Bangladesh ICT Industry Research Reports Desk Study
1. Desk Study on the
Bangladesh ICT Industry
Research Reports
Prepared by
Fokhruz Zaman
Md. Shakhawatul Islam
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Background and Scope
Regular Research for National ICT Strategy
Inspired by Neighbors – NASSCOM-McKinsey studies
Desk Study as a Prerequisite for the final ToR
Sponsors / Technical Assistance Providers
Bangladesh Association for Software and Information Services
(BASIS)
ICT Business Promotion Council (IBPC)
Katalyst, Bangladesh
Approx 8 weeks study (June 10 – Aug 10, 2007)
Research Reports Collection & Surface Scan
Gross Qualitative Remarks
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Background and Scope
In scope –
Collect and Surface Scan BD ICT Research Publications
Select ICT Studies, which:
Involved some fact finding
Required extensive study
Has rich primary and secondary data sources
Qualified in our qualitative judgment.
Out of scope –
We were not required to do an exhaustive study on the ICT
industry
It was not in our scope to judge the quality of the data
collected in the studies
We did not need to communicate with the sponsors,
researchers or respondents of each studied report
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Desk Report Methodology
1. Scan all the available secondary sources for BD ICT
Research Reports
Govt Agencies
ICT associations
NGOs focusing ICT
Expert Individuals, and
the Internet
2. First level surface scanning of the found documents
3. Second level study of the short-listed ones
4. Report the study findings with qualitative remarks
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Desk Report Methodology
Government
bodies
Private sector
associations
NGOs Internet sources
ICT reports for last 10 years
Collect
Reports for further analysis
Qualitative judgment
Summarize findings
Comment on the
quality of the report
Based on the findings and
the methodology
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Gross Report Categories
Overall ICT Industry
Software Industry
ITES – IT Enabled Services
HCD / HRD
ICT Adoption
Telecom Infrastructure
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Study Categories : Gross
HCD / HRD
SW Industry
IT Enabled Services
ICT Adoption
Telecom Infrastructure Overall ICT Industry
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Overall ICT Industry
Baseline Survey on IT Sector of Bangladesh (BCS,
Nov, 2000)
Overview
Hardware, Software, ISPs & IT Training Companies
Trend Analysis from 1983 to 1999
Many statistics given
Findings:
New ventures concentration during 97-00
SW Development and IT Training Business on the rise
Comments:
Pioneering study, very good attempt
Surveillance was very needed
Inclusion not observed in other subsequent studies
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Overall ICT Industry
SBIT 2001 Report: Bangladesh – An IT Power House
(AABEA Silicon Valley Chapter, SBIT2000 Conference Follow-up
Committee, 2001, Recommendation to the Government of
Bangladesh)
Overview
Recommendations resulted from numerous discussions
among the NRB professionals and feedback from American
corporate executives
Five problematic areas identified by NRBs from the Silicon
Valley:
• Resource Development & Planning
• Focused Team
• Infrastructure
• Business Promotion & Marketing
• Funding
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Overall ICT Industry
Findings
The four different broad areas where Bangladesh needs to focus on:
1. Export man-power in the IT sector utilizing programs such as the
H1B visas available in the US
2. Deliver out-sourced consulting projects for foreign markets
3. Deliver offshore services, such as Data Entry, Call Center
Processing, etc.
4. Develop and deliver packaged software
Comments
Prepared by some highly talented, hyped up and patriotic NRBs
Lacked objective facts and pragmatic projections
Unrealistic ambition followed by minimum implementation
That implementation also failed to achieve the objectives
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Overall ICT Industry
Policy Brief on "Information and Communication
Technology“ (Centre for Policy Dialogue Task
Force, Aug 2001)
Very thorough policy recommendation approach
210 action agenda items under 11 important areas of
intervention by the government
Thoroughly researched hard industry facts not found
The action items were mostly items of wishful thinking
No follow-up or surveillance besides the 2003 review
Can still serve as a good platform for new studies
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Overall ICT Industry
BD ICT Policy Review Report (CPD Task Force, Jan
2003)
Follow-up review of the Policy Brief on "Information and
Communication Technology“ (Centre for Policy Dialogue Task
Force, Aug 2001)
Only 10% policy recommendations addressed by the
government
Revisited the 112 broad categories, and reduced them to 6
Eliminated timeline in the action plan, as it did not have any
impact
Added some new recommendations
Good example for the follow-up research studies
Confusion regarding their understanding of broad categories
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Overall ICT Industry
ICT Sub Sector Study in Bangladesh (JOBS
IRIS, 2005)
Overview
Follow up of 2 seminars organized by
2001 – JOBS, the Ministry of Planning, and the Ministry
of Science and Technology
2002 - Ministry of Science and ICT, BASIS
Literature review of ICT thinking in Bangladesh
Findings
definition, implications in the context of Bangladesh,
necessities for its implementation, and constraints faced in
implementation for e-policy, e-governance, e-commerce and
e-HRD.
