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IT ITeS Industry Statistics 2019

The document provides statistics on the IT-ITES industry in Bangladesh for 2019. It details the industry's export revenue, domestic market revenue, and employment numbers. It also discusses the government's targets for the ICT sector and goals of achieving digital transformation across various sectors. The statistics are meant to help policymakers ensure the right strategies are in place to support the growth of the ICT ecosystem.

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Ayman Mustakim
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0% found this document useful (0 votes)
138 views102 pages

IT ITeS Industry Statistics 2019

The document provides statistics on the IT-ITES industry in Bangladesh for 2019. It details the industry's export revenue, domestic market revenue, and employment numbers. It also discusses the government's targets for the ICT sector and goals of achieving digital transformation across various sectors. The statistics are meant to help policymakers ensure the right strategies are in place to support the growth of the ICT ecosystem.

Uploaded by

Ayman Mustakim
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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IT-ITES

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.

I thank all those people involved in conducting the study.

Be Digital, Build Digital


Joi Bangla, Joi Bangabondhu

Zunaid Ahmed Palak, MP


N M Zeaul Alam
Senior Secretary
Information & Communication Technology Division
Phone: +88 02 8181547, e-mail: secretary@ictd.gov.bd

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

IT-ITES Industry Statistics of Bangladesh v


account the employment of IT-ITES professionals in non-IT-ITES industries and sectors, the total number
of I T - I T E S professionals in the country may reach the one million mark. Of course, to ascertain this, a
comprehensive survey with sufficient time and resource support is the call of the time.

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.

Professor Dr. Syed Shahadat Hossain


Professor Sheikh Morshed Jahan
Professor Dr. Md. Akram Hossain

Center for Project Management and Information Systems (PMIS)


University of Dhaka, Bangladesh

vi IT-ITES Industry Statistics of Bangladesh


Table of Contents

List of the Tables x


List of the Figures xii
List of the Boxes xiii
Executive Summary xiv
Key Findings xvi
Abbreviations xviii
Chapter 1: Introduction 1
1.1 Background 1
1.2 Purpose of this study 3
1.3 Scope of this Study 4
1.4 Concepts and Definitions 4
1.4.1 IT-ITES industry 4
1.4.2 Industry 4.0 Skills 4
Chapter 2: Design of the Study 9
2.1 Methodological Approach of the Study 9
2.2 Determination of Sample Size 10
2.3 Instrumentation 12
2.4 Collection and Preparation of the Data 12
2.5 Questionnaire Items, Measurement Scale and Statistical Tools of Analysis 13
Chapter 3: IT-ITES Industry Profile of Basic Information 15
3.1 Business Location Profile 15
3.2 Types of Ownership Profile 16
3.3 Legal Structure Type Profile 16
3.4 Portfolio Profile 17
3.5 Technology Sharing Profile 18
Chapter 4: Product and Service Categories of the IT-ITES Industry 19
4.1 Percentage of companies considering the following categories of business nature as their
first-priority revenue generating product or service 19
4.2 Percentage of companies considering the following categories of business nature as their
second-priority revenue generating product or service 19
4.3 Percentage of companies considering the following categories of business nature as their
third-priority revenue generating product or service 20

IT-ITES Industry Statistics of Bangladesh vii


Chapter 5: Clientele of IT-ITES Industry 21

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

Chapter 6: Financial Status of IT-ITES Industry of Bangladesh 23

6.1 Local Market Revenue Status 23

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 Export Revenue Status 28

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

6.2.3 Major Export Destinations and % of Export Covered by Each Stratum 34

Chapter 7: Employment Status of the IT-ITES Industry 35

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

7.4 Total No. of Management Track Professionals 39

7.5 Total No. of Core Technical Track Professionals 40

7.6 Total No. of Non-core Technical/ Other Track Professionals 40

7.7 Total Employee Base of IT-ITES Industry 41

7.8 Estimated Population Amount of Total Employee Size of IT-ITES Industry (2018) 43

7.8.1 Full-time Employment 43

7.8.2 Part-time Employment 43

7.8.3 Total Employment 46

7.9 Number of International or Foreign Professionals in the Management Track of IT-ITES


Industry (2014-2021) 47

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

viii IT-ITES Industry Statistics of Bangladesh


7.12 Employee Attrition Rate throughout the IT-ITES Industry (2013-2021) 49

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

Chapter 8: Status of 4IR in Bangladesh 51

8.1 Number of Working and Required Employees Speciated in 4IR Technology in IT-ITES
Industry of Bangladesh 51

Chapter 9: Concluding Remarks 55

9.1 Limitations 55

9.2 Future Research Direction 55

9.3 Conclusion 56

References xix

Annexure xx

A1: Questionnaire xx

A2: About PMIS xxvii

A3: Team Members of the Project xxviii

A4: Introducing Core Team Members xxx


A5: BBS Declaration

IT-ITES Industry Statistics of Bangladesh ix


List of the Tables
Table 1: Estimated Local Market Revenue of IT-ITES Industry in 2018 xiv
Table 2: Estimated Export Market Revenue of IT-ITES Industry in 2018 xiv
Table 3: Estimated Export Revenue of the IT-ITES Industry (in USD) xiv
Table 4: Estimated Local Market Revenue of the IT-ITES Industry (in BDT) for the Period of
2013-2018 xiv
Table 5: Estimated Full Time Employment by IT-ITES Industry (2018) xv
Table 6: Estimated Full Time Employment by 1755 IT-ITES Industry for the Period of 2013-2018 xv
Table 7: Total Employment Status of the IT-ITES Industry in 2018 (Estimated for the
Population of 1755 Companies) xv
Table 8: Total Employment of IT-ITES Industry (2013-18) xv
Table 2.1: Sample Size Determination Framework 11
Table 2.2: Questionnaire Items, Measurement Scale and Statistical Tool 13
Table 3.1: Business Location Profile of 378 Respondent-firms 15
Table 3.2: Types of Ownership Profile of 378 Respondent-firms 16
Table 3.3: Legal Structure Type Profile of 378 Respondent-firms 17
Table 3.4: Portfolio Profile of 378 Respondent-firms 17
Table 3.5: Technology Sharing Profile of 378 Respondent-firms 18
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 19
Table 4.2: % of companies considering the following categories of business nature as their
second-priority revenue generating product or service for 378 Respondent-firms 20
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 20
Table 5.1: % and of No. of Companies from Each Stratum-Industry Vertical Alignment (For 378
Respondent-firms) 21
Table 6.1: Average Local Market Revenue Index of IT-ITES Industry (2014-2018) with Projection
for 2021 (For 378 Respondent-firms) 23
Table 6.2: Local Market Revenue of 2018 Estimated Amount for the Population of 1755 Companies 26
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) 27
Table 6.4: Average Export Revenue Index of IT-ITES Industry of Bangladesh (2014-2018) with
the Projection for 2021 (For 378 Respondent-firms) 28
Table 6.5: Export Market Revenue of 2018 Estimated for the Population 31
Table 6.6: Estimated Export Revenue Amount in USD of the IT-ITES Industry Estimated by
Backward Interpolation Method (Population of 1755 IT-ITES Companies) 32
Table 6.7: Number and % of Companies from Each Stratum and Their Major Export
Destinations (For 378 Respondent-firms) 34

x IT-ITES Industry Statistics of Bangladesh


Table 7.1: Stratum-wise No. of Management Track Full-time Professionals (Male and Female)
(Based on 378 Respondents-firms) 35
Table 7.2: Stratum-wise No. of Core Technical Full Time Professionals (Male and Female)
(Based on 378 Respondents-firms) 36
Table 7.3: Stratum-wise No. of Non-core Technical/ Other Full Time Professionals (Male and
Female) (Based on 378 Respondents-firms) 38
Table 7.4: Total No. of Management Track Professionals (Based on 378 Respondents-firms) 39
Table 7.5: Total No. of Core Technical Track Professionals (Based on 378 Respondents-firms) 40
Table 7.6: Total No. of Non-core Technical/ Other Track Professionals (Based on 378
Respondents-firms) 41
Table 7.7: Total Employee Base of IT-ITES Industry (Based on 378 Respondents-firms) 41
Table 7.8: Estimated Population Amount of Employee Size (full-time) of IT-ITES Industry consists
of 1755 Companies for the Year of 2018 43
Table 7.9: Explanation of the Backward Interpolation Method Used to Estimate the values in
Figure 7.6 44
Table 7.10: Project Based Employment Stratum-wise (Average % of the Total Employment based
on the data of 378 Respondent-firm) 45
Table 7.11: Total Employment Status of the IT-ITES Industry in 2018 (Estimated for the
Population of 1755 Companies) 46
Table 7.12: Total Employment of IT-ITES Industry (2013-18) 47
Table 7.13: No of International or Foreign Professionals in the Management Track of IT-ITES
Industry (2014-2021) (For 378 Respondent-firms) 48
Table 7.14: No of International or Foreign Professionals in the Technical Track of IT-ITES Industry
(2014-2021) (For 378 Respondent-firms) 48
Table 7.15: Amount of Investment Made on Training & Development of the Employee Funded by
the Company (2014-2021) (For 378 Respondent-firms) 49
Table 7.16: Employee Attrition Rate throughout the IT-ITES Industry (2013-2021) (For 378
Respondent-firms) 49
Table 7.17: Average Monthly Pay and Average Length of Service of the Management Track
Professionals of IT-ITES Industry (For 378 Respondent-firms) 50
Table 7.18: Average Monthly Pay and Average Length of Service of the Technical Track
Professionals of IT-ITES Industry (For 378 Respondent-firms) 50
Table 8.1: Number of Working and Required Employees Specialized in 4IR Technology in IT/
ITES Industry of Bangladesh (For 378 Respondent-firms) 51
Table 8.2: Number of Working and Required Employees Specialized in 4IR Technology in IT/
ITES Industry of Bangladesh (For 378 Respondent-firms) 52
Table 8.3: Number of Working and Required Employees Specialized in 4IR Technology in IT/
ITES Industry of Bangladesh (For 378 Respondent-firms) 52
Table 8.4: Number of Working and Required Employees Speciated in 4IR Technology in IT-ITES
Industry of Bangladesh (For 378 Respondent-firms) 53

