Data On Tech Industry
IT industry in Bangladesh was experiencing significant growth, driven by factors such as government initiatives, increased internet penetration, and a growing pool of skilled IT professionals.
According to the Bangladesh Association of Software and Information Services (BASIS), the country’s software and IT services industry has been growing steadily, with annual revenue reaching around $1 billion by 2020. However, specific figures for subsequent years up to 2023 would require updated reports or statistical data from sources such as BASIS, the Bangladesh Computer Council (BCC), or government publications.
Bangladesh’s IT sector was also making strides in terms of export earnings. In the fiscal year 2020-2021, the export earnings from the country’s software and IT services reached around $1 billion USD, showcasing the industry’s potential to contribute significantly to the country’s economy. [Source: Bangladesh Association of Software and Information Services (BASIS)]
The IT industry was creating employment opportunities for thousands of professionals in Bangladesh. As of 2022, it was estimated that the sector employed over 100,000 individuals, with this number expected to rise in subsequent years. [Source: Bangladesh Association of Software and Information Services (BASIS)]
Bangladesh’s IT industry was witnessing the emergence of a vibrant startup ecosystem, with numerous tech startups launching innovative products and services. Incubators, accelerators, and funding opportunities were becoming more accessible, fostering entrepreneurship and innovation in the sector. [Source: Various news reports and startup ecosystem assessments]
Additionally, the government of Bangladesh has been taking initiatives to promote the growth of the tech industry through various policies and incentives. These include tax breaks for IT companies, investment in IT infrastructure, and the establishment of technology parks and incubators.
IT industry in Bangladesh is well represented by software development and IT-enabled service (ITES) including business process outsourcing (BPO) service, and these services are recognized as one of promising export-potential industries in Bangladesh, supported by the availability of cost-competitive, English-proficient and young workforce as well as increasingly reliable communication and power infrastructure.
The industry generated an estimated annual revenue of USD 1.0 billion in 2017, forecasted to grow to USD 4.7 billion by 2025 (Everest Group 2017). Export earnings also increase steadily to reach USD 200 million in FY2016-17 (BASIS). Industry’s revenue is generated largely by software development and ITES. ITES including BPO contributes to more than half of the overall revenue (BASIS).
Over 1,500 IT firms are thriving in Bangladesh, and can be categorized into three groups largely, those specialized into customized software and application development (55%) and ITES/ BPO (17%), and those having multi-functions (34%), according to ICT Industry White Paper 2017. Over 400 IT firms currently export to over 60 countries, with USA and UK being the major destinations.
Export potentials will be further tapped by the increasing global spending on IT, that is projected to grow at a rate of 8% for enterprise software and 5% for ITES between 2018 and 2020 (Gartner Inc., USA). An US based consultancy reported in 2017 that Bangladesh would secure 21st place in Global Service Location Index, implying a readiness to further attract global contracts of software development and BPO, and foreign investments for offshore development and captive BPO center.
Majority of current clients for Bangladeshi IT firms are public sector, followed by local education and financial institutions. Contracts from overseas clients remain smaller compared to local ones. Bangladeshi IT firms are able to cover a range of software development services with the following major lines of service domain (from the catalogue book of BASIS):
– Software for accounting, financial, personnel, payroll, customer
relation, sales (POS), transaction, inventory management
– Application system for banking, tele-communication, media
industries, education and medical institutions
– Integrated business application inc. enterprise resource planning
– Mobile application
– Solution system for e-commerce, e-governance, e-learning
ITES/ BPO can be broadly classified according to the level of skills required to perform. Most of Bangladeshi ITES providers operate in semi-skilled segments from basic data entry and processing to rule-based data processing, leveraging its cost competitiveness of workforce. Accordingly, bulk of ITES/ BPO industry’s revenues and export earnings are generated from basic and rule-based data processing. In recent year, however, Bangladesh has begun exporting basic voice services. In Bangladesh, outsourcing of 1) basic data processing, involving uncomplicated data enrollment into database, data conversion, image processing and graphic/ web design, 2) rule-based data processing with decision-making support according to the rule and guidelines such as accounting, invoicing and similar back-office processes, and 3) call center business, have been popular and flourishing.