IT ITeS Industry Statistics 2019
IT ITeS Industry Statistics 2019
INDUSTRY STATISTICS
OF BANGLADESH
2019
A Reasearch of Leveraging ICT for Growth, Employment & Governance (LICT) Project
IT-ITES
INDUSTRY STATISTICS
OF BANGLADESH
June 2019
State Minister
Information and communication Technology Division
Ministry of Posts, Telecommunication & Information Technology
Government of the people’s Republic of Bangladesh
Message
The Honorable Prime Minister of Bangladesh, Sheikh Hasina, declared the Digital Bangladesh Vision in 2008,
which is the promise to becoming a Middle Income Nation by 2021 by leveraging ICT. The Digital Bangladesh
Vision is the modern concept of the Father of our Nation, Bangabandhu Sheikh Mujibur Rahman’s
Sonar Bangla or Golden Bengal-eradicating poverty and ensuring food security and a better livelihood. The
Architect of Digital Bangladesh, Sajeeb Wazed, the Honorable ICT Adviser to the Prime Minister, strategized her
Vision, and gave us an implementation roadmap to make Digital Bangladesh a reality. It is this roadmap that ICT
Division follows to ensure the successful implementation of Vision 2021. The Strategic Leadership of these
Leaders is the guiding light that has helped Bangladesh graduate from a least developed nation, to a middle-
income economy and well in our way to becoming a developed and knowledge economy by 2041.
The ICT Division has taken a four-pillar strategy to implement Digital Bangladesh – Human Resource
Development, ICT Industry Promotion, Connectivity and Infrastructure, and establishing e-Government. During
the last one decade it has framed many policies and implemented a large number of programs to boost the
country’s ICT sector. Digital transformation is taking place in many sectors including education, health,
agriculture, manufacturing, telecom, finance and service sectors.
The government has specific targets for the ICT sector. Achieving $5 Billion in ICT Industry revenue, 2 million ICT
professionals, 90% of government services delivered electronically and 90% of the population connected to the
Internet. We are well in our way to achieving these targets and it is essential for us to track the progress and
ensure that our policies and strategies are achieving the desired results. The IT-ITES Industry statistics, a study
conducted by the LICT project, gives us a clear picture of the status of our IT-ITES Industry, and will help the
ICT Division in ensuring the right policies and strategies to support the ICT Ecosystem.
NM
Parthapratim Deb
Executive Director
Bangladesh Computer Council (BCC)
Message
It gives me immense pleasure to publish the IT-ITES Industry Statistics of Bangladesh 2019, a
survey assessing status of the industry in terms of employment, local market revenue, export
market revenue, service and product categories and employee benefits, training etc.
The ICT industry has a critical role to play in realising the Vision 2041, which aims at creating
Bangladesh as a modern, technology driven, high growth, equitable and transparent society. And
the transformation would require combination of data-driven strategic planning and
implementation. I believe the well researched survey conducted by the LICT project, Bangladesh
Computer Council (BCC) and Center for Project Management and Information Systems (PMIS),
University of Dhaka will serve as useful reference for policymakers, strategists, practitioners and
other stakeholders in identifying the policy and regulatory supports required to attain Vision 2041
while promoting effective application and expansion of ICT at all levels.
Bangladesh Computer Council (BCC), along with other Government agencies, has been
relentlessly working to transform Bangladesh into a knowledge-based economy and a digitally
empowered society by ensuring 90% of the vital services are delivered electronically, 90%
citizens are connected through internet, 2 million employment in IT/ITES sector, and USD 5
billion ICT industry revenue. Bridging the digital divide, ensuring digital services, digital
inclusion and digital empowerment are objectives that are sought to be achieved with power of
technology that is affordable, developmental and inclusive. BCC has been working to identify the
strategies, programs and investment needed for the country to leverage ICT for economic growth
and competitiveness. To mention a few, BCC has established Tier 4 National Data Center in
Kaliakoir Hi-Tech Park, trained around 80,000 manpower in ICT, connected 2,600 unions to the
internet via fiber optic cable in the last five years.
On behalf of Bangladesh Computer Council, I thank everyone who was involved to carry out this
survey and look forward to periodic updates of this report.
Parthapratim Deb
Foreword
With the advent of the fourth industrial revolution (4IR), the vision of Digital Bangladesh serves as the
foundation of tomorrow’s techno-socio-economic life. Disruptive technologies and innovative business
models are not only transforming the production, marketing and distribution systems, but also impacting
the public service delivery regime. And, at the core of such transformation is information and communication
technology (ICT).
Digital transformation of the global economy and society is bringing forth a paradigm shift in the structure and
governance of each and every economy and society with profound impact on sectors such as education,
health, agriculture, manufacturing, finance, and services. Consequently, countries such as Bangladesh are
in the midst of enormous opportunities as well as threats in terms of growth and competitiveness of the
domestic industries and their participation in the global value chains. Bangladesh’s development potential
and position in the global economy is going to be dictated by her ability to capture the global digital
dividends and to distribute the same meaningfully among her citizenries, particularly those at the base of
the pyramid. This phenomenon calls for prudent leadership and strategic data-driven decisions both at
national and organizational levels.
In this rapidly evolving techno-socio-economic context, the availability and accessibility of accurate
and sufficient updated data is a prerequisite for crafting sound public policies, building high-performing
institutions and strategizing effective interventions. Under this circumstance, the ICT Division of the
Government of Bangladesh has undertaken this first-ever national level survey on the IT-ITES Industry
in order to generate some key industry statistics so that proper policies can be crafted, interventions
strategized, and institutions built.
Yet, we must acknowledge that this exercise is just a humble beginning as the scope is kept limited only
to three IT-ITES industry sub-categories, namely (i) software and information services, (ii) business process
outsourcing and call centers, and (iii) e-commerce. Other sub-sectors such as internet service providers
(ISP), hardware companies, etc. are kept outside the scope of the survey. Also, kept outside the scope are
online freelancers or gig workers and IT-ITES professionals employed in other industries and sectors such
as manufacturing, finance, healthcare, government, etc.
Considering the three sub-categories mentioned above, the survey estimates the industry’s 2018 export
revenue to be USD 802 million, domestic market revenue to be BDT 19.27 billion and employment to be
126.59 thousand. However, the figures would be much higher if other sub-categories of IT-ITES industry
are considered and the participation of the freelancers and IT-ITES professionals employed in other
industries and sectors are considered. For example, citing ICT Division as source, Dhaka Tribune (https://
www.dhakatribune.com) reported in 2017 that a total of 650,000 Bangladeshi freelancers are registered
online and 500,000 are active in the global gig economy, fetching USD 100 million a year. Such a figure
may be supported by the fact that according to Oxford Internet Institute (https://www.oii.ox.ac.uk) in 2017
Bangladesh was the second largest supplier of global online gig workers (16%), following closely India
(that supplied 24%) and leading above the third-placed USA (that supplied 12%). Furthermore, taking into
On behalf of the research team, I hope this report will benefit policymakers, researchers and industry
leaders with some key industry statistics and serve as the first big step towards a data-driven decision
making process. The report will also enlighten the audience with an overview of Bangladesh’s digital
readiness and performance today.
