The country’s software and IT enabled service sector has been growing rapidly as software of $33 million was exported in the last fiscal year exceeding the target.
The country fetched $33 million by exporting software in the just-concluded fiscal year of 2008-2009, Bangladesh Association of Software and Information Services president Habibullah N Karim told the news agency on Thursday.
He said the export earnings from the software sector increased by $8 million in the last fiscal year than that of 2007-08 fiscal.
The target from software export in the 2007-08 and 2008-09 fiscal years was $25 million and $30 million respectively, he said, adding that the current fiscal year’s target had been fixed at $40 million.
The BASIS president hoped that income from IT enabled service would go up to $150 million from the present $7 million in Bangladesh by 2011.
‘There exists a $300 billion global market for ITES. If we could tap only .50 per cent of the service, the country’s income from the sector will stand at $150 million by 2011 rising from the present $7 million,’ Karim said.
Quoting a survey of the Geneva-based International Trade Centre, he said if the software service was included, it was likely to surpass $300 million by the period.
Karim said lack of IT Park as well as electricity and internet problems were the main barriers to expanding the industry.
He also called for simplification of bank loans as well as training for the graduates engaged in the industry. According to a survey conducted by BASIS recently, the average yearly growth rate of software and ITES industries in Bangladesh is over 40 per cent and this growth rate is expected to continue during the years to come.
‘This rapid growth is supported by good software export trends and large demand for IT automation in domestic market,’ the survey said.
Recently in Bangladesh, it said, large-scale automation projects have been implemented in telecom, banking, finance, pharmaceutical, and garment/textile sectors and domestic demand for software and ITES industries are, therefore, expected to increase rapidly.
The survey said more than 500 software and ITES companies were registered in Bangladesh now. ‘These companies employ over 12,000 ICT professionals and the average number of employees in the industry including ICT professionals is 50,’ the survey said.
It said the size of the IT market excluding telecom in Bangladesh was estimated at $300 million.
The survey said there were about 500 software and ITES companies in Bangladesh, of which more than 100 companies were exporting their products and services to over 30 countries of the world.
‘The major export market is North America, but recently many IT companies started exporting to EU countries and East Asian countries, especially Japan,’ it said.
The survey said at least 30 companies out of 100 that export their products have been established through joint-venture with overseas companies or as an offshore development centre by 100 per cent foreign capital.
‘Most of these companies started their operations within last two to three years, indicating that the Bangladesh software and ITES industries have started to be focused by overseas buyers,’ it said.
The survey said Bangladesh had high potential to become a huge source of skilled human resources with its cultural adoption capability, English language skills, analytical capability and large number of educated and energetic youths with bright aptitude, quality and natural ability in software development.
‘Though majority of the companies are exporting to North American market (principally USA), there is encouraging performance by a good number of companies in European and East Asian (mainly Japanese) markets,’ it said.
To ensure quality and process control in a competitive global market, it said, several software companies are following international standards such as ISO and CMMi.
The survey said to meet the high quality standard of offshore jobs and comply with the expectation of overseas clients; the companies in Bangladesh were rightly focusing on embracing global standard practices and processes.
‘Over twenty companies have already obtained ISO certification and a number of companies are in the process of acquiring CMMi certification and at least six companies will be reaching CMMi Level 3,’ it said.
The survey mentioned that European Union had ranked Bangladesh as one of the top 20 outsourcing destinations in the world.
‘With tremendous potential yet to be exploited, it is anticipated the global sourcing phenomenon will continue to expand in scope, range and geographic coverage,’ it said.