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Overall ICT Industry
Findings (Contd.)
Recommendations for maturity of e-policy, e-governance, e-
commerce and e-HRD
comprehensive, ICT-focused, educational campaign
source of high value, skilled ICT workers
remittance levels and opportunities to Bangladeshi citizens
Global IT Report 2004-2005 standings: Bangladesh ranked
100 out of 104 on network readiness.
Comments
Considerable research went into its creation
Necessity for Bangladesh clearly defined
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Software Industry
Export of Computer Software from
Bangladesh: Problems and Prospects (JRC
Study, September 1997)
Overview
Meetings with exporters and BSCIC officials
Knowledge gathering mission at India
Findings
Problems impeding growth and recommendations
The inherent strengths of Bangladesh
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Software Industry
Comments
Travel abroad provided new ideas
Meetings with the pertinent people
Adequate study of various publications
Comprehensive perspective
Milestone research leading to the creation of BASIS and
other developments
No significant research as follow up to this seminal research
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Software Industry
Bangladesh Software Industry Survey
Report- 2004 (JETRO)
Overview
Questionnaire survey on 99 known software development
companies
SWOT analysis
Findings
The finance, human resource, infrastructure, and marketing
related problems and their recommendations
The strengths, weaknesses, opportunities, and threats facing
this industry
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Software Industry
Comments
Reluctance of the respondents
Too generic recommendations
Absence of FGDs
Inaccurate recording by the enumerators
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Software Industry
Bangladesh Software Industry & its
Dynamics – (BASIS, 2005)
Overview:
Reports the BASIS conducted study results so far.
Summarizes report with recent data.
Findings:
ICT Industry size: BDT 1,300 crores per year (excluding the
telecom sector)
Software : over BDT 200 crores per year
Comments:
Good industry snapshot
Data needs continuous updates
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ITeS – IT Enabled Services
Elements of a National Strategy for
Development of an Information Technology
Enabled Services Sector in Bangladesh
(CARANA Corporation, Apr 2002)
Overview
Two opinion surveys:
1.Bangladesh firms, government officials, and NGOs
2.Non-resident Bangladeshis
Findings
Factors limiting the growth of Bangladesh in the ITeS market
Recommendations for this sector and who are to perform
them
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ITeS – IT Enabled Services
Comments
Proper utilization of the NRBs’ knowledge
The Philippines case study served as a standard
Huge respondent population, thus study is extensive and
useful
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ITeS – IT Enabled Services
External Market Analysis (CARANA
Corporation, 2002)
Overview
Respondents from different public bodies, private sector
associations, ITES firms, and the sponsors for the study.
ITES segments in question evaluated on the basis of three
criterions:
• Competitiveness Potential
• Economic Impact
• Potential for successful implementation
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ITeS – IT Enabled Services
Findings
Overview of the outsourcing industry
Various factors involved in outsourcing decisions
Bangladesh meets just the Basic Requirements
Bangladesh has a few inherent advantages and
opportunities to exploit and some constraints to overcome.
Comments
Survey included all the important matters regarding ITeS
Lacked the perspective of the offshore importers
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ITeS – IT Enabled Services
Study of e-Commerce in Bangladesh (BEI,
May’05)
Overview
Questionnaire-based surveys and face-to-face meetings in 5
export oriented sectors
Surveys, meetings and phone conversations with different
pertinent government officials
Conceptualization of e-Commerce
Findings
Global trends in e-Commerce
Current preparedness of the private sector, the government,
and the ICT industry for e-Commerce in Bangladesh
Constraints of e-Commerce growth in Bangladesh
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ITeS – IT Enabled Services
Findings (Contd.)
