Jetro report on software industry

The report cited the presence of skilled workforce, cost value proposition, convenient time gap between Japan and Bangladesh and the government's tax incentives and other benefits as the main strength of Bangladesh's software industry. However, inappropriate governing laws and logistics, lack of proper exposure to international markets, power and telecommunications infrastructure, among others, are its main weaknesses.

The report, which surveyed 99 firms, says more and more firms are outsourcing their ICT-related functions to companies in South East Asia. With the ever-increasing development of the global ICT sector, demand for ICT service is always on the rise. The report also mentions that the rise of neighbouring nations in the ICT sector that led to achievement of a bigger international market share of the outsourced market.

The report says Bangladesh's exports of ICT products may cross $10 million by the end of 2005. It also predicts that the link-up with the submarine cable by the middle of next year may dramatically increase export potentials. Bangladesh's ICT market comprises software development and its maintenance, call centre, ICT consultancy and processing services. Bangladesh recorded only around 1.5 percent ICT business growth in 2003.

The report can be a good reference book for the ICT industry in Bangladesh, which will help the Japanese investors with further information on the country's software market. Japan is the second largest ICT market in the world. Businesses looking for joint ventures with Japanese companies can get relevant information not only from JETRO Dhaka's library but also from the website www.jetro.go.jp/ttppe. The contents of the survey are available at JETRO Dhaka office at Banani or on the web www.jetro.go.jp/ bangladesh/swot.