'Bangladesh has potential to grab 10pc of global IT outsourcing'
Wednesday, 15 August 2007
A Z M Anas
Global technology goliath Cisco has said Bangladesh can secure a sizable slice in the global outsourcing market, provided the policy framework is responsive to information technology (IT) businesses.
"You (Bangladesh) can easily capture 10 per cent share in the offshore market, provided that the government frames policies conducive to IT entrepreneurs," Lokesh Mehra, a regional manager at Cisco, the American networking technology goliath, said in an interview.
Mehra, who wrapped up a two-day trip to Bangladesh Monday, noted that it would also require a special incentive package tailored for local IT entrepreneurs and giving legal coverage to internet telephony to help the country prepare for the game.
With its low-cost base and quality manpower, the Cisco executive said Dhaka can grab a substantial share in the fastest-growing global industry, dominated by a handful of players, notably India, Ireland and Israel. "Currently, India's share in the global offshore business hovers at 20 per cent."
The International consultancy group Gartner has estimated that the size of global offshore business market will be an astounding $142 billion by 2008.
Mehra suggested that Bangladesh should legalise the voice over internet protocol (VoIP) or internet telephony for at least software companies to ensure cost-efficiency in offshore business.
"It shouldn't be open to all … But the government can legalise internet telephony for captive software houses involved in IT-enabled services like data transmission, customer support and so on," Mehra told this correspondent before he left for New Delhi.
Unveiling the Cisco's business plan, he said the company looks to expand further its operations to Bangladesh soon, with an eye on small and medium business (SMB) segments.
"We're poised to open a full-fledged office in Bangladesh by the end of this year as part of our expansion plan," he pointed out.
Cisco's core business areas include SMB, government and defence, telecommunications and commercial segments.
The California-based company churned out a whooping US$34.9 billion in revenue in fiscal ending June 2007, an increase of around 23 per cent over the year before, according to its website.
So far as the Bangladesh market is concerned, Mehra said, the company will be focussing on the SMB and government segments, which hold out much potential.
"Our priority in Bangladesh will be the government and SMB segments. We feel that these two are growing here at a faster pace than any other verticals," Mehra stressed.
He went on: "There's a huge potential. If we can harness the potential of the SMB market in Bangladesh, we will be able to generate 20-30 per cent revenue from this segment alone."
By 2009, Mehra figured out, Cisco's net revenue in Bangladesh could touch down to $10 million a year.
The Cisco official said his company is also in talks with the government to help Bangladesh establish e-governance in the civil administration.
"Two years ago, we initiated discussions with the government side. We shared some of the best practices with science, information and communication technology ministry, which can be replicated in Bangladesh," the Cisco executive added.
Mehra, who is also heading the Cisco's networking academy programme in South Asia, said his company is sponsoring a basic networking course free of charges in Bangladesh as part of its corporate social responsibility.
Cisco's networking academy is an initiative that trains people on the principles of designing, building, and maintaining networks capable of supporting national and global organisations.
"The Networking Academy is in line with needs of colleges, and features hands-on training in high-demand job skills. It incorporates an e-learning system that includes multimedia curricula, online testing, performance-based skills assessment, and classroom management through a Web interface," he added.
Cisco has already teamed up with 14 local educational institutions, including BUET and BRAC University, to provide basic networking education. In addition, it is running an advance course on networking technology in four public and private universities.
"The idea is to create a pool of trained manpower to cater to the requirement of Bangladesh's information technology sector," he maintained.
So far, 1200 students have been enrolled in the Cisco-sponsored basic course programme, of which more than 1000 have graduated.
"The majority of graduates are now working in the local IT industry while others went abroad to pursue higher education," Mehra observed.
Global technology goliath Cisco has said Bangladesh can secure a sizable slice in the global outsourcing market, provided the policy framework is responsive to information technology (IT) businesses.
"You (Bangladesh) can easily capture 10 per cent share in the offshore market, provided that the government frames policies conducive to IT entrepreneurs," Lokesh Mehra, a regional manager at Cisco, the American networking technology goliath, said in an interview.
Mehra, who wrapped up a two-day trip to Bangladesh Monday, noted that it would also require a special incentive package tailored for local IT entrepreneurs and giving legal coverage to internet telephony to help the country prepare for the game.
With its low-cost base and quality manpower, the Cisco executive said Dhaka can grab a substantial share in the fastest-growing global industry, dominated by a handful of players, notably India, Ireland and Israel. "Currently, India's share in the global offshore business hovers at 20 per cent."
The International consultancy group Gartner has estimated that the size of global offshore business market will be an astounding $142 billion by 2008.
Mehra suggested that Bangladesh should legalise the voice over internet protocol (VoIP) or internet telephony for at least software companies to ensure cost-efficiency in offshore business.
"It shouldn't be open to all … But the government can legalise internet telephony for captive software houses involved in IT-enabled services like data transmission, customer support and so on," Mehra told this correspondent before he left for New Delhi.
Unveiling the Cisco's business plan, he said the company looks to expand further its operations to Bangladesh soon, with an eye on small and medium business (SMB) segments.
"We're poised to open a full-fledged office in Bangladesh by the end of this year as part of our expansion plan," he pointed out.
Cisco's core business areas include SMB, government and defence, telecommunications and commercial segments.
The California-based company churned out a whooping US$34.9 billion in revenue in fiscal ending June 2007, an increase of around 23 per cent over the year before, according to its website.
So far as the Bangladesh market is concerned, Mehra said, the company will be focussing on the SMB and government segments, which hold out much potential.
"Our priority in Bangladesh will be the government and SMB segments. We feel that these two are growing here at a faster pace than any other verticals," Mehra stressed.
He went on: "There's a huge potential. If we can harness the potential of the SMB market in Bangladesh, we will be able to generate 20-30 per cent revenue from this segment alone."
By 2009, Mehra figured out, Cisco's net revenue in Bangladesh could touch down to $10 million a year.
The Cisco official said his company is also in talks with the government to help Bangladesh establish e-governance in the civil administration.
"Two years ago, we initiated discussions with the government side. We shared some of the best practices with science, information and communication technology ministry, which can be replicated in Bangladesh," the Cisco executive added.
Mehra, who is also heading the Cisco's networking academy programme in South Asia, said his company is sponsoring a basic networking course free of charges in Bangladesh as part of its corporate social responsibility.
Cisco's networking academy is an initiative that trains people on the principles of designing, building, and maintaining networks capable of supporting national and global organisations.
"The Networking Academy is in line with needs of colleges, and features hands-on training in high-demand job skills. It incorporates an e-learning system that includes multimedia curricula, online testing, performance-based skills assessment, and classroom management through a Web interface," he added.
Cisco has already teamed up with 14 local educational institutions, including BUET and BRAC University, to provide basic networking education. In addition, it is running an advance course on networking technology in four public and private universities.
"The idea is to create a pool of trained manpower to cater to the requirement of Bangladesh's information technology sector," he maintained.
So far, 1200 students have been enrolled in the Cisco-sponsored basic course programme, of which more than 1000 have graduated.
"The majority of graduates are now working in the local IT industry while others went abroad to pursue higher education," Mehra observed.