 30 companies, among 100 companies that export their products, are established through joint-venture with an overseas company or as an offshore development center (ODC) by one-hundred-percent foreign capital
Bangladesh has high potential to become a huge source of skilled human resources with its cultural adoption capability, English language skills, analytical capability and large number of educated and energetic youths with bright aptitude, quality and natural ability in software development.
To ensure quality and process control in a competitive global market, several software companies are following international standards such as ISO and CMMi. To meet the high quality standard of offshore jobs and comply with the expectation of overseas clients, the companies in Bangladesh are rightly focusing on embracing global standard practices and processes. Over twenty companies have already obtained ISO certification and a number of companies are in the process of acquiring CMMi certification.
Language of instruction in engineering, computer science and business studies at undergraduate and graduate levels is English, providing the country with a competitive edge for outsourcing software projects. Recently European Union has ranked Bangladesh as one of the top 20 outsourcing destinations in the world.
Export of Software and ITES from Bangladesh
Out of more than 500 Software and ITES companies in Bangladesh, more than 100 companies export their products to over 30 countries. ITES export of Bangladesh has been rapidly increasing. The major export market is North America, but recently many IT companies started export to EU countries and East Asian countries, especially to Japan. At least 30 companies, among 100 companies that export their products, are established through joint venture with overseas companies or as Offshore Development Centre’s (ODC) by 100 percent foreign capital investment. Most of these companies started their operations within the last two or three years, indicating that the Bangladesh software and ITES industries have started to be focused by the overseas venture capitalists.
In recent years Bangladesh earned a rapid growth in ICT export – which shows a rapid increase tend in ICT export. For instance:
Table 1: Value of Export of Software and ITES from Bangladesh (Unit: Million US dollars)
|Fiscal year||Value of export Growth rate|
Under this category lies all networking related service providers as in Satellite communication providers, ISPs, WAN and LAN providers etc. Bangladesh got a taste of online Internet only recently (1996). However from that time on and also due to some pragmatic Government Decisions the number of internet users has increase substantially over the years. At its present rate it is expected that by the end of this year about a million of people will have access to Internet. By now the country has been connected through the submarine cable connections- this also triggered an increase in nation wide connectivity at the same time it has bring down the internet related costs.
An offshoot under this sector would be the dotcom industry. Current regulations set up in Bangladesh are conducive enough for a good growth in E-commerce which is playing a significant role in the global economy. However recent developments have suggested that Government needs to revise & update the law provisions to promote cyber use. It is expected that with the enactment of these laws the number of Dotcoms would increase considerably. Also e-commerce a new facet, would be flourish and thereby injecting more dynamism into the economy & commerce.
Bangladesh: A low cost Outsourcing Destination:
Bangladesh has high potential to become a huge source of skilled human resources with its natural ability of cultural adoption, English language skills, analytical capability and large number of educated and energetic youths with bright aptitude, quality and building algorithms, creativity and logical ability in software development.
Though majority of the companies are exporting to North American Market (principally, USA) – there is encouraging performance by a good number of companies to export in European and East Asian (mainly Japanese) markets too. To ensure quality and process control in a competitive global market, several software companies are following international standards such as ISO and CMMi. To meet the high quality standard of offshore jobs and comply with the expectation of overseas clients, the companies in Bangladesh are rightly focusing on embracing global standard practices and processes. More than 20 companies have already obtained ISO certification, and a number of companies are in the process of acquiring CMMi certification. At the end of 2010, at least ten companies will be reaching CMMi Level 3. Language of instruction in engineering, computer science and business studies at undergraduate and graduate levels is English, providing the country with a competitive edge for outsourcing software & ITES projects. This is the most deciding factor that the European Union has ranked Bangladesh as one of the top 20 outsourcing destinations in the world.
An abridge overview of Bangladesh ICT Sector
- In recent years a thriving ICT industry has emerged in Bangladesh.
- It can be described with four simple words high quality, low cost.
- Many of Bangladeshi ICT companies have considerable experience with overseas clients and a successful track record in managing outsourced software projects for foreign companies.
- Low salary cost and low production cost in general are a major attraction for the ICT industry in Bangladesh. A trained software programmer in Bangladesh earns about US$25 in Bangladesh a fraction of salaries in Europe or USA and still less than in other countries in the region.
- More than 40 Universities and 60 colleges offer ICT courses at Bachelors and Masters levels, many of them cooperates with overseas universities and institutions in the US, in Europe and in Australia and guarantee international standards.
