• ITeS sector fetches $ 1.4bn till Jan this fiscal
• 1.5 lakh jobs created in ITeS sector
• Govt targets $5bn ITeS exports by 2025

Exports of Information Technology-enabled Services (ITeS) will exceed the earnings of the garment sector in the next 10 years, said BASIS President Russell T. Ahmed.

The government has set a target to take ITeS exports to $5 billion by 2025. The sector fetched $ 1.4 billion till January this fiscal (FY 2021-22), according to data from the Bangladesh Association of Software and Information Services (BASIS).

“Prime Minister Sheikh Hasina has announced the ITeS as the product of the year in 2022 that helped boost the productivity of the ITeS industry,” Russell T. Ahmed said in an exclusive interview with the Daily Sun at his office at BDBL Bhaban in the capital recently.

The Information Technology-enabled Services (ITeS) include a large variety of different operations that uses information technology to upgrade the workability of organisations and businesses.

To foster the national target of $ 5 billion dollar export, an 11-member advisory panel and 20 standing committees have been formed to lead the sector to the next level through knowledge sharing among experts from different domains.

“We have focused on five strategies to attain the export target. The strategies focus on human resource development, policy linking, industry promotion, startup ecosystem and country branding globally to attract more investment,” Russell T. Ahmed said.

He said BASIS is working together with the government to formulate a framework for the ITeS sector in the line with the national goal of Vision 2041.

“The activities aligned with Vision 2041 have already begun in our sector,” said the BASIS president.

Earlier, the government announced 10 percent cash incentive against ITeS exports, and companies are enjoying tax holiday benefits till 2024. BASIS is working together with ICT Division to extend the facilities up to 2030.

The market size of the local ITeS is now around Tk 10 billion with 150,000 employments generated in this sector. There are 1200 active members among 1600 registered ventures under BASIS.

“Some 300 companies contributed behind the export earnings worth of $1.4 billion in 2021,” said the Basis president.

Russell said the BASIS has formed a research body to explore new destinations for Bangladeshi IT products.

“At present, the US is the largest market for Bangladeshi ITeS products, followed by Europe and Japan. We are continuing dialogues with international communities. BASIS delegates have already met with Japanese Ambassador ITO Naoki. Another meeting is scheduled with British High Commissioner Robert C Dickson next week,” he said.

BASIS is working for developing an ecosystem in collaboration with e-governance, digital commerce, financial technology, education tech, health tech and other domains of ITeS, Russell T. Ahmed said.

As the leading graduate-employing sector, the technology sector is facing challenges for skilled workforces, he added.

“To support the resource development, BASIS has planned to revive the BITM, a human development centre from BASIS which certifies the qualified resources,” said Russell, also the founder CEO of ClassTune.

According to the BASIS President, startups are the next big thing for Bangladesh economy in terms of attracting foreign direct investment and employment generations in the local market.

“Bangladeshi startups like Pathao, ShopUp and Ten Minutes School have proven their strength in bringing foreign investment in the country. The world’s top two venture capital firms are now investing in Bangladesh. That is only possible for the digital ecosystem,” Russell T. Ahmed said.

Pathao had raised funds from local and international investors as a company with $100 million evaluation. In the latest financing round, ShopUp raised an investment of $75 million.

As the latest venture, the online education platform 10 Minute School has raised $2 million in seed funding recently.

Considering the limitation in local access to finance for the tech companies, the BASIS President said the financial institutions are taking time to understand the sector due to a lack of recognition of the intellectual property (IP) in the country.

Regarding the recent unrest in the e-commerce sector, the BASIS president thinks that the performance of two or three companies never represents an entire industry.

“We want to work together with all stakeholders of tech industries to revive the trust in digital commerce, which is the future of the economy,” he said.

In the current 2021-22 FY, ITeS export earnings stood at $ 1.4 billion till January while the earnings were 1.3 billion in FY 2020-21. The ITeS companies earned 1.25 billion in FY 2018-19, according to BASIS.

The export earnings from ITeS sector crossed the $1 billion benchmark in FY 2017-18 from $800 million in FY 2016-17.

Bangladesh started exporting software in 1999. In the first year, the country exported software worth $ 2.8 million.

BASIS was established in 1998 as the national trade body for the software and ITeS industry of Bangladesh.