IT OUTSOUCING : OPPORTUNITY FOR BANGLADESH

[LaBong]

What is needed in the infrastructure is high-speed Internet services and uninterrupted electricity to begin. I am aware of power issues, but not sure about the availability of high-speed services in commercial/residential sectors.

Yeah data link and power are all they need. They will set up ODC in Sundarban if you declare that as SEZ.

Most IT prefer plug and play sort of infra, where they can just come, plug in there workstation and start working. They won't set up their own centre first before testing the water for several years.

I think BD should hire some Indian consultants to achieve necessary expertise.

 

[idune]

Its the investment. Until big players coming into picture ready to invest 100 crore+ for every venture we have no chance to put our mark in world IT industry. Most of the big corporate house rather investing in other venture where their return of investment are more secured. Bank also not willing to invest in IT. Only option left is the capital market and govt should allow a different desk in capital market for IT where the minimum requirement for paid up capital should be less than a crore which is currently 30 crore and not too many IT companies can meet this requirement.

That is just fraction of why we did not succeed so far. And not most pressing reason why.

 

[fallstuff]

Traditional banks will not finance infrastructures. Govt and venture capital can. Govt must start the seeding process and then get out of the way for private sectors to take over.

 

[ChineseTiger1986]

Many big Chinese enterprises should also consider Bengladesh as one of their major investment destination in the near future.

 

[fallstuff]

Many big Chinese enterprises should also consider Bengladesh as one of their major investment destination in the near future.

I am sure Chinese investments will be welcomed by everybody in Bangladesh.

 

[idune]

Traditional banks will not finance infrastructures. Govt and venture capital can. Govt must start the seeding process and then get out of the way for private sectors to take over.

Last BNP govt created a special fund (around 100 cr if I recall correctly) with low interest rate for IT and agro processing sectors. But there were not many takers, most fund stayed unused. I am not sure if that fund still available.

Its not money that is the issue. Its overall perception of IT and outsourcing that exists within business and IT educated community in many cases not good enough to compete in outsourcing market. Then business acumen, communication, infrastructure – in all these areas we are lacking. First we need infrastructure, then we need to learn how to approach a global business and present attractive value we can offer and know how to deliver what we offered. These are not small feats. You would find many good engineer, developers and professionals. But besides infrastructure and technical skill, lots of soft and business skill involves that you would hardly find in the IT crowd or in typical businessman. And policy makers dont even have clue what really takes to develop an IT, BPO revenue stream; that includes "digital Bangladesh" makers.

There are lots of individual developers who are soliciting small and independent project through internet and personal connection but these are mostly development work.

 

[fallstuff]

Last BNP govt created a special fund (around 100 cr if I recall correctly) with low interest rate for IT and agro processing sectors. But there were not many takers, most fund stayed unused. I am not sure if that fund still available.

Its not money that is the issue. Its overall perception of IT and outsourcing that exists within business and IT educated community in many cases not good enough to compete in outsourcing market. Then business acumen, communication, infrastructure – in all these areas we are lacking. First we need infrastructure, then we need to learn how to approach a global business and present attractive value we can offer and know how to deliver what we offered. These are not small feats. You would find many good engineer, developers and professionals. But besides infrastructure and technical skill, lots of soft and business skill involves that you would hardly find in the IT crowd or in typical businessman. And policy makers dont even have clue what really takes to develop an IT, BPO revenue stream; that includes "digital Bangladesh" makers.

There are lots of individual developers who are soliciting small and independent project through internet and personal connection but these are mostly development work.

I mostly agree with your post. The infrastructure is the major impediment. My point is no one would consider investing if there is not enough power and broadband services available.

You don't want to commit money in forming businesses when the basics are not there. Once the infra is in place you form your companies.

How one is going to get clients ? There are a number of ways to go about.

1) Have good networking or connections.

2) Direct contact ( very expensive)

3) Use the BD Embassy Commercial attache ( for all they are worth)

4) Attend software trade shows ( again expensive)

5) There are clients that are always looking for a better deal, then again you have to be pro-active and not wait for something to fall from the sky.

There maybe whole bunch other ways you can get clients. Its going to take a while with many ups and downs before BD can make a good presence in the market.

But it all starts with an infrastructure which Bangladesh seriously lags.