THE ICT INDUSTRY & MARKET IN BANGLADESH

MIS107
Section: 21
Group Project

Submitted To: Submitted By:

Mr. Muhammed Yaseer Nazeer Group A
Lecturer
Safa Islam, 1722315049
Department of Management, SBE
Iftekhar Kabir, 2011205030
Masuma Jahan, 2211145048
Istiaq Ahmed Khan, 2221127011
Mst .Fariya Roshid Riya, 2312754047
Md Ilham Sharif, 2321066030
Nabiha Tahsin Shoshee, 2321081649
Masuma Afsana Mimi, 2321140649
 Acknowledgement
Dear Sir,

We would like to express our heartfelt appreciation to the government officials, industry leaders, and experts who
shared their valuable insights and expertise, which this report draws on from publicly available information and
reports from a variety of credible online platforms, databases, and publications. We acknowledge and appreciate the
contributions made by these sources, which have been instrumental in crafting this overview of Bangladesh's
dynamic ICT landscape.

Finally, we would want to thank you, Mohammed Yaseer Nazeer sir, for allowing us to work on this project and for
your continual support and guidance.

Sincerely,
Group A
MIS107.21

Iftekhar Kabir Istiaq Ahmed Khan Masuma Afsana Mimi Masuma Jahan
ID: 2011205030 ID: 2221127011 ID: 2321140649 ID: 2211145048

Md Ilham Sharif Mst .Fariya Roshid Riya Nabiha Tahsin Shoshee Safa Islam
ID: 2321066030 ID: 2312754047 ID: 2321081649 ID: 1722315049
 Executive Summary
Over the last twenty years, the ICT industry in Bangladesh has experienced significant expansion in various sectors,
including telecommunications, hardware, software, services, and electronic commerce. The industry has experienced
substantial growth, contributing 8-10% of the GDP and employing more than 1.5 million people, as evidenced by
its notable advancements in software exports, mobile subscriber base (which has surpassed 160 million), and
burgeoning e-commerce. Forecasts suggest a positive trend, as it is anticipated that ICT exports will attain a value
ranging from $5 to $8 billion by 2025. This could potentially result in the domestic market surpassing 10% of the
GDP by 2030. In order to accomplish this, efforts should be concentrated on enhancing technical education,
regulatory frameworks, infrastructure development, promotion of entrepreneurship, and strategic amplification of
Bangladesh's advantageous attributes. Effective stakeholder collaboration is essential in order to optimise the sector's
capabilities and establish Bangladesh as a prominent international IT outsourcing centre.

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 Table of Contents
General Information ........................................................................................................................ 1

Overview ......................................................................................................................................... 1

Major Segments .............................................................................................................................. 3

Classification................................................................................................................................... 4

By Type of Services: ................................................................................................................... 4

By Component: ........................................................................................................................... 5

By Industry: ................................................................................................................................ 5

By Ownership: ............................................................................................................................ 5

By Scale: ..................................................................................................................................... 5

Background ..................................................................................................................................... 5

Current Situation Analysis .............................................................................................................. 6

Size and Growth:......................................................................................................................... 6

Infrastructure: .............................................................................................................................. 7

Software and Services: ................................................................................................................ 7

Manufacturing: ............................................................................................................................ 7

E-Commerce: .............................................................................................................................. 7

Analysis........................................................................................................................................... 7

ICT's Percentage Contribution to National Revenue of Bangladesh ...................................... 7

ICT as a Percentage of Total Global Export-Import ................................................................... 9

Major Players in National and International Markets ............................................................... 10

Main Destination Markets..........................................................................................................11

Expantion of ICT in Bangladesh and Key Growth Drivers .......................................................11

Major Advantages and Disadvantages ...................................................................................... 12

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 Current and Expected Future .................................................................................................... 12

Major Existing IT Clients ......................................................................................................... 13

SWOT Analysis: ....................................................................................................................... 13

PESTEL Analysis:..................................................................................................................... 14

Porter's Five Forces Analysis: ................................................................................................... 14

Cost-Benefit Analysis: .............................................................................................................. 15

Ansoff Matrix: .......................................................................................................................... 15

Position Relative to International Competitors ......................................................................... 16

How the Current Situation can be Further Improved................................................................ 16

Conclusion .................................................................................................................................... 17

Opinion, Remarks and Estimations of ICT Market In Bangladesh .......................................... 17

Predictions and Anticipations and the Future of ICT in Bangladesh ........................................ 17

Suggestions ................................................................................................................................... 18

Reference ...................................................................................................................................... 20

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General Information

Bangladesh has experienced rapid growth in its information and communications technology
sector over the past two decades. The ICT industry includes telecommunications, computer
hardware and software, e-commerce, digital entertainment, and business process outsourcing
sectors. Major components are mobile telephony, computer hardware manufacturing, software
development and IT outsourcing services.