5.1 Number and Percentage of Companies from Each Stratum of IT-ITES Industry Serving
Other Sectors (i.e., RMG, Telco, Pharma, Bank and NBFI, Manufac., Health, and
Education) 21
6.1.1 Local Market Revenue Index of IT-ITES Industry (2014-2-18) with Projection for
2021 23
6.1.2 Local Market Revenue Status of 2018 in Actual Amount of BDT and the Estimated
Amount for the Population of 1755 Companies 25
6.2.1 Export Revenue Index of IT-ITES Industry of Bangladesh (2014-2018) with the
Projection for 2021 (Based on 378 Samples) 28
6.2.2 Export Market Revenue Status of 2018 in Actual Amount of USD and the Expected
Amount for the Population of 1755 IT-ITES Companies in Bangladesh 30
7.1 Stratum-wise No. of Management Track Full Time Professionals (Male and Female) 35
7.2 Stratum-wise No. of Core Technical Full Time Professionals (Male and Female) 36
7.3 Stratum-wise No. of Non-core Technical/ Other Full Time Professionals (Male and Female) 38
7.8 Estimated Population Amount of Total Employee Size of IT-ITES Industry (2018) 43
7.10 Number of International or Foreign Professionals in the Technical Track of IT-ITES Industry
(2014-2021) 48
7.11 Amount of Investment Made on Training & Development of the Employee Funded by the
Company (2014-2021) 48
7.13 Average Monthly Pay (in BDT) and Average Length of Service (in years) of the
Management Track Professionals of IT-ITES Industry 50
7.14 Average Monthly Pay (in BDT) and Average Length of Service (in years) of the Technical
Track Professionals of IT-ITES Industry 50
8.1 Number of Working and Required Employees Speciated in 4IR Technology in IT-ITES
Industry of Bangladesh 51
9.1 Limitations 55
9.3 Conclusion 56
References xix
Annexure xx
A1: Questionnaire xx
Box 6.2: Process of Backward Interpolation Method Used in Figure 6.4 (For Estimating the
Population Local Market Revenue of 1755 IT-ITES Companies 28
Box 6.3: Method Used for Estimating the Export Revenue Amount for the Population of 1755
IT-ITES Companies 31
Box 6.4: Process of Backward Interpolation Method Used in Figure 6.9 (For Estimating the
Population of 1755 IT-ITES Companies) 33
Box 7.1: Method Used to Derive the Table 7.8 (For Estimating the Population of 1755
Companies) 43
Neyman Allocation Method is applied to determine the optimal sample size for each stratum, those will
be enough in amount to represent the corresponding stratum with maximum accuracy. So, according
to this method the optimal sample size for BASIS stratum is 242, for BACCO it is 37, and finally, for
e-CAB it is 99. Moreover, the population sizes are 1100, 55 and 600 respectively. A semi-structured
questionnaire (containing both open-ended and close-ended questions) containing 24 major variables is
used to collect data during the survey period. Primary data collection process based on that questionnaire
was conducted through an interview with the representatives from company, whereas the interviewers
were properly trained-up for conducting that survey successfully.
The major findings of that study into the following major areas, whereas the corresponding column contains
the necessary details.
These are the major outcomes of this study, whereas the findings are stated on the following sections with
more detail observations.
Table 4: Estimated Local Market Revenue of the IT-ITES Industry (in BDT) for the Period of 2013-2018
Table 6: Estimated Full Time Employment by 1755 IT-ITES Industry for the Period of 2013-2018
Table 7: Total Employment Status of the IT-ITES Industry in 2018 (Estimated for the Population
of 1755 Companies)
3D Three Dimensional
CV Coefficient of Variation
HR Human Resources
IT Information Technology
1.1 Background
Bangladesh has reached to a new echelon by promoting itself to the World Bank’s “Lower Middle Income”
category through increasing its Gross National Income in 2015 and by becoming eligible for graduation
from Least Develop Country (LDC) in 2018.
In terms of market-based economy Bangladesh is the 42nd largest in the world and 31st in terms of
purchasing power parity. The economy of Bangladesh is classified as the Next Eleven emerging market
middle income economies and a Frontier market. IMF cited Bangladesh as the 2nd fastest growing major
economy of 2016 having 7.1% GDP rate. This is to notify that Bangladesh’s economy grew 7.86 percent
in the last fiscal year (Bangladesh Bureau of Statistics, 2019).
To accelerate the economy and development of Bangladesh, Digital Bangladesh is the dream of the
country. To implement Digital Bangladesh vision, special emphasis is given
on the application of digital technologies. Many projects those are related to digital technologies are
implemented by the Government of Bangladesh. The Government has declared the ICT as the thrust
sector because of its fastest growing nature. Acknowledging this fact, Bangladesh Government has
implemented comprehensive ICT Policy and a National ICT Task Force.
In the year 2021, Bangladesh is going to celebrate its 50 years of independence and the objective of
Vision 2021 is to present an economically inclusive and politically accountable society where the hopes
and aspirations of the citizens of the country will be reflected. And development of ICT sectors plays the
major role here. Information and communication technology have become an increasingly powerful tool
in the realization of Digital Bangladesh. It is thought that the Digital Bangladesh initiative is not only going
to make the country a modern knowledge-based society by 2021, but also establish as the world’s next
ICT destination in the South Asian region. And under the light of Vision 2021, the country is expecting to
be developed one by this time so that the flow of progress so far achieved under the Vision 2021 can be
continued. To be vigilant about the progress, this type of survey is undoubtedly necessary as it will present
the current scenario of IT-ITES industries of Bangladesh. Also, the Sustainable Development Goals or
SDGs, call for several bold breakthroughs by the year 2030, require a transformation of societies which
is far deeper and faster than in the past. For doing this and achieving goals, leveraging with existing and
modern technologies is must. It also requires new innovative services and improved reach of technological
solutions. As the rapid development of ICT-based industries and services offer the possibility for the
ICT industry in Bangladesh is becoming the focal point of the concept of Digital Bangladesh, which is
outlined by the Honorable Prime Minister of Bangladesh, Sheikh Hasina, with 4 key priorities –
d. making the private sector and market more productive and competitive using digital technology
Furthermore, we can rely on some ICT development indicators to assess the current status of
Telecomunication Union (ITU) and World Economic Forum (WEF) can be used to infer the current situaiton.
Table 1.2 will provide a snapshot of the scenario.
E-Government
ICT Development Index E-Participation Index
Criteria Development Index
2016 2017 2016 2018 2016 2018
Ranking 146 147 124 115 84 51
Index 2.37 2.53 0.38 0.4862 0.5254 0.8034
Likewise, International Telecommunication Union (ITU) reveals the following facts about Bangladesh.
Bangladesh is experiencing high interest from IT-ITES industry players. The arena of IT-ITES industry
in Bangladesh has a great variation with Big Data Analytics, Blockchain, Internet of Things, Artificial
Intelligence, Machine Learning, UI/UX, 3D Imaging, Virtual Reality/Augmented Reality, Call Centers and
so on. Operating ability at a lower cost, large base of entry-level employee, enthusiastic freelancers
The overarching purpose of this study is to generate some key industry statistics in order to help craft and
execute strategic devisions both at industry and state levels. However, the specific objectives of this study
are the following:
1. To conduct a primary survey and prepare a statistical report on the IT-ITES industry of Bangladesh in
terms of the following:
Along with the first objectives, the peripheral objectives addressed on this study are the following:
2. To frame the research methodology, develop and test-run the research instrument (questionnaire),
collect data, prepare the database, perform analysis and validate findings.
3. To collaborate with stakeholders – industry associations and relevant government agencies (including
Bangladesh Bureau of Statistics, Bangladesh Bank, Export Promotion Bureau, etc.) – during the
whole process
3. To run workshops – methodological workshop, data collection workshop, and validation workshop -
and obtain stakeholders’ buy-in.
4. To prepare and defend draft reports, and to publish the final report with key industry statistics.
This IT-ITES industry statistics survey has been designed in a way which is capable enough to capture
a proper snapshot of present industry status and its dynamics.
Likewise, some other componenets of IT-ITES industry are also left out of this study, as outlined by the terms
of reference (ToR) of this study. For example, freelancers, hardware companies, network infrastructure and
internet service providers, etc. are beyond the scope of this study. Besides, import of IT-ITES products/
services is not part of this study either.
Sensor and machine intelligence are a way of analyzing data which automates analytical model building.
It is a branch of artificial intelligence which means learning from data, pattern identification and decision
making with minimal human intervention can be done by the system because of machine intelligence
algorithms. In computer science research, machine learning algorithms play an important role. Computers
can now see, hear, feel, smell, taste, and speak because of the power of deep and machine learning, and
all these senses take the form of sensor (like a camera) and mathematical algorithm, usually a supervised
machine learning algorithm and a model.
A business is inundated on a day-to-day basis by large volume of data which can be both structured
and unstructured is called Big data. Big data is larger, more complex data sets which are especially from
new data source and so voluminous that software which is traditional can’t manage them. But business
problems which businesses wouldn’t have been able to tackle can be addressed by these massive
volumes of data. So, what organizations do with the data matters and the analysis of Big data helps
businesses through providing insights that lead to better decisions and strategic business moves which
makes big data capital. And it’s easier and less expensive to store more data than ever before because of
recent technological breakthrough.
The imitation of the operation of a real-world process or system over time is known as simulation. The
reproduction of the behavior of a system using a computer which will be used to simulate the outcomes
of a mathematical model associated with said system is termed as the computer simulation. Data
visualization is viewed as the graphical representation of information and data which is equivalent to
modern visual communication. Statistical graphics, plots, information graphics and other tools are used
by data visualization to communication information clearly and efficiently. Digital twin is a virtual model or
digital replica of physical assets, processes, people, places, systems and devices that can be used for
various purposes. The convergence of the physical and the virtual world can be represented by digital twin
and by this every industrial product will get a dynamic digital representation.
