With Bangladesh increasingly becoming more of an outsourcing destination, we look at how and why has this change come about, and why the country is so appealing as an outsourcing option.
Over the past 25 years, India has become the country most associated with IT outsourcing due to the aggregation of call centres servicing western customers and the abundance of software development companies spamming professionals across the corporate spectrum in the west. India’s success has stemmed in big part from the rise of leading business process outsourcing (BPO) companies, the likes of TCS, Infosys and Wipro setting an example for the rest of the industry, as well as a young population being educated in an ecosystem of robust technical universities.
However, India today is facing challenges in the BPO space. Attrition rates are easily north of 40% at some companies resulting in serious quality issues as workflow is continuously affected by employee change. Also, the cost structure is rising rapidly requiring Indian firms to move towards higher ticket item services. Both of these issues are also plaguing the Philippines, another popular call centre destination.
Bangladesh is rising in prominence on the outsourcing stage, especially when it comes to data-focused outsourcing services. The following are some of the reasons fuelling Bangladeshi’s attractiveness as an offshoring destination:
- Attrition rates are rock-bottom (under 10%) at BPO companies willing to invest in the workplace environment. This is mostly because the industry thankfully has not yet followed the factory-like culture that characterizes outsourcing in other countries.
- The government is supporting IT exporters through subsidised resources and tax holidays, as well as helping to ensure ease of business wherever possible.
- The IT infrastructure has improved significantly over the past five years to the extent that companies can eradicated internet and power outages through careful process planning. Seven years ago, business continuity was still hard to ensure due to infrastructural issues.
- There is a large young university-educated population speaking excellent English and able to communicate directly with clients.
The population in urban areas has seen the rise of internet startups locally and are therefore excited to work in the IT space.
- Taskeater has made Bangladesh its home, and we continue to believe it is the most attractive destination for data processing-focused BPO companies today. We have invested heavily in building our operations in Dhaka, and on the outsourcing landscape we continue to expect the country to provide companies such as ours with a very favourable operating environment.
To add to the list above, we have found the young professionals in the country to not only be hardworking but eager to be a part of success stories that will not only gain prominence locally but will also help elevate Bangladesh on the world map.