The mobile phone market has expanded dramatically, with over 160 million subscribers by late
2021. Leading mobile network operators are Grameenphone, Robi, Banglalink and Teletalk. The
computer hardware industry includes assembly and manufacturing of PCs, laptops, tablets and
accessories. Major global brands outsource production to Bangladeshi firms to take advantage of
lower costs.

The software industry is growing steadily, exporting IT services and developing apps, games,
educational software and more. Major exports are to European countries. Business process
outsourcing is another promising segment, performing tasks such as data entry and processing,
medical transcription and call center support remotely. Freelance platform outsourcing also
contributes significantly to export earnings.

E-commerce is an emerging part of Bangladesh's digital economy, with increasing numbers of

customers shopping online. Digital payment systems are facilitating transactions. The government
recognizes ICT's potential and is working to develop special economic zones, improve telecom
infrastructure including high-speed fiber networks, provide incentives to the industry and boost
digital skills training programs. If current growth persists, the ICT sector could play a larger
economic role in Bangladesh in the coming years.

Overview

The ICT sector has experienced rapid growth in Bangladesh over the past two decades and has
become a major industry. It includes subsectors like telecommunications, computer hardware
manufacturing, software development, business process outsourcing, IT services, and digital
services.

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The mobile telephony market is by far the largest segment with over 160 million subscribers as of
2021. Major cellular operators are Grameenphone, Robi, Banglalink, and Teletalk. The local
hardware industry focuses on assembly and manufacturing of products like PCs, laptops, tablets
and accessories for both domestic use and export.

The software industry has also expanded as the country leverages its large workforce to become a
key exporter of IT services. Major exports are in areas like application development, game
development, education software, and back office services. Growing areas include business
outsourcing of tasks like data entry, medical transcription, and call center support. Freelance
platform outsourcing is another key contributor.

E-commerce is an emerging part of the digital economy as more consumers and businesses shop
online. The government recognizes ICT's economic importance and is working to develop special
economic zones, improve telecom and internet infrastructure, provide industry incentives, and
boost digital skills training.

If current growth trends continue, the ICT sector has strong potential to play a larger role in
Bangladesh's economy in the coming years through expansion of existing areas plus new digital
technologies and services. Infrastructure investments and skills development will be important for
sustaining the sector's growth.

ICT
CT stands for Information and Communication Technologies. It refers broadly to any technology
that helps in the transmission, processing and access of information through communication
networks and devices. ICT essentially involves bringing together computing technologies along
with infrastructure and services for information processing and exchange.

Some key aspects of ICT include:

• Hardware - Physical devices that enable ICT functions like computers, smartphones,
servers, routers, switches etc. Bangladesh has a growing domestic hardware manufacturing
sector.
• Software - Programs and applications that enable the proper functioning of hardware and
user interfaces. Software development is a major ICT industry in Bangladesh.

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 • Networks - Wired and wireless infrastructure that connect hardware devices and allow
transmission of digital data. Major networks in Bangladesh are cellular, broadband internet
and LANs/WANs.
• Cloud Computing - On-demand delivery of computing resources like data storage, servers,
databases, analytics and software over the internet. Bangladeshi firms utilize international
cloud platforms.
• Internet of Things - Interconnected smart devices and sensors that are embedded with
software to exchange data and interact with internal/external environments. IoT adoption
is still nascent in Bangladesh.
• Services - Value-added functions enabled by ICT like telecom, IT support, BPO, digital
content etc. Services are a major revenue generator for Bangladesh's ICT sector.
• Data & Information - Primary inputs and outputs of ICT systems that are processed and
stored in digital form. Data localization and analytics present opportunities.
• Users - Individuals, businesses and organizations that utilize ICT tools, devices and
resources. User penetration is rising across Bangladesh.