Recommendations and action-items for industry
associations, individual firms, the government, and the
academia
Vast scope for development in the B2B sector
E-mail and customized software for internal business
process automation have gained in popularity
Over the last 5 years, several B2C portals have been
launched
Comments
Explained the concept very well
Did not cover too many export oriented industries.
Recommendations and actions items were designed well but
not properly implemented.
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HCD/HRD
Human Capacity Development (HCD)
(CARANA Corporation, 2002)
Overview
Interviews with officials from different software manufacturing firms,
universities, training institutes, and other organizations connected to
the ICT industry.
Findings
Assessment of HCD capacity and existing constraints
Strategies to reduce/eliminate the constraint
Positive developments and recommendations for this sector
Comments
Subjective judgment took the place of raw data
Lacked a questionnaire with options for filling quantitative data
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HCD/HRD
ICT Skills Gap Assessment - Public Sector
Assessment (JOBS IRIS, 2006)
Overview
ICT developments in Bangladesh’s government and its ICT
HR needs
Analysis of Pakistan’s e-Government Strategy
Interview with government officials
Findings
Gap between the skills of graduates in the ICT field and the
skills in demand in the private sector
The government lacks an ICT career track within its ranks
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HCD/HRD
Findings (Contd.)
e-Government services are like stand-alone projects
Inadequate advisory, management and maintenance support
The current disadvantages plaguing e-government in
Bangladesh
Recommendations pertaining to Bangladesh’s government
HR and to the government
Comments
Case study approach provided an international standard to
compare with
Lacked a comprehensive field study on the trainers and/or
the training institutions
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HCD/HRD
ICT Skills Gap Assessment - Private Sector
and Academia (JOBS IRIS, 2006)
Overview
Analysis of both the demand and the supply side in
academia and the private sector
Varied survey methods
Survey covered majority of student population (60% of ICT
students)
Findings
Continued necessity of a highly skilled human resource pool
in Bangladesh’s ICT sector
Economic growth can be sustained and expedited If
academia and the private sector work hand-in-hand
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HCD/HRD
Findings (Contd.)
Recommendations for collaboration between the academic
and private sectors, as well as further recommendations
specific to each sector
Private sector analysis revealed the market growth and
human resources trends
Comments
Comprehensive
Respondent population was satisfactory
Maximum output derived through the survey process
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HCD/HRD
Strategic Plan for Higher Education in
Bangladesh: 2006--2026 (UGC, 2006)
Overview
Mostly secondary data driven
Brainstorming sessions leading to idea generation
It discusses the following topics:
The current scenario for teaching ICT,
Vision for ICT in higher education,
Strategies and Programmes to be Implemented,
Academic Network and Fast Global Connectivity
Options,
Information Strategies in each institution,
Training and Development of Academic Staff,
Role of the Colleges,
National ICT Funding
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HCD/HRD
Bridging Digital Divide for Rural Youth: An
Experience from Computer Literacy
Programme in Bangladesh (D-Net, 2006)
Overview
Both CLP and non-CLP schools were surveyed
Respondents included students, teachers, head teachers,
and guardians
Findings
The study is more of a baseline from which we can go further
to ask more relevant and penetrating questions to gauge the
performance of the CLP
14 recommendations and 10 future work suggestions were
made
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HCD/HRD
Comments
Baseline developed, so that judgment can be traced back to
reality
Interview process was comprehensive
FGDs with students and guardians were missing
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ICT Adoption
Peoples’ Report on MDG: Bangladesh (D.Net, Jun
2005): Guided by three major components of
development strategies:
Poverty alleviation;
Sustainable economic growth; and
Empowerment.