IT-ITES Industry Statistics of Bangladesh xi


List of the Figures
Figure 2.1: Methodological Framework 9
Figure 3.1: Business Location Profile of the IT-ITES Industry 15
Figure 3.2: Types of Business Ownership based on Table 3.2 16
Figure 3.3: Types of Legal Structure based on Table 3.3 17
Figure 5.1: Graph on Table 5.1 (For 378 Respondent-firms) 22
Figure 6.1: Average Local Revenue Index of IT-ITES Industry (2014-2021) for 378 Respondent-
firms) 24
Figure 6.2: Cluster Graph for Representing Local Revenue Index of IT-ITES Industry (2014-2021)
Stratum-wise (For 378 Respondent-firms) 24
Figure 6.3: % of Contribution of Each Stratum to the Estimated Total Local Market Revenue of IT/
ITES Industry of 1755 Companies for the Year of 2018 27
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) 27
Figure 6.5: Average Export Revenue Index of the Industry (For 378 Respondent-firms) 29
Figure 6.6: Number of Exporting Companies (2014-2018) with the Projection for 2021 (Based on
378 Samples) 29
Figure 6.7: Cluster Diagram for Average Export Revenue Indices (For 378 Respondent-firms) 30
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) 32
Figure 6.9: Estimated Export Revenue Amount in USD of the IT-ITES Industry Calculated by Using
Backward Interpolation Method (For the Population of 1755 Companies) 33
Figure 6.10: Graph on Table 6.7 (For 378 Respondent-firms) 34
Figure 7.1: Management Track Professionals (Based on 378 Respondents-firms) 36
Figure 7.2: Core Technical Track Professionals (Based on 378 Respondents-firms) 37
Figure 7.3: Non-core Technical and other Professionals (Based on 378 Respondents-firms) 39
Figure 7.4: No. of Total Full Time Employee of I T - I T E S Industry of Bangladesh (Based on 378
Respondents firms) 42
Figure 7.5: Employment Trend of the IT-ITES Industry (Based on 378 Respondent-firms) 42
Figure 7.6: Estimated Employee Size (Full-time) of the I T - I T E S Industry 2013-2018 (For the
Population of 1755 Companies) 44
Figure 7.7: Estimated Part-time Employment of the IT-ITES Industry 46
Figure 7.8: Total Employment Trend of the Industry 47
Figure 7.9: Graph on Table 7.16 49

xii IT-ITES Industry Statistics of Bangladesh


List of the Boxes
Box 6.1: Method Used to Estimate Local Market Revenue of 2018 for the Population of 1755
IT-ITES Companies in Bangladesh 25

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

IT-ITES Industry Statistics of Bangladesh xiii


Executive Summary
Under the project of “IT-ITES Industry Statistics of Bangladesh” and according to the MoU between PMIS
and LICT, the intended deliverable of PMIS is to conduct baseline survey on the IT-ITES (Information
Technology/ Information Technology Enabled Services) Industry of Bangladesh and provide summary
statistics representing the status of that industry on the report. This IT-ITES industry of Bangladesh consists
of three strata; these are: (1) Bangladesh Association of Software and Information Services (BASIS), (2)
Bangladesh Association of Call Center and Outsourcing (BACCO), and (3) e-Commerce Association of
Bangladesh (e-CAB). Moreover, these associations were formed concentrating on their nature of business,
which can be categorized into three major dimensions; These are: (1) Software and information service, (2)
Outsourcing and call centers, and (3) e-commerce. Thus, this structure of the IT-ITES industry emphasizes
the necessity to address all the clusters and dynamics in the baseline survey initiative of this study. The
major outcome of this baseline survey is set to asses status of the industry in terms of the dimensions of
(a) Employment Status, (b) Local Market Revenue Status, (c) Export Market Revenue Status, (d) service
and product categories, and (e) employee benefits, training, and development, etc.

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.

Major Areas of Findings Details


• Business Location of the Companies
- 62% using commercial space
- 34% using residential building
- 4% using home-based business
• Type of Ownership
- 91% local ownership
- 2% foreign ownership
IT-ITES Industry Profile - 7% local-foreign ownership
• Type of Legal Structure
- 36% sole proprietorship
- 9% partnership
- 54.5% private limited company
- 0.5% public limited company
• Is this business part of a group companies?
- 15% Yes

xiv IT-ITES Industry Statistics of Bangladesh


Call center service business is highly prioritized among the companies
of BACCO, whereas BASIS emphasizes more on software and
Product/Service categories consultancy business as their first-priority revenue generating item.
of the IT-ITES Industry Moreover, E-commerce and web design is contributing more than any
other business types in generating revenue for the companies belonging
to the association of e-CAB.
BASIS is leading in terms of addressing the demand of the sectors of
Clientele of IT-ITES Industry RMG, Telco, Pharmaceuticals, Bank and NBFI, Health and Education,
and Manufacturing followed by BACCO and e-CAB, consecutively.
Total estimated local revenue of 2018 for this I T - I T E S Industry
Local Market Revenue of Bangladesh containing 1755 registered companies is BDT.
19,273,080,265 (1927 Crores Approx.)
Total estimated export market revenue of 2018 for the IT-ITES Industry
Export Market Revenue of Bangladesh containing 1755 registered companies is $ 802,314,118
(USD 0.8 billion approximately).
Total estimated employment size of 2018 for the I T - I T E S Industry of
Bangladesh containing 1755 registered companies is 64,067. On
Employment the other hand, total part-time employment is 62524. Therefore, total
employment of the IT-ITES industry of Bangladesh for the year 2018 is
126591.

These are the major outcomes of this study, whereas the findings are stated on the following sections with
more detail observations.

IT-ITES Industry Statistics of Bangladesh xv


Key Findings

Table 1: Estimated Local Market Revenue of IT-ITES Industry in 2018

2018 Estimated Value Estimated Value for


Sample Population Sample Mean
Stratum (Sum of Sample for Stratum-wise the Whole Population
Size (nh) Size (Nh) ( yr h)
Values – yhi) Population (ŷh) (ŷ)

BDT BDT BDT


BASIS 242 1100
2,659,965,857 10,991,594.45 12,090,753,896.7
BDT BDT BDT
BACCO 37 55
4,118,642,860 111,314,671.9 6,122,306,954.1 BDT
BDT BDT BDT 19,273,080,265.40
eCAB 99 600
174,903,203 1,766,699.02 1,060,019,414.6
BDT
Total n = 378 N = 1755
19,273,080,265.4

Table 2: Estimated Export Market Revenue of IT-ITES Industry in 2018

2018 Estimated Value Estimated Value for


Sample Population Sample Mean
Stratum (Sum of Sample for Stratum-wise the Whole Population
Size (nh) Size (Nh) ( yr h)
Values – yhi) Population (ŷh) (ŷ)
BASIS $105,022,918 242 1100 $433,979.00 $477,376,900.22
BACCO $215,895,435 37 55 $5,835,011.77 $320,925,647.20
$ 802,314,118.01
eCAB $661,909 99 600 $6,685.95 $4,011,570.59
Total n = 378 N = 1755 $802,314,118.01

Table 3: Estimated Export Revenue of the IT-ITES Industry (in USD)

Year 2013 2014 2015 2016 2017 2018


Estimated
Export Revenue 319,049,165 406,255,937 492,256,471 623,311,765 700,027,059 802,314,118
Amount

Table 4: Estimated Local Market Revenue of the IT-ITES Industry (in BDT) for the Period of 2013-2018

Year 2013 2014 2015 2016 2017 2018


Estimated Local
Market Revenue 7,192,436,965 7,659,180,215 9,032,687,014 10,119,733,503 13,971,048,865 19,273,080,265
Amount

xvi IT-ITES Industry Statistics of Bangladesh


Table 5: Estimated Full Time Employment by IT-ITES Industry (2018)

2018 Estimated Value Estimated Value for


Sample Population Sample Mean
Stratum (Sum of Sample for Stratum-wise the Whole Population
Size (nh) Size (Nh) ( yr h)
Values – yhi) Population (ŷh) (ŷ)
BASIS 10481 242 1100 43.309 47640
BACCO 7063 37 55 190.891 10499
64067
eCAB 978 99 600 9.878 5927
Total 18522 378 1755 64067

Table 6: Estimated Full Time Employment by 1755 IT-ITES Industry for the Period of 2013-2018

Year 2013 2014 2015 2016 2017 2018


Estimated
Employee Size 23392 28615 35003 42817 52375 64067
of the Industry

Table 7: Total Employment Status of the IT-ITES Industry in 2018 (Estimated for the Population
of 1755 Companies)

Part-time Full-time Part-time Full-time


Employment Employment Employment Employment Total
Stratum (% of Total (% of Total (Amount (Amount Employment of
Employment Employment Estimated for the Estimated for the the Industry
Size) Size) Industry) Industry)
BASIS 34% 66% 24308 47641 71949
BACCO 78% 22% 36203 10499 46702
eCAB 25% 75% 2013 5927 7940
Overall IT-ITES
62524 64067 126591
Industry (Total)

Table 8: Total Employment of IT-ITES Industry (2013-18)

Year 2013 2014 2015 2016 2017 2018


Full-time Employment of the IT/
23392 28615 35003 42817 52375 64067
ITES Industry
Part-time Employment of the IT/
22829 27925 34159 41785 51113 62524
ITES Industry
Total Employment of the IT-ITES
46221 56540 69162 84602 103488 126591
Industry

IT-ITES Industry Statistics of Bangladesh xvii


Abbreviations

3D Three Dimensional

4IR 4th Industrial Revolution

BACCO Bangladesh Association of Call Centre and Outsourcing

BASIS Bangladesh Association of Software and Information Services

CV Coefficient of Variation

e-CAB E-Commerce Association of Bangladesh

HR Human Resources

IOT Internet of Things

IPR Intellectual Property Rights

IT Information Technology

ITES Information Technology Enabled Service

LICT Leveraging ICT of Growth, Employment, and Governance

MoU Memorandum of Understanding

NBFI Non- Banking Financial Institution

PMIS Center for Project Management & Information Systems

R&D Research and Development

RMG Ready-Made Garments

SPSS Statistical Package for the Social Sciences

T&D Training and Development

xviii IT-ITES Industry Statistics of Bangladesh


Chapter 1: Introduction

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).