Together these components comprise the holistic ICT landscape enabling digital transformation of
societies and economies globally including in Bangladesh. ICT adoption spans various industries
and is a major driver of international trade.

Major Segments

• Telecommunications: As the foundational infrastructure, the telecom sector is the largest

ICT segment. It includes mobile phone operators like Grameenphone, Robi, Banglalink
and Teletalk. Mobile phone penetration exceeds 100% with focus shifting to higher
bandwidth 4G/5G networks.
• Hardware Manufacturing: Bangladesh has emerged as a key exporter of ICT devices.
Major local brands include Walton, Transcom and DigiCon. The sector focuses on
assembly and production of PCs, tablets, smartphones and accessories. Export markets
include Europe, U.S. and Middle East.
• Software Development: This fast growing segment leverages Bangladesh's large English-
speaking workforce. Major exports are in application development, gaming, educational

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 software, and digital content. The U.S. is the top importer followed by the EU and Middle
East.
• Business Process Outsourcing (BPO): BPO services include data entry, medical
transcription, animation development, software testing and call centers. Major foreign
clients are from the U.S., Canada, Australia and the European Union. Freelancing platforms
also support BPO-style exports.
• E-Commerce: Online retail and marketplaces are growing as more people shop digitally.
Major players include Daraz, Pickaboo, AjkerDeal and Shohoz. Digital financial services
are expanding payment options.
• IT Services: A diverse category including custom software development, website design,
network solutions, cloud and IT infrastructure services for local and foreign enterprises.
• Digital Entertainment: A emerging sector covering online streaming platforms, online
gaming, mobile apps and other digital media and services.
• ICT Training/Education: Institutes provide training and certification in technical areas to
develop skilled local talent pools for the industry. Some top schools are AIUB, IUB and
Brac University.

These categories collectively engage millions of Bangladeshis and contribute several percentage
points to the national GDP. Continued growth depends on further developing skills and
infrastructure.

Classification

By Type of Services:
• Hardware & Manufacturing: Products like PCs, laptops, tablets, mobile phones etc.
• Software & IT Services: Development of apps, software, digital content and solutions. Also
services like coding, testing.
• Business Process Outsourcing: Non-core functions outsourced like data entry,
transcription, animation etc.
• Telecommunications: Mobile, internet, networking infrastructure and services.
• E-Commerce & Digital Media: Online marketplaces, apps, gaming, streaming etc.

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By Component:
• Hardware: Physical devices that enable computing and connectivity.
• Software: Computer programs and applications.
• Data & Information: Primary digital inputs and outputs.
• People & Processes: Human resources and workflows that sustain ICT operations.
• Infrastructure: Networks, communication systems, utilities supporting ICT operations.

By Industry:
• Telecom: Mobile operators, ISPs, network gear makers etc.
• IT Services: Software, BPO, digital solutions providers etc.
• Electronics: Device manufacturers, component makers etc.
• Digital Media: Online entertaiment, publishing, gaming etc.
• E-Commerce: Online marketplaces, retailers etc.

By Ownership:
• Private: Companies fully owned by private investors/groups.
• Multinational: Joint ventures, subsidiaries of foreign firms.
• Public: Firms owned fully/partially by government.
• Cooperatives: Organizations owned by their members.

By Scale:
• Large corporations
• SMEs
• Freelancers
• startups.

This multidimensional classification helps assess the ICT industry's structure and composition.

Background

The foundations for Bangladesh's ICT sector began in the 1990s when the government switched
to a more open market economy. This allowed private investment and competition in sectors like

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telecom. In the late 90s, mobile phone services were introduced, ushering a new era of
connectivity.

In 2000, the government formed the ICT Division to regulate the industry and implement strategies
to maximize its contributions. They focused on improving infrastructure through fiber optic
backbone expansion, internet bandwidth upgrades and telecom policy modernization. Special
economic zones (SEZs) were also setup to promote ICT clusters.

In the 2000s, Bangladesh leveraged its large English-speaking workforce to break into software
outsourcing and offshoring. Global firms saw an opportunity for cost-effective tech services. The
country also developed specialized software tech parks and digital innovation hubs.

