Today, Global business marketers always look for methods to streamline their processes, save costs, and get access to talent pools in the quickly evolving digital landscape. Offshoring software services has emerged as a profitable strategy for moving company operations or hiring foreign workers to achieve corporate goals. Offshoring services are necessary for startups, small businesses, and large organizations to fulfill the growing demands of industries and customers while maximizing the potential of qualified people.
For example, a mobile app or web developer company can save up to 40% on expenditures by recruiting offshore workers from Bangladesh while maintaining quality and timeliness. The average software developer contract wage for a senior developer in the United States ranges between $75 - $140 per hour, while the same quality worker in Bangladesh will cost between $35 and $100 per hour. So, before deciding on offshore services, a corporation should conduct market research and compare prices.
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 Ultimate Offshore Software Hub?
Bangladesh, a South Asian nation, has the world's eighth largest population, with nearly 65% of the young population under age 35. Yearly, more than five lakh University students graduate, and around 20,000+ CSE fresher graduates enter the IT industry with new perspectives and innovative ideas.
The country is recognized as an ideal base for global software outsourcing business. 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 2024, Bangladesh's IT outsourcing business is predicted to generate $673.60 million, representing a 15.17% annual growth rate. This expansion is expected to reach a market volume of $1,365.00 million by 2029.
However, Bangladesh's IT sector has prospects of becoming a prominent player in the software offshoring market and leveraging offshoring worldwide opportunities. In the recent decade, our IT infrastructure has undergone substantial digital transformations, establishing our country as the finest destination for offshoring 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 the rapid expansion and potential scope. Many of our software experts already work for major organizations and provide offshore services, such as Facebook, 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 provide software and technology services in several areas including the Internet of Things, Blockchain, web development, mobile app development, and artificial intelligence.
Inspiring by the ongoing market trend of the international offshoring market needs, 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
6 key Advantages of offshoring 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.
Growing Talent Pool with Cost-Effectiveness
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 the abundant talent, the cost of hiring skilled professionals in Bangladesh is significantly lower than in Western countries or even some of its Asian counterparts.
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 those who help organizations save time while discovering talent that is lacking in their in-house teams and addressing the global talent shortage.
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. The country has significantly invested in expanding its broadband internet coverage, modernizing data centers, and ensuring the reliability of its power supply.
As a result, today Bangladesh has a strong IT infrastructure capable of supporting high-quality software development, data management, and IT-enabled services.
The country’s strategic focus on improving digital connectivity is reflected in its high internet penetration rate, which continues to grow. Affordable and reliable internet services ensure seamless communication and collaboration between offshore teams and their international clients. This strong digital foundation facilitates efficient software development enabling businesses to deliver projects on time and within budget.
Proficiency in English and Cultural Compatibility
Effective communication is crucial to ensuring project success for organizations that offer offshoring software services. Bangladesh has particular advantages because English is widely spoken and taught in the country. 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 holds the 35th position as a successful digital nation. Flexibility, dedication, and a willingness to go the extra mile to fulfill client expectations define Bangladesh's work culture. This cultural alignment promotes improved teamwork, minimizes misunderstandings, and 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 international 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 global data firm Statista. revenue of the global BPO industry stood at $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, 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 always trying 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 the Way Forward
While Bangladesh has many advantages as a hub for offshoring software services, it also has obstacles that must be addressed fully. Issues such as restricted access to venture financing and bureaucratic barriers might hinder the growth of the IT sector.
However, the government, business sector, and international organizations are collaborating to overcome these challenges by investing in infrastructure, streamlining regulatory processes, and supporting startups.
Bangladesh must focus on skill development, technological innovation, and global partnerships to sustain its growth and grab a leading destination for offshoring software services.
Conclusion
Thanks to its skilled workforce, competitive costs, government support, and growing IT infrastructure. The country’s commitment to digital transformation and focus on building a robust IT ecosystem make it an attractive destination for businesses looking to offshore software development and IT services. As Bangladesh continues to strengthen its capabilities in the IT sector, it has the potential to become a global leader in software services, contributing to economic growth and technological advancement.