The PMDG on ICT covers the following areas:
Assessment of current scenario
Identification of problems and issues
Description of short term [up to two years] and mid-term [up to
five years] agenda
Identification of stakeholders for each agenda and
implementation mechanism
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ICT Adoption
ICT / ITeS Need Assessment Study (AC
Nielsen, Nov 2005)
Overview
Two-step survey: (i) In-Depth interview and (ii) SME survey
Respondents included different SME verticals
Findings
Strengths, weaknesses, threats, and recommendations
facing this sector
Comments
The survey process was very rigorous
The depth interviews acted as a preparation arena for the SME
survey
Different SME verticals, thus variety in sample
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ICT Adoption
ICT4D Status Report 1.0 (D-Net, 2006)
Overview
Access and infrastructure issues: context Bangladesh
Community Access Points or Telecentre Movement in
Bangladesh
Community Radio: Ready to Launch in Bangladesh
E-Governance: Bangladesh Perspective
Localization and Open Content Development in Bangladesh
Findings
Bangladesh stands at 171 out of 180 countries in
connectivity & ICT diffusion index
BTRC must be dynamic in Telecom deregulations
Telecom Infrastructure must be greatly developed ASAP
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ICT Adoption
Comments
Stock taking type report
Addressed multi-dimensional issues
Lacked cohesiveness
Could link / correlate the areas for ICT4D more explicitly
Study of e-Government in Bangladesh, by BEI
Case study based,
Successful (4)
Semi-successful (3)
Failure (1)
SICT’S Steps towards Good Governance through ICTs:
Bangladesh’s E-Governance Strategy
Stock Taking of SICT Projects
55 projects studied including completed & on-going ones
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ICT Adoption
Final Report on the Law of Information Technology (The Law Commission)
UNCITRAL Model Law
(Indian) Information Technology Act, 2000
(Singapore) Electronic Transactions Act, 1998
1) Applicability of the Act;
2) The “Functional Equivalent” approach;
3) Electronic documents and electronic contracts;
4) Electronic governance;
5) Electronic signatures;
6) The technology for electronic signatures;
7) Liability and risk allocation in a Public Key Infrastructure (PKI);
8) Procedural aspects of PKI;
9) Contraventions;
10) Cyber Regulations Appellate Tribunal (CRAT);
11) Information technology offences;
12) Investigation, search and seizure;
13) Limited liability of Network Services Providers;
14) Cyber Regulations Advisory Committee;
15) Amendment/ repeal, etc., of related enactments.
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ICT Adoption
Comments
Good review on:
the UNCITRAL Model law
the (Indian) Information Technology Act, 2000
the (Singapore) Electronic Transactions Act, 1998
Hoping for some follow-up phased implementation
plan
The PKI & related technology & admin issues needed
to be clearly spelled out
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Telecom Infrastructure
Bangladesh Telecom Brief (USTDA South
Asia Communications Infrastructure
Conference, Apr 2004)
Overview
A brief timeline of the changes occurring in the telecom
sector
Initiatives by BTRC
Features of the Bangladesh telecom market
An overview of the players in the telecom sector
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Telecom Infrastructure
Findings
No clear, long-term strategy for sector development
Political influence on industry reform proposals
Inefficient telephone network
more homes are connected with Cable TV than telephones
Comments
Needed a better focus
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Telecom Infrastructure
Community Access Point or Telecentre
Movement in Bangladesh (D.net, Nov’06)
Overview
Initiated in August 2006
Includes the following programs or institutions:
Gonokendra: Centre for Community Development
Amader Gram Learning Centre (AGLC): Community Database
for Development
Internet Learning Centre: School Based Telecentre
Youth Community Multimedia Centre (YCMC)
RTC (Rural Technology Centre)
GHAT: Rural ICT centre (RIC)
Community Information Centre (CIC): A Profit-oriented Model
‘Pallitathya Kendra’: Focusing Access to Information for
Poverty Alleviation
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Telecom Infrastructure
Findings
The telecentres in Bangladesh are faced with some
constraints/challenges:
Technical constraints and sustainability
Reliable connectivity
Secured infrastructure
Access to information services
Comments
Successfully described the movement
Danger of bias since authors are reporting their own works
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Overall ICT Industry
(i) Base Line Survey on IT Sector of Bangladesh (BCS, Nov’00)
(ii) CPD Policy Briefs in 2001 & its review in 2003
Software Industry
(i) Export of Computer Software from Bangladesh: Problems and
Prospects (JRC Study, September 1997)
(ii) Bangladesh Software Industry & its Dynamics (BASIS, Jan 2007)
ITeS – IT Enabled Services
(i) Elements of a National Strategy for Development of an
Information Technology Enabled Services Sector in Bangladesh
(CARANA Corporation, Apr 2002)
(ii) Study of e-Commerce in Bangladesh (BEI, May’05)
Recommended Reports
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HCD / HRD
(i) ICT Skills Gap Assessment - Public Sector Assessment (JOBS
IRIS, 2006)
(ii) ICT Skills Gap Assessment - Private Sector and Academia
(JOBS IRIS, 2006)
ICT Adoption
(i) ICT / ITeS Need Assessment Study (AC Nielsen, Nov 2005)
Recommended Reports
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Recommended Reports
Telecom Infrastructure
(i) Bangladesh Telecom Brief (USTDA South Asia Communications
Infrastructure Conference, Apr 2004)
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Things TODO
In-Depth interviews, like FGD (Focused Group
Discussion), KII (Key Informant Interview), etc.