Table 1.1: Economic Indicators of Bangladesh

Year 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018


GDP Growth (%) 6.06 6.55 7.1 7.28 7.86
Per Capita Income (at Current
1184 1316 1465 1610 1751
Price) in USD
Per Capita GDP (at Current Price)
1110 1236 1385 1544 1675
in USD

(Source: Bangladesh Bureau Statistics-BBS, May 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

IT-ITES Industry Statistics of Bangladesh 1


needed deep transformation of the world economy, the application of ICT is a prominent field to be
optimistic about and it will contribute to the achievement of country’s SDGs.

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 –

a. developing human resources ready for the digital age

b. connecting citizens in the ways most meaningful to them

c. taking services to citizens’ doorsteps

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.

Table 1.2: ICT Development Indicators of Bangladesh

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

(Source: International Telecommunication Union-ITU, 2018; United Nations, 2018)

Likewise, International Telecommunication Union (ITU) reveals the following facts about Bangladesh.

• Fixed-telephone subscriptions per 100 inhabitants - 0.48.


• Mobile-cellular telephone subscriptions per 100 inhabitants -77.88.
• International internet bandwidth per Internet user (Bit/s) - 9154.09.
• Percentage of households with computer - 9.59%.
• Percentage of households with Internet access - 14.50.
• Percentage of individuals using the Internet - 18.25.
• Fixed (wired)-broadband subscriptions per 100 inhabitants - 3.77.
• Active mobile-broadband subscriptions per 100 inhabitants - 17.79.

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

2 IT-ITES Industry Statistics of Bangladesh


augmented with attractive support provided by the government to the exporting units have made this
sector more flourished. Again, this is noteworthy that the government and development organizations have
invested to enhance the availability and quality of ICT infrastructure.

1.2 Purpose of this study


This is the first-ever study on IT-ITES industry aimed at generating key indisutry statistics to help
policymakers and industry’s market actors in making appropriate public policies and strategies. Sponored
by the Government of Bangladesh, the study has been implemented by academia in collaboration with
leading industry associations and Bangladesh Bureau of Statistics.

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:

• Local Market Revenue


• Export Revenue
• Employment Opportunity
• Employment Requirements
• Training & Developments Programs
• Prevalence of 4IR (Fourth Industrial Revolution) concepts
• Service & Product Categories
• Contribution of different service and product types to the revenue.

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.

IT-ITES Industry Statistics of Bangladesh 3


1.3 Scope of this Study
For the purpose of this study, the IT-ITES industry is defined to cover three major types of fims: (i) software
and information services, (ii) business process outsourcing and call centers, and (iii) e-commerce. And
therefore all the firms having membership with either of the three major industry associations are considered
to constitute the industry population. Thus, the target population of the study are the member-companies
of Bangladesh Association of Software and Information Services (BASIS), Bangladesh Association of Call
Center and Outsourcing (BACCO) and e-Commerce Association of Bangladesh (e-CAB). It may however
be noted that there are a few companies along these sub-industry verticals who are not members of any
of these asociations For obvious reason, they are kept outside the purview of the study.

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.

1.4 Concepts and Definitions


1.4.1 IT-ITES industry
IT-ITES industry covers the entire gamut of operations which exploit Information Technology to improve
the efficiency of an organization and it’s also called web enabled services or remote services. A wide
range of career options can be provided by these services including opportunities in call centers, medical
transcription, medical billing and coding, back-office operations, revenue claims processing, legal
databases, content development, payrolls, logistics management, GIS (Geographical Information System),
HR services, web services etc. The focus of this IT-ITES industry is on IT products and services having
relatively lower emphasis on ITES/BPO services. Information Technology and Information Technology
enabled services (IT-ITES) as a sector is a large part of this national mission on training and skill development
through which the national aspiration to shift the ‘share of contribution to GDP growth’ to IT-ITES sectors
will be met.

1.4.2 Industry 4.0 Skills


1.5.2.1 Sensor and Machine Intelligence Algorithms

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.

4 IT-ITES Industry Statistics of Bangladesh


1.4.2.2 Big Data

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.

1.4.2.3 Simulation, Visualization and Digital Twin

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).

1.4.2.5 Cyber Security

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.

IT-ITES Industry Statistics of Bangladesh 5


1.4.2.6 Cloud Computing

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.

1.4.2.7 Additive Manufacturing or 3D printing

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.

1.4.2.8 Human-Machine Cooperation

In human-machine cooperation, human activities are mainly oriented toward decision-making,


encompassing monitoring and fault detection, fault anticipation, diagnosis and prognosis, and fault
prevention and recovery. Human-machine collaboration is a model in which humans co-work with artificial
intelligence (AI) systems and other machines rather than using them as tools. As in most successful
collaborations, each brings to the table abilities that the other lacks. The purpose of machine-human
partnerships is to use the particular strengths of both types of intelligence, and even physical capabilities,
to fill in the other’s weaknesses. Machine-human collaboration is heralded by many as the third age of
computing.

1.4.2.9 Virtual and Augmented Reality

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.

6 IT-ITES Industry Statistics of Bangladesh


1.4.2.10 Autonomous Robot

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.

1.4.2.11 Image and Speech Processing

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.

1.4.2.12 Neural Network and Machine Learning

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.

IT-ITES Industry Statistics of Bangladesh 7


1.4.2.14 Artificial intelligence (AI)

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.

1.4.2.15 Virtual reality (VR)

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.

8 IT-ITES Industry Statistics of Bangladesh


Chapter 2: Design of the Study
2.1 Methodological Approach of the Study
Methodological approach adopted to conduct study is articulated on the following figure (See Figure 2.1).
This approach consists of seven rigorous phases of research inititatives.

Figure 2.1: Methodological Framework

IT-ITES Industry Statistics of Bangladesh 9


2.2 Determination of Sample Size
Sample size determination process adopted in this study is described on the following section.

Phase #1: Stratification at the First Level

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.

Phase #2: Population Size and Sampling Frame Identification

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

Phase #3: Pilot Data Collection

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

Phase #4: Sample Determination for BASIS

Sample size determination framework for BASIS strata is as the following.

10 IT-ITES Industry Statistics of Bangladesh


Table 2. 1: Sample Size Determination Framework

IT-ITES Industry Statistics of Bangladesh 11


Phase #5: Sample size determination for BACCO

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.

Phase #6: Sample size determination for e-CAB

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.

Phase #7: Grand Total Sample Size

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:

• To test the appropriateness of the items incorporated in the survey questionnaire.


• To identify the questions which the respondents find difficult to answer or avoid answering.
• To identify the required modifications in the options given in the structured part questionnaire.
• To estimate the necessary time for filling in the questionnaire, etc.

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.

2.4 Collection and Preparation of the Data


The enumerators and supervisors of the survey were well-trained by PMIS through a two-day long
workshop. It helped the survey personnel to understand the objectives, scopes, confidentiality in a better
way. The survey team learnt and practised the way of collecting reliable data, coding-decoding of the

12 IT-ITES Industry Statistics of Bangladesh


answers and how to approach the companies to make sure their participation in the survey. Any confusion
regarding the survey instrument was dissolved during the workshop period.

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.

2.5 Questionnaire Items, Measurement Scale and Statistical


Tools of Analysis
Table 2.3 depicts the questionnaire items of the study, corresponding measurement scale and the
statistical tools used for presenting the data on this report.

Table 2.2: Questionnaire Items, Measurement Scale and Statistical Tool

Sl. No. Questionnaire Items Measurement Scale Statistical Tools


01 Membership Categorical Frequency Distribution
02 Business Location Categorical Frequency Distribution
03 Year of Establishment - Frequency Distribution
04 Type of Ownership Categorical Frequency Distribution
05 Legal Structure Categorical Frequency Distribution
06 Part of a Group of Companies Binomial Frequency Distribution
07 Technology Transfer Agreement Binomial Frequency Distribution
08 Nature of Business Categorical Frequency Distribution
09 Contribution of the products to the revenue Ratio Frequency Distribution
Sectors being served by the corresponding
10 Ratio Frequency Distribution
company
Export market revenue
11 Ratio Frequency Distribution
(2013-2021)
Local market revenue
12 Ratio Frequency Distribution
(2013-2021)
13 Major export destination countries Ratio Frequency Distribution
Total Number of Full-time Management
14 Ratio Frequency Distribution
Professionals (2013-2021)
Total Number of Full-time Core-technical
15 Ratio Frequency Distribution
Professionals (2013-2021)

IT-ITES Industry Statistics of Bangladesh 13


Sl. No. Questionnaire Items Measurement Scale Statistical Tools
Total Number of Full-time Non-Core-technical
16 Ratio Frequency Distribution
and Other Professionals (2013-2021)
Required qualifications of the employees at
17 three different levels of job on the corresponding Categorical Frequency Distribution
company
Average monthly salary structure of the
18 employees at three different levels of job on the Ratio Frequency Distribution
corresponding company
Average length of service of the employees at
19 three different levels of job on the corresponding Ratio Frequency Distribution
company
Number of employees having international
20 Ratio Frequency Distribution
professional certifications (2018 and 2021)
Average employee attrition rate of the
21 Ratio Frequency Distribution
corresponding company (2013-2021)
Investment on training and development activities
22 Ratio Frequency Distribution
by the corresponding company (2013-2021)
Demand for Required Number of Employees
23 having the 4th Industrial Revolution Skills by the Ratio Frequency Distribution
corresponding company
Number of Managerial and Technical Track
24 International Professionals Working on the Ratio Frequency Distribution
Company

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”.