1.4.2.4 IoT
IoT is basically considered as the concept of connecting any device with an on and off switch to the Internet
which includes almost everything from cellphones, coffee makers, washing machines, headphones,
lamps, wearable devices and almost anything else you can think of. Internet of Things is embedded
with electronics; Internet connectivity and other forms of hardware (such as sensors) and users can
communicate and interact with these devices over the Internet. This communication and interaction can
be monitored and controlled remotely (Brown 2016).
Cyber Security is the practice of defending computer systems and their components- including hardware,
software and data and digital infrastructure from malicious attack and unauthorized access or being
otherwise damaged or made inaccessible. It’s also known as information technology security which is
the state or process of protecting and recovering networks, devices and programs from any type of
cyberattacks which are an evolving danger to organizations, employees, and consumers. Because of
increasing reliance on computer systems, the internet and wireless network and growth of smart devices,
the field of cyber security is growing in importance. A strong cyber security system has multiple layers of
protection spread across computers, networks, and programs. But a strong cyber security system relies
not only on cyber defense technology, but also on people making smart cyber defense choices.
Cloud computing is way of providing on-demand computing services which spans from applications to
storage and processing power over the internet and typically termed as pay-as-you-go method. Individual
users and companies can rent access to anything from applications to storage from a cloud service
provider rather than having own computing infrastructure or data centers (Hasan & Qusay, 2011). By this
firms and individual users can avoid the upfront cost and complexity of owning and maintaining their own
infrastructure through simply paying for what they use and when they use it. That’s why it is termed as the
pay-as-you-go method.
Additive manufacturing or 3D printing is the way of creating three dimensional solid objects from a digital
file. A variety of processes can be covered by 3D printing in which material is joined or solidified under
computer control to create three-dimensional object, with material being added together, typically layer by
layer. Every 3D printer builds parts based on the same main principle: a digital model is turned into a physical
three-dimensional object by adding material a layer at a time. This where the alternative term Additive
Manufacturing comes from. 3D printing is a fundamentally different way of producing parts compared to
traditional subtractive (CNC machining) or formative (Injection molding) manufacturing technologies.
Augmented reality and virtual reality are two of the ways of changing the way people look at the world
because of technology and these two are increasingly used in technology. Augmented reality is an
enhanced version of reality which is created by the use of technology for adding digital information on
an image of something and vitual reality is the use of computer technology which will create a simulated
environment. Virtual reality may be artificial, such as an animated scene, or an actual place that has been
photographed and included in a virtual reality app. Alongside AI and automation, virtual reality (VR) and its
closely related cousin augmented reality (AR) have been touted for several years now as technologies likely
to have a profoundly transformative effect on the way we live and work.
Autonomous robot which is a subfield of artificial intelligence, robotics and information engineering
performs behaviors or tasks with a high degree of autonomy. Autonomous robots which are like humans
can make their own decisions and then perform an action accordingly. A truly autonomous robot can
perceive its environment, make decisions on what it perceives and/or has been programmed to recognize
and then actuate a movement or manipulation within that environment. Autonomous robots are particularly
desirable in fields such as spaceflight, household maintenance (such as cleaning), wastewater treatment,
and delivering goods and services. An autonomous robot may also learn or gain new knowledge like
adjusting for new methods of accomplishing its tasks or adapting to changing surroundings.
Image processing is one of the most common uses of machine learning using which one can classify the
object as a digital image. Both more sophisticated performance at simple tasks, and the implementation
of methods which would be impossible by analog means can be offered by image processing which
allows the use of much more complex algorithms. For getting an enhanced image or for extracting some
useful information, image processing performs some operations on an image. Speech processing is the
processing method of speech signals which are usually processed in a digital representation. That’s why
speech processing can be regarded as a special case of digital signal processing, applied to speech
signals.
Neural Network is an information processing paradigm that is inspired by the way biological nervous
systems, such as the brain, process information. A Neural Networking is configured for a specific
application, such as pattern recognition or data classification, through a learning process. Thus, a neural
network is either a biological neural network, made up of real biological neurons, or an artificial neural
network, for solving artificial intelligence (AI) problems. Machine learning provides systems the ability to
automatically learn and improve from experience without being explicitly programmed and it is considered
as the application of artificial intelligence. The development of computer programs that can access data
and use it learn for themselves can be focused by machine learning. In the past decade, machine learning
has given us self-driving cars, practical speech recognition, effective web search, and a vastly improved
understanding of the human genome. Machine learning is so pervasive today that you probably use it
dozens of times a day without knowing it.
1.4.2.13 Blockchain
The blockchain which is an undeniable ingenious invention is a growing list of records, called blocks,
which are linked using cryptography and this is considered as the brainchild of a person or group of
people known by the pseudonym, Satoshi Nakamoto. Blockchain technology has created the backbone
of a new type of internet through allowing digital information to be distributed but not copied and the tech
community has found other potential uses for the technology to device for the digital currency and Bitcoin
(Zheng, et al. 2017). People consider Blockchain as a type of payment rail and the private blockchains
have been proposed for business use.
In contrast to the natural intelligence displayed by humans and animals, artificial intelligence (AI) is called
machine intelligence or intelligence which is demonstrated by machines. Artificial Intelligence (AI) is the
simulation of human intelligence processes by machines, especially computer systems. A major thrust
of AI is in the development of computer functions associated with human intelligence, such as learning,
reasoning and self-correction.
Virtual Reality (VR) is the use of computer technology for creating an environment which is simulated to
convince the human brain that it is somewhere it is really not. Because of its most immersive type of reality,
one can experience anything, anywhere, anytime. For providing a fully immersive experience, headphones
and head controllers are used with head mounted displays. Entertainment (i.e. gaming) and educational
purposes (i.e. medical or military training) can be included by the application of virtual reality.
Companies from the IT-ITES industry are classified into three stratum of BASIS, BACCO and e-CAB in
terms of their primary membership to any of the stated associations. Focus group discussion with the
industry experts and their requirements to get the summary statistics of this report across the segments
of BASIS, BACCO and e-CAB lead to us to make this decision.
The task of the first phase has helped us to identify the population size and sampling frame of the study.
The population size of the study is 1755 registered (member firms of any of the three associations) IT-ITES
companies in Bangladesh, whereas the population sizes for each stratum are as the following.
BASIS 1100
BACCO 55
e-CAB 600
Total 1755
At this stage, pilot data of 2018 regarding the aspects of local market revenue (in BDT), export market
revenue (in USD) and employment (full-time) are collected from some randomly selected IT-ITES companies
to get an overall observation and structure of the industry. The volume of pilot data is as the following.
BASIS 48
BACCO 25
e-CAB 30
Total 103
As like as the previous section, sample size for BACCO strata is also determined in the same way, whereas
the value N for that strata is 25 and the ultimate outcome is stated on the following equation.
As like as the previous section, sample size for e-CAB strata is also determined in the same way, whereas
the value N for that strata is 30 and the ultimate outcome is stated on the following equation.
At the final stage by following the rigorous procedures of the above sections, we have got the total sample
size of 378 IT-ITES companies, which will reflect the population at the best way.
2.3 Instrumentation
Gathering information on various aspects of interest of I T - I T E S industries has been done by a semi-
structured questionnaire. As the design of the questionnaire has significant effect on incidence rate and
response rate, immense attention was given in preparing the draft questionnaire. Since different codes
have been used to maintain the anonymity of the companies, the questionnaire was pre-coded. The
survey instrument i.e. questionnaire contains questions on a) General Information of the Company, b)
Local Market and Export Revenue, c) Employment, d) HR Profile, e) Employee Attrition and Investment in
Training & Development, f) Skills on Demand and g) International Professionals. A field pre-test was carried
out on a sample of respondents (companies) selected from the target population. The objectives of the
pretesting were:
A set of predicted answers were derived from the pretested questionnaire which contributed to make the
questionnaire fit for capturing the probable variations in response pattern. The pre-tested questionnaire
was reviewed rigorously and place in the meeting with the BBS officials. Upon receiving their feedback,
the survey questionnaire and instruction manual was finalized by incorporating the necessary revision. The
questionnaire is included in Annexure-1.
Responses from the companies were collected in three ways. Most of the data was collected through a
face-to-face interview with any member of the top management of the company who helped to collect the
necessary information. Some of the companies returned the filled-in questionnaire via email. Data from
some other companies was collected over telephone. Several visits were necessary to collect data from
the reluctant respondents (companies). Data collection went on from February of 2019 to April of 2019.
