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    •Analyze IT outsourcing market and its challenges, to make necessary recommendations for the growth of the industry.

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    Prospects and challenges of Bangladesh as an Outsourcing Destination in IT Sector

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    •Analyze IT outsourcing market and its challenges, to make necessary recommendations for the growth of the industry.

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    © All Rights Reserved
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    84 views27 pages

    Prospects and Challenges of Bangladesh As An Outsourcing Destination in IT Sector

    Uploaded by

    FahimAhmed
    •Analyze IT outsourcing market and its challenges, to make necessary recommendations for the growth of the industry.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 27

    Faculty of Business Studies

    University of Dhaka

    Prepared By: Supervised By :

    Name: Md. Sohel Rana Dr. MD. HASIBUR RASHID


    ID No: 61529-22-068 Professor
    Batch NO: 22nd Department of Management Information
    Masters of Business Administration (Evening) Systems (MIS)
    Dept. of Management Information Systems Faculty of Business Studies
    (MIS) University Of Dhaka
    Faculty of Business Studies
    University of Dhaka
    Thesis Title
    on

    Prospects and challenges of Bangladesh as


    an Outsourcing Destination in IT Sector
    Objectives

    Broad Objectives

    • Analyze IT outsourcing market and its


    challenges, to make necessary
    recommendations for the growth of the
    industry.
    Objectives(Cont...)

    Specific Objectives

    • To understand the benefits of IT outsourcing and its global


    impact
    • To find out the potential competitive edge Bangladesh has
    over other countries for IT outsourcing market
    • To find out the challenge of the industry
    • To make recommendations necessary for the growth of IT
    industry
    Methodology

    Data Collection

    Data was gathered from the website of the


    different organizations, relevant file study
    as provided by the concerned officer,
    some brochures and related articles.
    Scope

    This report will be covering the prospects


    of outsourcing in Bangladesh as well as
    the challenges that Bangladesh has to
    face serving as an outsourcing destination
    IT Outsourcing
    What is IT Outsourcing

    IT outsourcing is a phrase used to describe the


    practice of seeking resources or subcontracting
    outside of an organizational structure for all or part
    of an IT (Information Technology) function.
    Reasons Behind Outsourcing

    Cost Saving

    Time Saving

    Lack of in-house experience

    Flexibility & Scalability

    Focused Strategy
    Reasons Behind Outsourcing (cont..)

    Technological Advances

    Enhanced Accuracy

    Risk Mitigation
    Outsourcing Market Scenario
    Spend by region

    APAC
    32%
    Americans
    51%

    EMEA
    17%

    Source: NASSCOM Strategic Review, 2017


    In terms of providing outsourced services, the Asia Pacific region represents the largest
    collective share globally, led by India, the Philippines, and China. The Latin America has
    recently emerged to become more prominent provider clusters, and are capitalizing on near
    shore service buyer markets to fuel growth. Today, established outsourcing destinations such
    as India and the Philippines continue to post positive growth rates, even in their current
    mature stages.
    Global Industry Trends
    Hybrid Sourcing Models

    Innovation Network

    Global Footprint

    Increased Breadth of Services

    Cloud Computing

    Move towards Multiple Sourcing Locations


    Bangladesh as Outsourcing
    Destination
    76.30% % of Organizations

    49.80% 45.40%

    18.30% 16.70%
    11.40% 6.60%
    3.20% 2.80%
    Export amount of Bangladesh
    Top Export Destinations

    Source: BASIS surve, 2017


    Technical Expertise of Software
    Companies
    % of technical expertise companies
    79% 77%
    72% 70%
    60%
    57% 55% 54% 54%
    51%
    48%

    MySQL .NET PHP MS SQL ASP Flash VB Ajax Oracle Java C/C++
    Source: BASIS survey, 2017
    Competitive Advantage of
    Bangladesh
    Cost Attractiveness – Labor Cost
    Attractive Demographics
    Bangladesh’s Pool of Skilled Workforce
    Language Capability
    Quality of Education
    Low infrastructure Cost
    Telecom Infrastructure
    The Government Support – Digital Bangladesh
    Comparing Global Outsourcing Destinations

    KPMG Analysis, 2017


    Challenges of IT Outsourcing
    Intellectual Property Rights

    Scale of Offerings

    Infrastructure

    Lack of Branding and Marketing

    Negative Perception and the role of the government


    SWOT Analysis
    • Human Resources
    Strength • Talent Cost

    • Lack of one stop service


    Weakness • IT Park or Office Space

    • Increasing domestic market


    Opportunity • Emerging freelancer community

    • Rising cost inflation


    Threat • Low cost foreign competitor
    Recommendation
    Academic
    Ease access to Build up economic Business
    integration with
    internet infrastructure Awareness
    ICT

    Building up Encourage
    Proper academic Business friendly
    domain investment in this
    guidance policy
    knowledge industry

    Branding “Digital
    Establishing Recognition of
    Bangladesh”
    training center freelancers
    around the globe
    Conclusion
    Bangladesh can offer very low cost labor for any industrial
    production. And like a labor oriented industry, IT Outsourcing must
    have Bangladesh within one of their lucrative destinations. Now
    Bangladeshi people can access WiMAX and 4G network and easily
    get connected to the world. Through mobile phone a person can
    contact to any corner of the country and even worldwide. So we are
    not lagging behind of technologies, we just need the right track to
    walk with right choices of industry. Everyday people are coming out
    with new ideas here and small businesses are growing up.
    Government has taken a great initiative through promoting „Digital
    Bangladesh‟ among the people, especially the youth. Generations
    by generations are enjoying the excitement of technology.
    Conclusion(Cont…)

    This paper outlines many of these risks, and also


    makes clear that a sustainable competitive
    advantage could be achieved by those who
    understand and manage those risks effectively. All
    of these factors combine to make Bangladesh an
    interesting place to watch in the global outsourcing
    market.

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