Outsourcing jobs & freelancing overview in Bangladesh:
Outsourcing jobs in Bangladesh has gained immense popularity over the last few years. Bangladesh being one of the fastest growing economies in the world has also experienced significant growth in the volume of outsourcing jobs. In fact, the number of offshore software development projects in Bangladesh has doubled and continues to grow in a rapid rate. The industry has created work opportunities for the population; it now employs over 20,000 people and is exporting services to European, North American and East Asian market.
Moreover, IT freelancing sector has grown around 100 to 150 % over the last couple of years. More than 40,000 freelancers are now working from their homes in Bangladesh for various global companies and lot of Business Process Outsourcing (BPO) of companies have been established like Intelzaa to create more job force for talented individuals in the BPO sector.
How Bangladesh is recently gaining lot of attention for being the hub for IT outsourcing?
- According to AT Kearney Global, Bangladesh is one of the leading countries for outsourcing.
- The prestigious consulting company, has ranked Bangladesh as number 51 worldwide, as the best destination for outsourcing. As per their published report, they rated Bangladesh as having one of the best financially attractive portfolios.
- They have also recognised how quickly Bangladesh outsourcing has moved to the forefront of entrepreneurial activity.
It has been established by AT Kearney Global that the country has become the central point for outsourcing jobs via Upwork. It is among the top 10 countries on Upwork to show remarkable improvement and has become the 3rd country for contractors on Upwork.
Best cities to work for outsourcing jobs in Bangladesh that taking over Asian giants:
- Chittagong, Dhaka and Khulna have been deemed as one the top destinations for freelance online jobs. It has surpassed countries like Indian cities like Bangalore, and has shaped into a major centre for web development, web design, graphic design, data research and data entry work employing tens of thousands of people.
- Over the last 10 years Asian counterparts like Philippines has become the most associated with IT outsourcing work. It has mainly achieved this through providing call centre services to western clienteles and through growth of many software development companies. Philippines success is related to the exponential growth of many software development countries.
- Additionally, their young population has access to an array of robust technical universities. However, Philippines is facing many challenges in the BPO (Business Process Outsourcing) sector. The attrition rate is easily 40% at some companies causing serious quality issues, as workflow is continuously being impacted by changes in the workforce.
- The cost structure is rapidly increasing, consequently Pilipino firms are moving towards higher ticket item services. These major issues have impacted other leading countries which is one of the leading call centre destination in the world.
- Bangladesh has the possibility and potential to become one of the best destinations for outsourcing jobs. It has immense scope for capacity development and there are significant competitive edge on cost benefits involved when compared with other competitors in the market such as India, Sri Lanka and Singapore etc.
Competitive advantages in outsourcing jobs in Bangladesh compared to other countries in the world:
- An article titled “Outsourcing Moves to Bangladesh” published in Crain’s New York Business, it is stated that Bangladesh is an up-and-comer in the international economy.
- It has been predicted by industrial analysts from Goldman Sachs to Cisco Systems that it has vast potential to follow in the successful economic footsteps of titans of Asian IT Hub countries.
- According to the article, it is mentioned that as wage rate and other costs continue to rise as high as 15% a year in India, more New York based companies are going next door to Bangladesh.
- This is not only about the pricing it also involves assuring the quality of the work to the highest standard and delivering swiftly in exact time with flexible terms and conditions.
- The identified reasons behind the success were relatively high number of educated young, skilled workforce who speak English, work long hours and can design a profitable web page.
- When comparing the average wage of an outsourced IT sector employee, it is around $7 per hour in Bangladesh, whereas in countries like India and Philippines $10 and $15 an hours respectively.
Why Bangladesh is the lowest cost outsourcing country in the world?
- Bangladesh has proven to be a profitable option as it offers a group of English speaking, human resources (7 million) at costs almost 50% lower than that of India, Philippines, Malaysia, Thailand and Vietnam.
- The salary is even cheaper by 75% to 80% in comparison to Eastern European countries like Poland, Russia, Ukraine and Latin American countries like Brazil, Chile, and Mexico etc.
- It is also noteworthy that the average inflation rate in Bangladesh has been steady, ranging from 6% to 8% since the last decade.
Benefits of having low costs in Bangladesh:
- The low commercial rent in Bangladesh also gives it a competitive advantage compared to leading outsourcing countries. Most IT firms are located in Dhaka the capital and Chittagong the port city of Bangladesh where rental cost is lower compared to rest of the world.
- However, the commercial rental in business zones such as Agrabad and Khulshi in Chittagong is way cheaper than areas like Motijheel, Gulshan and Banani in Dhaka which still remain cheaper than that of Delhi by 30% and Manila by 50%.