Preparing data for analysis was a major challenge. The filled-in questionnaires were debugged and edited.
The raw data was checked for internal consistency. Companies having inconsistent and incomplete
data were investigated further. After a robust manual editing and coding of the collected responses, the
information was entered into statistical software in order to carry out the approved statistical analyses. The
data analysis was carried through SPSS, Stata and Microsoft Excel.
2.6 Limitations
Scope Related Notes & Limitations:
This study has the following limitations:
1. The study excluded the organizations not members of BASIS, BACCO and/or e-CAB.
2. This study did not cover the organizations from Hardware, ISP and other IT infrastructure segment/arena.
3. This study also did not include Freelancing and IT segment of non-IT industries.
4. Import of software and other IT/ITES products were kept beyond the scope of this study.
5. This study was about “what”, not about “how” or “why”.
1. Stratification: Initial stratification of the IT/ITES firms and companies was done based on the
nature of their businesses as reflected in their (primary) membership(s) with industry association
: i.e. BASIS (software and information services firms and companies), BACCO (call centers and BPO
firms and companies), and e-CAB (e-commerce firms and companies). This was found to be the
best possible option for stratification since there was no data readily available on organizations’
revenue and employment size.
2. Sample Size Determination: For determining the sample size, these three strata were further
stratified in terms of domestic market revenue, export revenue and employment. And, in absence
of any previous study or authentic data, the research team first conducted a pilot study and determined
the sample size by using pilot study findings. (for details, please refer to the methodology section.)
3. Training of Field Enumerators: Field enumerators were trained by a panel of trainers through
train–test–review sandwich model. The trainer panel includes experienced faculty members
from IBA and Department of MIS of the University of Dhaka.
4. Selection of the Sampling Units: After classifying the firms and companies into three strata-
BASIS, BACCO, and e-CAB, the primary sampling units (i.e. the firms and companies) were selected
by Simple Random Sampling.
5. Level of Significance: This study used 5% level of significance.
3% members of BACCO have home-based business location and they mostly operate in commercial
space (62%) and the rest are operating at residential building (35%). Members of e-CAB work mostly at
commercial space (68%) and 21% of them work in residential building and 11% are home-based. (See
Table 3.1).
4%
Commercial Space
34% 62% Residential Building
Home-based
89% of the companies those are BASIS members have local ownership. 2% of them have foreign ownership
and 9% of them are local-foreign joint venture company. All of the member companies of e-CAB have
local ownership (100%) (See Table 3.2).
2%
7%
0.5%
Sole Proprietorship
36%
Partnership
54.5%
Private Limited Company
9% Public Limited Company
Table 4.1: % of companies considering the following categories of business nature as their first-
priority revenue generating product or service for 378 Respondent-firms
Membership
Nature of Business
BASIS BACCO e-CAB
Call Center 2% 52% 1%
Consultancy 17% 29% 11%
Digital Marketing 2% 0% 4%
E-commerce 11% 5% 58%
Hardware 6% 0% 3%
Software 50% 14% 14%
Web & Graphics Design 13% 0% 9%
On the other hand, 52% companies from BACCO stratum consider call center as their first-priority revenue
generating product or service, while only 5% consider E-commerce as their primary revenue generating
model. Moreover, 58% of the companies those are the members of e-CAB consider E-commerce as their
primary revenue generation product and service.
Membership
Nature of Business
BASIS BACCO e-CAB
Call Center 1% 5% 0%
Consultancy 15% 19% 0%
Digital Marketing 1% 5% 0%
E-commerce 7% 10% 3%
Hardware 2% 5% 0%
Software 30% 14% 4%
Web & Graphics Design 11% 0% 18%
Table 4.3: % of companies considering the following categories of business nature as their
third-priority revenue generating product or service for 378 Respondent-firms
Membership
Nature of Business
BASIS BACCO e-CAB
Call Center 1% 0% 1%
Consultancy 13% 14% 0%
Digital Marketing 2% 0% 0%
E-commerce 7% 10% 38%
Hardware 2% 0% 1%
Software 11% 0% 1%
Web & Graphics Design 3% 0% 0%
As the Table 5.1 indicates that the companies from the stratum of BASIS are in leading position in terms
of serving the sector of Pharmaceuticals and others, followed by the companies from e-CAB stratum in
terms of the sectors of RMG and others. However, BACCO is contributing more than e-CAB and BASIS
on the sectors of Telco, Bank and NBFI, Health, and Education. This whole scenario is also visualized on
the Figure 5.1.
Table 5.1: % and of No. of Companies from Each Stratum-Industry Vertical Alignment (For 378
Respondent-firms)
Manufacturing
Education
Others
Health
Telco
RMG
Stratum
BASIS 60 66 41 57 63 44 61 126
BACCO 3 17 5 13 10 11 11 18
e-CAB 27 6 4 6 7 1 1 66
Total 90 89 50 76 80 56 73 210
% of Companies from Each Stratum-Industry Vertical Alignment
BASIS 25% 27% 17% 24% 26% 18% 25% 52%
BACCO 8% 46% 14% 35% 27% 30% 30% 49%
e-CAB 27% 6% 4% 6% 7% 1% 1% 67%
Total 24% 24% 13% 20% 21% 15% 19% 56%
70%
60%
50%
40%
30%
20%
10%
0%
G lco al FI g lth n
er
s
RM ut
ic
NB rin a tio
Te e d ct
u He ca O
th
ac a u
an f Ed
a rm nk a nu
Ph Ba M
The grand mean (overall IT-ITES industry) local market revenue index of IT-ITES industry of Bangladesh
was 106 in 2014, 126 in 2015, 141 in 2016, 194 in 2017, and 268 in 2018. This portrays that the local
market revenue increased 2.68 times compared to revenue of IT-ITES Industry in 2013. It is expected to
have an index of 563 in 2021, which is more than double that what is being earned as revenue today.
Table 6.1: Average Local Market Revenue Index of IT-ITES Industry (2014-2018) with Projection
for 2021 (For 378 Respondent-firms)
Stratum 2014 2015 2016 2017 2018 2021 (Expected) No. of Companies
BASIS 103 210 289 456 875 1200 242
BACCO 119 120 110 134 149 286 37
eCAB 110 102 102 105 113 289 99
Overall IT-ITES Industry 106 126 141 194 268 563 378
If divided by the stratum, it is revealed that every stratum experienced a growth in local market revenue
generation. Among all of them, companies who are BASIS members only experienced the highest growth
of local market revenue over the years. The revenue index of companies who are members of BASIS is
103 in 2014, 210 in 2015, 289 in 2016, 456 in 2017, and 875 in 2018, and is expecting 1200 in 2021.
The growth was slower till 2016. From 2017 onwards, companies who are BASIS members started to
experience a greater rate of revenue. In 2018, the revenue was 8.75 times as the local market revenue
earned by them in 2013. The slowest growth was experienced by companies who are members of e-CAB,
who had a revenue index of 113 in 2018. (Table 6.1)
600
Average Local Market
500
Revenue Index
400
300
200
100
0
2014 2015 2016 2017 2018 2021
(Expected)
Year
Figure 6.1 reveals a visualization of the growth condition of local market revenue index of IT-ITES industry.
It is observed that the growth of local market revenue was increasing from 2013 to 2016. From 2016
to 2018, the graph of growth of local market revenue was steeper, meaning that the growth of local
market revenue was higher during this time-period compared to that of 2013-2016. The IT-ITES Industry
of Bangladesh expects a far greater local market revenue growth by the year 2021, which is visualized by
the steepest part of the graph.
Figure 6. 2: Cluster Graph for Representing Local Revenue Index of IT-ITES Industry (2014-2021)
Stratum-wise (For 378 Respondent-firms)
2021 (Expected)
2018
2017
Years
2016
2015
2014
6.1.2 Local Market Revenue Status of 2018 in Actual Amount of BDT and
the Estimated Amount for the Population of 1755 Companies
Since actual local revenue data were needed for a better survey analysis, the companies were asked
about their local market revenue range in 2018. The range helped the companies to think less about the
confidentiality issue. The range was then coded, which was then simulated to achieve exact figures of the
local market revenue of the IT-ITES industry, as well as exact local market revenue figures divided by the
stratums.
To find the exact figures of the local market revenue, the population size of the stratums, sample size of
the stratums, and the range of local market revenues were required. The Mean Local Market Revenue of
the sample, and the Expected revenue value of the stratums and of the IT-ITES industry is derived from
the available data.
