Research on

Problems and Prospects of IT & IT Enabled Services Outsourcing in Bangladesh

Bangladesh Tariff Commission24 May 2015

Slide। 2

Introduction

A practice to Reduce costs by transferring

portions of work to outside suppliers.

Sometime involves transferring employees

and assets from one firm to anotherITES is a sector of IT Industry aiming at

providing various services, through using IT.

Slide। 3

Justification

• Govt Steps- Industry policy• Digital-2021

Slide। 4

Key Service

TranslationLegalAdmin SupportCustomer ServicesSales & MarketingAccounting &

ConsultingOther Service

Web & Mobile Development

IT & NetworkingData Science &

AnalyticsEngineering &

ArchitectureDesign & CreativeWriting

Slide। 5

Outsourcing in Bangladesh

Graphics design Website development Product development Mobile application development Software development Back office administrative work 2D/3D animation Desktop publications Call centers Others

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Export of Bangladesh

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13-20

0

20

40

60

80

100

120

-10%0%10%20%30%40%50%60%70%

Export Export GrowthFiscal Year

Expo

rt (M

illio

n U

S$)

Expo

rt G

row

th

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Strength of Bangladesh

Attractive Demographic Dividend Availability of skills and manpower Language Skills Growth of Education Low operating Cost

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Contd..

20042005

20062007

20082009

20102011

20122013

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000Results of HSC Examination

Business Studies Science Humanities

Year

No.

of S

tude

nts P

asse

d

Slide। 9

contd.

2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

20,00040,00060,00080,000

100,000120,000

No. of Students Passed HSC Exam with GPA of 4.00 or more in a Scale of 5.00

Boys Girls

Year

No.

of S

tude

nts

From 2004 to 2008, Total Number of Students getting GPA 4 or above was 307,549 From 2009 to 2013, Total Number of Students getting GPA 4 or above was 765,024

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Rationale of the Study

ICTICT may contribute 1% to GDP Export Size US$ 713 million (ICT) in 2012Export Target- US$ 1 Billion by next 5 years;Outsourcing Fund - 200 to 250 million annually

IT & ITES

Registered companies - Over 800 software & ITES

Unregistered Companies -Almost 100

Exporting Software- Some Companies

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Objectives

To evaluate present status and trends

To analysis related Acts, Rules and Policies

To explore potentials and export opportunities

To assess possibility of employment generation

To identify constraints and opportunities

To prepare policy recommendations

Slide। 12

Methodology Primary Data Collection

Sample SurveyGroup Discussion Interview

Secondary Data Collection Published Articles, Journals, Legal & Policy Issues, Different sources database of BASIS, BBS, NBR, EPB etc.

Data Analysis Tabular, Graphical and Statistical Analysis

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Expected Outcome

Potential Sub Sectors of IT& ITES services of Bangladesh be Identified Potential Markets and constraints be Identified Negotiations be facilitated in trade pacts Public awareness be increased Scope of employment generation be assessed Export market & competitiveness be expanded

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Slide। 15

Thank You