IT Services - Bangladesh

Bangladesh

The IT Services market in Bangladesh is expected to witness a significant rise in revenue, reaching US$1.85bn by 2024.
Among the various segments, IT Outsourcing is projected to dominate the market, with an estimated market volume of US$0.67bn in the same year.
This segment's dominance is attributed to its ability to provide comprehensive IT solutions to businesses.
Furthermore, the IT Services market is anticipated to display a steady growth rate, with a compound annual growth rate (CAGR) of 12.27% between 2024 and 2029.
This growth trajectory is expected to result in a market volume of US$3.30bn by 2029, indicating a flourishing IT industry in Bangladesh.
In terms of spending, the average Spend per Employee in the IT Services market is projected to reach US$23.61 in 2024.
This metric highlights the investment made by companies in Bangladesh to enhance their IT infrastructure and services.
When compared globally, it is worth noting that United States is expected to generate the highest revenue in the IT Services market, with an estimated US$522.00bn in 2024.
This underscores United States' position as a key player in the global IT industry.
Overall, the IT Services market in Bangladesh is poised for substantial growth, driven by the dominance of IT Outsourcing and a favorable market environment.
Bangladesh's IT Services market is experiencing a surge in demand as the country becomes an attractive outsourcing destination for global businesses.

Key regions: United States, China, India, Japan, Germany

Definition:
The IT Services market encompasses a wide range of services used by organizations to create, manage, and deliver information, and it includes services that provide assistance with various other business functions. The primary goal of IT services is to ensure that information technology infrastructure, applications, and systems are effectively implemented, operated, and optimized to support an organization's business objectives and requirements. The specific range of services offered may vary depending on the service provider and the client's requirements.

Structure:

IT Services contains four distinct markets that are based on different services:

IT Consulting & Implementation covers advisory services that help businesses evaluate their technology strategies and align them with their business strategies or internal processes.
Business Process Outsourcing (BPO) refers to the transfer of entire business processes or individual activities from a company to a third party and is often IT based. BPO covers a wide variety of business processes, usually either in the back office (e.g., human resources) or in the front office (e.g., customer service in call centers).
IT Outsourcing refers to the external contracting of all IT-related services instead of relying on company-owned resources. In an IT context, these activities include IT administration, IT application, and web hosting services.
The Other IT Services market covers revenues for areas that are not specifically mentioned in the other markets, such as system integration, software installation and support, and IT education and training.

Additional Information:

The IT Services market comprises revenues, revenue change, average spend per employee, and a list of the key players in the market and their consolidated revenues. Market values represent revenues that are generated by primary vendors either directly or through distribution channels at the manufacturer price level (excluding VAT). Reported market revenues include spending by enterprises (B2B) and governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed. Key players in the market include IBM, Cognizant, Hewlett Packard Enterprise, and TCS.

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Market

Region

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Analyst Opinion

Bangladesh, a country in South Asia, is experiencing a surge in the demand for IT services.

Customer preferences: The increasing adoption of digitalization and the need for technological advancements have driven the demand for IT services in Bangladesh. Businesses in the country are looking to enhance their productivity and efficiency by implementing digital solutions. Additionally, the growing popularity of e-commerce platforms has increased the need for IT services to support online transactions.

Trends in the market: One of the notable trends in the IT services market in Bangladesh is the rise of outsourcing. Many businesses in developed countries are outsourcing their IT services to Bangladesh due to the cost-effective nature of the market. This trend has led to the growth of the IT services industry in Bangladesh, with many local companies offering outsourcing services to international clients.Another trend in the market is the increasing demand for cloud-based solutions. With the rise of remote work and the need for data storage and accessibility, businesses in Bangladesh are turning to cloud-based solutions for their IT needs. This trend is expected to continue as more businesses shift towards digitalization.

Local special circumstances: The IT services market in Bangladesh is unique due to the country's large population of tech-savvy young people. With over 60% of the population under the age of 30, there is a large pool of talent available for the IT services industry. This has led to the growth of many local IT companies, as well as the establishment of international companies in the country.

Underlying macroeconomic factors: The IT services market in Bangladesh is also influenced by the country's economic growth. Bangladesh has experienced steady economic growth in recent years, with a focus on developing its technology sector. The government has implemented policies and initiatives to support the growth of the IT services industry, including tax incentives and the establishment of technology parks.In conclusion, the IT services market in Bangladesh is experiencing significant growth due to the increasing demand for digital solutions, outsourcing, and cloud-based services. The country's large pool of tech-savvy young people and government support for the technology sector are also contributing factors to the market's growth.

Methodology

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.