Outsourcing has become a popular business strategy for organizations seeking cost-effective solutions and specialized expertise. Bangladesh, a country in Southeast Asia, is one of the rising destinations in this manner.
Bangladesh has become popular with its increasing technology advantage and friendly business environment. Apart from manufacturing, the country can also accommodate
This guide will explore how to outsource to Bangladesh and why companies consider it the next outsourcing destination.
Overview of outsourcing to Bangladesh
Outsourcing to Bangladesh has become increasingly popular in recent years due to its skilled workforce, competitive pricing, and favorable business environment.
The country has been rapidly growing since 2004, with a recorded economic growth rate of 5.5% every year. The textile industry is cited as its root of prosperity, which until now is still the country’s trademark.
With a whopping 53 million internet users in 2022, Bangladesh has also seen a boom in its digital economy. This growth is further expected as part of the government’s goal of fostering national development and prosperity by 2041.
Bangladesh’s strategic location and time zone compatibility with Western countries are additional advantages that make it an attractive outsourcing destination.
Benefits of outsourcing to Bangladesh
Businesses can enjoy the following benefits when they outsource to Bangladesh:
Access to a talented workforce
Bangladesh boasts a large pool of highly skilled professionals across various industries, including:
- Software development
- IT services
- Graphic design
- Customer support
- Content writing
These professionals are well-educated and proficient in English, making communication smooth and efficient.
For instance, thousands of computer science graduates enter the job market every year in Bangladesh. This ensures a steady supply of technical talent for outsourcing projects.
One of the primary advantages of outsourcing to Bangladesh is its cost-effectiveness. Compared to hiring in-house staff or outsourcing to other countries, Bangladesh offers significant cost savings without compromising quality.
Salaries and operational expenses are generally lower in Bangladesh, with the average salary being BDT 26,100 (USD 236.59). With this, businesses can maximize their budgets and invest in other areas of growth.
Another study by the World Bank showed that labor costs in Bangladesh are significantly lower compared to countries like India, China, and the Philippines.
For example, a software developer in Bangladesh may cost 30-40% less than in Western countries.
Improved efficiency and compatibility
With time zone compatibility with many Western countries, outsourcing to Bangladesh ensures overlapping working hours. It facilitates real-time collaboration and faster project turnaround times.
This enables businesses to seamlessly operate across different time zones, enhancing overall efficiency and productivity.
Infrastructure and technological advancements
Bangladesh has made substantial progress in improving its infrastructure and technological capabilities.
The country has invested heavily in developing modern office spaces, reliable internet connectivity, and state-of-the-art technological infrastructure.
According to Statista, 4G network coverage in the country has reached 99.06% in 2023, with an average speed of 18k bits/second. ICT services export per capita in the country, meanwhile, amounted to €3.78.
This improvement enables seamless communication and collaboration between clients and Bangladesh-based outsourcing teams.
Favorable government policies and incentives
The Bangladesh government has introduced several initiatives to encourage outsourcing and attract foreign investment.
These policies include tax incentives, export promotion zones, simplified business registration processes, and legal frameworks that protect intellectual property rights.
Such supportive measures provide businesses with a conducive environment to establish long-term partnerships and drive successful outsourcing ventures.
Challenges of outsourcing to Bangladesh
While Bangladesh offers numerous benefits for outsourcing, certain challenges need to be considered.
News reports state that corruption remains a main disadvantage in outsourcing to Bangladesh. It overshadows major issues persisting in the country, such as inflation and liquidity crisis.
With regard to outsourcing services, businesses might encounter the following hindrances when delegating their services:
Working with a geographically distant country like Bangladesh requires an understanding of their work ethics and cultural differences. These differences can impact communication styles, work ethics, and decision-making processes.
Being aware of and respecting cultural nuances will help foster stronger relationships with outsourced teams.
Despite significant improvements, some infrastructure limitations remain in certain areas of Bangladesh.
Power outages and inconsistent internet connectivity can occasionally disrupt operations. However, these issues are gradually diminishing with ongoing infrastructure development initiatives.
Although English proficiency is good in Bangladesh, there may be occasional language barriers.