Methodology Related Notes and Limitations:


From methodological perspective, the following notes and limitations need to be considered:

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.

14 IT-ITES Industry Statistics of Bangladesh


Chapter 3: IT-ITES Industry Profile of Basic
Information

3.1 Business Location Profile


Table 3.1 shows that commercial space was the most preferred business location (62%) while home-
based business was the least preferred (4%), and residential building was moderately preferred (34%).
59% of the companies who are solely BASIS members are operating in commercial space, and only 1%
of them operates in Home-Based location.

Table 3.1: Business Location Profile of 378 Respondent-firms

Commercial Space Residential Building Home-based


BASIS 59% 39% 1%
BACCO 62% 35% 3%
eCAB 68% 21% 11%
Overall IT-ITES Industry 62% 34% 4%

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).

Figure 3.1: Business Location Profile of the IT-ITES Industry

4%

Commercial Space
34% 62% Residential Building
Home-based

IT-ITES Industry Statistics of Bangladesh 15


3.2 Types of Ownership Profile
According to the Table 3.2, most of the companies have local ownership (91%), whereas 7% of the
companies are local-foreign joint venture and the portion of direct foreign ownership is only 2%.

Table 3.2: Types of Ownership Profile of 378 Respondent-firms

100% Local 100% Foreign Local-Foreign Joint


Ownership Ownership Venture
BASIS 89% 2% 9%
BACCO 76% 3% 22%
eCAB 100% 0% 0%
Overall IT-ITES Industry 91% 2% 7%

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).

Figure 3.2: Types of Business Ownership based on Table 3.2

2%
7%

100% Local Ownership


100% Foreign Ownership
91% Loca-Foreign Joint Venture

3.3 Legal Structure Type Profile


According to the Table 3.3, majority of the companies are either private limited company (54.5%) or sole
proprietorship (36%). Only 0.5% of the companies are public limited companies, and 9% of the companies
are partnership. 71% of the companies of BASIS stratum are private limited companies, while 9% of them
are partnership, 1% are public limited companies and 18% are sole-proprietorship. 68% of the companies
those are BACCO members are private limited companies, while 24% of them are sole-proprietorship.
Members of e-CAB are mostly sole proprietorship (77%).

16 IT-ITES Industry Statistics of Bangladesh


Table 3.3: Legal Structure Type Profile of 378 Respondent-firms

Sole Private Limited Public Limited


Partnership
Proprietorship Company Company
BASIS 18% 9% 71% 1%
BACCO 24% 8% 68% 0%
eCAB 77% 10% 13% 0%
Overall IT-ITES Industry 36% 9% 54.5% 0.5%

Figure 3.3: Types of Legal Structure based on Table 3.3

0.5%

Sole Proprietorship
36%
Partnership
54.5%
Private Limited Company
9% Public Limited Company

3.4 Portfolio Profile


Table 3.4 shows that most of the businesses are not part of any group of companies (85%). Only 15% of
the companies are part of any group of companies. The highest numbers of companies who are not part
of any group of companies are e-CAB members (96%). On the other hand, BACCO members have the
highest number of companies those are the part of a group of companies (27%).

Table 3.4: Portfolio Profile of 378 Respondent-firms

Is this business part of group of companies?


Yes
BASIS 18%
BACCO 27%
eCAB 4%
Overall IT-ITES Industry 15%

IT-ITES Industry Statistics of Bangladesh 17


3.5 Technology Sharing Profile
Technology transfer agreement is used when a company (licensor) assigns or licenses to another (licensee)
registered industrial and intellectual property rights (patents, utility models, trademarks, copyright etc.) as
well as technical assistance and know. Table 3.5 demonstrates that 27% of the companies of the total
companies have technology transfer agreement with other companies. Among them 3% of the companies
are e-CAB members. 38% companies are BASIS members and 31% companies are solely BACCO
members who have this agreement.

Table 3.5: Technology Sharing Profile of 378 Respondent-firms

Do you have technology transfer agreement with any foreign company?


Yes
BASIS 38%
BACCO 30%
eCAB 3%
Overall IT-ITES Industry 27%

18 IT-ITES Industry Statistics of Bangladesh


Chapter 4: Product and Service Categories of
the IT-ITES Industry

4.1 Percentage of companies considering the following


categories of business nature as their first-priority revenue
generating product or service
50% of the companies those are BASIS members consider software as their first-priority revenue generating
product, whereas the least number of firms (only 2%) from that stratum are considering call center and
digital marketing as their first-priority revenue generating product. Table 4.1 contains more details about
the distribution.

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.

4.2 Percentage of companies considering the following


categories of business nature as their second-priority
revenue generating product or service
From Table 4.2 it is obvious that 30% of the companies, members of BASIS consider software as second
priority revenue generating product and service. 19% of the companies, members of BACCO consider
consultancy as second priority revenue generating product and service. 18% of the companies, members
of e-CAB consider web & graphics design as second priority revenue generating product and service.

IT-ITES Industry Statistics of Bangladesh 19


Table 4.2: % of companies considering the following categories of business nature as their
second-priority revenue generating product or service for 378 Respondent-firms

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%

4.3 Percentage of companies considering the following


categories of business nature as their third-priority revenue
generating product or service
38% of companies, members of e-CAB consider E-commerce as their third-priority revenue generating
product or service. 13% of companies, members of BASIS choose consultancy, whereas 14% firms of
BACCO consider that consultancy business as their third-priority revenue generating item.

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%

20 IT-ITES Industry Statistics of Bangladesh


Chapter 5: Clientele of IT-ITES Industry

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)
Number and percentage of companies from each stratum (i.e., BASIS, BACCO and eCAB) from each
stratum of the IT-ITES industry serving to which industry are depicted on this chapter. Here, the companies
are meeting the demands of the clients, whereas the demand may be defined as the requirements of
software products, information system services, call center services, e-commerce and web design, etc.
Thus, the following data represent how many companies are addressing to the respective industrial or
service sectors in Bangladesh.

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)

No. of Companies from Each Stratum-Industry Vertical Alignment


Pharmaceutical

Bank and NBFI

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%

IT-ITES Industry Statistics of Bangladesh 21


Figure 5.1: Graph on Table 5.1 (For 378 Respondent-firms)

% of Companies from Each Stratum Stratum-Industry Vertical Alignment

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

BASIS BACCO e-CAB

22 IT-ITES Industry Statistics of Bangladesh


Chapter 6: Financial Status of IT-ITES Industry
of Bangladesh

6.1 Local Market Revenue Status


6.1.1 Local Market Revenue Index of I T - I T E S Industry (2014-2-18) with
Projection for 2021
Actual local market revenue figure is a very sensitive and confidential data to share for the companies.
Hence the methodology was to record the local market revenue trend in index form. The base year was
2013, where the local market revenue index was 100. The increase or decrease of the local market
revenue in later years is reflected on the index of the later years.

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)

IT-ITES Industry Statistics of Bangladesh 23


Figure 6.1: Average Local Revenue Index of IT-ITES Industry (2014-2021) for 378 Respondent-
firms)

Overall IT-ITES Industry

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)

Combined Chart for BASIS, BACCO and eCAB

2021 (Expected)
2018
2017
Years

2016
2015
2014

0 200 400 600 800 1000 1200 1400


Average Local Market Revenue Index
eCAB BACCO BASIS

24 IT-ITES Industry Statistics of Bangladesh


Figure 6.2 shows a number of graphs, comparing the growth index of local market revenue of IT-ITES
industry in terms of the strata, year-wise. In 2014, companies registered at both BASIS and BACCO
had higher local market revenue index. From 2015 to 2018, companies who are BASIS members only
are experiencing the highest local market revenue among all stratums. In 2017 and 2018, companies
who registered at BASIS only 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 only, and by companies who are registered at both BASIS and BACCO.

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

IT-ITES Industry Statistics of Bangladesh 25


Table 6.2: Local Market Revenue of 2018 Estimated Amount for the Population of 1755 Companies

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.

In 2018, estimated population revenue of BASIS is BDT 12,090,753,896.7, of BACCO is BDT


6,122,306,954.1, and of e-CAB is 1,060,019,414.6.

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

26 IT-ITES Industry Statistics of Bangladesh


Figure 6.3: % of Contribution of Each Stratum to the Estimated Total Local Market Revenue of
IT-ITES Industry of 1755 Companies for the Year of 2018

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)

Year 2013 2014 2015 2016 2017 2018


Estimated
Local Market
7,192,436,965 7,659,180,215 9,032,687,014 10,119,733,503 13,971,048,865 19,273,080,265
Revenue
Amount

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)

IT-ITES Local Market Revenue


25
Amount in BDT 100,000,0000 (100 Crores)

20 19

15 14
10
10 9
7 8

0
2013 2014 2015 2016 2017 2018
Year

IT-ITES Industry Statistics of Bangladesh 27


Box 6.1 explains the backward interpolation procedure used to calculate the total local market revenue
from 2013 to 2017 for the IT-ITES industry based on the estimated value of 2018.

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

6.2 Export Revenue Status


6.2.1 Export Revenue Index of IT-ITES Industry of Bangladesh (2014-2018)
with the Projection for 2021 (Based on 378 Samples)
Actual export figure is a very sensitive and confidential data to share for the companies. Hence the
methodology was to record the export market revenue trend in index form. The base year was 2013,
where the export market revenue index was 100. The increase or decrease of the export market revenue
in later years is reflected on the index of the later years.

