Software industry of Bangladesh in International Market Part III

Software industry of Bangladesh in International Market

Weaknesses of software industry of Bangladesh:

There are quite a number of weaknesses that are inherent to our socio-cultural and socio-economic upbringing that remains to be our drag-forces baffling and negating efforts in developing the software market. These cultural stereotypes need to be reversed if Bangladesh has to get to the success story in the software market.

i.                    Lack of full usage of sub-marine cable connection with the information super high-way.

ii.                  Inadequate networking and marketing capacities of the existing software companies.

iii.                Inadequate experience in large IT Project Management skills.

iv.                Inadequate experience in systems management and systems integration skills.

v.                  There is no hardware manufacturing plant in Bangladesh. Since the hardware is essential to develop software, development of software industry won’t go long without it.

vi.                As the government give subsidies in export oriented industry, software industry don’t get much.

vii.              Most of the software firm in Bangladesh make software emphasizing local market.

  

Suggestion for developing the software industry of Bangladesh:

Development of the software industry is no “silver bullet” - there is no guarantee of success, and if success does come it will not be overnight. By following some suggestions it can be the most profitable sector of Bangladesh. The suggestions are follows:

Improved country image at home and abroad:

• Create a strong, realistic, globally unified and positive international voice for Bangladesh through its Missions abroad.

• First acknowledge the extent of the problem, and then take visible action – talking and Task Forces without follow-up action only exacerbate the image problem.

Consolidated governmental approach to ICT here in Bangladesh:

• Commitment by all parties to coordinated interventions for the benefit of all

• Reduction of bureaucratic infighting

• Government officials taking an active role in increasing their personal awareness and knowledge of ICT (involvement of industry associations)

Legal framework established:

• Enact appropriate laws for the protection of Intellectual Property Rights, as required under the WTO Charter.

Faster, cheaper, more personalized and efficient service delivery through computerization of government:

• Set up low-cost high-speed data and voice communication link with the USA and the UK, with a minimum speed of 2 Mbps. Private Sector should be allowed to provide such service along with BTTB.

• Allow Private Sector to set up their own Satellite Communication links in order to obtain competitive price advantage and greater availability of Communication facilities.

• Ensure the proper usage of submarine cable.

Focus on factors beyond low labor cost that drive “outsourcing” decisions in favor ofBangladesh – the human factors and soft skills:

• Focus for the most part stuck on the cheap labor aspect of Bangladesh with little consideration for sound and professional business practices and communications.

• Awareness campaign (industry associations and government) - this issue demands much more attention as Bangladesh finds itself a beginner in the global e-Commerce game, and it is not the only player banking on a cheap and plentiful labor force.

• Identify singular, marketable strength

• Programs that provide technical assistance in defining business skills and communicating and demonstrating their importance (industry associations).

IT Training – target qualified labor over cheap labor:

• Introduce training options that are beyond question – international standards with success measured externally.

• Allow market to determine an institutes viability and quality – decrease government involvement.

• Expatriate Bangladeshi experts should be encouraged to set up software development companies.

Good governance reforms and increased transparency:

•It would enable marked improvements in this area and remove some of the obstacles to successful growth in not only the ICT sector, but other sectors as well.

Training the trainers by non-resident Bangladeshis (NRBs):

•Build local capacity for quality training by limiting level of involvement by NRBs or any outside experts to the initial phase only.

Government incentives to companies for on-the-job training

• Shift away from government lead and toward greater private sector role in initiating activities   such as internships, mentorships, and “reality adjustments” for trainers

• Secure the funding for ICT program

• Create a transparent mechanism for reliable distribution of funds.

• Build private sector “advisory” group to formulate additional options.

• Form neutral “Placement Cell” to act as hub for activities.

Establish clear demand: numbers and skills sets:

• Work to further establish numbers on demand side, especially international markets.

• Search for specialized, standardized curricula that suit the needs of industry at home and abroad.

• Send Marketing Missions to North America / E. U. consisting of Members from IT Associations and EPB, on a regular basis.

• Empower Export Promotion Bureau to ensure regular participation in all major International Exhibitions / Fairs for IT products and services.

Conclusion:

Bangladesh has a huge potentiality in ICT sector. The existence of a strong and vibrant Software & ITES Industry is necessary for attaining growth as this is the one very important force which can drive other sectors in achieving their objectives through efficiency, accountability, and transparency. In addition to generating significant number of employment for educated youths, this sector can add important value to the country by making other sectors viable, productive, and efficient. Currently, more than 800 registered software companies in the country are employing more than 30,000+ high skilled professionals. It should be noted that the ‘local value addition’ for software export earning is 100% whereas other big export have only 10% to 15% value addition. Bangladesh’s strength lies with its people – its workforce. The inputs required by the software industry are that of manpower, intelligence. These factors clearly point out that the software industry has the opportunity to grow into the leading industry of the country. There is a large scope for software market expansion. The domestic market and the volume of exports of software products could be raised to Tk. 70 billion by 2014 if the government gives proper attention and support to the sector. If the government can provide the industry with right environment like adequate power facility, the ODCs can come up quickly resulting in employment generation, branding, reaching new technological skills and facilitating outsourcing