Computer services export on the rise
Computer services export from Bangladesh is rising in sync with global demand for data processing, hosting and consultancy services as many people are working from home while companies are outsourcing amidst the lingering coronavirus pandemic.
The industry fetched $270 million in the first 11 months of 2020-21, up 6.64 per cent year-on-year, showed data from the Export Promotion Bureau (EPB).
The higher earnings were driven by computer services such as data processing, hosting, consultancy, installation, and maintenance.
Full fiscal year data from the state agency is yet to be available.
The receipts from the sales of IT-enabled services such as data processing and hosting increased 23 per cent to $193.09 million.
Computer consultancy services raked in $24.07 million, up from $17.91 million during the same 11-month period a year earlier.
"Global companies are outsourcing data processing services amidst the pandemic," said Syed Almas Kabir, president of the Bangladesh Association of Software and Information Services (BASIS).
Thanks to the growing export orders, many companies involved in data processing and graphic design hired many new employees as the tasks do not require much skills, he said.
For IT-enabled services, local freelancers' reputation has grown phenomenally. "Besides, our connectivity to outside of the country has solidified," Kabir said.
According to him, the growth was high as banks and hospitals had remained open amidst lockdowns and data processing continued.
However, computer software export suffered a blow as it dropped 30 per cent year-on-year to $47.44 million between July and May. The earnings stood at $73 million in the same period in 2019-20.
Kabir said software exports mainly declined due to the closure of offices in the European nations amid lockdowns.
"Many work orders were cancelled and suspended. Payments were not cleared, so many local companies were hit," he said.
However, some big software exporters are receiving an increasing number of ordersduring the pandemic thanks to their reputation and the mushrooming of e-commerce platforms during the pandemic.
For example, Brain Station 23, one of the top software exporters in Bangladesh, witnessed at least 5 per cent growth.
"Most global companies are moving towards digitalisation, so they need more software now," said Raisul Kabir, chief executive officer of the firm.
"Brain Station 23 is the number one company for developing software for e-commerce platforms. During the pandemic, start-ups have been our main customers," he said.
There were also plunges in installation, maintenance and repair of computers and peripheral equipment services as it plummeted 51.60 per cent year-on-year to $5.29 million in the 11 months of FY21.
Computer services export has been rising since FY2018-19 when local IT companies earned $225 million, up 23 per cent from the previous fiscal year. In FY2019-20, it grew more than 22.67 per cent to $276 million.
Bangladeshi companies are now focusing a lot on the international market.
More than 225 companies export software to over 80 countries, according to Rashad Kabir, managing director of Dream71 Bangladesh, a software developer.
"We have qualified engineers, but what we are lacking are the country's branding and marketing," he said.
The BASIS has set up a BASIS Japan Desk, which has created a good impact among the Japanese, said Kabir, also a director of the association.
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