Bangladesh’s ICT sector experienced several significant events in 2024. From nationwide internet shutdowns to thwart the July Revolution to cyber-attacks, data theft, and irregularities in high-tech parks, this sector faced numerous challenges.
Despite an allocation of approximately Tk290 billion to the ICT sector over the past 15 years, a significant portion of this amount has been wasted due to corruption. Some of this was intentional, while some resulted from unplanned projects.
A substantial part of the ICT-related allocation in government offices and projects was reserved for hardware purchases. Very little was allocated for software and services. Since hardware is not manufactured in Bangladesh, almost all of this allocated money went out of the country to foreign companies.
There should have been a condition to locally assemble the purchased hardware for large projects in Bangladesh. If the thousands of computers, printers, networking equipment, ticket vending machines, kiosks, etc, used in mega projects like the metro rail, Rooppur nuclear power plant, the third terminal of the airport, etc were assembled in high-tech parks instead of being imported, a portion of the money would have stayed in the country.
At the same time, technology and skill transfer could have occurred. As a result, our trained youth could have elevated their skills, and Bangladesh’s own hardware industry could have eventually developed.
There was no separate allocation for software and IT services in the government budget. As a result, domestic IT companies could not grow. Due to the lack of adequate budget allocation for software maintenance, projects could not be made sustainable.
Although there is a directive for the government banks to use domestic core banking software, the banks did not comply. As a result, millions of Taka have gone to foreign software companies, and domestic companies have not been able to grow due to the lack of patronage.
Instead of genuine IT companies, the makeshift institutions of political leaders had received government contracts and delivered substandard work, which obviously were not sustainable. Many a times, despite giving full payment to these unscrupulous vendors, the work was not delivered.
Despite the absence of any proper ecosystem, the hi-tech park projects were undertaken upon lobbying of local MPs or ministers without consulting the industry. As a result, most IT companies were not interested in investing and setting up shops in these parks.
Several thousand crores of Taka was spent on various training programs aimed at skill development for the youth of the country and upskilling the freelancers. But there has been excessive irregularity here as well.
Expanding internet facilities in rural areas and taking special initiatives for women and marginalized communities can also bridge the digital divide
Despite having no experience in providing training, companies belonging to party workers and leaders were awarded the tenders. In many cases, they took the money with minimal training. These training projects were never audited by third parties and resulted in financial expenditure only. The young generation has not been able to acquire the intended knowledge and skills.
The infamous incident of internet shutdown of 2024 posed an unprecedented challenge to Bangladesh’s ICT sector. The disruption of internet connectivity for nearly two weeks caused an estimated loss of Tk17.5 billion in the e-commerce sector, including small and medium enterprises.
Freelancers, IT, and BPO companies in the country have suffered long-term problems such as order cancellations, negative reviews, and loss of rankings due to failure to fulfill contracts with foreign clients. Its impact has not been limited to the business sector but has also negatively affected the international image of the country.
In addition to the financial loss of Tk5 billion in the software export sector, the loss of confidence of international clients has also negatively impacted the job market.
Cybersecurity emerged as a major crisis this year. Important institutions and banks, including Prothom Alo, have been victims of cyber-attacks, exposing the vulnerability of the country’s ICT infrastructure. According to the Threat Intelligence Platform report, the number of cyber-attacks increased by 105%. Additionally, the increasing cyber-attacks in the banking sector are challenging the security and confidence of the ordinary people.
Some important steps need to be taken in 2025 to resolve these issues.
Transparent management of government allocated funds must be ensured, and partnerships with genuine IT companies must be established. A national architecture for cybersecurity needs to be created, and skilled manpower in cybersecurity needs to be increased.
Regular audits of various training projects by third parties are essential to determine the quality and progress. Training activities need to be improved through industry-academia partnerships to address skill gaps.
At the same time, if financial support and technology training programs are launched for affected entrepreneurs, the ICT sector can recover from the image crisis and stand anew. Expanding internet facilities in rural areas and taking special initiatives for women and marginalized communities can also bridge the digital divide.
There is an immense potential in Bangladesh’s ICT sector. Through proper planning and implementation, this sector can be developed as one of the driving forces of the country’s economic development and a viable alternative to the RMG industry.
Learning from the lessons and challenges of 2024, the upcoming 2025 can be a new beginning for the ICT sector.
Syed Almas Kabir is Former President, BASIS.