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)

Stratum 2014 2015 2016 2017 2018 2021


BASIS 164 279 416 534 756 987
BACCO 110 142 176 180 206 234
e-CAB 130 150 170 150 112 269
Overall IT-ITES Industry 127 154 195 219 251 429

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

28 IT-ITES Industry Statistics of Bangladesh


export 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. Companies who are e-CAB members
faced a decline in export revenue from 2016 till 2018, where their index were 170, 150, and 112 in three
years. (Table 6.4)

Figure 6.5: Average Export Revenue Index of the Industry (For 378 Respondent-firms)

Average of Export Revenue Index of IT-ITES Industry 2014-21

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)

Number of Exporting Comapnies of IT-ITES Industry (2014-21)

140
120
No. of Companies

100
80
60
40
20
0
2014 2015 2016 2017 2018 2021
Year

IT-ITES Industry Statistics of Bangladesh 29


In Figure 6.6, the number of exporting companies of IT-ITES companies in Bangladesh is portrayed. In
2014, there were around 55 companies who exported products or services. It was 60 in 2015, around 70
in 2016, around 75 in 2017, and around 85 in 2018. This shows a gradual increase in number of exporting
companies over the years. It is expected that the number will increase to around 120 by the year 2021.

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

BASIS BACCO eCAB

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.

30 IT-ITES Industry Statistics of Bangladesh


Box 6.3: Method Used for Estimating the Export Revenue Amount for the Population of 1755 IT/
ITES Companies

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

BACCO $215,895,435 37 55 $5,835,011.77 0.031339 $320,925,647.20


eCAB $661,909 99 600 $6,685.95 0.34188 $4,011,570.59

$
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

IT-ITES Industry Statistics of Bangladesh 31


Estimated export market revenue for the total companies of each stratum in the I T - I T E S industry
(population) is calculated by using the mean export revenues of the sample. To calculate the Expected
export 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 export revenue of the sample that is found by simulation.

In 2018, estimated population revenue of BASIS is $477,376,900.22, of BACCO is $320,925,647.20,


and of e-CAB is $ 4,011,570.59. The overall expected local market revenue of the industry is calculated
by multiplying the total expected population export revenue value with the total number of companies, i.e.
1755. The total export market revenue of the IT-ITES industry of Bangladesh is $ 802,314,118.01.

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)

Year 2013 2014 2015 2016 2017 2018


Estimated Export
319,049,165 406,255,937 492,256,471 623,311,765 700,027,059 802,314,118
Revenue Amount

32 IT-ITES Industry Statistics of Bangladesh


Figure 6.9: Estimated Export Revenue Amount in USD of the I T - I T E S Industry Calculated by
Using Backward Interpolation Method (For the Population of 1755 Companies)

Estimated IT-ITES Export Revenue (in USD)


$900.00
$802.31
$800.00
Amount in $ 1,000,000 (1 Million)

$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)

IT-ITES Industry Statistics of Bangladesh 33


6.2.3 Major Export Destinations and % of Export Covered by Each Stratum
From Table 6.7, it is obvious that 27% companies of the IT-ITES industry are exporting to USA, followed
by UK (16%), Germany (13%) and Canada (11%). Among which, companies from BACCO stratum are
contributing more in exporting to USA (32%), followed by eCAB (30%) and BASIS (24%).

Table 6.7: Number and % of Companies from Each Stratum and Their Major Export Destinations
(For 378 Respondent-firms)

No. of Companies from Each Stratum Exporting to Corresponding Countries


Stratum USA Canada UK Germany Netherlands Japan Other Countries
BASIS 59 30 48 27 27 23 24
BACCO 12 6 7 3 2 1 4
eCAB 30 5 5 20 1 2
Overall IT-ITES
101 41 60 50 29 25 30
Industry
% of Companies from Each Stratum Exporting to Corresponding Countries
BASIS 24% 12% 20% 11% 11% 10% 10%
BACCO 32% 16% 19% 8% 5% 3% 11%
eCAB 30% 5% 5% 20% 0% 1% 2%
Overall IT-ITES
27% 11% 16% 13% 8% 7% 8%
Industry

Figure 6.10: Graph on Table 6.7 (For 378 Respondent-firms)

Major Export Destinations of IT-ITES Industry

Other Countries

Japan

Netherlands
Countries

Germany

UK

Canada

USA

0% 5% 10% 15% 20% 25% 30%


% of 378 IT-ITES Companies

Figure 6.10 shows the export destinations and the percentage of companies of the overall IT-ITES industry
is exporting to which countries.

34 IT-ITES Industry Statistics of Bangladesh


Chapter 7: Employment Status of the IT-ITES
Industry

7.1 Stratum-wise No. of Management Track Full Time


Professionals (Male and Female)
Number of Male management track full time professionals in 2013 was 709, 1079 in 2014, 1376 in 2015,
1770 in 2016, and 2633 in 2017, showing a gradual increase over the year, and the number of male
management track full time professionals in 2018 was 4343. Out of 4343 male management track full time
professionals in 2018, BASIS companies only had 2536 male management professionals. It is expected
to have 7013 male management track full time professionals in 2021, out of which, 5924 of them will be
placed in companies who are member of BASIS only.

Table 7.1: Stratum-wise No. of Management Track Full-time Professionals (Male and Female)
(Based on 378 Respondents-firms)

Management Track Professional of IT-ITES Management 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
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)

IT-ITES Industry Statistics of Bangladesh 35


In Figure 7.1, it is revealed that in 2013, the difference between male and female management professionals
were comparatively lower, but with passing of years, difference in number between male and female
management professionals is increasing. We also observe that the increase in number of male management
professional tremendous. However, increase in number of female management professionals is not as
astronomical as the number of male management professionals.

Figure 7.1: Management Track Professionals (Based on 378 Respondents-firms)

Number of Management Track Professionals (Full-time)

2021 (Expected)
2018
2017
2016
2015
2014
2013

0 1000 2000 3000 4000 5000 6000 7000 8000

Female (N) Male (N)

7.2 Stratum-wise No. of Core Technical Full Time


Professionals (Male and Female)
From Table 7.2, it is noticed that number of male core tech full time professionals were 2031 in 2013, 2636
in 2014, 3102 in 2015, 3458 in 2016, 3420 in 2017, and 5062 in 2018. Majority of the male core tech
professionals were employed in companies who are BASIS members only (1461 in 2013, 1848 in 2014,
2201 in 2015, 2444 in 2016, 1935 in 2017, and 2760 in 2018). There was a sharp increase in number
of male core tech professionals in most of the stratum, especially in case of companies who are BASIS
members only, and in companies who are members of both BASIS and BACCO. However, companies
who are e-CAB members only faced a different scenario, where number of male core tech professionals
increased from 14 (in 2013) till 197 (in 2017), and 173 (in 2018). Total number of expected male core tech
professionals in 2021 is 8216, out of which 6000 is expected in companies who are members of BASIS
only. However, number of male core tech professionals in companies who are members of e-CAB only is
expected to 410 in 2021.

36 IT-ITES Industry Statistics of Bangladesh


Table 7.2: Stratum-wise No. of Core Technical Full Time Professionals (Male and Female) (Based
on 378 Respondents-firms)

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.

Figure 7.2: Core Technical Track Professionals (Based on 378 Respondents-firms)

Number of Core-technical Track Professionals (Full-time)

2021 (Expected)
2018
2017
2016
2015
2014
2013

0 1000 2000 3000 4000 5000 6000 7000 8000 9000

Female (N) Male (N)

IT-ITES Industry Statistics of Bangladesh 37


In Figure 7.2, it is perceived that both numbers of male and female core tech professionals are increasing
from 2014 to 2018. It is also observed that the numbers of male core tech professionals are significantly
higher than the numbers of female core tech professionals.

7.3 Stratum-wise No. of Non-core Technical/ Other Full


Time Professionals (Male and Female)
Number of male non-core technical/other full-time professionals was 844 in 2013, 1331 in 2015, 1856
in 2015, 2524 in 2016, 2556 in 2017, and 3533 in 2018. Majority of the male non-core technical/other
professionals are employed in companies who are members of BASIS only (621 in 2013, 1096 in 2014,
1279 in 2015, 1380 in 2016, 1416 in 2017, and 2230 in 2018). We also observe that the number of male
non-core technical/other professionals BACCO has increased to 1172 (in 2017) from 1017 (in 2016).

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.

38 IT-ITES Industry Statistics of Bangladesh


Figure 7.3: Non-core Technical and other Professionals (Based on 378 Respondents-firms)

Number of Non Core-technical Track Professionals (Full-time)

2021 (Expected)
2018
2017
2016
2015
2014
2013

0 1000 2000 3000 4000 5000 6000

Female (N) Male (N)

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.

7.4 Total No. of Management Track Professionals


In Table 7.4, it is observed the distinction between male and female in case of number of management track
professionals. It is observed that from 2013 to 2018, there is a huge difference between male and female
in case of management track professionals. Also, the difference between male and female is continually
increasing, and the number of male is more dominant compared to number of female in management
track professional in IT-ITES industry. In 2013, the difference between male and female management track
professionals was 16%. In 2018, the difference between male and female management track professionals
rose to 60%. In 2021, the difference between male and female management track professionals is expected
to rise to 68%. Even though the total number of management tracks professionals, the percentage of
female is decreasing over the year.