The method used to calculate the expected local market revenue of 2018 of IT-ITES industry of Bangladesh
is described in Box 6.1
Box 6.1: Method Used to Estimate Local Market Revenue of 2018 for the Population of 1755 IT/
ITES Companies in Bangladesh
2018
Sample Population Sample Mean Nh
Stratum (Sum of Sample a yr stb Ŷhc Ŷd
Size (nh) Size (Nh) ( yr h) N
Values – yhi)
BDT BDT BDT
BASIS 242 1100 0.626780
BDT 19,273,080,265.40
2,659,965,857 10,991,594.45 12,090,753,896.7
BDT 10,981,812.12
BDT BDT BDT
BACCO 37 55 0.031339
4,118,642,860 111,314,671.9 6,122,306,954.1
BDT BDT BDT
eCAB 99 600 0.341880
174,903,203 1,766,699.02 1,060,019,414.6
BDT
Total 378 1755
19,273,080,265.4
The findings of the expected revenue of IT-ITES industry, divided by stratums are explained in Table 6.2.
After collecting the range of 378 companies, the mean revenue of the sample is then calculated by adding
the upper value of the local market revenue range of all the samples (378 companies), then divided the
result by the number of sample (378). Y-bar, or the mean revenue of the samples, or companies surveyed
are found. Simulation is used to ensure further accuracy of the calculation.
In 2018, the mean (sample mean) local market revenue of BASIS is BDT 10,991,594.45, of BACCO is BDT
111,314,671.9, and of e-CAB is BDT 1,766,699.02.
Estimated local market revenue for the total companies of each stratum in the IT-ITES industry (population)
is calculated by using the mean local revenues of the sample. To estimate the population revenue of each
stratum, the number of population of each stratum is divided by the number of companies in the IT-ITES
industry (total population, i.e. 1755 companies). Then it is multiplied by the mean revenue of the sample
that is found by simulation.
Then the overall expected local market revenue of the industry is calculated by multiplying the total
expected population revenue value with the total number of companies, i.e. 1755.
The total local market revenue of the IT-ITES industry of Bangladesh is BDT 19,273,080,265.40.
a Ratio of stratum-wise population size to total population size, which is a required parameter for Ŷ.
b Another required parameter for estimating Ŷ.
c Stratum-wise estimated value for the population
d Estimated value for the total population of overall IT-ITES industry
6%
32% BASIS
63% BACCO
eCAB
Figure 6.3 explains visually through a pie-chart about the contribution of companies of BASIS, BACCO,
and e-CAB to the total local market revenue in 2018. It is evident that companies who are members of
BASIS contributes the most to the IT-ITES industry of Bangladesh, and companies of BACCO contributes
the least to the IT-ITES industry of Bangladesh
Table 6.3 contains the estimated local market revenue amounts for the population from 2013 to 2018,
which is also visualized in the Figure 6.4.
Table 6.3: Estimated Local Market Revenue Amount in BDT of the IT-ITES Industry Estimated by
Backward Interpolation Method (Population of 1755 IT-ITES Companies)
Figure 6.4: Estimated Local Market Revenue Amount in BDT of the IT-ITES Industry Calculated
by Using Backward Interpolation Method (For the Population of 1755 Companies)
20 19
15 14
10
10 9
7 8
0
2013 2014 2015 2016 2017 2018
Year
Box 6.2: Process of Backward Interpolation Method Used in Figure 6.4 (For Estimating the
Population Local Market Revenue of 1755 IT-ITES Companies
The grand mean (overall IT-ITES industry) export market revenue index of IT-ITES industry of Bangladesh
was 127 in 2014, 154 in 2015, 195 in 2016, 219 in 2017, and 251 in 2018. This portrays that the export
market revenue increased 2.51 times compared to revenue of IT-ITES Industry in 2013. It is expected to
have an index of 429 in 2021.
Table 6.4: Average Export Revenue Index of IT-ITES Industry of Bangladesh (2014-2018) with the
Projection for 2021 (For 378 Respondent-firms)
If divided by the stratum, it is revealed that almost every stratum experienced a growth in export market
revenue generation, except for companies who are e-CAB members. Among all of them, companies
who are BASIS members experienced the highest growth of export market revenue over the years. The
revenue index of companies who are members of BASIS only is 164 in 2014, 279 in 2015, 416 in 2016,
534 in 2017, 756 in 2018, and is expecting 987 in 2021. In 2018, the revenue was 7.56 times as the
Figure 6.5: Average Export Revenue Index of the Industry (For 378 Respondent-firms)
500
400
300
Index
200
100
0
2014 2015 2016 2017 2018 2021
(Expected)
Year
Figure 6.5 reveals a visualization of the growth condition of export market revenue index of IT-ITES industry.
It is observed that the growth of export market revenue was increasing from 2013 to 2018 at a steady rate.
The IT-ITES Industry of Bangladesh expects a greater export market revenue growth by the year 2021,
which is visualized by a steep rise of the graph.
Figure 6.6: Number of Exporting Companies (2014-2018) with the Projection for 2021
(Based on 378 Samples)
140
120
No. of Companies
100
80
60
40
20
0
2014 2015 2016 2017 2018 2021
Year
Figure 6.7: Cluster Diagram for Average Export Revenue Indices (For 378 Respondent-firms)
1500
1000
Index
500
0
2014 2015 2016 2017 2018 2021
(Expected)
Year
Figure 6.7 shows a number of graphs, comparing the growth index of export market revenue of IT-ITES
industry in terms of stratums, year-wise. In 2014, it is seen that companies of all the stratums are almost
equal in terms of export market revenue index, where companies of BASIS members are leading. From
2015 to 2018, companies who are BASIS members have earned significantly higher local market revenue
compared to other stratums. In 2021, much of the local market revenue will be earned by companies who
are registered at BASIS.
6.2.2 Export Market Revenue Status of 2018 in Actual Amount of USD and
the Expected Amount for the Population of 1755 IT-ITES Companies in
Bangladesh
Since actual export revenue data were needed for a better survey analysis, the companies were asked
about their export market revenue range in 2018. The range helped the companies to think less about the
confidentiality issue. The range was then coded, which was then simulated to achieve exact figures of the
export market revenue of the IT-ITES industry, as well as exact export market revenue figures divided by
the stratums.
To find the exact figures of the revenue, the population size of the stratum, sample size of the stratum,
and the range of export market revenues were required. The Mean Export Revenue of the sample, and the
Expected export revenue value of the stratum and of the IT-ITES industry is derived from the available data.
The method used to calculate the expected export market revenue of 2018 of I T - I T E S industry of
Bangladesh is described in Box 6.3.
The findings of the expected export market revenue of IT-ITES industry, divided by stratums are explained
in Table 6.5.
Table 6.5: Export Market Revenue of 2018 Estimated for the Population
2018
Sample Population Sample Mean Nh
Stratum (Sum of Sample a yr stb Ŷhc Ŷd
Size (nh) Size (Nh) ( yr h) N
Values – yhi)
BASIS $105,022,918 242 1100 $433,979.00 0.626781 $477,376,900.22
802,314,118.01
$ 457,159.04
$
Total 378 1755 $802,314,118.01
After collecting the range of 378 companies, the mean export revenue of the sample is then calculated by
adding the upper value of the local market revenue range of all the samples (378 companies), then divided
the result by the number of sample (378). Y-bar, or the mean revenue of the samples, or companies
surveyed are found. Simulation is used to ensure further accuracy of the calculation.
Here, BASIS contains companies who are members of BASIS only, and companies who are members of
BASIS and e-CAB. BACCO contains companies who are member of BACCO only, BACCO and BASIS,
and all three of them. e-CAB contains members of e-CAB only.
In 2018, the mean export market revenue of BASIS is $ 433,979.00, of BACCO is $ 5,835,011.77, and of
e-CAB is $ 6,685.95.
a Ratio of stratum-wise population size to total population size, which is a required parameter for Ŷ.
b Another required parameter for estimating Ŷ.
c Stratum-wise estimated value for the population
d Estimated value for the total population of overall IT-ITES industry
Figure 6.8: % of Contribution of Each Stratum to the Export Revenue of 2018 in USD (Estimated
for the Population of 1755 IT-ITES Companies)
1%
40% BASIS
60% BACCO
eCAB
Figure 6.8 explains visually through a pie-chart about the contribution of companies of BASIS, BACCO,
and e-CAB to the total export market revenue in 2018. It is evident that companies who are members of
BASIS contributes the most to the IT-ITES industry of Bangladesh, and companies of BACCO contributes
the least to the IT-ITES industry of Bangladesh.