- ICT Business Promotion Council has been formed under Ministry of Commerce to have focused-activities on ICT on Private- Public partnership.
Fiscal and Financial Incentives for ICT sector
1. There will be no discrimination in case of duties and taxes for the same type of industries set up in the public and private sectors.
2. (a) Tax holiday facilities will be available for five or seven years depending on location of the industrial enterprise. Tax holiday facilities will be provided in accordance with the existing laws. The period of such tax holiday will be calculated from the month of commencement of commercial production. Tax holiday certificate will be issued by NBR for the total tax holiday period within ninety day of submission of application.
(b) Industrial under takings not enjoying tax holiday will enjoy accelerated depreciation allowance. Such allowance is available at the rate of hundred percent of the cost of the machinery or plant if the industrial undertaking is set up in the areas falling within the cities of Dhaka, Narayangong, Chittagong and, Khulna and areas within areas of ten mils from the municipal limits of those cities. If the industrial undertaking is set up elsewhere in the country, accelerated depreciation is allowed at the rate of eighty percent in the first year and twenty percent in the second year.
3. The present structure of confessional duties on imported capital machinery, based on area demarcation. Viz. “Developed” and “Underdeveloped” will remain in force. Value added tax (VAT) is not payable for import of capital machinery’s and spares. In addition to other measures, creation of and Equity Development Fund will be considered for providing assistance to the industrial entrepreneurs in underdeveloped areas.
4. There will be differential duty structure for imported raw materials, intermediate inputs and finished products in ascending order. Tariff anomalies, if any, will be reviewed in accordance with the existing rules and regulations.
5. In order to eliminate any unfair competition, rationalization will be undertaken keeping in view the interests of the entrepreneurs as well as consumers. Bangladesh Tariff commission will regularly review such cases and recommend necessary measures.
6. Industrial enterprises in the private sector outside the Export processing zones (EPZS), and joint venture (Type-B) and Local (Type-C) industries units in the EPZs may, with prior BOI approval, enter into supplier’s credit and other foreign currency loan contracts with lenders abroad. 100% foreign owned (Type-A) industrial units located within the EPZs may freely borrow abroad without any prior approval. Remittance abroad towards repayments of principal and interest on these borrowings may be sent through banks without prior Bangladesh Bank approval.
7. Special incentives will be provided to encourage non-resident Bangladeshi (NRSs) for investment. In case of their investment in Bangladesh, they will enjoy facilities similar to those given to the foreign investors. In case of initial public offering (IPO) of shares, the Security and Exchange Commission (SEC) will reserve ten per cent of the shares for the NRBs. Furthermore; they can maintain foreign currency deposits in the Non-resident Foreign Currency Deposit (NFCD) Account.
8. Special fiscal incentives may be provided to industries identified as the “Thrust Sectors” as well as to small and cottage industries. Special financial arrangement may, form time to time, be designed by the Government in support of these sectors.
9. An Entrepreneur will not be required to pay transfer fee and/or capital gain tax in case (s) he wants to use his/her own land to establish a new enterprise (duly registered with the BOI) under his/her ownership or wants to convert his/her existing enterprise into a “limited company” without changing the ownership structure.
10. Measures will be taken to create industrial fund in the Bangladesh Band, strengthen specialized Banks, establish country fund, expand capital market, create venture capital and rationalize tax holiday system.
11. The rate of stamp duty will be rationalized for the purpose of mortgaging of immovable property in the banking system.
Glimpse of Special Services & incentives for foreign investors
- Tax holidays for up to seven years.
- Low import duties in general and no import duties for export oriented industries.
- Exemption of income tax for expatriates for several years.
- Facilities for full repatriation of invested capital and profits.
- 100% foreign equity participation.
Executive Committee of the council
|1.||Secretary, Ministry of Commerce||Chairman|
|2.||Vice-Chairman, Export Promotion Bureau||1st Vice-Chairman|
|3.||The presidents from three associations (By rotation for one year) of Bangladesh Association of software & Information services (BASIS), Bangladesh Computer Samity (BCS) and Internet service Provider Association (ISPA) respectively.||2nd Vice-Chairman|
|4.||Representative (1) from Ministry of Foreign Affairs not below the rank of Director General||Executive member|
|5.||Representative (1) from Ministry of Post & Telecommunication not below the rank of Director General||Executive member|
|6.||Representative (1) from Ministry of Science & ICT not below the rank of Director General||Executive member|
|7.||Joint Secretary (Export), Ministry of commerce||Executive member|
|8.||Representative (2) from Bangladesh association of Software and Information Technology Services (BASIS)||Executive member|
|9.||Representative (2) from Bangladesh Computer Samity (BCS)||Executive member|
|10.||Representative (2) from Internet Service Provider Association (ISPA)||Executive member|
|11.||Representative (2) from CIP's in IT related sector to be nominated by the Executive Committee of the Council||Executive member|
|12.||Representative (2) from Academia in IT related sector to be nominated by the Executive Committee of the Council||Executive member|
- With a large number of young IT skilled workforce conversant in English, Bangladesh is one – Asia’s most attractive IT outsourcing destinations after India-particularly for Anglophone countries.
