Bangladesh has consistently shown an upward job market curve since the 2000s. And the Business Process Outsourcing (BPO) sector has grown 19 times over the last five years. The numbers indicate that 40,000 people are working in 120 BPO companies in the country presently. Are you curious to see what the future holds for BPOs in Bangladesh?
Keep reading to understand its prospects and factors that impede its growth.
BPO Market Size
While the global market of the BPO sector stands tall at $500 billion, Bangladesh stands behind less than a billion dollars – $500 million. Although it has a tiny little share of the market compared to many other neighboring countries, the future of the BPO industry looks promising for Bangladesh. Some more insights that support the growth curve of the BPO sector are:
- Typically, 20,000 to 25,000 entrants secure jobs in this sector every year.
- In 2017, the earnings from the BPO industry amounted to $230 million from $160 million in 2016, with 44% revenue growth in a year.
- According to estimates, the sector will generate employment for 1 lakh people and revenue of about $0.5 billion by 2021.
What’s Driving the Growth?
The international BPO landscape and the domestic market also show massive potential for growth in recent years. There are multiple factors behind the surge in the BPO market.
- Bangladesh’s government has taken steps to bolster IT skills development.
- It includes the decision to link Bangladesh to a global highway through a submarine cable network, fostering the ICT infrastructure. It led to the improvement of internet connectivity and bandwidth in the country.
- With the growth in connectivity, the eCommerce and banking sector is also making headway, becoming more competitive. In 2009, the banks approved online payment and introduced debit/credit cards for online transactions in 2013.
- Also, the cost-effectiveness is a major draw for businesses to choose Bangladesh over other major players like India and the Philippines. The country is becoming the next big destination to fulfill global outsourcing needs.
After a while, the unmatched customer experience and service will boost the further relevance of BPO and call centers in Bangladesh.
The Challenges in BPO Sector
As we have seen, there is much potential to make its BPO sector successful. However, there are some looming challenges that only the government can solve.
- The unavailability of a large pool of skilled workforce with English proficiency is one of the biggest hurdles.
- The country’s poor infrastructure and internet connectivity are other challenges that must get addressed for better opportunities.
After addressing these challenges, Bangladesh can become a preferred destination for global companies. The stress on vocational training and tapping the full potential of the domestic BPO market can further augment its position in the international market.
The Way Forward
Whether you want to employ BPO services or looking it from the business aspect, there is a vast opportunity for Bangladesh. If the government plays its part in providing cost-effective internet access, it can push the economy upward substantially.
Outsourcing solutions are an effective way to access skilled personnel without hassles. So don’t fret; the BPO sector is progressing, and you should too!