Table 7.4: Total No. of Management Track Professionals (Based on 378 Respondents-firms)

Number of Management Track Professionals


Year Male (N) Female (N) Male (%) Female (%) Total
2013 709 619 53% 47% 1328
2014 1079 387 74% 26% 1466
2015 1376 502 73% 27% 1878
2016 1770 608 74% 26% 2378
2017 2633 726 78% 22% 3359
2018 4343 1490 74% 26% 5833
2021 (Projected) 7013 1373 84% 16% 8386

IT-ITES Industry Statistics of Bangladesh 39


7.5 Total No. of Core Technical Track Professionals
In Table 7.5, it is perceived that the distinction between male and female in case of number of core
technical track professionals. It is observed that the number of male core tech professionals was higher in
every year, from 2014 to 2018, compared to the number of female core tech professionals. However, it is
noticed that the difference between the number of the number of male and female core tech professionals
is decreasing gradually, which took a sharp leap in 2018. In 2014, the difference between the number of
male and female core tech professionals was 76%. In 2018, the difference between the number of male
and female core tech professionals fell to 44%. In 2021, the difference between the number of male and
female core tech professionals are expected to be 40%. The overall number of core tech professionals are
increasing, as well as female participation is as well increasing in core tech track.

Table 7.5: Total No. of Core Technical Track Professionals (Based on 378 Respondents-firms)

Number of Core Technical Track Professionals


Year Male (N) Female (N) Male (%) Female (%) Total
2013 2031 504 80% 20% 2535
2014 2636 463 85% 15% 3099
2015 3102 633 83% 17% 3735
2016 3458 818 81% 19% 4276
2017 3420 1009 77% 23% 4429
2018 5062 1962 72% 28% 7024
2021 (Projected) 8516 3542 71% 29% 12058

7.6 Total No. of Non-core Technical/ Other Track


Professionals
In Table 7.6, it is observed the differences between number of male and female in case of non-core &
others track professionals. It is observed that the number of male non-core and other professionals were
less compared to the number of female non-core and other professionals (48% and 52% respectively) in
2013. In 2014, suddenly there is an astronomical increase in number of male and a fall in number of female
non-core and other professionals. The difference was 62%. Since then, the number of male non-core and
other professionals is higher than the number of female non-core and other professionals; however, the
difference in rate is getting thinner year by year. The differences between the number of male non-core and
other professionals and the number of female non-core and other professionals in 2015, 2016, 2017, and
2018 were 56%, 52%, 44%, and 32% respectively. It is expected that in 2021, the number of male non-
core and other professionals will be supposed by the number of female non-core and other professionals;
the difference between them is expected to be 6% in favor of the number of female non-core and other
professionals.

40 IT-ITES Industry Statistics of Bangladesh


Table 7.6: Total No. of Non-core Technical/ Other Track Professionals (Based on 378
Respondents-firms)

Number of Non-core & Others Track Professionals


Year Male (N) Female (N) Male (%) Female (%) Total
2013 844 928 48% 52% 1772
2014 1331 314 81% 19% 1645
2015 1856 509 78% 22% 2365
2016 2524 781 76% 24% 3305
2017 2556 999 72% 28% 3555
2018 3533 2132 62% 38% 5665
2021 5261 3703 59% 41% 8964
(Projected)

7.7 Total Employee Base of IT-ITES Industry


(Based on 378 Respondent Organizations)

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)

Total of Management Total of Core Total of Non-core


Year Grand Total
Track Technical Track & Others Track
2013 1328 2535 1772 5635
2014 1466 3099 1645 6210
2015 1878 3735 2365 7978
2016 2378 4276 3305 9959
2017 3359 4429 3555 11343
2018 5833 7024 5665 18522
2021 (Projected) 8386 12058 8964 29408

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.

IT-ITES Industry Statistics of Bangladesh 41


Figure 7.4: No. of Total Full Time Employee of IT-ITES Industry of Bangladesh (Based on 378
Respondents firms)

Counting Data of Employment Status of IT-ITES Industry (2013-21)


14000
12000
10000
8000
6000
4000
2000
0
2013 2014 2015 2016 2017 2018 2021
(Expected)
Total of Management Track Total of Core Technical Track Total of Non-core & Others Track

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)

Trend of Employment in IT-ITES Industry of Bangladesh (2013-21)

35000
29408
30000
25000
18522
20000
15000 11343
9959
10000 7978
6210
5635
5000
0
2013 2014 2015 2016 2017 2018 2021
(Expected)

42 IT-ITES Industry Statistics of Bangladesh


7.8 Estimated Population Amount of Total Employee Size of
IT-ITES Industry (2018)
7.8.1 Full-time Employment
Table 7.8 presents estimated population employee size (full-time) of IT-ITES industry in 2018 based on the
samples. The estimated employee size of IT-ITES industry in the year 2018 is 64067. Box 7.1 represents
the method of estimating the employee size of this specific industry.

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

Total 18522 378 1755 64067

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

IT-ITES Industry Statistics of Bangladesh 43


Figure 7.6: Estimated Employee Size (Full-time) of the I T - I T E S Industry 2013-2018 (For the
Population of 1755 Companies)

Estimated IT-ITES Employment Size (For the Population of 1755 Companies)

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

Factors 2013 2014 2015 2016 2017 2018


319,049,165.45

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

PLRyear = 2013, 2014, 2016, 2017, 2018


BDT

BDT

BDT

BDT

BDT

BDT

(Estimated Population Local Market


Revenue for Each Year)

SEmpyear = 2013, 2014, 2016, 2017, 2018


11343

18532

(Employment Size of the IT-ITES


5635

6210

7978

9959

Industry based on 378 Sample


Units for Each Year)
EPEmpyear = 2013, 2014, 2016, 2017, 2018
35003d

52375b
28615e

42817c

64067a
23392f

(Estimated Employment Size of


the Population of 1755 IT-ITES
Companies)

44 IT-ITES Industry Statistics of Bangladesh


7.8.2 Part-time Employment
Table 7.10 contains the percentage values representing the average temporary (e.g., project-based,
freelancer, etc.) employment size of each stratum (i.e., BASIS, BACCO and eCAB) with respect to the
firms’ full-time employment size, whereas the data detailed on that table are based on 378 respondent
firms.

Table 7.10: Project Based Employment Stratum-wise (Average % of the Total Employment
based on the data of 378 Respondent-firm)

Management Core-technical Non-Core


Stratum Row Mean (%)
Track Track Technical Track
BASIS 36% 31% 35% 34%
BACCO 74% 79% 79% 78%
eCAB 6% 20% 50% 25%

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.

IT-ITES Industry Statistics of Bangladesh 45


Figure 7.7: Estimated Part-time Employment of the IT-ITES Industry

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

7.8.3 Total Employment


Table 7.11represents the overall status of employment of the IT-ITES industry of Bangladesh for the year
of 2018. This is to notify that the current employment base of IT-ITES industry of Bangladesh containing
both full-time and part-time employees is approximately 1.2 lakh. Furthermore, Table 7.12 is indicating the
total employment size of the IT-ITES industry of Bangladesh over the years of 2013-2018.

Table 7.11: Total Employment Status of the IT-ITES Industry in 2018 (Estimated for the Population
of 1755 Companies)

Part-time Full-time Part-time Full-time


Total
Employment Employment Employment Employment
Employment
Stratum (% of Total (% of Total (Amount (Amount
of the
Employment Employment Estimated for Estimated for
Industry
Size) Size) the Industry) the Industry)
BASIS 34% 66% 24308 47641 71949
BACCO 78% 22% 36203 10499 46702
eCAB 25% 75% 2013 5927 7940
Overall IT-ITES
62524 64067 126591
Industry (Total)

46 IT-ITES Industry Statistics of Bangladesh


Table 7.12: Total Employment of IT-ITES Industry (2013-18)

Year 2013 2014 2015 2016 2017 2018


Full-time Employment of the IT/
23392 28615 35003 42817 52375 64067
ITES Industry
Part-time Employment of the IT/
22829 27925 34159 41785 51113 62524
ITES Industry
Total Employment of the IT/
46221 56540 69162 84602 103488 126591
ITES Industry

Figure 7. 8: Total Employment Trend of the Industry

140000
126591

120000
103488
100000
84602
80000 69162
56540
60000
46221

40000

20000

0
2013 2014 2015 2016 2017 2018

7.9 Number of International or Foreign Professionals in the


Management Track of IT-ITES Industry (2014-2021)
In Table 7.13, it is observed the number of foreign professionals in the management track of IT-ITES
industry. The total number of foreign professionals in the management track has decreased during 2017-
18, from 259 to 205. Nevertheless, for companies enlisted as BASIS (101 in 2018, 80 in 2017), whereas
every other stratum has experienced a fall in the number of foreign professionals in the management track.
Listed companies of BACCO have to face the major decrease. In 2021, it is expected to have 316 as the
number of international of foreign professionals in the management track in total.

IT-ITES Industry Statistics of Bangladesh 47


Table 7.13: No of International or Foreign Professionals in the Management Track of IT-ITES
Industry (2014-2021) (For 378 Respondent-firms)

No. of International Professional: Number of employees (Management Track)


Stratum 2014 2015 2016 2017 2018 2021 (Projected)
BASIS 46 60 66 80 101 174
BACCO 27 68 91 150 89 97
e-CAB - 3 34 29 15 45
Total 73 131 191 259 205 316

7.10 Number of International or Foreign Professionals in


the Technical Track of IT-ITES Industry (2014-2021)
In Table 7.14, there is a decrease in total number of international or foreign professionals in the technical
track of I T - I T E S industry in 2017-18. The number fell from 293 to 210. Even though the number of
international or foreign professionals in the technical track in companies listed in BASIS (from 147 to 117)
and in companies listed on eCAB (from 108 to 31). It is expected that in 2021, total number of international
or foreign professionals in the technical track will be 337, out of which, 234 will be in companies those are
members of BASIS.