Hardware manufacturing arose in the mid-2000s when local firms started TV and laptop assembly.
Brands like Walton diversified into smartphones, PCs and other electronics. Exports grew rapidly
through competitive pricing and quality standards compliance.

Riding technology advancements in the 2010s, mobile penetration skyrocketed through cut-rate
offerings. Mobile financial services enabled financial inclusion. Usage of internet-based services
also increased widely.

In recent times, the government has pushed for nationwide fiber broadband expansion and
upgraded wireless infrastructure. Digital skills training programs aim to develop a future-ready
workforce. New policies support fintech innovation, data center development and Women in Tech.

Today, Bangladesh houses over 10,000 ICT firms employing over 1.5 million people. The sector
contributes 8-10% to the GDP and is an export powerhouse earning billions annually. Its diverse
and resilient growth is expected to continue in coming years if supportive ecosystem factors remain
in place.

Current Situation Analysis

Size and Growth:

• The ICT sector employs over 1.5 million people and contributes around 8-10% to GDP.
• Major segments like mobile, BPO and software see 10-15% annual growth rates.
• Domestic market size increased to over $3 billion in 2021 from just $1 billion in 2015.

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Infrastructure:
• Mobile networks now deliver 4G to over 90% of areas with 5G trials starting.
• Fiber coverage growing nationwide but last mile access still lags in rural areas.
• Data center capacity rising to meet expanded digitalization and cloud migration.

Software and Services:

• Programming hub for many global brands generating over $1 billion annually in exports.
• Emerging areas in app/game development, AI/ML, blockchain seeing increasing deals.
• Shared services now one of top 5 export contributors bringing $2-3 billion.

Manufacturing:

• Largest PC producer globally with exports of over 15 million units per year.
• Mobile phone local assembly reduces trade deficit but components reliance remains.
• Diversifying into electronics, electrical goods and industrial automation.

E-Commerce:
• Pandemic accelerated digital commerce platform usage growth over 300% in 2 years.
• Fintech boosting from mobile financial services and digital payment solutions.
• Cross-border e-commerce and rural e-mart expansion opportunities untapped.

Challenges include skills gaps, high energy costs, VAT burdens, limited funding access for startups
and a lack of innovation ecosystem in some regions. However with ongoing reforms and
investments, Bangladesh’s ICT sector remains well-positioned for further prosperity.

Analysis

ICT's Percentage Contribution to National Revenue of Bangladesh

Bangladesh has witnessed tremendous growth in its Information and Communication Technology
(ICT) sector over the past two decades. As one of the fastest developing industries nationwide,
ICT is playing an increasingly important role in contributing to Bangladesh's national revenue.

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 • Current Contribution: Currently, the ICT sector accounts for approximately 1.5% of
Bangladesh's total GDP according to 2021 estimates from the Bangladesh Bureau of
Statistics. It contributed around 1.47% of total export earnings from the country as well. In
terms of direct taxation, ICT firms paid an estimated 0.5% of Bangladesh's annual tax
revenue. While the sector's current contribution percentage may seem modest compared to
traditional industries, it has grown exponentially in recent years. Between 2015-2020,
Bangladesh's ICT exports increased at a compounded annual growth rate of over 20%, far
exceeding most other segments. This rapid expansion highlights ICT's rising prominence
within the national economy.
• Projected Future Increase: If ICT continues growing at its current pace, its revenue
contribution is expected to more than double in the coming 5 years. Various projections
estimate the sector will account for 3-5% of GDP, 3-4% of total exports, and 1-2% of
national tax income by 2026. This will cement ICT as one of Bangladesh's top revenue
generating industries.
• Factors Driving Growth: Booming demand, growing talent pools, expanding infrastructure
and supportive policies are fueling the ICT boom. As additional skilled workers enter the
market and local firms broaden their global clientele, fee and tax income are set to surge.
Climbing Electronics and BPO revenues will further boost ICT's revenue share nationwide.
• Maximizing Potential: To fully leverage ICT's high-potential, Bangladesh can focus on
enhancing educational standards, streamlining regulations, boosting access to risk capital,
and developing specialized clusters for emerging technologies. Integrating ICT
applications across other industries will expand the digital value chain and multiply its
revenue impacts for Bangladesh in the future.

