IT Outsourcing - Bangladesh

Bangladesh

Revenue in the IT Outsourcing market is projected to reach US$673.60m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 15.17%, resulting in a market volume of US$1,365.00m by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach US$8.61 in 2024.
In global comparison, most revenue will be generated in the United States (US$197.30bn in 2024).

Key regions: Netherlands, United States, Japan, Germany, Italy

Definition:
The IT Outsourcing market refers to the external contracting of IT functions, services, or projects instead of relying on company-owned resources. By outsourcing IT tasks (e.g., to IT suppliers or software developers), enterprises are able to focus on their core functions and save internal resources and costs (e.g., office space, maintenance, and utilities). Thus, outsourcing teams becomes a viable cost resilience strategy in an environment where companies are looking to save money more than ever.

In an IT context, these activities include IT administration, IT application, and web hosting services. Non-IT-related outsourcing services are excluded.

Structure:

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

Administration Outsourcing refers to the market for services associated with the external sourcing of typical IT administration tasks such as hardware supply, setup, configuration, maintenance, security, and support.
Application Outsourcing refers to the market for all IT application services in a software production context, spanning from requirement assessments to concept and design of software applications.
Web Hosting includes all types of internet hosting services that allow companies or individuals to provide access to their web page via the World Wide Web.
Other IT Outsourcing refers to aggregated revenues of the types of IT outsourcing that are not specifically mentioned in the other IT Outsourcing markets, such as infrastructure outsourcing, network outsourcing, and managed services.

Additional Information:

The IT Outsourcing market comprises revenues, revenue change, average spend per employee, and revenues of the outsourcing types. 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, Accenture, Capgemini, NTT, and Hewlett Packard Enterprise.

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Market

Region

Region comparison

Currency

Analyst Opinion

Bangladesh has emerged as a significant player in the global IT outsourcing market, with its IT industry growing at a rapid pace.

Customer preferences: One of the reasons for the growth of the IT outsourcing market in Bangladesh is the increasing demand for cost-effective and high-quality IT services. Many companies from developed countries are outsourcing their IT services to Bangladesh due to the availability of skilled IT professionals at a lower cost. Additionally, the country's strategic location and time zone advantage make it an attractive destination for outsourcing services.

Trends in the market: The IT outsourcing market in Bangladesh is witnessing a shift towards more complex and value-added services. The country is moving up the value chain, providing services such as software development, cloud computing, and big data analytics. The government is also taking initiatives to promote the IT industry by providing various incentives and tax benefits to IT companies.

Local special circumstances: The IT outsourcing market in Bangladesh is unique due to the country's large pool of young and talented IT professionals. The country has a high number of IT graduates, and the government is taking initiatives to provide them with the necessary training and skills to compete in the global market. Additionally, the country's low labor costs and relatively stable political environment make it an attractive destination for IT outsourcing.

Underlying macroeconomic factors: The growth of the IT outsourcing market in Bangladesh is supported by various macroeconomic factors such as the country's stable economic growth, increasing foreign investment, and favorable government policies. Additionally, the country's large population and growing middle class provide a significant market for IT services. The government is also investing heavily in infrastructure development, including the development of the IT sector, which is expected to further boost the growth of the IT outsourcing market in Bangladesh.

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.