The country ranked 8th in Asia in English proficiency ranking and 60th out of 113 countries worldwide. This indicates that the country is at a moderate proficiency level as compared to its neighboring countries in Asia and all over the world.
Ensuring clear and effective communication during project discussions, requirements gathering, and team coordination is essential.
Proper documentation and regular feedback sessions can mitigate language-related challenges.
Time zone differences
While time zone compatibility is an advantage in some aspects, it also poses certain challenges. For instance, when urgent product concerns arise, development teams can find difficulties in collaborating with their clients overseas.
Organizations must plan schedules, allocate tasks, and establish communication channels that address time zone differences.
Proactive planning and effective collaboration tools can help manage these challenges successfully.
Quality control and project management
Ensuring quality control and effective project management can be a concern when outsourcing to any location, including Bangladesh.
The teams’ differences in work styles and knowledge of project management strategies can hinder how the clients and offshore teams collaborate. It also affects how business leaders check the quality of their work.
Establishing clear guidelines, regular progress tracking, and open communication channels are essential measures to maintain quality standards and meet project goals.
Steps to outsource to Bangladesh
Outsourcing to Bangladesh works the same as outsourcing to other countries, with added precautions.
Here are the steps and best practices to keep in mind when you outsource to Bangladesh:
- Determine your outsourcing needs. Clearly identify the tasks or projects you plan to outsource to Bangladesh.
- Research and shortlist service providers. Conduct thorough research to find reputable service providers specializing in your required outsourcing services.
- Evaluate service provider capabilities. Review portfolios, client testimonials, and case studies to assess shortlisted service providers’ expertise and track record.
- Establish communication channels. Establish effective communication solutions to ensure seamless information exchange between you and your offshore team.
- Define project scope and requirements. Clearly define project scope, objectives, deliverables, and timelines in collaboration with the outsourcing team.
- Agree on pricing and terms. Negotiate pricing and contract terms that align with your budget and requirements.
- Initiate project kick-off. Initiate the project by sharing project-related documents, providing necessary access, and scheduling regular update meetings.
- Maintain regular communication. Maintain open lines of communication throughout the project duration to address queries, provide feedback, and track progress effectively.
- Monitor performance. Regularly monitor project performance against agreed-upon milestones and provide constructive feedback and guidance as required.
- Review and improve. Conduct regular reviews to assess project outcomes and identify areas for improvement in future ventures.
Services you can outsource to Bangladesh
Bangladesh is known for its textile and manufacturing outsourcing services. Big brands such as H&M, Gap, and Adidas have reportedly been delegating manufacturing services to the country to keep up with their production.
Apart from this, a wide range of services can be effectively outsourced to Bangladesh, including the following:
Bangladesh houses a large number of skilled software developers capable of building customized development solutions. This includes software products, web applications, mobile apps, and e-commerce platforms.
These professionals are well-versed in various programming languages and frameworks.
IT services and support
Bangladesh has a vibrant IT services industry, catering to businesses of all sizes.
Outsourcing IT services and support to Bangladesh offers cost-effective solutions for managing an organization’s IT and network offshore.
Some of their catered services are the following:
- IT infrastructure
- Network management
- System administration
- Technical support.
Bangladeshi graphic designers and multimedia professionals are known for their creativity and artistic skills. They can provide holistic services, from logo design, brand identity development, website design, UI/UX design, and video editing, to animation.
Bangladesh has a large pool of English-speaking professionals who can handle customer support inquiries, technical helpdesk services, and telemarketing.
The country’s cultural affinity with foreign markets aids in establishing strong customer experiences.
Content writing and digital marketing
Highly skilled content writers in Bangladesh can create engaging website content, blog articles, and social media posts.
Additionally, professional digital marketers can assist with search engine optimization (SEO), pay-per-click (PPC) advertising, and social media management.
Bangladesh is among the next best places to outsource
Bangladesh has emerged as a prominent outsourcing destination due to its skilled workforce, cost efficiency, supportive government policies, and improved infrastructure.
With a young and dynamic workforce, the country offers various benefits for outsourcing services across industries.
Organizations worldwide recognize the potential of outsourcing to Bangladesh to increase productivity, access specialized skills, and drive business growth.
By leveraging the benefits they offer, firms can achieve cost-effective solutions without compromising on quality or efficiency.