Bangladesh: The Ideal Place for Offshoring Software Services

In the fast-evolving digital economy, offshoring software development has become one of the smartest business strategies for startups and enterprises worldwide. By delegating development tasks to skilled teams abroad, companies can reduce costs, accelerate time-to-market, and access global talent.

Bangladesh, once known primarily for its garment exports, is now making global headlines for its booming IT and software outsourcing industry. With a growing number of skilled engineers, government-backed initiatives, and competitive pricing, Bangladesh has become the ideal place for offshoring software services.

According to Statista, revenue in the global IT outsourcing market is expected to reach $541.10 billion by 2024, while offshore average revenue is 43.46%. Its annual revenue growth is predicted to climb by 8.48% (CAGR 2024-2029), with a market volume of $812.70 billion by 2029.

In this article, we discover why Bangladesh is emerging as the top choice for offshore software development, offering competitive costs, a skilled talent pool, and a robust IT infrastructure. India and the Philippines have long been well-liked offshore locations worldwide.

Why Bangladesh is the Ideal Offshore Software Services?

Many Bangladeshi software firms have achieved ISO and CMMI Level 3 certification, proving their global competence in software project management.

Every year, Bangladesh, a South Asian nation, has the world's eighth-largest population, with nearly 65% of its young population under age 35, more than 5 lakh University students graduating, and around 20,000+ CSE fresher graduates entering the IT industry with new perspectives and innovative ideas.

Because of its large and expanding pool of young, trained experts and low hiring costs, this positive talent development scope ensures a long-term position in software services to meet international market needs. By 2029, Bangladesh's IT outsourcing business is expected to reach a market volume of $1,365.00 million, representing an annual growth rate of 15.17%.

However, Bangladesh's IT sector has the potential to become a prominent player in the software offshoring market and leverage offshoring opportunities worldwide. In recent years, our IT infrastructure has undergone substantial digital transformations, establishing our country as a premier destination for IT services in the global offshoring center.

Recently, major multinational software companies, including Amazon, Google, Microsoft, Huawei, Samsung, Oracle, and Cisco, have registered to do business in Bangladesh, indicating rapid expansion and significant potential. Many of our software experts already work for major organizations, including Facebook, and provide offshore services from Bangladesh.

Trending offshore IT services in Bangladesh

According to the Bangladesh Association of Software and Information Services (BASIS), over 2,500 software and IT service providers based in Bangladesh offer services across several areas, including the Internet of Things, Blockchain, web development, mobile app development, and artificial intelligence.

Inspired by the ongoing market trend of the international offshoring market needs, the leading Bangladeshi software developers' company offers popular services listed below:

Cloud-Based Solution Development
Android and IOS Development
Advanced Web App Development
Software and Service(SaaS) Development
Business Application Development
SharePoint and Office 365 Development
System Analysis and UI/UX Development
Artificial intelligent(AI) Development
Software Testing and Assurance
Digital Marketing & Design solution
IT Support and Maintenance

7 key Advantages of offshoring Software Services to Bangladesh

To understand why Bangladeshi businesses are the greatest offshore partners, offering industry-specific services. We will also discover the advantages and disadvantages of collaborating with leading offshore software service providers in Bangladesh.

Skilled and Diverse IT Talent Pool

One of the primary reasons Bangladesh is gaining traction as an offshore software services hub is its large and growing pool of skilled IT professionals.

In addition to abundant talent, the cost of hiring skilled professionals in Bangladesh is significantly lower than in Western countries or even in the same Asian countries.

Bangladesh produces over 20,000 IT graduates annually, many of whom are familiar with global coding standards and agile methodologies. Popular technologies include Laravel, React, Vue.js, Node.js, and Python, making it ideal for startups and SaaS companies.

According to the ManpowerGroup survey, 75% of US firms require specialized, trained personnel. However, corporations don’t want to spend on traditional hiring procedures. As a result, an offshore strategy may be a smart alternative for organizations seeking to save time by identifying talent gaps in their in-house teams and addressing the global talent shortage.

Cost-Effective Solutions

One of the most compelling reasons to offshore to Bangladesh is its high-quality yet affordable workforce.

Hiring software developers in Bangladesh can cost 40–60% less compared to the US, UK, or Australia, without compromising on quality.

Businesses can achieve cost-saving goals by shifting offshoring to Bangladesh without sacrificing quality. This combination of affordability and expertise makes Bangladesh an attractive destination for companies looking to optimize their IT budgets.

Government Support for IT

Bangladesh's government has been proactive in fostering the growth of the IT and software services industry. Recognizing the potential sector, the government has launched several initiatives to promote digital transformation and support the IT industry.

One of the most significant steps is implementing the "Digital Bangladesh" vision, which aims to transform the country into a knowledge-based economy by 2041. Under this initiative, the government has focused on improving IT infrastructure, providing tax incentives, and creating a favorable business environment for IT companies.