Table 7.14: No of International or Foreign Professionals in the Technical Track of IT-ITES Industry
(2014-2021) (For 378 Respondent-firms)

No. of International Professional: Number of employees (Technical Track)


Stratum 2014 2015 2016 2017 2018 2021 (Projected)
BASIS 63 97 81 147 117 234
BACCO 5 16 12 38 62 56
e-CAB - - 24 108 31 47
Total 68 113 117 293 210 337

7.11 Amount of Investment Made on Training &


Development of the Employee Funded by the Company
(2014-2021)
The total amount invested on training and development by the company in 2014, 2015, 2016, 2017,
and 2018 are BDT 18.8 million, 14.3 million, 25.8 million, 21.9 million, and 34.9 billion. In 2018, member
companies of BASIS spent BDT 21.8 million on training and development, whereas companies who are
members of e-CAB spent BDT 30 thousand only. It is estimated that the total amount that will be invested
and funded by company in 2021 will be BDT 161 million, of which BDT 144 million will be spent by
companies who are members of BASIS and BDT 13.6 million will be spent by the companies of BACCO
(Table 7.15).

48 IT-ITES Industry Statistics of Bangladesh


Table 7.15: Amount of Investment Made on Training & Development of the Employee Funded by
the Company (2014-2021) (For 378 Respondent-firms)

Investment on Training and Development in BDT (Funded by the Company)


Stratum 2014 2015 2016 2017 2018 2021 (Projected)
BASIS 12,248,000 8,235,000 10,110,000 14,160,000 21,864,000 144,903,000
BACCO 6,600,000 6,100,000 15,680,000 7,744,000.00 13,054,000 13,604,000
e-CAB 30,000 2,795,000
Total 18,848,000 14,335,000 25,790,000 21,904,000 34,948,000 161,302,000

7.12 Employee Attrition Rate throughout the IT-ITES


Industry (2013-2021)
Table 7.16 shows that the attrition rate from 2013-2018 remained stable, ranging from 12%-15%.
Companies who are members of both BASIS and BACCO had the highest attrition rate of 21% in 2017
and are expected to have the highest attrition rate among the stratum in 2021, which is 19%. The overall
attrition rate of IT-ITES industry in 2021 is expected to be 12%.

Table 7.16: Employee Attrition Rate throughout the I T - I T E S Industry (2013-2021) (For 378
Respondent-firms)

Average Rate of Employee Attrition in the IT-ITES Industry


2021
2013 2014 2015 2016 2017 2018
(Projected)
BASIS 13% 15% 15% 13% 13% 12% 11%
BACCO 13% 14% 12% 14% 14% 14% 12%
e-CAB 20% 20% 3% 13% 8% 12%
Average Employee
Attrition Rate of the 13% 15% 15% 13% 13% 12% 12%
Overall IT-ITES Industry

Figure 7.9 shows that over the years of 2013-2016 average attrition rate was stable, but after 2016 it is
falling.

Figure 7.9: Graph on Table 7.16

Average Employee Attrition Rate of the Industry


16%
14%
12%
10%
8%
6%
4%
2%
0%
2013 2014 2015 2016 2017 2018 2021

IT-ITES Industry Statistics of Bangladesh 49


7.13 Average Monthly Pay (in BDT) and Average Length of
Service (in years) of the Management Track Professionals
of IT-ITES Industry
Table 7.17 shows that the average monthly pay for management track for top-level employees, mid-level
employees, and entry level employees are 127243, 86058, and 37473, respectively. Companies who are
members of BASIS provides the highest average monthly pay for management track.

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.

7.14 Average Monthly Pay (in BDT) and Average Length of


Service (in years) of the Technical Track Professionals of
IT-ITES Industry
The average monthly pay for technical track professionals for the overall I T - I T E S industry is BDT 80
thousand for top-level, BDT 63 thousand for mid-level, and BDT 32 thousand for entry-level. Companies
who are members of BASIS provides the highest average monthly salary for technical track professionals
at mid and entry level, whereas BASIS is for Top-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.

50 IT-ITES Industry Statistics of Bangladesh


Chapter 8: Status of 4IR in Bangladesh

8.1 Number of Working and Required Employees


Speciated in 4IR Technology in IT-ITES Industry of
Bangladesh
Table 8.1 shows about the number of employees in 2018, 2021, and 2024 in Sensors and Machine
Intelligence Algorithms. Total number of employees in IT-ITES industry of Bangladesh specialized in SMIA
in 2018 was 268, 233 of which are employees of companies who are BASIS members. The total number
of employees specialized in Sensors and Machine Intelligence Algorithms in the IT-ITES industry that will
be needed in 2021 and 2024 are 510 and 819. 397 and 727 of them will be required by companies who
are BASIS members.

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.

IT-ITES Industry Statistics of Bangladesh 51


Table 8.2: 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
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

52 IT-ITES Industry Statistics of Bangladesh


Table 8.3 reveals about the number of employees in 2018, 2021, and 2024 in Additive Manufacturing
or 3D Printing. Total number of employees in I T - I T E S industry of Bangladesh specialized in Additive
Manufacturing or 3D Printing in 2018 was 25, 21 of which are employees of companies who are BASIS
members. The total number of employees specialized in Additive Manufacturing or 3D Printing in the IT/
ITES industry that will be needed in 2021 and 2024 are 94 and 126. 86 and 121 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 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.

IT-ITES Industry Statistics of Bangladesh 53


Table 8.4 reveals about the number of employees in 2018, 2021, and 2024 in Neural Network and Machine
Learning (Deep Learning). Total number of employees in I T - I T E S industry of Bangladesh specialized in
Neural Network and Machine Learning (Deep Learning) in 2018 was 191, 142 of which are employees of
companies who are BASIS members only. The total number of employees specialized in Neural Network
and Machine Learning (Deep Learning) in the IT-ITES industry that will be needed in 2021 and 2024 are
458 and 755. 382 and 678 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.

54 IT-ITES Industry Statistics of Bangladesh


Chapter 9: Concluding Remarks
9.1 Conclusion
The policymakers of Bangladesh have rightly identified the enormous potential of the
IT/ITES sector and planned for crafting different policy measures to make the sector
more efficient and globally competitive. 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.

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.

Analysis suggests that the IT/ITES industry of Bangladesh generates an estimated


local market revenue of BDT. 19,273 million and exports an estimated amount of
USD 802 million in 2018. It is also estimated that around 126,000 people were
employed in this industry in 2018. The industry has witnessed a remarkable growth
more than double in local market revenue, export revenue and employment during
the period 2013 - 2018.

A deeper understanding of the industry dynamics will enable the policymakers to


select appropriate policy measures that would ensure accelerated growth of the
industry and realization of the government’s vision involving Digital Bangladesh.

IT-ITES Industry Statistics of Bangladesh 55


9.2 Future Research Direction

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)

V. Thematic Studies. Examples: Capacity Building Needs Assessment, Government


Policy & Institutional Support Needs Assessment, IT/ITES Market Development Inter-
ventions, Export Promotion Strategy, etc.

56 IT-ITES Industry Statistics of Bangladesh


References

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.

3. United Nations. 19 July, 2018. UN E-Government Survey 2018. UN E-Government Knowledge.

4. Hassan, Qusay (2011). “Demystifying Cloud Computing” (PDF). The Journal of Defense Software
Engineering. CrossTalk. 2011 (Jan/Feb): 16–21. Retrieved 11 December2014.

IT-ITES Industry Statistics of Bangladesh xvii


Annexure

A1: Questionnaire

xviii IT-ITES Industry Statistics of Bangladesh


IT-ITES Industry Statistics of Bangladesh xix
xx IT-ITES Industry Statistics of Bangladesh
IT-ITES Industry Statistics of Bangladesh xxi
xxii IT-ITES Industry Statistics of Bangladesh
IT-ITES Industry Statistics of Bangladesh xxiii
xxiv IT-ITES Industry Statistics of Bangladesh
A2: About PMIS

Historical Background of PMIS


Center for Project Management and Information Systems (PMIS) has started the journey in 2017 under
the University of Dhaka. This center is the 51st center of the University of Dhaka approved by the Syndi-
cate of the university under the Dhaka University Ordinance of 1973. Since the inception this center has
been operating and contributing to the national economy with utmost success.

Idea behind the Inception of PMIS


The single idea behind the inception of this center is to incorporate the project management view in
information systems and technology consultancy in Bangladesh which was unprecedented before the
commencement of PMIS. In project management approach, score, time, quality and cost are considered
as the crucial elements, whereas the constraints regarding these elements are optimized scientifically
which ensures overall efficiency and effectiveness. Moreover, each project is considered strategically
which underpins the importance of proper initiation, planning, execution, controlling and termination of
projects. These approaches are quite untraceable in conventional ways of providing information
systems and information technology related consultancy services practiced by the traditional firms and
research centers in Bangladesh.

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.

IT-ITES Industry Statistics of Bangladesh xxv


Objectives of PMIS
The main objective of the center is managing Information Technology and Information Systems (IT/IS)
based research and development projects.
In complement with the primary objective, PMIS is also serving the following objectives:

• To develop IS based project management knowledge sharing environment and application of


best practices and standards for increasing the success rate of the projects.

• To develop a resource pool of skilled project managers to meet the community / industries’
needs.

