Page 78 - IBT Sept 2021 (1)

Outsourcing Industry RESOURCE
DIVERSIFIED

its journey in 2009, the industry has been on primely suited for the working class, the BPO industry has and educational institutions. It is quite evident that BPO will
an upward trend over the years, mostly on the seen tremendous growth over the past ten years. The Digital become one of the key boosts for the nation’s economic growth
backs of a strapping IT infrastructure, legal Bangladesh development project has also been a high-priority in the near future. The country has also seen a massive
documents, international business focus for the government, further fueling the growth of this improvement regarding access to fast internet and steady
development, and skilled human resources. It lucrative sector. One of the most critical ways in which the electrical power. This required a great deal of active planning
also makes sense from a client standpoint – Digital Bangladesh movement has helped the BPO industry is to make business processes more consistent to compete on the
what would cost a foreign client a fortune to the initiative to boost internet accessibility to the masses, global level. For example, many steps have been taken by the
execute locally can be done by Bangladeshi moving from around 1% to 60% penetration in a very short Government to ensure IT skill development, and internet
freelancers at a fraction of the cost, with both time, while bringing down internet access costs to a mere 1% connectivity has improved by linking the country to the global
parties walking away happy from the of what it used to be. highway by way of the submarine cable link. The IT
transaction. Because of this, Bangladesh has The ICT Secretary of the country had mentioned that around infrastructure has massively improved as a result – something
been becoming more and more attractive as an 126,000 employees are currently working in the IT sector. essential for the expansion of the BPO industry. A total of
outsourcing destination over the years. This However, if we take the hardware workforce, freelancers, and nearly BDT 35 billion has been invested in training skilled
certainly merits a closer look at the change that IT professionals into account, the total number rises to more resources since 2019. and more than BDT 150 million are to
has come. The reasons behind the change than 1.3 million. With over half a million active freelancers, be invested this year behind the same goals.
deserve deeper observation, along with the Bangladesh is currently the second-largest supplier of online The rise of the gig economy has also helped the BPO sector.
pondering of further steps that can be taken to labor in the world. This number can be further broken down Freelancing has become a popular choice of profession among
improve efficiency, scope, and the overall between employment by companies registered under BASIS, the youth, particularly in their mid-20s. The Oxford Internet
current state of affairs. BACCO, and e-Cab. Institute states Bangladesh as one of the largest suppliers of
online labor, with the workforce focusing on many areas of
A Look at the Numbers Why BPO? service from sales and marketing support to creative and
The outsourcing industry of Bangladesh began To understand why BPO software development to clerical data entry and writing and
with a mere 300 people only a decade ago, Freelancing has became successful, it is translation. Aside from that, one of the most common
growing exponentially to over half a million important to first understand business processes to get outsourced is call centers. Some of
just within a decade. From an annual become a popular why BPO became a viable the key players in the market are Digicon Technologies,
outsourcing-based income of USD 12 million in choice of option for companies in the Graphic People, Kazi IT, Tiger IT, and Genex Infosys.
2012, the growth has been steady, reaching profession among first place. Outsourcing Aside from the agencies and companies, the youth fresh out of
USD 160 million in 2016, and then rising to a the youth, non-core functions enable Even though BPO includes many services, a universities and colleges are also earning substantial sums of
staggering USD 399 million in 2018 – a 33% companies to allocate their vast majority of them have probably emerged money working from their homes. The likes of Upwork,
growth rate in just ten years. Right now, the particularly in time and resources to core from IT products and services. In 2019, the Freelancer, Fiverr, and other such freelancing sites are full of
number stands at a mammoth USD 400 million their mid-20s. functions that result in Honourable Prime Minister’s ICT Advisor, Bangladeshi youth and veterans alike, providing business
in revenue, from both local and international higher impact for them. At Sajeeb Wazed Joy, spoke at a BPO summit services of all kinds. From writing to SEO to app development,
clients. On average, over 20,000 new people the same time, the countries about how it is a crucial element of the the country’s got it all, and we have never been more ready to
join the Bangladeshi outsourcing industry that mostly outsource their Digital Bangladesh movement to create and take on the world’s problems and solve them.
every year, boosting the BPO sector even more. processes operate in high tax rate areas, making their labor nurture new entrepreneurs and innovators,
Aside from individual freelancers, a significant very expensive and driving up costs. This is one of the key with an eye upon the advancement of the Way Forward
number of companies specializing in this kind reasons why firms prefer to opt for offshore services so that Fourth Industrial Revolution. So far, the BPO Even with the progress made and being made all across the
of work have also entered the scene, in they have access to more affordable labor forces, creating sector has been majorly clustered in Dhaka, country regarding internet infrastructure and training and
numbers far greater than ever before. positives for their bottom lines while creating a mutually but with ever-growing nationwide access to development, there is still a long way to go. One of the
It is quite difficult to evaluate the exact size of beneficial scenario for all the parties involved in this the internet, even greater progress and common patterns observed when studying freelancers has
the BPO industry because it is not a separate transaction. While cheap labor is one of the greatest causes for potential are being observed in the field, and been their general lack of proficiency in speaking English
borough entirely. However, an overall look at BPO, other considerations like access to innovation, the government is undertaking new initiatives when dealing with international clients. The Government,
the numbers suggests that there are currently technology, flexibility, and agility also play important roles in to foster their growth. A number of hi-tech along with the BPO companies, should actively focus on
over 500,000 individual freelancers and more its success. parks have been established in districts language development to stay on par with the competition,
refers to deploying business-related operations, than 2,500 agencies involved in providing Cause for Success outside the capital to facilitate this. Mustafa which has made clear communication a priority for dealing
whether technical or non-technical, to external outsourced services to both local and BPO companies in Bangladesh have done well in many areas: Jabbar, the Honourable Minister of Post and with clients.
service providers. Technology is usually at the international clients. Bangladesh is currently data entry, customer service, and information analysis, to Telecommunication, also stated that there are Alongside communication, internet penetration should also be
crux of these outsourcing processes, and the one of the top countries that provide diverse name a few. Right now, the most prominent figures in the plans to create 500,000 new jobs in the BPO ensured in rural areas and villages. Only then can the
With Bangladesh entering its fiftieth year of IT-intensive processes that generally tend to be high-quality services and offshore centers at outsourcing industry are hopeful about moving toward more sector by 2024. The government is also taking educated youth residing in those areas join the sector and
strides in supporting IT exporters through
independence this year, it is time to visit one of the key homogenous across companies and are usually some of the lowest and most competitive costs complex areas, such as Big Data, AI, Machine Learning, and become a part of the nation’s online workforce.
forces that has been dominant over the course of these the main tasks that get outsourced. in the world, in line with Vietnam, the IoT – because, after all, the bigger the challenges, the greater subsidized resources and tax holidays, as well And last but certainly not the least, scopes of BPO must also
as helping to ensure ease of business
years – the not-so-distant dream of a Digital Bangladesh. The prominence of Bangladesh’s outsourcing Philippines, and India. It is not hard to the rewards to be reaped. This move, however, requires a be increased from its current gamut of services to banking,
A key driving area of this Digital Bangladesh has been industry has grown significantly, especially over understand that this has definitely helped massive development in the skillsets of the human resources wherever possible. education, finance, and the likes.
Other plans the Government has set in motion
the Business Process Outsourcing industry, otherwise the past couple of decades, reaching new heights boost the aforementioned numbers. involved, as well as certain infrastructural investments and
known as BPO. For those wondering what BPO is, it of success with every passing year. Since starting With more than half the population being developments that are not yet within everyone’s reach. pertain to forming alliances with IT industries

76