- A good number of IT companies in Bangladesh have already built successful track records of working for reputed clients over the world. Currently around 150 IT companies in Bangladesh are exporting to over 30 countries. Out of these IT companies, nearly two-thirds service clients in USA.
- Bangladesh offers significant cost advantages for IT outsourcing-both in terms of worker-wages as well as cost of infrastructure.
- Salary of programmers in Bangladesh is 50% of that in India, 40% of Philippines and 70% of the Vietnam.
- Charges for Internet bandwidth in Bangladesh is currently the lowest on South Asia (50% of that in India).
- Rent for office space in Dhaka(Capital) is below 20% of that in Delhi and 40% of Manila.
In Crain’s New York Business, a front page article titled “Outsourcing Moves to Bangladesh” discusses how Bangladesh is a rising star in the international economy with industrial analysts from Goldman Sachs to Cisco Systems predicting that it has high potential to follow in the successful economic steps of the giant next door – India.
Presently Bangladesh exports and provides the services:
- Multimedia products development.
- Digital Brochure & Digital Magazine.
- 2D/3D Presentation and Animation.
- Audio and Video Editing.
- Cartoon Animation.
- Customized Database Application.
- Enterprise Resource Solutions.
- Legacy Application development.
- Banking and Financial Solutions.
- Device Driver development.
- Smart Card Solutions.
- Web Programming.
- Web Content Writing.
- Web update & Related services.
- Pre-press Graphics Design.
- CAD/GIS Services.
- Architectural Design.
- Data Entry services.
- Medical transcription processing (All types)
- Bank Officer Services or Call centre services.
Supply of Workforce to Software and ITES Industry’s HR Pool in Bangladesh
Bangladesh has a population of over 150 million. The ages of population are rather younger; significant portion of the population belongs to the productive age group between 16 to 35 years. Therefore, Bangladesh has prosperous population distribution in terms of age group workforce. Similar to Indians, Bangladeshis traditionally have higher mathematical aptitude and superior logical & analytical abilities.
- Over 15,000 IT engineers are working in over 400 software and IT service companies, around 150 of these companies are specialized in serving overseas clients.
Specialized IT Education in Bangladesh is well established at the graduation and post graduation levels. Bangladesh now confers academic degrees including postgraduate and doctoral degrees in the ICT subjects in more than 100 institutions including universities, colleges and institutes. According to the Ministry of Education, there are 73 universities in Bangladesh and more than 60 universities offer IT-related courses. These universities, colleges and institutes yearly produce more than 6,000 graduates major in IT related fields. About 2,500 among them are students who majored in computer science or software engineering. Students of prestigious universities such as University of Dhaka and Bangladesh University of Engineering and Technology are conferred with many awards every year in various international contests on computers and software.
The Government has already opened VOIP and WiMax for voice & data communication and is planning to adopt 3G technologies by the year 2018. Growth of telecom sector has been extremely high and penetration of Internet has increased 5 times during the last one year.
Beside these universities, colleges and institutes, there are about 300 training/education centers that provide IT technology and technique, which contribute to develop human resources for software and ITES industries in Bangladesh. These centers supply abundant workforces to the ITES industry such as graphic design, DTP, website design, engineering drawing, website publishing and network maintenance.It is one of the most positive decisions that the Government has made Compulsory learning of ICT from the sixth grade. We are going to have our digital education system within the quickest possible time.
- A large part of these IT graduates also possess global IT vendor certifications (e.g.. from Microsoft, Cisco Oracle, Sun) on top of their academic degrees.
- Excellence of IT workforce from Bangladesh is well-accepted fact at home and aboard. Over 10,000 IT professional from Bangladesh are working successfully in various IT companies in USA including Microsoft, Intel, IBM, Sun, Oracle, Texas Instruments, Cisco, Nortel and Lucent-to name a few.