Online forums
Live TV shows
Regular seminars on the Research Studies
Extensive use of online questionnaires
Make more “parallel studies” like CARANA
Mention respondents’ names to increase credibility
Online and physical databases of local and international
ICT reports
Get SEDF study reports
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Mr. Rafiqul Islam Rowly, President (acting),
BASIS
Mr. A K M Fahim Mashroor, Director, BASIS
Mr. Monirul Bashar, Business Consultant,
Katalyst
Dr. Ananya Raihan, Executive Director,
Development Research Network (D.net)
Mr. Birendra Nath Adhikary, Chief Operating
Officer, Bangladesh Computer Samity (BCS)
Acknowledgements
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Mr. Tarique M Barkatullah, Senior Systems
Analyst, Bangladesh Computer Council (BCC)
Mr. Anir Chowdhury, Policy Advisor, PMO/UNDP
Ms. Suparna Roy, PMO/UNDP
Mr. Nurul Amin, Secretary, BASIS
Mr. Shariar Shaams, Program Manager, BASIS
Acknowledgements
Notas do Editor
Bangladesh ICT Industry Associations have long been planning for periodic comprehensive research studies to formulate national strategic ICT roadmaps by reputed international consulting organization(s). The inspiration is largely because of the NASSCOM-Mckinsey annual research studies and their success stories in India. The ICT Business Promotion Council (Ministry of Commerce) has recently decided to undertake such research studies for the Bangladesh ICT Industry. Different ICT industry associations in the country are also closely involved in designing the study. It has been felt that before designing the final Terms of Reference (ToR) of that study, it is important to take stock of the already completed studies / surveys carried out by different organizations / agencies during last few years on ICT industry in the country. So, this Desk Study was required.
Bangladesh ICT Industry Associations have long been planning for periodic comprehensive research studies to formulate national strategic ICT roadmaps by reputed international consulting organization(s). The inspiration is largely because of the NASSCOM-Mckinsey annual research studies and their success stories in India. The ICT Business Promotion Council (Ministry of Commerce) has recently decided to undertake such research studies for the Bangladesh ICT Industry. Different ICT industry associations in the country are also closely involved in designing the study. It has been felt that before designing the final Terms of Reference (ToR) of that study, it is important to take stock of the already completed studies / surveys carried out by different organizations / agencies during last few years on ICT industry in the country. So, this Desk Study was required.
Collect the useful research reports done over the last 10 years on the Bangladesh ICT Industry from different government bodies, ICT associations, NGOs focusing ICT, expert Individuals and the Internet. Make a qualitative judgment of those reports and separate the more useful ones for further analysis. Summarize the findings from the latter reports and, based on the methodology and the findings, comment on the quality of the report.
The reports can be broadly classified into six (6) gross categories: Software Industry, ICT Adoption, ITES, HCD/HRD, Overall ICT Industry, Telecom Infrastructure. These categories are informal and a bit arbitrary, and we did not follow any formal ICT Industry taxonomy here. We hope that the future in-depth comprehensive research studies will look into this and formalize according to our national priorities and global acceptance.