• To create a networking platform for project management community and to encourage IS


based project management in the country

• Research and Publication in Project Management and Information Systems

• Training, workshops and corporate executive development programs for professionals in


Project Management Leveraging ICT

• Consultancy in Project Management for private and public sector organizations

• Monitoring and evaluating the IT & IT enable services of various training & development
projects

IT-ITES Industry Statistics of Bangladesh


A3: Team Members of the Project
LICT
Mr. Md Rezaul Karim Project Director
Mr. Sami Ahmed Component Team Leader
Mr. Md Mahfuzul Islam Shamim IT-ITES Specialist

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

Experts from BASIS


Mr. Rashed Kamal
Publication, BASIS
Mr. Md. Shahid Uddin Akbar
Publication, BASIS
Ms. Farhana A. Rahman Senior Vice President, BASIS and Director,

Mr. Sheikh Shayer Hasan


Publication, BASIS

Experts from BACCO

Mr. Rashed Mujib Noman Director, BACCO


Mr. Shahnewaz Rajib Secretary, BACCO

Experts from e-CAB

Mr. Mohammad Abdul Haque Finance Secretary, e-CAB


Mr. Mohammad Mehedi Hasan General Manager, e-CAB

Research Associates

Taouheed Hasan Khan MBA, IBA & Researcher, PMIS


Kamrul Hasan MBA, IBA & Researcher, PMIS
Khadija Sharmin BBA, DU & Researcher, PMIS
Mushfique BBA, DU & Researcher, PMIS

xxvi IT-ITES Industry Statistics of Bangladesh


A4: Introducing Core Team Members

Dr. Syed Shahadat Hossain has been a Professor of Applied Statistics


in the University of Dhaka since April 2004. He joined as a Lecturer of
Statistics in the Department of Statistics of the same university in 1990.
He also served as the Director of the Institute of Statistical Research and
Training (ISRT), University of Dhaka for the tenure of January 2002 to
January 2005. He served as a Lecturer at the School of Computing and
Mathematics, Deakin University, Australia from 2000 to 2002, He was also involved in part-
time teaching in Royal Melbourne Institute of Technology University and Deakin University
from 2000 to 2001. He was invited as an Academic Visitor at the School of Computing and
Mathematics, Deakin University, Australia in 2000. In 2008 he has been invited by the School
of Mathematics and Statistics, Newcastle University, UK as a Visiting fellow under the
commonwealth fellowship programme. He has visited more than 20 countries for academic
and research purposes. From 2002, he has been involved in Part-Time teaching within the
country at different time in the East West University, BRAC University, Green University, and
Bangladesh University of Professionals. Dr. Hossain has an outstanding academic background.
He graduated (B.Sc. Honours in Statistics) from the University of Dhaka in 1987 and
completed his M.Sc. degree in Statistics from the same university in 1989. He was awarded the
Q.M. Hossain awards for being placed in the 1 st class second position in his B.Sc. (Honours
in Statistics) examination and 1 st class first position in his M.Sc. (Statistics) examination. In
2000, Dr. Hossain was awarded the Ph.D. degree from Deakin University, Victoria, Australia.
He had been awarded the prestigious Deakin University Post graduate Research Scholarship
throughout his Ph.D. studentship. Dr. Hossain has more than 50 publications in peer-reviewed
journals. He has supervised about 50 research students at Ph.D, MPhill and M.S. level with
exceptional success and is in the process of supervision of about 10 more.
Dr. Hossain has been involved in numerous individual and collaborative research works. He
has a vast expertise in both theoretical and applied areas of quantitative research specially in
sampling techniques. He has been involved as survey design advisor in more than 20
nationwide surveys conducted by Bangladesh Bureau of Statistics. Dr. Hossain has been
involved in numerous statistical consulting to the government and non-government research
and development organizations like the Central Bank in Bangladesh, Planning commission of

IT-ITES Industry Statistics of Bangladesh xxvii


Bangladesh, Bangladesh Bureau of Statistics, UNESCO, UNICEF, UNFPA, World Bank,
ADB, WHO, FAO etc. He has worked in the fields of education, health, socio-economic and
policy level assignments. Dr. Hossain has a wide recognition in the academic surroundings, he
is a life member and the Chairman of the Executive Committee of the Dhaka University
Statistics Department Alumni Association (DUSDAA), he is also life member of Bangladesh
Statistical Association, Bangladesh Population Association and Bangladesh Association of the
advancement of Sciences.

Professor Sheikh Morshed Jahan is based at the Institute of Business


Administration (IBA), University of Dhaka since 1993. He teaches
courses in Economics, Business Strategy, Bangladesh Studies, Market
Development in Emerging Economies, Project Management, and
Business Ethics and Leadership. His research and advising interest
includes inclusive growth and sustainable development, sustainable
business model development, enabling business ecosystem, business
incubation and acceleration, SMEs’ integration into global and national value chains, industry
competitiveness, peer-to-peer networking, base of the pyramid (BoP) markets, etc. He designs
and leads action research and strategic market development interventions, especially by
bridging the domains of business and development through innovative strategies and sound
facilitations. Vastly experienced in stakeholder engagement process, capacity building, alliance
building, intervention design and leadership, he spearheaded more than 60 research, advising
and capacity building projects in the areas of market system development, SME promotion,
global value chains, institutional readiness, growth strategy, feasibility studies, market
research, entrepreneurship, etc.

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

xxviii IT-ITES Industry Statistics of Bangladesh


private sector businesses such as Samsung-India, KNI-Japan, FYC-Japan, Radio Today, IPSSL
group, etc.

As an international consultant to UNDP’s South-South and Triangular Cooperation for SME


Development initiative, Prof. Jahan facilitated capacity building workshops for SME promotion
agencies, institutions, industry chambers and business associations of Nepal, Bhutan, Laos,
Mongolia and Bangladesh. He also facilitated professional development workshops and
stakeholder dialogues in Kazakhstan, Philippines, Cambodia, Thailand and Bangladesh under
projects funded by, among others, the UN system and the World Bank.

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. Md. Akram Hossain is the founding Executive Director of


PMIS and Professor of Management Information Systems
Department of Dhaka University, obtained his undergraduate degree
in Bachelors of Business Administration (BBA) in the year 2000
and his post-graduation degree in Masters of Business
Administration (MBA) in the year 2001. Dr. Akram Completed
Doctor of Philosophy (Ph.D) degree in the year 2013. His PhD topic is “IT application in
Supply Chain Management”. He is also completing Post-Doctoral research degree in the
year of 2018. His Post-Doctoral research topic is “Health Information Systems and E-

IT-ITES Industry Statistics of Bangladesh xxix


health”. Dr. Akram got commonwealth split-site scholarship and Erasmus Mundus
Scholarship in his PhD and Post-Doctoral academic life. He is also working as Scientific
Researcher in the Institute for Advanced Research and Training, University of Evora,
Portugal.

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.

Prof. Mushtaque Ahmed is based at the Institute of Business


Administration (IBA), University of Dhaka. In doctoral, MBA and BBA
programs of IBA, he teaches subjects such as Management Information
Systems, Business Statistics, Operations Management, Supply Chain,
Quantitative Analysis, Market Research etc. He has worked as a
consultant for many organizations such as DANIDA, TDH Italia, Solidaridard,
ILO, SEDF, Katalyst, British High Commission etc. He served as MBA
Program Chairman. He was also the Chairman of IBA Computer Centre for two
terms

xxx IT-ITES Industry Statistics of Bangladesh


Md. Rakibul Hasan is currently serving as an Assistant Professor of
Department of Management Information Systems (MIS), University of
Dhaka. He has been serving as an academician since 2016. He did his under-
graduation (BBA) and post-graduation (MBA) from the Department of
Management of Information Systems (MIS), Faculty of Business Studies,
University of Dhaka, Bangladesh. He has got his research interest on the disciplines of data
science, business analytics, information systems research, financial markets, and social
implications of technology. He is also teaching the courses relevant to his research interest on
the under-graduation level. He has also published several academic papers on different indexed
journals those are reflecting his research interest and capability of doing good works.

Asif Imtiaz is a lecturer in Economics, Department of Management


Information Systems, University of Dhaka. Mr. Imtiaz holds a Bachelor of
Social Science degree in Economics from University of Dhaka and a
Master of Social Science degree in Economics from the same university.
He has taught courses in macroeconomics, microeconomics, and statistics.
He is serving as Visiting Lecturer at Bangladesh University of Engineering and Technology
(BUET) and Military Institute of Science and Technology (MIST). Mr. Imtiaz also serves as
an Economist in Center for Project Management and Information Systems (PMIS). His
research interest includes economics, digital divide, eHealth, telemedicine, and shadow
education. He has published several academic papers on different indexed journals those are
reflecting his research interest and capability of doing good works. His latest article on shadow
education has been published by Canadian Center of Science and Education.

IT-ITES Industry Statistics of Bangladesh xxxi


Mina Mahbub Hossain is currently working as an Assistant Professor at
the Department of Tourism and Hospitality Management, University of
Dhaka, Dhaka-1000, Bangladesh. Recently he has obtained his second
master’s degree from Department of Mathematical Sciences, Ball State
University, Indiana, USA. He has got twelve published journal articles to his
credit that were highly appreciated both in the local and international research community. His
main research interests include mathematical modeling of financial data set originating from
stock markets and international finance. He has been serving both as a researcher and
academician since 2009. Also, he has attended several international conferences on Business
and Economics areas. At present, He is looking for a Ph.D. (major in Finance) admission at top
Business Schools in the USA.

Md. Tuhinur Rahman is currently working as a lecturer at the Department


of Management Information Systems (MIS), Faculty of Business Studies,
University of Dhaka. He completed his Bachelor of Business Administration
(BBA) and Master of Business Administration (MBA) from the Department
of Management Information Systems (MIS), Faculty of Business Studies, University of Dhaka.
He has completed a professional course on Database Administration and Management from
IAC, CSE, BUET. His main research interests include information technology and security
issues, artificial intelligence and e-commerce. He has published two articles in indexed journals
which are showing his research interest.

xxxii IT-ITES Industry Statistics of Bangladesh


A 5: BBS Declaration

IT-ITES Industry Statistics of Bangladesh xxxiii


IT-ITES Industry Statistics of Bangladesh xxxiii
Bangladesh Computer Council, ICT Division.
ICT Tower E-14/X, Agargaon
Sher-e-Bangla Nagar, Dhaka-1207
Phone +88 02 8181392, +88 02 8181397
www.lict.gov.bd
facebook/lictbangladesh
twitter/lictbangladesh
youtube/lictbangladesh

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