Software industry of Bangladesh in International Market Part II

Software industry of Bangladesh in International Market

Potentiality of Bangladeshi Software

During the last two decades, there has been a remarkable change in IT sector in the country. Today, there are about 800 software and IT firms registered as members of the Bangladesh Association of Software and Information Services (BASIS) alone. At present, more than 52 public and private universities and some institutes and colleges are offering degree courses in the area of Information Technology. It is estimated that every year, around 3000 IT graduates are coming out of these institutions. Students from BUET (Bangladesh University of Engineering and Technology), Dhaka University and some private universities have excelled in national and international computer programming competitions.  Especially new graduates from technical institutions have been engaged in ‘self-employment’ concept earning spectacular financial gains by designing software, graphics, websites and by processing data for both local and overseas markets. Online editions of various foreign newspapers, periodicals and journals and even 3-dimensional movies of reputed international companies are also being designed by experienced IT professionals in the country.

Bangladesh has huge potentiality in software market. They are-

      ·   Labor force

      ·   Infrastructure

      ·   Hardware and technical back-up

      ·   Favorable government policies

·         Availability of financially capable investors

·         New outsourcing destination

·         Asian market penetration

Let us talk about in brief here-

·        Labor force

Bangladesh enjoys a clear competitive advantage in its IT labor force.  The most significant advantage of the Bangladeshi workforce is the low wage rates. The salaries for IT professionals could be as low as USD 75/month. On the other hand, the higher salary ranges at approximately USD 1,000-1,200/month. The quality of the graduates coming out of various institutions is satisfactory. Bangladeshi students have proved their potentials in the international competitions by winning a number of programming contests.

·         Infrastructure

Bangladesh has been building its infrastructure support for the IT industry over the years. The country ensured global connectivity by connecting to the submarine cable. High-speed Internet connectivity through fiber optic cables costs about USD 2.67/per month for 128 kbps connection. The existing VSAT backbone will continue remain the major Internet infrastructure until the new Backbone (Submarine Cable Connectivity) operates 100 per cent. There are as many as 150 ISPs in the country and the competition among Internet service providers has resulted in significant improvement in their services. Most of the ISPs are now providing 24/7 on-site technical support.

·        Hardware and technical back-up

According to research by Springboard Singapore, the volume of the hardware market in Bangladesh is USD 129.4 million at present. Locally assembled and often unbranded machines dominate the pc/server market. However, most of the international giants (HP, IBM, and Dell etc.) are present in the market through their local agents. A branded server with basic configuration costs about USD 6000 whereas the ‘unbranded’ version costs about USD 2,000. The average workstation price is USD 700-900 for a brand PC and USD 500-600 for a clone PC.

·        Favorable government policies

The Government has recently formed an Information Communication Technology Business Promotion Council incorporating the private sector computer professionals to boost ICT trade and services at home and abroad. The Ministry of Commerce plans to set up two more such business promotion councils for diversifying and stimulating faster growth of export trade. The Government also identified IT as the “thrust sector. The Government developed a hi-tech park at Kaliakoir, about 40 k.m. from Dhaka city in an area of 119 hectares (with additional 55 hectares available for future expansion), which is envisaged as an integrated and ultra-modern techno-township, The duty free trade access to the first world countries also provides an attractive incentive for Bangladesh to merge into the international market with huge potential. Added to special policy benefits for the ICT sector, the favorable investment policies for FDI should encourage companies from other nations to venture into the Bangladesh ICT industry.

·        Availability of financially capable investors

Local business investors in Bangladesh are well equipped to invest in strategic alliances and partnerships. The willingness of the investors combined with their local business knowledge could be utilized for better return on the investment. These people have funds and are ready to invest money in new industries. As a result, the foreign investors feel comfortable working with them.

·        New outsourcing destination

Bangladesh is relatively new as an outsourcing destination. This means many unexplored areas of business. More and more investments are coming in and the industry is experiencing growth. The attractive business prospects are bound to encourage local and international investors in the near future.

·         Asian market penetration

The geographical location of Bangladesh provides a great platform for operating in Asian markets.