Government of Bangladesh is playing a dynamic role to generate routine operations, strategic planning, research and knowledge mining regarding the growth of software and IT service industry in the country. Government’s “thrust sector” initiatives for ICT include exemption of income tax, value-added tax, and customs duty for ICT industry establishment of national ICT policy, organizing the ICT National Taskforce (the chair is the Prime Minister) establishment of ICT incubation center, long-term equity fund and short term working capital financing, enactment & Copyright Law etc. Several pilot initiatives are being formulated and implemented under intense supervision o respective Government agencies. Waiver of all taxes and duties from import of computer hardware and software: increased affordability and proliferation of PC use in general. PC/Server market has seen an escalating growth rate followed by the desktop and X86 server segments in last two years. Special Hi-Tech and Software Technology Parks are being built by the government to facilitate all the infrastructural supports needed by outsourcing companies.
With tremendous potential yet to be exploited, it is anticipated the global sourcing phenomenon will continue to expand in scope, range and geographic coverage. As global delivery matures, multi-location strategies will become the norm and most sourcing destinations, including emerging locations, will develop in volume.
Government Policies & Supports
The Bangladesh Government has taken initiatives to build an ICT-driven nation comprising a knowledge-based society. In view of this, a countrywide ICT infrastructure is being developed to ensure access to information by every citizen to facilitate empowerment of people, and enhance democratic values and norms for sustainable economic development. Information technology has become one of the thrust sectors of the government’s short and long-term planning.
Government and private sectors are increasingly going for mass automation with an aim to embrace e-Digital Government with its huge base of skilled resources. Cyber Law and Intellectual Property Rights Law are well-defined, up-to-date and have been formulated in the parliament to cover the agreement required in most outsourcing projects. Moreover, the policy makers are emphasizing on the necessity of financing ICT ventures by banks and other institutions. EEF, a unique venture capital projects finance the ICT and ITES venture with interest free equity partnership. Banks also provide soft-loans for export projects.
European Union’s recent investment in technology infrastructure in Bangladesh has given rise to a wave of start-ups specializing in web and software development. In the recent National Export Policy (2009-12), the government has declared software as one of the six ‘high priority’ export sectors for the economy. Corporate in-come from software business has been kept completely tax-free till tune 2011. It is assured that the tax free period will be further extended.
The Government has already opened VOIP and WiMax for voice & data communication and is planning to adopt 3G technologies by the year 2018. Growth of telecom sector has been extremely high and penetration of Internet has increased 5 times during the last one year.
The proposed Kaliakoir Hi Tech Park, which is envisioned as an integrated, ultra modern techno township, situated at Gazipur, alongside the Dhaka-Tangail expressway covering an area of 232 acres. Another ICT village is being planned to be implemented, at Mohakhali of the Capital City of Dhaka with the public-private partnership. More ICT villages and Special Economic Zones are also planned. One of the proposed ICT villages is to be located at Khulna, which is a divisional city in the western part of the country.
To support the Software Development Sector Government provides financial support (60% of the salary/allowance cost) for recruiting interns (fresh graduates) by any software companies. For this program which started in 2005, Government has allocated budget for 1,000 interns for every year.
In along with these, Government has set up the National ICT policy with the following objectives:
- Promote and facilitate use of ICT in all sectors of the economy for transparency, good governance and efficiency improvement.
- Develop a large pool of world-class ICT professionals to meet the needs of local and global markets.
- Promote use of ICT by providing special allocations for ICT project implementation in the public sector. Train the decision makers in ICT use and promote an ICT culture.
- Provide effective incentives for development of ICT sector to both local and foreign entrepreneurs.
- Develop an efficient ICT infrastructure that provides open access to international and national networks.
- Establish legislative and regulatory framework for ICT issues like IPR, data security and protection, digital signature, e-Commerce, ICT education etc. as well as to ensure quality ICT education provided by different private organizations.
- Set up national databases that are reliable and easily accessible to all the people of the country.
- Set up an ICT organization at the highest level to continuously promote and foster ICT Industry.
- Enact Laws and Regulations for uninterrupted growth of ICT, in conformity with World Trade Organization (WTO) stipulations.
Coming of age of the software & ITES industry for Bangladesh
In the Anglophone world, Bangladesh ranks third by population behind India and Pakistan (only marginally). This puts Bangladesh high on the list of countries that are poised to benefit from the burgeoning global trade in outsourced ICT services. Although Bangladesh is a relatively recent entrant in the global ICT outsourcing market, we have made great strides in this market over the last ten years. Bangladesh toady has more than three hundred software & IT enabled services firms serving clients in more than thirty countries in four continents.