Table 6.6 and Figure 6.9 contain the estimated amount of export revenue of the IT-ITES industry.
Table 6.6: Estimated Export Revenue Amount in USD of the I T - I T E S Industry Estimated by
Backward Interpolation Method (Population of 1755 IT-ITES Companies)
$700.03
$700.00
$623.31
$600.00
$492.26
$500.00
$406.26
$400.00
$319.05
$300.00
$200.00
$100.00
$-
2013 2014 2015 2016 2017 2018
Year
Figure 6.9 shows the expected export revenue amount of the total IT-ITES industry of Bangladesh from
2013 to 2018. By plotting the points, we see that there is a gradual increase of export revenue of the IT/
ITES Industry. In 2013, it is estimated that the overall expected export value of the I T - I T E S industry is
around $319 million. In 2018, it is estimated that the overall expected export value of the IT-ITES industry
is around $802 million. This shows a 150% increase in the overall expected export value of the IT-ITES
industry within 2013-2018.
Box 6.4: Process of Backward Interpolation Method Used in Figure 6.9 (For Estimating the
Population of 1755 IT-ITES Companies)
Table 6.7: Number and % of Companies from Each Stratum and Their Major Export Destinations
(For 378 Respondent-firms)
Other Countries
Japan
Netherlands
Countries
Germany
UK
Canada
USA
Figure 6.10 shows the export destinations and the percentage of companies of the overall IT-ITES industry
is exporting to which countries.
Table 7.1: Stratum-wise No. of Management Track Full-time Professionals (Male and Female)
(Based on 378 Respondents-firms)
(Expected)
(Expected)
No. of
2013
2014
2015
2016
2017
2018
2021
2013
2014
2015
2016
2017
2018
2021
Stratum
1416
2536
5924
242
554
801
880
973
459
220
167
194
222
781
944
BASIS
1444
149
268
435
683
953
947
143
162
295
336
415
618
368
BACCO
37
114
264
363
142
eCAB
99
10
61
17
40
78
89
91
61
6
5
1079
1376
1770
2633
4343
7013
1490
1373
378
709
619
387
502
608
726
Total
Number of Female management track professionals in 2013 was 619, 387 in 2014, 502 in 2015, 608
in 2016, and 726 in 2017. The number of female management track professionals in 2018 was 1490. It
is observed that there was decrease in female management professionals within 2013 and 2014. From
the table, it is revealed that this was due to a sharp decrease of female management professionals in
companies who are members of BASIS only (459 in 2013, 220 in 2014) and in companies who are
members of e-CAB only (17 in 2013, 5 in 2014). The number of female management professionals
continued to increase gradually increased from 2014. However, it is expected that there will be 1373
female management professionals will work in I T - I T E S industry in 2021, which is not as much high as
expected increase of male management professionals. Out of 1490 female management professionals in
2018, 781 of them were in companies who are BASIS members only. There is a major increase in female
management professionals in companies who are BASIS members only from 2017 (222) to 2018 (781).
This also contributed a major increase in female management professionals in overall IT-ITES industry from
726 (in 2017) to 1490 (in 2018). (Table 7.1)
2021 (Expected)
2018
2017
2016
2015
2014
2013
Core Technical Track Professional of IT-ITES Core Technical Track Professional of IT-ITES
Industry (Male) 2013-21 Industry (Female) 2013-21
Companies
(Expected)
(Expected)
No. of
2013
2014
2015
2016
2017
2018
2021
2013
2014
2015
2016
2017
2018
2021
Stratum
1461
1848
2201
2444
1935
2760
6000
1191
3008
242
383
274
324
365
425
BASIS
1288
2029
2106
556
780
834
875
184
288
413
530
726
515
BACCO
37
98
139
197
273
410
eCAB
99
14
67
23
21
40
54
45
19
8
5
2031
2636
3102
3458
3420
5062
8216
1009
1962
3542
378
504
463
633
818
Total
Number of female core tech full time professionals was 3204 in 2013, 463 in 2014, 633 in 2015, 818 in
2016, 1009 in 2017, and 1962 in 2018. From 2014 onwards till 2017, a gradual increase is detected, and
in 2018, there was an astronomic increase in number of female core tech professionals. From the table, it
is recognized the rapid increase in total female core tech professionals from 2017 to 2018 in the IT-ITES
industry is due to increase in female core tech professionals in companies who are members of BASIS
only (425 in 2017, 1191 in 2018). However, companies who are e-CAB members only experienced a fall in
female core tech professionals from 54 (in 2017) to 45 (in 2018). In 2021, the number of female core tech
in IT-ITES industry is expected to be 3542, of which 3008 is from companies of BASIS members only. In
2021, companies of e-CAB members only (19) and companies who are members of BASIS and e-CAB (8)
are expected to fall compared to numbers of female core tech professionals in 2018.
2021 (Expected)
2018
2017
2016
2015
2014
2013
Table 7.3: Stratum-wise No. of Non-core Technical/ Other Full Time Professionals (Male and
Female) (Based on 378 Respondents-firms)
Non-core & Other Track Professional of IT/ Non-core & Other Track Professional of IT/
ITES Industry (Male) 2013-21 ITES Industry (Female) 2013-21
Companies
(Expected)
(Expected)
No. of
2013
2014
2015
2016
2017
2018
2021
2013
2014
2015
2016
2017
2018
2021
Stratum
1096
1279
1380
1416
2230
3702
2917
242
621
706
141
178
199
402
983
BASIS
1043
1017
1172
1461
1074
200
223
547
176
170
302
522
532
720
BACCO
37
101
123
131
eCAB
99
23
12
30
98
46
29
60
65
75
66
3
1331
1856
2524
2556
3533
5261
2132
3703
378
844
928
314
509
781
999
Total
In Table 7.3, it is seen that number of female non-core technical/other full-time professionals was 928
in 2013, 314 in 2014, 509 in 2015, 781 in 2016, 999 in 2017, and 2132 in 2018. The majority of the
number of female non-core technical/other professionals is employed in companies who are members of
BACCO only (176 in 2013, 170 in 2014, 302 in 2015, 522 in 2016, 532 in 2017, 1074 in 2018). In 2021,
it is expected that the number of female non-core technical/other professionals in IT-ITES industry will be
3703, majority of which will be employed in companies in both BASIS and BACCO.
2021 (Expected)
2018
2017
2016
2015
2014
2013
Figure 7.3 shows that the number of female non-core technical/other professionals were higher in 2013,
compared to the number of male non-core technical/other professionals. The similar will be expected
again in 2021, where the number of female non-core technical/other professionals will be higher again
compared to the number of male non-core technical/other professionals.
Table 7.4: Total No. of Management Track Professionals (Based on 378 Respondents-firms)
Table 7.5: Total No. of Core Technical Track Professionals (Based on 378 Respondents-firms)
Table 7.7 has divided the employee base into three parts – management track, core technical track,
and non-core and others track. It is observed that from 2013 to 2014, total number of employees has
increased into 6210 from 5635. Even though the number of management track professionals increased
(from 1328 to 1466), whereas the number of core technical track and non-core and other professionals
has decreased. However, after that, number of all employee bases has kept increasing. It is expected that
there will be the number of management track professionals, core technical professionals, and non-other
professionals will be 8386, 12058, and 8964 respectively in 2021 (Table 7.7)
Table 7.7: Total Employee Base of IT-ITES Industry (Based on 378 Respondents-firms)
In Figure 7.4, we can visually notice that among the three bases, number of core technical professionals
was always higher than the rest of the two in IT-ITES Industry. We also notice that all the three class of
employee base are increasing gradually over the years.
In Figure 7.5, it is observed that the total number of employees in IT-ITES industry has gradually increased
over the years. Expected employment for 2021 compared to previous gradual growth is much higher.
