Debugging the Bangladeshi tech firm scene

While at PwC, we implemented many CBS (core banking system), ERP (enterprise resource planning), CRM (customer relationship management), data analytics or technology transformation projects at various enterprises or banks. While our clients focused on smooth implementation by engaging our cross-border or the best of local resources, senior regulators or bureaucrats often used to ask us why we engaged so many cross-border technology experts and why we did not pursue joint business relationships or rely more on local firms. The hard truth was that we often had to engage cross-border resources because there was an identified shortage of trained local technology project implementation teams or firms.

Bangladesh is moving fast in technology. New firms are appearing every year, driven by ambition, talent and a belief that we can build for the world. Yet despite this momentum, many local tech companies struggle to create solutions that scale, survive and gain trust. The reasons are not linked to intelligence or effort. They relate to how we work, what we prioritise and the environment we are building in.

One of the biggest traps lies in how projects begin. Many enterprise clients ask for heavy customisation, and local firms say yes to everything in order to win the deal. It feels positive at first, but it creates chaos later. When every feature is custom-built, software becomes difficult to upgrade, deadlines slip, and costs rise. Teams spend months chasing change requests instead of improving the product. Clients become frustrated, vendors struggle with cash flow, and trust fades on both sides. In the end, many companies quietly return to foreign systems because the local build became too fragile.

Large enterprises add another layer of difficulty. Their procurement requirements often demand international references, large turnovers and financial guarantees that many local firms cannot match. Bangladeshi teams lose before the conversation begins. Without a strong, unique edge or proven track record, it becomes hard to stand out against global players with decades of experience.

Highly regulated sectors such as banks and telcos make the challenge even steeper. These clients need strict security, local data residency and reliable backup systems. Without major global cloud providers in the country, local vendors often run their own servers. Costs rise, speed drops and passing audits becomes harder. Promising products slow down because they need far stronger operational discipline than good coding alone. Boards feel safer choosing global systems because they see many years of operational proof behind them.

Another issue lies in the way many local companies are structured. Too many firms work like project shops rather than product builders. They deliver software, but not adoption. They skip the basics of long-term product development such as versioning, clear roadmaps, automated testing and regular upgrades. A shortage of senior product leaders, architects and reliability engineers makes this worse. High attrition removes hard-earned knowledge and creates instability in every project.

Money is another silent pressure. Technology requires patience and investment, but many companies work with thin margins, low pricing and limited capital. Advanced fields such as AI, IoT or robotics demand expensive talent, data and experimentation. Without disciplined financial management, firms burn through cash before their product matures. Lean and focused teams often win in the long run. Global examples show that small, highly skilled groups can build massive value.

There are lessons to learn from places such as India. Their technology giants grew by building deep talent pipelines, focusing on quality, investing in training and organising around clear industry verticals. They paired engineering with consulting, created reusable components and partnered closely with global technology ecosystems. Most importantly, they linked technology work to real business outcomes.

Bangladesh needs a similar shift in mindset. Too many technological decisions are led by non-technical voices, resulting in buzzwords instead of real capability. We need engineers, product thinkers and designers at the decision table. We need investment in research and development, stronger university-industry partnerships and work cultures that reward builders.

If we empower the people who actually make the technology, we can turn ambition into real products that compete globally. The potential is here. It simply needs the right environment to grow.

Mamun Rashid is an economic analyst and chairman at Financial Excellence Ltd