Bangladesh earned $592 million by exporting computer-related services -- including software, IT enabled services, consultancy and equipment maintenance -- in fiscal year 2021-22 (FY22), double from that in FY21.
According to data from the Export Promotion Bureau (EPB), earnings from the sector rose by 94.91% on a year-on-year basis, of which the highest earnings came from IT-enabled services (ITES.)
Export earnings from ITES reached $484.40 million in FY22, a 123% jump from FY21 that stood at $ 217 million.
“The demand for IT and ITES will rise further as companies across the globe continue to digitize and automate their business processes, providing Bangladesh the opportunity to widen its ICT basket,”said Syed Almas Kabir, president of Bangladesh Malaysia Chamber of Commerce and Industry, and also former president of the Bangladesh Association of Software and Information Services (BASIS).
Omar Sharif, managing director of Bytetrek, a software and ITES exporter focused on the US market, said that their export earnings doubled in the last fiscal year thanks to growing demands for call center agents as well as software from clients in the Texas region.
The company provides software and ITES to 22 emergency rooms in Texas state and is currently trying to expand its businesses by acquiring European and Australian-based clients.
“All the top local IT companies performed well in the last fiscal year and they are expanding,” said Shariff, citing how his organization has been hiring more and more in response to the growing demand of its foreign clients.
On top of that, as per data from EPB, the country earned $60 million from computer software exports, compared to $51 million in FY21, and $38 million from computer consultancy services.
Meanwhile, services from installation, maintenance, and repair of computers and peripheral equipment service brought in earnings of $10 million in FY22.
Apart from the growing demand of such services abroad, government cash incentives against exports of IT services also boosted overall earnings, industry insiders said.
Currently, exporters of IT and ITES are enjoying 10% cash incentives.
However, industry insiders said the export earnings from the sector exceeded $1 billion in FY22, but due to lack of an effective data collection mechanism, it was not reflected in the figures.
According to current BASIS president Russell T Ahmed, the actual export earnings should be more than the recorded figure, as export earnings from the sector makes its way into the country through diverse channels some of which have not been taken into account.
As per the trade body leader, the EPB figures did not include the earnings of freelancers and service providers who bring their export proceeds through unofficial channels.
The data posted by EPB only took into account the earnings that came in from official and recorded channels after the government began offering 10% incentives, according to Russell.
Industry insiders said prior to the government offering incentive service exporters did not repatriate earnings through the formal channel, but now they are doing so because of the cash incentive.
Regarding the increase of IT and ITES from Bangladesh, industry insiders said that prior to the Russia-Ukraine war, Ukraine was one of the top IT and ITES providers, and some of their orders are being diverted to Bangladesh.
Additionally, work orders are coming in from EU and US markets as IT firms in those markets are struggling to meet demands as job switching has intensified.
