Today, Bangladesh is quietly evolving from being a beginner to a serious contender in the global outsourcing market. Bangladesh’s outsourcing industry has been shaped by different factors to those of India and Philippines. Its growth has been founded on the domestic market as well as overseas markets accessed by its Diasporas – the Non-resident Bangladeshis.
Outsourcing the Bangladesh way
The development of Bangladesh’s outsourcing business has important implications for global customers seeking to explore it as a new destination for outsourcing work. Decision makers primarily judge outsourcing locations by cost, availability of skills and manpower, both current and future, and across all these areas, Bangladesh scores well.
Most of the work done by the Bangladeshi outsourcing pioneers comprises low- value add jobs such as graphics design and website development. Some companies also work on product development, mobile application development and software development. However, today many global companies – once clients of these pioneers, have bought into them, and are using them for mid range software and IT outsourcing projects. Companies like VizRT (Norway), Bording Data (Denmark) and WPP (Graphicpeople) are examples. The Bangladeshi companies provide the parents with a range of services from back office administrative work, graphic designing, DTP and customer service requests, to high-end IT, product development and enhancement jobs. In recent years there has been a move towards Business Process Outsourcing also – a trend which will further strengthen with enhanced connectivity and bandwidth. “Hardworking resources, not shy to learn – at a fraction of European costs, there is huge talent pool in Bangladesh- they just need the opportunity ” says Hasan Fatheme, Executive Director of Nordic Chamber of Commerce and Industry in Bangladesh – the industry body of Nordic Businesses in Bangladesh which includes 11 IT/ITeS companies as its members.
Quality improvements in skill levels and delivery capabilities have been steady. Many of Bangladeshi outsourcing vendors have got certifications in CMM level 3 or higher over the last 3 years. Also, a few companies got themselves certified to robust information security processes by getting ISO:27001 certified.
Owing to a huge domestic market in BFSI and telecom sectors, Bangladeshi vendors have also advanced to offering specific business knowledge in areas such as Core Banking solutions, Micro credit solutions, Islamic Banking and Mobile application development and deployment. Such insights create closer links between vendor and client, resulting in higher productivity and profitability for both. In addition, Bangladeshi companies are working extensively on Desktop Publishing, Graphic design and content development for web applications.
Bangladesh at present is more suited for less complex projects such as website development, mobile content development, back office software development, 2D/3D animation, desktop publications and call centers.
Source: KPMG Report “Bangladesh Beckons” Jan 2012 (click to download)