In the world of software development, Bangladesh has been pointed as a thrust sector as it has become one of the most lucrative software outsourcing destinations. Once the idea of digital Bangladesh was a dream for us as a nation. The use and spread of technology make us look forward to the golden years where we’ll become one of the best software outsourcing destinations. Being the eighth-most populous country in the world and with a fast-growing economy, the software development companies in Bangladesh offer a fabulous combo of software and ITES support. 

How is digital Bangladesh and ICT development related?

We have already achieved 50 years of independence. With peace, prosperity, and dignity, we want to develop ourselves as a middle-income country. As a proud nation, we dreamt of digital Bangladesh. Without the development of ICT and software, it’s not possible to fulfill the dream. Though the process has been started long ago and we are hopefully very close to success. In fact, in the last few years, Bangladesh has achieved fierce growth in the sector of ICT and software development. They’re more than 160 people are in the market where consumer expenditure is more than USD 125 billion. The yearly growth rate seems around 6%. If you give a closer look, you will see the software development companies are simultaneously working hard to achieve such growth. 

Export of software from Bangladesh

In recent years the software development companies are growing rapidly. Though the accurate growth rate is unknown it’s been expected the growth rate will increase day by day. According to Oxford Internet Institution or OII of Oxford University in the United Kingdom, Bangladesh now contributes 16.8*% of all outsourced online workers in the world, a rate which is second only to India at 24.6% (Dhaka Tribune, 2017). Out of several software and ITES companies in Bangladesh, a good number of companies export their products and services to over thirty countries. Star IT is one of those companies in Bangladesh. The companies mostly export to North America, but recently EU and East Asian countries (especially Japan) rely on the software development companies in Bangladesh. 

What are the reasons for such success?

Following the footsteps of their peers from all over the world, the freelancers and IT experts of Bangladesh are providing the services by working from home in this pandemic. This is one of the current reasons for achieving such success in the field of IT. The IT professionals and organizations are meant to face so many challenges because of the pandemic. But social distancing, work from home couldn’t stop our IT and software development services. We’re moving forward proudly. Now let’s know some reasons for such success in the field of software development in Bangladesh- Education: It’s the backbone of a nation. Bangladesh seems to make significant progress in technical education. In fact, many educational institutes are built in recent years. Each year 546,00,000 graduates enter the job market (Daily Star, 2019). Out of all the Bangladeshi outsourcing workers 22% work in software development and technology which represents 3.7% of all online freelancers in the world (Dhaka Tribune, 2017). 

Fluency in a foreign language: At all levels of education in Bangladesh English is being taught widely. More or less everyone knows this international language. On the other hand, many are interested in learning other foreign languages on purpose and they’re doing so from language learning centers in Dhaka and other parts of the country. 

Infrastructure: even the rural areas of Bangladesh have access to the internet. In the government’s priority list, the development of the internet and technology rank higher. In 2019, the number of users of the internet increased close to a trillion where Bangladesh started its 4G journey in 2018. Very soon the country will release a 5G network service. Almost all the people in the country have access to electricity. Rapid progress in building infrastructure is also a reason for gaining success.

Available resource: We have 165 million people in Bangladesh where almost 47% of the population is below 25years. With a young workforce, the country moves to make things possible, establishing a platform where many countries of the world invest. Our young generation tends to be well equipped with cutting-edge technology. 

Cost efficiency: In Bangladesh, hiring local employees costs lower than any other country in the world. A foreign company can save up to 50% on business costs if they hire manpower from Bangladesh. Besides, the market of our country is flooded with talent. 

The commitment of government: Though our IT industry is relatively smaller than our main competitors, yet we have to reach what we dreamt of. Favorable government policies and foreign investment can provide us a better growth in the field of IT and software development. 

Incentives from investors: Incentives are available for investment in the IT and software industry in Bangladesh. Besides, with the basic power and effective internet connection, now our government is developing 28 hi-tech parks so that the IT and software development companies in Bangladesh with foreign investors can run their operations smoothly.    

The current scenario of software industry in Bangladesh

Individual initiatives are the main reason, from there most of the income of the software industries is coming. Bangladeshi developers are good at making ERP solutions that have high demand in the foreign market. On the other hand, the demand for other types of software like chatting applications, billing, and administration software is also striking. Now the software industry is not only fulfilling the local and foreign demand flourishingly but also causing a cumulative effect in the standard of foreign currency. As a business sector, the software industry is achieving international recognition in the global market. Our Bangladeshi software experts are working hard day and night for getting adequate knowledge of C, C++, C#, Java, and Android to get more recognition in the global market. 

Impact of COVID-19 in software industry

With a large entry-level workforce, the IT and software companies offer services at a lower cost compared to the competitors. According to the World Trade Organization (WTO), global trade is set to fall by between 13% and 32% due to the COVID-19 pandemic (WTO, 2020). And we are lacking a diversified export basket. The companies that are highly dependent on foreign clients are facing a significant impact of the pandemic. In early 2020 around 74% of foreign buyers stopped placing orders because of the crisis. Though we are recovering from such an impact, it will take some time. As an export-oriented industry at least we are not crushed to the ground. We are moving at a steady pace. 

Future of software industry in Bangladesh

Nothing is permanent in this world. If someone wants to know about the scenario of the existence of the Software industry 20 years ago. In 1997 a series of programs were taken initially focusing on exporting IT and software services. Over the last few decades, the IT and Software industry became the most promising sector in Bangladesh. Both large and small software companies are specialized in various types of applications and software that provide services in different sectors. To cross each top software companies are always busy adopting several strategies. According to a recent survey of BASIS in Bangladesh, 70% of the IT and ITES companies are involved in the development and maintenance of software for their clients. And about 45% of these companies stick to their core business of software development such as E-Commerce, E-Learning, listing or payment services, web development, or cloud storage services. So to achieve recognition among the users of software, web, and other media all the software companies need to conduct research on customer demands, feedbacks and find out the most recent trend. Overall software industry of Bangladesh has a bright future. It’s just all the companies need to follow the key players in the industry and learn about the services they are giving and the strategies they are following. It will ensure their survival in the industry and also enable them to compete with the international players in the industry of software.    

Why Star IT?

Star IT, an elegant and trustworthy name working proudly in the software industry since 2012. With 100% project success, we’re building world-class software solutions. By adopting innovative technology we’ve already served custom solutions to different industries. Star IT has experience working with multinational, local, and startup companies. As an outsourcing company, we’re highly focused on building a long-term relationship as a strategic partnership with Global IT firms and large corporations, and MNCs. 

Conclusion

With the passing of time, the software development companies in Bangladesh have developed a lot. Time and industrious souls have brought this outcome. It seems to be dispelling the unemployment problem and playing a vital role by creating more scopes for entrepreneurs who want to start businesses. In the future, we’ll see more improvement in this field.