bangladesh ict sector study - basis

Download Bangladesh ICT Sector Study - basis

Post on 31-Jan-2017

214 views

Category:

Documents

2 download

Embed Size (px)

TRANSCRIPT

  • NETHERLANDS BANGLADESHBUSINESS PLATFORM

    ICT Sector StudyBangladeshBridging the Gap between Dutch andBangladeshi ICT sectors

    Nyenrode Business UniversiteitJanuary 2014

  • Executive Summary

    2 Introduction ..................................................................................................................................... 1

    2.1 Scope of the Report ................................................................................................................. 1

    2.2 Research Approach .................................................................................................................. 1

    2.3 Information Communication Technology ............................................................................... 2

    3 Bangladesh ...................................................................................................................................... 5

    3.1 Introduction ............................................................................................................................. 5

    3.1.1 Geography ....................................................................................................................... 5

    3.1.2 Population ....................................................................................................................... 5

    3.1.3 Education ......................................................................................................................... 6

    3.1.4 Current Political Situation ............................................................................................... 6

    3.1.5 Diplomatic Relations ........................................................................................................ 7

    3.2 Economic Situation .................................................................................................................. 7

    3.3 Trade and Investment Relations ............................................................................................. 8

    3.3.1 Investment Climate ......................................................................................................... 8

    3.3.2 Ease of Doing Business in Bangladesh ............................................................................. 9

    3.3.3 Bilateral Trade between Bangladesh and the Netherlands .......................................... 10

    3.4 Dutch business community in Bangladesh ............................................................................ 11

    4 ICT Industry Profile: Bangladesh.................................................................................................... 13

    4.1 Historical Perspective on the ICT Sector ............................................................................... 13

    4.2 Government Policy ................................................................................................................ 14

    4.3 Market Overview ................................................................................................................... 18

    4.3.1 Market Players ............................................................................................................... 18

    4.3.2 Products and Services .................................................................................................... 20

    4.4 Benefits of the ICT sector ...................................................................................................... 21

    4.5 Market Analysis ..................................................................................................................... 22

    4.5.1 Strengths ....................................................................................................................... 22

    4.5.2 Weaknesses ................................................................................................................... 23

    5 ICT Industry Profile: The Netherlands ........................................................................................... 27

    5.1 Introduction ........................................................................................................................... 27

    5.2 ICT Offshoring Trends: Survey ............................................................................................... 27

  • 5.2.1 The Profile of Participants ............................................................................................. 28

    5.2.2 ICT Offshoring ................................................................................................................ 28

    5.2.3 Likeliness to Offshore Future ICT Services .................................................................... 31

    5.2.4 Offshoring to Bangladesh .............................................................................................. 31

    6 Conclusion and Recommendations ............................................................................................... 35

    Appendices ............................................................................................................................................ 39

    Appendix 1: List of Interviewees ....................................................................................................... 39

    Appendix 2: Bilateral Trade in Figures............................................................................................... 40

    Appendix 3: Code of Conduct Nyenrode ........................................................................................... 42

    Appendix 4: Online Questionnaire .................................................................................................... 44

    Appendix 5: Data Matrix ................................................................................................................... 49

    Case Study 1: Parkingware ...................................................................................................................... 4

    Case Study 2: Atos Foundation .............................................................................................................. 12

    Case Study 3: Approvide ........................................................................................................................ 16

    Case Study 4: Nascenia .......................................................................................................................... 26

    Case Study 5: HawarIT ........................................................................................................................... 33

  • BACCO Bangladesh Association of Call Center & Outsourcing

    BASIS Bangladesh Association of Software and Information Services

    BNP Bangladesh Nationalist Party

    BCC Bangladesh Computer Council

    BCS Bangladesh Computer Society

    BPO Business Process Outsourcing

    CAD Computer-Aided Drafting

    CBI (Dutch) Centre for the Promotion of Imports from developing countries

    CSR Corporate Social Responsibility

    DCCI Dhaka Chamber of Commerce and Industry

    EKN Embassy of the Kingdom of the Netherlands in Dhaka

    EU European Union

    FDI Foreign Direct Investment

    GDP Gross Domestic Product

    GIS Geographic Information Systems

    GoB Government of Bangladesh

    ICT Information Communication Technology

    ITC International Trade Center (joint agency of the WTO and the UN)

    ITeS IT enabled Services

    ITO Information Technology Outsourcing

    MIGA Multilateral Investment Guarantee Agency

    NBU Nyenrode Business University

    NTFII Netherlands Trust Fund II

    OECD Organization for Economic Co-operation and Development

    R&D Research and Development

    RMG Ready Made Garments

    SME Small and Medium Enterprise

    TSI Trade Support Institutions

    UN United Nations

    WTO World Trade Organization

  • ICT Information Communication Technology (ICT) includes any type of

    software and software related activities such as ICT services, ICT

    applications, and software products and embedded software.

    IT enabled Services Information Technology enabled Services (ITeS) are software-related

    services which can be performed offshore. A distinction can be made

    between Voice Based ITeS, e.g. customer interaction services,

    telemarketing and call centers, and Non Voice Based ITeS e.g. data

    entry, content management, graphic design, digital image

    processing, editing, page formatting, data warehousing, and

    mathematical modeling.

    Outsourcing Transferring various operations to outside suppliers rather than

    completing them internally. Outsourcing can be done in both

    domestic and foreign markets and always involves a third party.

    Offshoring Transferring various operations of a firm to another country.

    Offshoring always involves a foreign location and can be

    implemented both as a foreign direct investment or via a third party

    by a contractual agreement.

    Offshore outsourcing Offshore outsourcing is a combination of offshoring and outsourcing.

    In contrast to local outsourcing operations, offshore outsourcing

    involves a foreign location.

    Captive offshoring Internal sourcing from a foreign location within a firms boundaries.

    Captive offshoring types can be distiguished using magnitude of

    ownership (wholly owned subsidiary versus joint venture) and mode

    of ownership (greenfield versus acquisition).

  • On behalf of the E

Recommended

View more >