The World Bank in a recent study projected Bangladesh ICT services export at more than five-hundred million US dollars by 2014. International Trade Center, a UN agency based in Geneva, Switzerland, in their study last year projected IT enabled services export to reach one-hundred-fifty million US dollars by 2011. The domestic market is also set for a robust growth due to rapid expansion of ICT-based citizen services and heightened awareness for ICT-led productivity and efficiency growth in the private sector.
The software and IT enabled services in Bangladesh is also blessed with a large number of young, enterprising and well-educated entrepreneurs who are passionate about ICT entrepreneurship and will surely keep this industry here thriving for many years to come. The present democratically elected government is fully committed to the development of the ICT sector as evidenced by their several ICT related pledges in their election manifesto. They have expressed their willingness to harness the power and utility of information and communication technologies to improve efficiency and transparency in the government; generate employment; and enhance the quality of education, commerce & citizen services in the country.
Opportunities in ICT Business of Bangladesh
(A glimpse from the SWOT Analysis of the sector)
- Presence of Skilled workforce
- Cost value proposition
- Convenient time gap between US and ours (a strong advantage for IT enabled sector)
- Remarkable government Incentives in terms of Tax and other benefits
- Low cost compared to competition
- Employees are devoted compared to competition, and eager to deliver quality.
- Potential pool of skilled workforce and easily convertible to technology changes
- Workable English Skills
- Large population which ensures large number of potential talent IT workforce with Competitive cost
- Our education system ensure human resource development with strong analytical ability and good English
- Regularity and infrastructure support is increasing from Govt. sector
- Large (trainable) population segments
- English efficiency (compared to other similar outsourcing destination))
- Eagerness to learn among IT professionals
- – Young population, High penetration of English, Time zone advantage
- – Bangladeshi participant do well in all global IT programming, competition, fast learner and adopter of new technologies eg Bangladeshi companies adopted Object Oriented Programming in early 90’s
- Govt policy
- – 0 Tax, Fine ICT policy, declared IT as strategic sector
- – Whole country is under wireless & Sum-marine broadband backbone with a sectoral growth more than 200% last couple of year
- Cost of business
- – Salary level of IT professional one of the lowest in the world, low attribution rate
- Growth of matching outsourcing market
- Large number of Educational Institutions offering computer courses
- Circumstantial opportunity due to increase in India’s price and geographically located.
- Time gap advantage…
- Identified as Thrust Sector by govt.
- Capitalizing NRB’s who work in overseas High Tech industry
- Internet and telecommunication user growing very fast
- Stable growth local and regional market
- Untapped local IT market
- Government incentives for IT industry growth
- Market segment of outsourcing left by India etc. as they are moving towards higher segments
Supply of Workforce to Software and ITES Industry’s HR Pool in Bangladesh
|Countries||Companies exporting in respective countries|
|Middle East (UAE, Saudi Arabia, BAhrain)||10+|
Products/ Service Category Range of Local Software Companies
|Products/ Service Category||% of surveyed companies offering
services in the category
|Accounting & Finance Management||Companies exporting in respective countries|
|Web Site/ web Application Development||58%|
|ERP (Enterprise Resource Planning)||57%|
|Software Implementation & Integration||48%|
|POS (Point of Sales) for Retail Stores||37%|
|Data Entry/ Data Conversion||34%|
|CRM (Customer Relationship Management)||27%|
|Mobile/ Wireless Application Development||18%|
Client Industry Focus of Software Companies
Percentage (%) of companies having clients in the particular category
Information Source: BASIS Survey
Skill Matrix of Local Software Industry
(% Of total* technical staffs of the surveyed software firms skilled in particular area)
|MS Access/ Foxpro||39%|
|MS NT/ 2000||58%|
|Unix/ Linux/ Solaris||17%|
Other Technical Skills
Technical Job Distribution in Surveyed Software Companies
Academic Qualification Breakdown of Technical professionals
% of total technical staffs in the surveyed software firms
|Graduate in Non-IT subjects||19%|
|Masters in Non-IT subjects||23%|
|Computer Science/ Engineering Graduates (3/4 years)||35%|
|Masters in Computer Science/ Engineering||9%|
|Diploma/ Certificates courses in IT||12%|
ICT Business Promotion Council
Ministry of Commerce
BFIDC Building (8th Floor)
73, Motijheel Commercial Area
Dhaka – 1000, Bangladesh
Tel: +880-(0)2-9514434, 9514435