Rising IT Infrastructure and Digital Connectivity

Bangladesh has made significant progress toward improving its IT infrastructure, which is important for supporting the IT outsourcing market. With widespread 4G/5G internet connectivity, modern coworking spaces, and cloud adoption, Bangladesh ensures stable digital environments for offshore operations. This strong digital foundation facilitates efficient software development, enabling businesses to deliver projects on time and within budget.

As a result, today Bangladesh has a strong IT infrastructure capable of supporting high-quality software development, data management, and IT-enabled services.

English Proficiency and Cultural Compatibility

Effective communication is crucial to ensuring project success for organizations that offer offshored software services. English is widely used in the Bangladeshi education and business system, providing seamless collaboration with internal clients. Bangladeshi IT experts' fluency in English allows them to understand client needs, engage in technical discussions, and produce high-quality software solutions.

Another distinctive attribute of Bangladeshi IT experts is their cultural compatibility with multinational clients. According to the Global Location Index report, Bangladesh ranks 35th among successful digital nations. Flexibility, dedication, and a willingness to go the extra mile to fulfill client expectations define Bangladesh's work culture. This cultural alignment promotes better teamwork, reduces misunderstandings, and produces excellent project outputs.

Booming Freelancing Market and IT Outsourcing Ecosystem

Bangladesh has one of the world's largest freelancing communities, with an increasing number of experts outsourcing software development, web design, and IT services through platforms like Upwork and Freelancer. The emergence of the gig economy has allowed Bangladeshi IT professionals to obtain international exposure, build a reputation for quality work, and attract clients.

This thriving freelance market is supported by a rapidly expanding IT outsourcing ecosystem. Bangladesh has seen the emergence of numerous software development companies, IT consultancies, and Business Process Outsourcing (BPO) firms that cater to clients across America, Europe, and Asia. According to the global data firm Statista. The global BPO industry revenue was $330 billion in 2022 and is projected to reach $350 billion by 2024.

Most IT firms offer outsourcing services, from custom software development and mobile app creation to cloud computing, cybersecurity, and artificial intelligence.

Business-friendly policies and Training

A computer, an internet connection, and the necessary skills are the main prerequisites for a software developer in Bangladesh. Companies can hire freelance developers at the lowest available price. To understand these outsourcing opportunities, Bangladesh's government and corporate sectors are currently focusing on developing a business-friendly environment and producing a more skilled workforce. Recently, many business-friendly initiatives have been implemented to grow outsourcing IT services.

The Bangladesh Association for Software and Information Services (BASIS) and the Bangladesh Computer Council (BCC) are organizations working to expand and enhance the country's IT outsourcing industry. Additionally, they have been organizing workshops and training sessions to support the IT outsourcing sector. They aim to produce 55,000 independent contractors at the subdistrict level.

Challenges and How to Overcome Them

While the country’s IT potential is undeniable, it’s important to acknowledge potential challenges.

Time Zone Coordination

For US-based clients, time zone differences can be tricky.

Solution: Set overlapping meeting times and use project management tools like Slack, Trello, or Jira.

Infrastructure Gaps

Although improving quickly, occasional power or connectivity issues may occur.

Solution: Reputed IT parks now ensure 24/7 power backup and fiber connectivity. Choose companies operating within these parks.

Talent Retention

The demand for developers is increasing globally.

Solution: Partner with established firms offering employee retention and continuous training programs.

Tips for Building a Successful Offshore Team in Bangladesh

Research and choose the right partner: Look for CMMI-certified or ISO-compliant companies.
Start with a pilot project: Test collaboration, communication, and code quality before scaling.
Use collaboration tools: Leverage tools like Asana, GitHub, and Zoom for seamless communication.
Clearly define project goals: Document deliverables, timelines, and KPIs.
Cultural alignment: Encourage transparent communication and mutual learning.

Conclusion

Bangladesh has emerged as a hidden gem in the global offshoring landscape, combining technical skill, cost advantage, and a supportive digital ecosystem.

From small startups to global enterprises, more companies are now turning to Bangladesh for offshore software development, team augmentation, and SaaS solutions.

If you’re seeking a reliable, cost-effective, and skilled offshoring partner, Bangladesh deserves a top spot on your shortlist.

FAQs

1. Can I hire dedicated offshore teams in Bangladesh?

Answer: Absolutely. Many IT firms, such as Codeshaper, Brain Station 23, and BJIT, offer dedicated team augmentation models for clients worldwide.

2. What technologies do Bangladeshi developers specialize in?

Answer: Most developers are skilled in Laravel, React, Vue.js, Angular, Node.js, and Python, with growing expertise in AI and cloud-based solutions.

3. What types of software services are popular in Bangladesh?

Answer: The most common offshoring services from Bangladesh include Web development, SaaS products, mobile app development, and AI-powered solutions.

4. How much can I save by offshoring to Bangladesh?

Answer: Businesses can save up to 50–60% in development costs compared to Western markets while maintaining quality standards.

5. How do I find the right software company in Bangladesh?

Answer: Use platforms like Clutch, GoodFirms, Google Business Profile, or LinkedIn to verify portfolios, reviews, and expertise before signing a contract.