ICT

• Over 800 IT companies are now thriving in the country and capturing a significant share in the international markets
worldwide
• Total estimated IT Industry Size is US$ 120 Million (including export) where: software contributes around 44% to the
overall industry revenue, whereas ITES contributes around 56% to the overall industry revenue
• Approximately 30000 professionals, majority IT and other graduates, are employed in the industry
• Bangladesh is a relatively low-cost destination for tech among peer countries for instance A research of the Everest Group
shows that total operating costs (including salary and benefit for workers) in Dhaka is 16-20% less expensive than
Bangalore
• Software development and ITES/ BPO firms in Bangladesh have experienced a rapid increase of foreign clients

No of Foreign Clients
30000
25163
25000

20000

15000

10000

5000 3220 3534

0
2014 2015 2016
ICT
• Bangladesh is an attractive place for the multinationals and foreign industries for the establishment of their offshore
development hub following trends similar to those experienced by the Philippines and India.
• With relatively cheap labor costs the rise in demand for information technology development can be kept up with through
the creation of opportunities for Bangladeshi youth to acquire advanced and basic IT skills can be extended through
private investments to vocational and training institutions specialized in IT engineering, and business management and
graphic design.
• The government of Bangladesh heavily incentivizes firms in the IT sector through:
1. Seven-year full Corporate Income Tax (CIT) exemption until 2024
2. Access to Equity Entrepreneurship Fund (managed by the Bangladesh Bank) to support equity provision
3. Access to 10% cash incentive (since July 2017) (only for exporters)
4. Import duty exemption on capital equipment (2% of on ICT-related hardware), construction materials
5. Tax exemption on dividend, share transfer, royalty, technical assistance fees
6. Three-years Personal Income Tax exemption for expatriates
7. VAT exemption on local bills during production
ICT
• Furthermore Bangladesh Hi-tech Park Authority (BHTPA) was established in 2010 to establish and operate high-tech parks
across the country, and accommodate both local and foreign tech firms
• The ICT industry in Bangladesh, especially software and ITES industries, is relatively small compared to the size of its
national population (150 million plus), and the size of the national economy however The average yearly growth rate of
these industries here has been over 40%

Share in Toal ICT Sector

60% 55%

50%

40%

30%

20% 17%
12.50%
10% 4.50% 3.02% 5%
1.51% 1% 0.47%
0%