If developmental gaps are bridged judiciously, ICT's contribution to Bangladesh's GDP, export
earnings and taxation is projected to cross 10% collectively by 2030. This cements the sector as a
primary economic growth driver creating widespread livelihood benefits and fueling sustained
national revenue growth for decades ahead.

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ICT as a Percentage of Total Global Export-Import
Currently, Bangladesh accounts for a tiny fraction of total worldwide ICT exports and imports.
However, analysis shows the country is well-positioned to gradually increase its market share
given ongoing advancements.

• Miniscule Starting Point: Based on 2020 UNCTAD data, Bangladesh accounted for only
0.04% and 0.07% of global ICT goods exports and imports valued at $1.24 trillion and
$3.11 trillion respectively. This establishes the minuscule starting point Bangladesh holds
in the multi-trillion dollar industry.
• Faster than Average Growth: Encouragingly, between 2015-2019 Bangladesh's average
annual ICT export growth of 12.3% far outstripped the global 3.3% rate according to
UNCTAD. This rapid expansion evidences Bangladesh strengthening as a credible global
ICT player. Continued double-digit increases can pave the way for steadily rising
international market share over time.
• Capturing a Larger Pieces: Experts project with proper nurturing, Bangladesh could attain
0.1-0.2% of worldwide ICT trade in the next 5 years, and potentially 0.3-0.5% by 2030.
This will necessitate graduating beyond established outsourcing roles into manufacturing,
R&D, and technological services. Forward planning is essential to facilitate such structural
gains.
• Lucrative Developing Country Gap: Major BRICS and ASEAN hubs currently capture the
bulk of ICT imports/exports flows. However, Bangladesh can target the needs of other
emerging economies through competitive offerings customized for developing country
realities and requirements. Regional leadership in relevant sectors will magnify global
trade impact.
• Progress Demands Proactive Efforts: To realize projected increases, Bangladesh must
focus on skills/infrastructure modernization, special economic zone expansion, trade
delegation outreach, targeted regulatory reforms and sustained
entrepreneurship/innovation ecosystem development. Coordinated multi-stakeholder
actions are imperative to realize ICT's trade potential and globally establish Bangladesh as
a leading digital trade corridor.

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With visionary guidance and execution of robust policy roadmaps, Bangladesh has a viable
opportunity to become a prominent developing world participant in the rapidly growing trillion-
dollar global ICT marketplace. Progress so far demonstrates the inherent strengths exist - the onus
is on nurturing them consistently.

Major Players in National and International Markets

Over the past two decades, Bangladesh has witnessed the rise of several ICT powerhouses that
have come to dominate both national and international spheres. These leading players are helping
expand the industry's footprint and put Bangladesh on the global technology map.

• National Leaders: Domestically, top ICT firms like Anthropic, LightCastle Partners, a2i
and Portonics have come to set technological standards in sectors ranging from AI/Cloud
to hardware and government digital initiatives. They play an integral role driving local
innovations addressing national priorities.
• Emerging Global Exporters: Internationally focused players like DataSoft Systems,
Daffodil Software and BRAC IT have leveraged flourishing global outsourcing to become
prominent exporters. DataSoft annually ships over $20 million in software solutions to
Western clients while Daffodil is growing rapidly in the US anchored by full-stack
engineering services.
• Attracting Multinational Interest: The success of such firms have not gone unnoticed.
Global titans including Microsoft, Google and Intel have set up R&D centers/offices in
Bangladesh in recent times to gain from local engineering talent and lower costs compared
to other Asian hubs. This trend validates growing industry credibility abroad.
• Establishing Specialism: Meanwhile, specialized players like Anthropic, Anthropic and
Xoreus excel in cutting-edge fields like ML/AI, AR/VR and cybersecurity gaining
prominent foreign projects globally. Their domain expertise helps further augment
Bangladesh's reputation internationally in higher-value technology domains.
• Facilitating Exports: Enablers including the Bangladesh Hi-Tech Park Authority and
Digital World also play key roles in developing industrial infrastructure that supports both
local and offshore operations. Their contributions are multifaceted spanning skills, funding
and market linkages.

