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Information Technology Enabled Services (ITES) – Bangladesh

ELEMENTS OF A NATIONAL STRATEGY FOR DEVELOPMENT OF AN INFORMATION TECHNOLOGY ENABLED SERVICES SECTOR IN BANGLADESH

USAID Bangladesh IT Enabled Services Project

SETA Task Order Number: 4002-345-001

Subcontract Number: 011227001/4000

Contract Number: GSOOK97AFD2185

Table of Contents

Executive Summary 3
1. Introduction 10
2. The Market for IT Enabled Services 13 Market Characteristics 13 Factor Requirements to be Competitive 15
3. Bangladesh Market Advantages and Disadvantages 19 Costs and Efficiency 19 Productive capacity 21 General business environment 25
4. A Bangladesh ITES strategy 28 Potential ITES Market Segments 29 Building Productive Capacity 32 Lowering Costs 37 Building a Competitive Environment 38 Marketing of Bangladesh ITES sector 40
5. Recommended Actions 42 Improving Productive Capacity 42 Lowering Cost, Improving Efficiency 44 Marketing and Business Environment 45 Focus on Growth 47
Annex A: Analysis of Market Segments 49
Annex B: ITES Workshop Report 63
Annex C: The opinion surveys of this study 68
Annex D: Summary of the Philippines Case Study 81
Executive Summary

Information Technology Enabled Services (ITES) is a large, fast-growing worldwide industry fueled by customers seeking efficiency and cost-savings from outside vendors, as well as rapid advancements in telecommunications and information technology. Offshore outsourcing of these services has become accepted and prevalent. Bangladesh has the potential to obtain a share of this market, which could result in a substantial number of jobs and meaningful export diversification for the country.

As a provider of ITES for

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