The prospects for Bangladesh's software industry
Tuesday, 7 April 2009
Naim-ul-Karim
SOFTWARE exports from Bangladesh grew significantly in recent months, with more than 400 software and IT companies exporting their products to around 30 countries.
It was stated recently to a foreign news agency by one of the functionaries of Bangladesh Association of Software and Information Services (BASIS) that "global economic downturn hastened export growth of our software industry. Bangladesh's software industry can earn US$500 million by exporting software by 2013-2014 if the current growth trend continues".
With nearly 100 per cent growth, he said Bangladesh earned over $14 million by exporting software in the first five months of fiscal 2008-09.
The country set an export target of $30 million for the current fiscal. It earned $24 million in fiscal 2007-08 up from $2.24 million in fiscal 2000-01, he said.
Bangladesh has the human resources for software development, according to the BASIS functionary.
Bangladesh's Taka 20 billion (about $285.71 million) software industry currently employs nearly 20,000 skilled and semi-skilled professionals.
Another leading software exporter recently said although a majority of the country's existing companies export software to North America, a good number of firms have also started exporting to European and East Asian markets, including Japan.
As the global companies are taking interest in Bangladesh's software industry, he said, a number of local and foreign IT firms are investing to develop high-quality software, taking advantage of the low-cost work force here.
Many global companies came to invest in Bangladesh over the last couple of months as it costs them less and makes them competitive in the global market, the software exporter said.
According to BASIS, at least 30 out of hundreds of the export oriented companies in the recent past have either set up joint ventures or ODCs (offshore development centers) with hundred per cent foreign investment.
According to the BASIS website, the European Union has ranked the country as among the top 20 outsourcing destinations in the world.
To meet the quality standard of overseas clients, the companies in Bangladesh follow global standard practices and processes, claimed another important functionary of BASIS.
The new government's plan to make digital Bangladesh by 2021 would facilitate the growth of the local software industry. It can be expected to provide support like tax and duty cuts to woo more investment in the IT sector.
The Bangladeshi government currently provides 60 per cent of the salary or allowance cost for recruiting fresh graduates by any software company.
Connected to Submarine Cable Network South East Asia-Middle East-West Europe-4 (SEA-ME-WE-4), Bangladesh has already brought its major cities and towns under high-speed and low-priced fiber optic backbone.
SOFTWARE exports from Bangladesh grew significantly in recent months, with more than 400 software and IT companies exporting their products to around 30 countries.
It was stated recently to a foreign news agency by one of the functionaries of Bangladesh Association of Software and Information Services (BASIS) that "global economic downturn hastened export growth of our software industry. Bangladesh's software industry can earn US$500 million by exporting software by 2013-2014 if the current growth trend continues".
With nearly 100 per cent growth, he said Bangladesh earned over $14 million by exporting software in the first five months of fiscal 2008-09.
The country set an export target of $30 million for the current fiscal. It earned $24 million in fiscal 2007-08 up from $2.24 million in fiscal 2000-01, he said.
Bangladesh has the human resources for software development, according to the BASIS functionary.
Bangladesh's Taka 20 billion (about $285.71 million) software industry currently employs nearly 20,000 skilled and semi-skilled professionals.
Another leading software exporter recently said although a majority of the country's existing companies export software to North America, a good number of firms have also started exporting to European and East Asian markets, including Japan.
As the global companies are taking interest in Bangladesh's software industry, he said, a number of local and foreign IT firms are investing to develop high-quality software, taking advantage of the low-cost work force here.
Many global companies came to invest in Bangladesh over the last couple of months as it costs them less and makes them competitive in the global market, the software exporter said.
According to BASIS, at least 30 out of hundreds of the export oriented companies in the recent past have either set up joint ventures or ODCs (offshore development centers) with hundred per cent foreign investment.
According to the BASIS website, the European Union has ranked the country as among the top 20 outsourcing destinations in the world.
To meet the quality standard of overseas clients, the companies in Bangladesh follow global standard practices and processes, claimed another important functionary of BASIS.
The new government's plan to make digital Bangladesh by 2021 would facilitate the growth of the local software industry. It can be expected to provide support like tax and duty cuts to woo more investment in the IT sector.
The Bangladeshi government currently provides 60 per cent of the salary or allowance cost for recruiting fresh graduates by any software company.
Connected to Submarine Cable Network South East Asia-Middle East-West Europe-4 (SEA-ME-WE-4), Bangladesh has already brought its major cities and towns under high-speed and low-priced fiber optic backbone.