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Bangladesh: Making Best Use of Country's IT Outsourcing Ranking |
| Source: |
thefinancialexpress-bd.com |
| Source Date: |
Saturday, January 01, 2011 |
| Focus: |
Electronic and Mobile Government, Citizen Engagement, Internet Governance
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| Country: |
Bangladesh |
| Created: |
Jan 04, 2011 |
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GARTNER, a leading international research and consultancy firm, has for the first time placed Bangladesh among the world's top 30 destinations for IT (information technology) outsourcing. The firm used 10 criteria -- language, government support, labour pool, infrastructure, educational system, cost, political and economic environment, cultural compatibility, global and legal maturity and data and intellectual property (IP) security and privacy -- for rating countries as destinations for IT outsourcing and placed Bangladesh on par with China, India, Indonesia, Malaysia, the Philippines, Sri Lanka, Thailand and Vietnam. Bangladesh scored 'very good' as far as the 'cost' factor is concerned, 'fair' in six other criteria and 'poor' in areas of language, infrastructure and data and IP security and privacy.
In fact, it is the cost factor, in terms of low salary of IT professionals and low cost of living, that weighed heavily in selecting Bangladesh as an attractive destination for investment in IT outsourcing. Gartner has measured the potentials of a country to become a major IT outsourcing destination, not in terms of its achievement in that area. Low labour cost compared to that of other countries, in terms of wages, salary and living, has been one of the hallmarks of the recent economic growth of Bangladesh. So, it is not surprising that it would earn better scores on this account. But its poor scores in very important criteria -- language, infrastructure and data and IP security -- do deserve greater attention of the industry stakeholders and the government for, despite having relatively high cost factor, a number of countries, notably neighbouring India, have been earning hefty amounts annually through IT outsourcing because of their proficiency in English language, better infrastructure and IP protection. In India, an estimated 700,000 people are employed in the outsourcing sector helping their country fetch revenues worth $11 billion a year.
The countries that are reaping benefit out of the ever-expanding IT outsourcing businesses have enough and easily available qualified and technically skilled English-speaking computer professionals and reliable communication infrastructures including satellite and submarine communication links. In view of high costs at home, most business firms, including large multinationals and chain stores, save their costs significantly by IT outsourcing to India, China or Sri Lanka. But in recent years, IT outsourcing industry costs have been on the rise in these countries because of the mismatch between work orders and available skilled manpower. Bangladesh that earned a paltry $35 million last fiscal through software exports could have cashed in on the cost escalation in the IT outsourcing forerunners if it had substantial number of adequately qualified English-speaking computer professionals and better infrastructures.
Side by side with efforts to meet the demand for skilled manpower and infrastructure, it is essential for the government to extend all possible policy supports to IT firms engaged in outsourcing. Successive governments in recent years have been IT-growth friendly. Yet a lot remains to be accomplished if the policymakers are truly serious about making the best use of recognition provided by the Gartner. Private universities and institutes are churning out a large number of IT graduates and diploma-holders every year. But the deficiency in communication in English language remains a major barrier. The telecommunication infrastructures are yet to be adequate enough to support a major thrust on IT outsourcing. So, there should be no reason to feel elated by the Gartner ranking of the country. Rather, the stakeholders and the government should make sincere efforts to put in place the requisite facilities so that outside clients are attracted to Bangladesh for outsourcing.
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Bangladesh: Making Best Use of Country's IT Outsourcing Ranking GARTNER a leading international research and consultancy firm has for the first time placed Bangladesh among the world's top 30 destinations for IT information technology outsourcing The firm used 10 criteria -- language government support labour pool infrastructure educational system cost political and economic environment cultural compatibility global and legal maturity and data and intellectual property IP security and privacy -- for rating countries as destinations for IT outsourcing and placed Bangladesh on par with China India Indonesia Malaysia the Philippines Sri Lanka Thailand and Vietnam Bangladesh scored very good as far as the cost factor is concerned fair in six other criteria and poor in areas of language infrastructure and data and IP security and privacy
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