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21. Juni 2013 5 21 /06 /Juni /2013 00:29
Bangladesh – Outsourcing Market Information
Why outsource to Bangladesh

A good number of IT companies in Bangladesh have already built successful track records of working for reputed clients all over the world. Currently around 150 IT companies in Bangladesh are exporting to over 30 countries. With tens of thousands of young IT skilled workforce conversant in English, Bangladesh is one of the Asia’s most attractive IT outsourcing destinations after India- particularly for clients in the USA and other Anglophone countries. Bangladesh offers significant cost advantages for IT outsourcing- both in terms of worker-wages as well as cost of infrastructure.

Salaries of programmers in Bangladesh are less than India, Philippines, Vietnam and Eastern European countries.

Charges for Internet bandwidth in Bangladesh is currently the lowest in South Asia (50% of that in India)

Rent for office space in Dhaka (Capital) is below 20% of that in Delhi and 40% of Manila.


Market Information

The turnover of IT and BP service industry (including SSC):

FY 2011-12: 54,5 Million Euros (Growth 56.28%)

FY 2012-13 (July’12 – January’13): 45,7 Million Euros (Growth 54.80%)

Main outsourcing destination cities/ Countries

USA, UK, Canada, Australia, Denmark, Netherlands, Germany, India, United Arab Emirates.

Number of business and IT graduates in 2012 or 2011

No. of Business graduate in 2011/2012: 25,000 (Approx.)

No. of IT graduate in 2011/2012 : 6000-8000 (Approx.)

Corporate tax rates

Corporate tax is exempted from software and ITES business up to June 2015.

Minimum gross wage

230-300 Euros

Average monthly gross wage

300-400 Euros


Relevant government incentives

Software & IT service have been declared by the Government as a `High Priority’ export sector

All software and IT Services companies including those having foreign ownerships have been exempted from Income tax until June 2015.

Special Govt. sponsored long-term equity fund and short term working capital financing are offered to IT companies

Since 1996, Government has been allowing zero/low tariff for computers and capital goods required for software industry.

Special Hi-Tech Park and Software Technology Parks (STP) are being built by the government. Two have been built at Dhaka city and some other major divisional cities of the country to facilitate all the infrastructural supports needed by outsourcing companies. Bangladesh Hi-Tech Park Authority has been formed to make the Hi-Tech park operational. Already two STPs at Dhaka city have been made operational.


Main industry associations

Bangladesh Association of Software and Information Services (BASIS) is the national trade body for Software & IT Enabled Service industry of Bangladesh. Established in 1997, the association has been working with a vision of developing vibrant software & IT service industry in the country. BASIS started its journey with only 17 charter members. Today the membership stands at more than 597. Members of BASIS account for the lion share of the total software & IT services revenue of the country. www.basis.org.bd


Planned and recent initiatives

International with B2B matchmaking between Bangladesh and European companies held on March 6-7, 2013 at BASIS Auditorium. 13 European companies met 50 Bangladeshi companies and have around 200 matchmaking meetings under NTF-II project.

BASIS is going to organize US-Bangladesh Tech Investment Summit scheduled to be held on May 7, 2013 at TiE Global Headquarter, California, USA. The aim of this summit is to encourage US IT entrepreneurs to make partnerships with Bangladesh IT companies and to attract US investors to invest in IT sector of Bangladesh. Around 200 participants including leading US C-level executives, entrepreneurs, venture capital companies, policy makers, opinion leaders, international journalists and NRBs IT entrepreneurs and IT professionals will take part in the summit. Mr. Sajeeb A Wazed, International ICT Expert will present the keynote paper in the summit. Please visit: www.techinvestment.org

BASIS Softexpo 2013, the largest ICT expo of the country and the annual mega event of BASIS to schedule to be held from May 2-5, 2013 at BICC, Agargaon, Dhaka. www.softexpo.com.bd



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