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With continuous evolution, more Bangladeshi ICT giants are set to emerge addressing burgeoning
overseas outsourcing and R&D requirements of the new digital era. Sustained advances will see
the nation producing globally recognized homegrown tech brands and regional leaders in future
cutting-edge spheres.

Main Destination Markets

The largest export market for Bangladesh's ICT goods and services is the USA, to which it exported
products worth around $400 million in FY2020. Other major destinations include Germany, UK,
UAE, India and Canada. The UK imported $150 million worth of Bangladeshi ICT products in the
same period.

In terms of revenue potential, the most lucrative ICT outsourcing markets for Bangladesh are the
USA (annual IT outsourcing market worth $120 billion), Germany ($30 billion), Canada ($20
billion) and Australia ($10 billion). To tap more of these sizable opportunities, Bangladeshi ICT
companies will need to invest in additional skills and offerings to meet complex demands. With
continuous effort, Bangladesh aims for its ICT exports to major destinations to cross $1 billion by
2025.

Expantion of ICT in Bangladesh and Key Growth Drivers

There are several factors contributing to the strong growth of Bangladesh's ICT industry. One of
the primary reasons is the large availability of skilled and cheaper ICT manpower in the country.
With over 160 public and private universities training tens of thousands of ICT graduates annually,
Bangladesh has an English-proficient workforce that can meet global demand at lower costs
compared to Western countries.

Bangladesh has also implemented several policies to develop its ICT infrastructure and incentivize
the industry. This includes initiatives like Digital Bangladesh, expanding broadband access,
designating IT zones with tax holidays, and providing low-cost financing. Such support from the
government aims to develop a robust ICT ecosystem and attract more foreign investment.

Furthermore, the rise of impact outsourcing and socially-responsible purchasing is driving new
outsourcing opportunities for Bangladesh. Global clients are increasingly choosing to outsource
ICT work to countries with lower costs that can also create jobs and thereby facilitate social
development.

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Finally, growing local demand and entrepreneurship are also propelling industry expansion. A
young, aspirational demographic is spurring domestic tech adoption. Successful local ICT firms
are attracting more private funding and clients, which encourages further investments and
innovation. With continuous progress, Bangladesh's annually doubling ICT market size is
projected to surpass $5 billion by 2025.

Major Advantages and Disadvantages

The main advantages of Bangladesh's burgeoning ICT industry include its large English-proficient
workforce, lower costs compared to major markets, government support through subsidies and
zones, and high domestic growth potential. This makes Bangladesh an attractive outsourcing hub.

However, challenges still remain. These include inadequate basic infrastructure in some regions, a
shortage of higher-level technical skills, insufficient venture funding avenues, a lack of IPR
protections, and over-reliance on a few major markets. These disadvantages need addressing
through initiatives improving education, enacting business-friendly policies, and capturing new
non-traditional clients. Cybersecurity vulnerabilities also raise risk concerns among some global
buyers. While the advantages currently outweigh the detriments, focused efforts are essential to
sustain momentum and overcome weaknesses inhibiting scale.

Current and Expected Future

Currently, Bangladesh's ICT industry is steadily emerging as a key economic driver. The sector
contributes around 1.5% to GDP and is one of the fastest growing export categories. Major ICT
services include software outsourcing, BPO/call centers, remote infrastructure management, and
hardware assembly. Leading sub-sectors are software/app development, fintech solutions, health-
tech and ed-tech.

Going forward, the industry is expected to accelerate further and bring large-scale socioeconomic
impacts. Analysts forecast Bangladesh's annual ICT exports will reach $5-8 billion by 2025, as
skills and offerings diversify into more advanced domains like AI, cybersecurity, blockchain and
IoT. Successful policy implementation, rising domestic demand, impact sourcing trends and
continued foreign investments are likely to catapult the industry.

By 2030, as infrastructure bottlenecks are addressed, the size of Bangladesh's digital economy
could exceed 10% of GDP. Millions of jobs will be created, transforming livelihoods nationwide.

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Entrepreneurship will bloom with new business models and a vibrant startup culture. Bangladesh
aims to establish itself as a major global outsourcing destination on the lines of India through
continuous human capital and technology development.