Figure 7.5: Employment Trend of the IT-ITES Industry (Based on 378 Respondent-firms)
35000
29408
30000
25000
18522
20000
15000 11343
9959
10000 7978
6210
5635
5000
0
2013 2014 2015 2016 2017 2018 2021
(Expected)
Table 7.8: Estimated Population Amount of Employee Size (full-time) of IT-ITES Industry consists
of 1755 Companies for the Year of 2018
2018
Sample Population Sample Mean Nh
Stratum (Sum of Sample a yr stb Ŷhc Ŷd
Size (nh) Size (Nh) ( yr h) N
Values – yhi)
BASIS 10481 242 1100 43.309 0.626780 47641
BACCO 7063 37 55 190.891 0.031339 10499
36.505
64067
eCAB 978 99 600 9.878 0.341880 5927
Box 7.1: Method Used to Derive the Table 7.8 (For Estimating the Population of 1755 Companies)
a Ratio of stratum-wise population size to total population size, which is a required parameter for Ŷ.
b Another required parameter for estimating Ŷ.
c Stratum-wise estimated value for the population
d Estimated value for the total population of overall IT-ITES industry
70000
60000
50000
40000
30000
20000
10000
0
2013 2014 2015 2016 2017 2018
Estimated IT-ITES Employment
Size (For the Population of 1755 23392 28615 35003 42817 52375 64067
Companies)
Table 7.9: Explanation of the Backward Interpolation Method Used to Estimate the values in
Figure 7.6
406,255,937.34
492,256,470.81
623,311,764.99
700,027,059.14
802,314,118.01
PERyear = 2013, 2014, 2016, 2017, 2018
(Estimated Population Export
$
$
Revenue for Each Year)
10,119,733,503.25
13,971,048,865.21
19,273,080,265.40
7,192,436,965.78
7,659,180,215.69
9,032,687,014.88
BDT
BDT
BDT
BDT
BDT
18532
6210
7978
9959
52375b
28615e
42817c
64067a
23392f
Table 7.10: Project Based Employment Stratum-wise (Average % of the Total Employment
based on the data of 378 Respondent-firm)
Figure 7.7 contains the data of estimated part-time employment of the I T - I T E S industry for the years
from 2013 to 2018. 2018 part-time employment size is derived by comparing the row mean percentage
(From Table 7.10) values with the fill-time employment size (From Table 7.8) estimated for each stratum.
For example, BASIS strata has 47,641 full-time employee in 2018 which is equivalent to the 66% of total
employee because that strata has on an average 34% part-time employee, whereas this 34% is equivalent
to 24308 (See Table 7.11). Moreover, part-time employment sizes for the years of 2013, 2014, 2015, 2016
and 2017 are calculated by using same approach depicted on the Table 7.9.
70000
60000
50000
40000
30000
20000
10000
0
2013 2014 2015 2016 2017 2018
Part-time Employment of the
IT-ITES Industry (#) 22829 27925 34159 41785 51113 62524
Table 7.11: Total Employment Status of the IT-ITES Industry in 2018 (Estimated for the Population
of 1755 Companies)
140000
126591
120000
103488
100000
84602
80000 69162
56540
60000
46221
40000
20000
0
2013 2014 2015 2016 2017 2018
Table 7.14: No of International or Foreign Professionals in the Technical Track of IT-ITES Industry
(2014-2021) (For 378 Respondent-firms)
Table 7.16: Employee Attrition Rate throughout the I T - I T E S Industry (2013-2021) (For 378
Respondent-firms)
Figure 7.9 shows that over the years of 2013-2016 average attrition rate was stable, but after 2016 it is
falling.
Table 7.17: Average Monthly Pay and Average Length of Service of the Management Track
Professionals of IT-ITES Industry (For 378 Respondent-firms)
Average Monthly Pay for Management Track Average Length of Service for
(in BDT) Management Track (in Years)
Stratum Top Level Mid-Level Entry Level Top Level Mid-Level Entry Level
BASIS 132,215.66 91,939.13 38,443.48 8 5 2
BACCO 111,800.00 53,812.50 27,178.19 7 4 2
e-CAB 86,250.00 70,000.00 33,076.92 7 4 2
Overall IT-ITES
127,243.09 86,058.06 37,473.40 8 5 2
Industry
Table 7.17 also reveals the average length of service for management track. The industry average is 8
years for top-level, 5 years for mid-level, and 2 years for entry-level.
Table 7.18: Average Monthly Pay and Average Length of Service of the Technical Track
Professionals of IT-ITES Industry (For 378 Respondent-firms)
Average Monthly Pay for Technical Track Average Length of Service for
(in BDT) Technical Track (in Years)
Stratum Top Level Mid-Level Entry Level Top Level Mid-Level Entry Level
BASIS 76,525.62 66,114.04 34,035.40 7 4 2
BACCO 103,133.33 50,400.00 24,390.07 6 4 1
e-CAB 69,615.38 54,857.14 27,142.86 4 3 1
Overall IT-ITES
80,382.61 63,307.19 31,866.56 7 4 2
Industry
Table 7.18 also shows the average length of service for technical track. The average length of service for
technical track of the overall IT-ITES industry is 7 years for top-level, 4 years for mid-level, and 2 years for
entry-level.
Table 8.1: Number of Working and Required Employees Specialized in 4IR Technology in IT/
ITES Industry of Bangladesh (For 378 Respondent-firms)
Number of employees are working in 2018 and demanded in 2021 and 2014 by the IT-ITES Industry having the
following 4IR Skills
Sensors and Machine Simulation, Visualization
Big Data and Analytics
Stratum Intelligence Algorithms & Dual Twin
2018 2021 2024 2018 2021 2024 2018 2021 2024
BASIS 233 397 727 638 787 902 140 212 682
BACCO 25 89 68 129 132 144 3 4 12
e-CAB 10 24 24 136 83 96 15 21
Total 268 510 819 903 1002 1142 158 216 715
Table 8.1 also reveals about the number of employees in 2018, 2021, and 2024 in Big Data and Analytics.
Total number of employees in I T - I T E S industry of Bangladesh specialized in Big Data and Analytics in
2018 was 903, 638 of which are employees of companies who are BASIS members. The total number of
employees specialized in Big Data and Analytics in the IT-ITES industry that will be needed in 2021 and
2024 are 1002 and 1142. 787 and 902 of them will be required by companies who are BASIS members.
Table 8.1 reveals about the number of employees in 2018, 2021, and 2024 in Simulation, Visualization,
& Dual Twin. Total number of employees in I T - I T E S industry of Bangladesh specialized in Simulation,
Visualization, & Dual Twin in 2018 was 158, 140 of which are employees of companies who are BASIS
members. The total number of employees specialized in Simulation, Visualization, & Dual Twin in the IT/
ITES industry that will be needed in 2021 and 2024 are 216 and 715. 212 and 682 of them will be required
by companies who are BASIS members.
Number of employees are working in 2018 and demanded in 2021 and 2014 by the IT-ITES Industry having the
following 4IR Skills
Industrial IOT Cyber Security Cloud & Edge Computing
Stratum 2018 2021 2024 2018 2021 2024 2018 2021 2024
BASIS 293 407 649 375 407 417 343 325 324
BACCO 28 78 110 74 117 138 84 110 188
e-CAB 13 30 32 96 122 98 25 26 27
Total 334 515 791 545 646 653 452 461 539
Table 8.2 reveals about the number of employees in 2018, 2021, and 2024 in Industrial IOT. Total number
of employees in IT-ITES industry of Bangladesh specialized in Industrial IOT in 2018 was 334, 293 of which
are employees of companies who are BASIS members. The total number of employees specialized in
Industrial IOT in the IT-ITES industry that will be needed in 2021 and 2024 are 515 and 791. 407 and 649
of them will be required by companies who are BASIS members.
Table 8.2 reveals about the number of employees in 2018, 2021, and 2024 in Cyber Security. Total
number of employees in IT-ITES industry of Bangladesh specialized in Cyber Security in 2018 was 545,
375 of which are employees of companies who are BASIS members. The total number of employees
specialized in Cyber Security in the IT-ITES industry that will be needed in 2021 and 2024 are 646 and 653.
407 and 417 of them will be required by companies who are BASIS members.
Table 8.2 reveals about the number of employees in 2018, 2021, and 2024 in Cloud & Edge Computing.
Total number of employees in IT-ITES industry of Bangladesh specialized in Cloud & Edge Computing in
2018 was 452, 343 of which are employees of companies who are BASIS members. The total number
of employees specialized in Cloud & Edge Computing in the IT-ITES industry that will be needed in 2021
and 2024 are 461 and 539. 325 and 324 of them will be required by companies who are BASIS members.
However, the total number of employees required specialized in Cyber Security has fallen for most of the
stratum.
Table 8.3: Number of Working and Required Employees Specialized in 4IR Technology in IT/
ITES Industry of Bangladesh (For 378 Respondent-firms)
Number of employees are working in 2018 and demanded in 2021 and 2014 by the IT-ITES Industry
having the following 4IR Skills
Additive Manufacturing Human-Machine Virtual and
or 3D Printing Cooperation Augmented Reality
Stratum 2018 2021 2024 2018 2021 2024 2018 2021 2024
BASIS 21 86 121 148 262 1086 115 138 182
BACCO 2 3 5 5 19 7 17 56 81
e-CAB 2 5 0 28 27 41 11 6 15
Total 25 94 126 181 308 1134 143 200 278
Table 8.3 reveals about the number of employees in 2018, 2021, and 2024 in Human-Machine Cooperation.