- Many IT companies like Intelzaa and upcoming entrepreneurs are also decentralising their setup to keeping in mind surroundings of Dhaka or else establishing in a renowned growing city like Chittagong to reduce their operation costs but keeping the quality to the highest standard.
Bangladesh is the number 1 BPO Sector in the world to be and what necessary steps are taken:
- Bangladesh is continually working towards laying a strong foundation for a successful outsourcing industry. The government is keen to promote and support IT services industry. They have taken initiatives such as cheaper bandwidth, alternate international cables, establishing technology parks and provision of tax holidays for export-oriented industries.
- They have too commenced a project to create another 50,000 to 80,000 freelancers by giving them a substantial income and scope by providing essential training.
- The government is helping in overcoming the obstacle of slow internet, by providing fibre optic connectivity to 197 sub-districts.
- The Digital Bangladesh inventiveness has greatly contributed to the infrastructure setup for improved connectivity, ICT based citizen service delivery and ICT based education system.
- A number of outstanding global players like Samsung, AMD, VizRT, WorldBridge Global have been working with Bangladesh, in turn creating opportunity for the young workforce to be familiar with international standards.
Why outsourcing industry is booming in Bangladesh?
- Consistent with the Business Promotion Council (BPC), the prospects of Bangladesh as an outsourcing giant is constantly increasing.
- The large pool of younger people with productive age group between 16 to 35 years create demographic bonus for Bangladesh. Traditionally, Bangladeshis have higher mathematical aptitude and superior logical and analytical abilities.
- Establishments such as universities, colleges and training centres providing IT related education is aiding in development of expertise and knowledge in IT related field. Various educational institutions are now providing specialised in IT education at the graduation and post-graduation levels.
- Alongside with, 300 training centres deliver IT technology and technical knowhow, which contributes greatly to develop human resources for software and ITES industries in Bangladesh. Subsequently more than 100 institutions provide postgraduate and doctoral degrees in the ICT subjects.
- “Even just a couple of years ago people thought it was a joke when leaders from this industry started saying that the ICT industry’s export earnings will be highest than that of the readymade garments industry. But now the situation has changed, and the government’s short term aim is to secure earnings of $1 billion this year and $5 billion by 2021”.
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- Industry leaders are now targeting to bring more foreign currency into the country than RMG industry does by 2030. Leather and leather goods are currently Bangladesh’s second most profitable exported goods, but surely ICT and IT services will overtake this place within a few years.
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Bangladesh outsourcing the present and the future:
- At present, the industry is not only contributing significantly to the national income, but also generating high quality employment for a sizeable portion of young graduates of the country.
- The major driving force of Bangladesh IT industry has been the enthusiastic and resilient young entrepreneurs like Intelzaa and other IT related organisations creating talents and a scope of online income.
- The government is trying to develop this sector further as it earns over $100 million per year, while growing at an annual rate of 56 % which is higher than most export sectors in Bangladesh. Asia is growing rapidly because of its active, meticulous and entrepreneurial youth population.
- Through proper training and opportunities, they can exploit ones potential and be the mainspring for the outsourcing industry and creating jobs impacting the economy positively.
- Kazi IT, Reve Systems and Intelzaa etc. works in different countries including Singapore, USA, Malaysia and UK. These companies are creating a good name for our country all over the world.
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- Business process outsourcing entities are also playing a huge role in boosting foreign currency earnings.
In short as it says it’s a world of “digital era” and it is the only way forward and beyond. Intelzaa is one of the few in Bangladesh to recognize this and move forward with its future.
- Supplements, 2. Digital Frontiers, B. and Islam, M. (2019). Boom in ICT exports. [online] The Daily Star.
Available at: https://www.thedailystar.net/supplements/digital-frontiers/boom-ict-exports-1535863 [Accessed 3 Apr. 2019].
- Anon, (2019). [online] Available at: http://www.academia.edu/31005670/Freelancing_and_its_Future_potential_for_Bangladesh [Accessed 3 Apr. 2019].
- Brain Station 23. (2019). Outsourcing in Bangladesh Know The Scenario in 2018 | Brainstation-23. [online]
Available at: http://www.brainstation-23.com/outsourcing-bangladesh/ [Accessed 3 Apr. 2019].
- Advanceitcenter.com. (2019). Outsourcing in Bangladesh | Freelancing in Bangladesh. [online] Available at: https://advanceitcenter.com/outsourcing-in-bangladesh/ [Accessed 3 Apr. 2019].
- Btc.portal.gov.bd. (2019). [online]
http://btc.portal.gov.bd/sites/default/files/files/btc.portal.gov.bd/page/caec2e25_1692_4bbe_a9d8_79c3510eb5c7/ITES_BTC.pdf [Accessed 3 Apr. 2019].