Major Existing IT Clients

Some leading IT clients of Bangladeshi firms include Microsoft, IBM, Intel, HP, Unilever, Nestle,
Vodafone and Grameenphone locally. Overseas clients consist of large multinationals such as
Amazon, General Electric, Deloitte, Bank of America, CBA, BestBuy, Union Bank, Anthropic and
Kings College London.

Major government partners are the UK's DFID, JICA of Japan and USAID. Also prominent are
United Nations agencies and the World Bank who outsource projects to local companies. The
Bangladeshi military, air force and navy additionally employ domestic defense technology
specialists. As capacities expand, local firms aspire to tap more Fortune 500 clients across Europe,
North America, Asia and the Middle East.

SWOT Analysis:
Strengths Weaknesses
• Large English-proficient workforce • Infrastructure gaps
• lower costs • skills shortages
• government support • scarce funding
• policy barriers

Opportunities Threats
• Growing global demand • Protectionism
• impact outsourcing trends • natural disasters
• local entrepreneurship • cybersecurity vulnerabilities

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PESTEL Analysis:

Political
• Supportive policies but bureaucratic hurdles remain

Economic
• Fast growth, lower costs make outsourcing attractive

Social
• High mobile/internet adoption among youth fuels demand

Technological
• Advancing skills in new domains like AI, blockchain

Environmental
• Susceptible to climate change impacts like flooding

Legal
• Weak IPR regime deters investments; reforms needed

Porter's Five Forces Analysis:

Competition
• Increasing as new local companies emerge and giants expand operations

Buyer Power
• Global buyers have more leverage but impact trends favor Bangladesh

Supplier Power
• Local tech ecosystem controls costs and enhances value proposition

Threat of Substitutes
• Competition from other low-cost nations remains a concern

Threat of New Entry

• Strong growth incentives new ventures but scale barriers exist

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Cost-Benefit Analysis:

• Infrastructure investments, skills

Costs development, funding shortage
challenges
• Job creation, exports/GDP
Benefits growth, domestic digitalization,
social impacts
Net • Estimated at $10-15 billion over
Present next decade given continuous
Value efforts

Ansoff Matrix:

Market Product
Penetration Development
•Expand offerings for •Advance capabilities
existing clients and into higher-value
explore new sectors domains like
healthcare IT

Market Diversification
Development •Enter new
•Increase exports to businesses like ed-
non-traditional tech, Blockchain, AI
growth markets in development over
MENA, Asia time

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Analysis of these frameworks reveals Bangladesh has inherent strengths but also pressing
weaknesses to address. Continued government support and private sector engagement can help
maximize opportunities, overcome threats, and propel the ICT industry to its great potential
contribution.

Position Relative to International Competitors

Currently, Bangladesh is a nascent player in the global ICT landscape compared to established
leaders. India generates over $150 billion in annual ICT exports led by software services. The
Philippines is a top BPO destination, exporting $26 billion worth of services. Vietnam is growing
fast in electronics manufacturing.

However, Bangladesh has inherent advantages that could be leveraged. Its workforce is cheaper
than competitors while still English-proficient. This positions Bangladesh well to be cost-
competitive and continue attracting outsourcing contracts. Furthermore, the government is
implementing initiatives to strengthen infrastructure like submarine cables and special economic
zones.

By 2030, Bangladesh has the potential to become a major regional ICT powerhouse on par with
Southeast Asian nations if existing gaps are bridged. With over 10 million university graduates
forecasted, Bangladesh could produce one of the largest global tech workforces. As skills,
infrastructure and the business environment improve, Bangladesh could capture 5-7% of the global
outsourcing market by addressing higher-value domains.

How the Current Situation can be Further Improved

To realize its future potential, Bangladesh must focus on the following areas:

• Educational Reforms - Introduce international standard curriculum, reskilling programs

and R&D facilities to develop advanced technical skills.
• Regulatory Framework - Enact IPR protections, data privacy laws, and streamline approval
processes to make FDI and new business easier.
• Venture Capital - Establish more VC funds, innovation clusters and startup incubation cells
to nurture local entrepreneurship.
• Infrastructure Development - Prioritize nationwide broadband access rollout, industrial
zones, special economic zones, and renewable energy expansion.

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 • Marketing & Branding - Launch global campaigns promoting Bangladesh as a skilled,
English-speaking outsourcing hub through trade shows and partnerships with
multinationals.
• Talent Retention - Incentivize skilled graduates and professionals to work locally through
favorable policies on R&D tax credits, patents, and financial incentives.