Total number of employees in IT-ITES industry of Bangladesh specialized in Human-Machine Cooperation
in 2018 was 181, 148 of which are employees of companies who are BASIS members. The total number
of employees specialized in Human-Machine Cooperation in the IT-ITES industry that will be needed in
2021 and 2024 are 308 and 1134. 262 and 1086 of them will be required by companies who are BASIS
members.
Table 8.3 reveals about the number of employees in 2018, 2021, and 2024 in Augmented Reality. Total
number of employees in IT-ITES industry of Bangladesh specialized in Augmented Reality in 2018 was
143, 115 of which are employees of companies who are BASIS members only. The total number of
employees specialized in Augmented Reality in the IT-ITES industry that will be needed in 2021 and 2024
are 200 and 278. 138 and 182 of them will be required by companies who are BASIS members.
Table 8.4: Number of Working and Required Employees Speciated in 4IR Technology in IT-ITES
Industry of Bangladesh (For 378 Respondent-firms)
Number of employees are working in 2018 and demanded in 2021 and 2014 by the IT-ITES Industry
having the following 4IR Skills
Neural Network &
Autonomous Image & Speech
Machine Learning Block Chain
Robots Processing
(Deep Learning)
Stratum 2018 2021 2024 2018 2021 2024 2018 2021 2024 2018 2021 2024
BASIS 42 71 89 278 439 608 142 382 678 190 280 326
BACCO 10 5 10 41 64 80 22 32 44 47 96 159
e-CAB 6 5 1 10 21 18 27 44 33 64 55 5
Total 58 81 100 329 524 706 191 458 755 301 431 490
Table 8.4 reveals about the number of employees in 2018, 2021, and 2024 in Autonomous Robots.
Total number of employees in IT-ITES industry of Bangladesh specialized in Autonomous Robots in 2018
was 58, 42 of which are employees of companies who are BASIS members only. The total number of
employees specialized in Autonomous Robots in the IT-ITES industry that will be needed in 2021 and 2024
are 81 and 100. 71 and 89 of them will be required by companies who are BASIS members.
Table 8.4 reveals about the number of employees in 2018, 2021, and 2024 in Image & Speech Processing.
Total number of employees in IT-ITES industry of Bangladesh specialized in Image & Speech Processing
in 2018 was 329, 278 of which are employees of companies who are BASIS members only. The total
number of employees specialized in Image & Speech Processing in the IT-ITES industry that will be needed
in 2021 and 2024 are 524 and 706. 439 and 608 of them will be required by companies who are BASIS
members.
Table 8.4 reveals about the number of employees in 2018, 2021, and 2024 in Block Chain. Total number
of employees in IT-ITES industry of Bangladesh specialized in Block Chain in 2018 was 301, 190 of which
are employees of companies who are BASIS members only. The total number of employees specialized in
Block Chain in the IT-ITES industry that will be needed in 2021 and 2024 are 431 and 490. 280 and 326
of them will be required by companies who are BASIS members.
Yet, we must acknowledge that this exercise is just a humble beginning as the scope
is kept limited only to three IT/ITES industry sub-categories, namely (i) software and
information services, (ii) business process outsourcing and call centers, and (iii)
e-commerce.
Detailed data on various aspects including local market revenue, export, HR profile,
and perception and preparation toward the fourth Industrial Revolution (4IR) were
collected through a structured questionnaire from a sample of 378 firms and companies.
Future research and intervention agenda of the government may include, among other
things, the following:
I. Stratum-wise census
II. Study on IT/ITES industry all other sub-categories such as ISP, freelancing, hardware,
etc.
III. Study on the import of IT/ITES products and services (including consulting and advis-
ing) by the Government as a whole and by different industries
IV. Sector-specific studies on demand for IT/ITES products and services (Demand-side
study)
1. Bangladesh Bureau Statistics (BBS). May 2019. Statistical Pocket Book Bangladesh 2018. Dhaka:
Statistics and Informatics Division, Ministry of Planning.
2. International Telecommunication Union (ITU). 2018. ICT Development Index 2017. ICT Data and
Statistics Division Telecommunication Development Bureau.
4. Hassan, Qusay (2011). “Demystifying Cloud Computing” (PDF). The Journal of Defense Software
Engineering. CrossTalk. 2011 (Jan/Feb): 16–21. Retrieved 11 December2014.
A1: Questionnaire
Commitments of PMIS
According to the Goal #9 (Industries, Innovation and Infrastructure) of Sustainable Development Goal
“Investments in infrastructure – transport, irrigation, energy and information and communication
technology – are crucial to achieving sustainable development and empowering communities in many
countries.” PMIS is committed to serve the ninth goal of SDG primarily focusing on information and
communication technology developments in Bangladesh. The ninth-goal targets have outlined the
intended deliverables and operating objectives of PMIS in the following areas by updating technological
capabilities in macro and micro levels of Bangladesh.
• To develop a resource pool of skilled project managers to meet the community / industries’
needs.
• Monitoring and evaluating the IT & IT enable services of various training & development
projects
PMIS
Core Team
Dr. Syed Shahadat Hossain Professor, ISRT, DU and Advisor, Statistical Analysis
Dr. Md Akram Hossain Project Director and Executive Director, PMIS
Mr. Sheikh Morshed Jahan Team Leader and Professor, IBA, DU
Mr. Md. Rakibul Hasan Assistant Professor, DU & Database Expert
Mr. Mina Mahbub Hossain Asst Professor, DU & Statistics Analysis Expert
Mr. Asif Imtiaz Lecturer, DU & Economist
Mr. Tuhinur Rahman Lecturer, DU & Impact Analysis Expert
Research Associates
He served as a member of UN-ESCAP Advisory Panel on SME Development in Asia and the
Pacific. In consulting role, he led/offered advisory services in projects funded by government
and international development agencies such as UNDP, UN-ESCAP, World Bank, ASEAN
Economic Research Institute, USAID, UKaid/DFID, Sida, CIDA, Danida, Netherlands
Government, ILO, Save the Children, Access to Information (a2i) Program, Leveraging ICT
for Growth, Employment and Governance (LICT), Bangladesh Computer Council (BCC),
Krishi Gobeshona Foundation (KGF), etc. He has been a consultant to local and international
From sector perspective, Prof. Jahan has extensive research and intervention experience in ICT
and agriculture and agribusiness. Prof. Jahan spearheaded the first-ever middle-management
professional development program for IT/ITES industry – branded as Advanced Certificate for
Management Professionals (ACMP) 4.0 – in collaboration with government agencies, industry
associations and three of South Asia’s leading business and technology schools: IBA-Dhaka,
IIM-Ahmedabad and IIT-Delhi. On the other hand, for more than a decade, he has extensively
been involved in designing and leading market development interventions in agricultural
market and value chain development, food and nutrition security, agro-SME promotion, and
inclusive and sustainable rural development.
Educated at the University of Dhaka (IBA) and Duke University (School of Public Policy),
Professor Jahan was a Joint Japan/World Bank Graduate Scholar (JJ/WBGSP) at Duke
University, USA and a Commonwealth Fellow at IIM-Ahemdabad, India.
Dr. Akram is an International researcher and he has 27 national & international articles
which are published in popular journals. As an academician he attended and presented his
research paper in various countries like USA, UK, Canada, Australia, Singapore, Turkey,
Switzerland, Germany, Hungry, Cuba, Thailand and Malaysia in different international
academic & research-based conferences. He also got best paper award in Australia and
Malaysia. Dr. Akram also work as consultant in various projects, IT and IT enable services
in Bangladesh. He is working as a consultant and evaluator of the ‘'Fast Track Future Leader
(FTFL)'' project of LICT project, ICT Division, Bangladesh.
He was serving as Assistant Proctor and Director, MBA (Evening) program of MIS
department in the University of Dhaka. He is serving member of Central Admission
Committee of the University of Dhaka. He is contributing in different public University in
Bangladesh (like Barishal University, Potuakhali Science & Technology University,
Bangabandhu Shaikh Mojibur Rahman University, Gopalgonj) do develop their course
curriculum and teacher selection. He is also serving financial institution of Bangladesh like
– Director, ICB Asset Management Company Ltd, Rupali Bank Securities Ltd, Nitol
Insurance Company ltd. Dr. Akram travelled 42 countries throughout the world for research
and visiting purpose.