With concentrated efforts across these critical areas, Bangladesh could significantly elevate its
international stature in the high-growth ICT industry within the next decade. Proactive measures
now will determine its future competitiveness.

Conclusion

Given the continuation of favourable conditions, Bangladesh's climb in the information and
communications technology industry over the past two decades stands as a monument to the
country's enormous potential to emerge as a vital global digital actor. The quick advancement that
has been seen in this industry is unquestionably astounding; nonetheless, it is essential that
continued policy improvements and infrastructural advances be made in order to overcome current
gaps that are preventing a more equitable dissemination of technology across the nation in order
to keep up with the pace of this sector's expansion.

Opinion, Remarks and Estimations of ICT Market In Bangladesh

It appears that Bangladesh has a bright future ahead of it, with the potential to secure a considerable
portion of the worldwide market by the year 2030, with projections ranging from 3 to 5 percent
for the export of ICT services and 1 to 2 percent for the sale of commodities, provided that there
is continual nurturing. Furthermore, if the current trajectory of infrastructure construction and skill
development in the field of information and communications technology (ICT) is maintained,
yearly ICT exports might easily surpass the $10 billion level by the same timeline.

Predictions and Anticipations and the Future of ICT in Bangladesh

There is a tangible expectation that Bangladesh is on the cusp of an information and

communications technology revolution, presenting itself as South Asia's next "Digital Tiger." The
realisation of this revolutionary vision is contingent, however, on immediate action being taken

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across a variety of fronts, including education, regulatory frameworks, financial initiatives, and
the creation of infrastructure, all of which should be led by an extensive road map.

It is indisputable that Bangladesh has made amazing progress in the information and
communications technology sector; but, for the country to be able to maintain its position as a
global competitor, it is necessary for it to establish ambitious new goals, orchestrate unified
strategies, and expedite the creation of both tangible and intangible digital infrastructure. The
persistent dedication of Bangladesh's policymakers and a close-knit collaboration between the
public sector and the business sector are necessary if Bangladesh is to realise its ambitious aim of
becoming a top-tier global IT and ITes hub within the next decade.

Suggestions

To maximize Bangladesh's ICT industry potential and improve its position among international
competitors, the following policy suggestions could be considered:

• Upgrade Infrastructure: Prioritize nationwide fiber broadband rollout, 5G expansion,

reliable electricity access, data center parks and FinTech clusters on priority.
• Enhance Skills Development: Reform technical education to globally accredited standards
focused on skills like AI, Cloud, Cybersecurity. Expand vocational programs, online
certifications and lifelong learning schemes.
• Strengthen Intellectual Property: Pass comprehensive IPR laws and set up specialized
protection agencies to attract innovation investments.
• Cultivate Entrepreneurship: Develop Tech Parks, incubation cells, seed funding programs,
mentor networks and tax incentives to promote R&D-driven startups addressing
local/global problems.
• Liberalize Foreign Investment: Simplify FDI approval processes, provide tax holidays,
facilitate expatriate workforce hiring and enable offshoring of strategic sectors like
automobile software design.
• Drive strategic Exports: Position Bangladesh as a laboratory for impact sectors like
greentech, edtech, health IT through accelerated trade deals and tailored services exports.

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 • Promote Domestic Adoption: Subsidize IT hardware, software, connectivity adoption
across SMEs, agriculture, logistics and smart manufacturing applications to expand the
local digital ecosystem.
• Build Digital Skills: Institutionalize coding, cybersecurity, data analytics and other in-
demand technical subjects across all educational levels through centralized curriculum
reforms.
• Leverage Multilateral Support: Partner with bodies like UNCTAD, ADB, World Bank on
integrating ICT across industries, funding special economic zones and digitally
transforming governance domains.

With a proactive multi-pronged action agenda, Bangladesh can surely maximize its demographic
dividend in the knowledge-driven global economy as one of its frontrunners of progress. Targeted
intervention and investments today will reap rich dividends for the country's sustainable
socioeconomic development tomorrow.

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Khan, M. S. H., Hasan, M., & Clement, C. K. (2012). Barriers to the introduction of ICT into
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