Since the early 2000s, the economy of Bangladesh has consistently grown at an annual pace of 6%. There is a massive growth and improvement in different sectors -education, health and manufacturing. In fact, as per a PwC report, the country is expected to become 28th largest economy in the world by 2030. These predictions is closely associated with the growth in the job market.
Take the example of Business Process Outsourcing sector of the economy that has grown nineteen times in last five years. Towhid Hossain, the Secretary General of Bangladesh Association of Call Center and Outsourcing or BACCO in his interview to The Independent last month stated that currently 40,000 people are employed in 120 BPO companies across the region. This growth is quite impressive considering in 2009, just 300 people were working in the sector.
BPO Market Share and Growth Story
Presently, the global market share of the BPO outsourcing sector stands at $500 billion. Although, Bangladesh has a tiny share of just $600 million from this large pie, the future of the industry looks promising. Here are some interesting insights to support that –
- Nearly 20,000-25,000 job seekers join the BPO industry each year
- In 2017, the earning rose to USD 230 million from USD 160 million in 2016; that’s 44% revenue growth in just one year
So, What is Driving the Growth?
In addition to a very ripe international BPO scene, the domestic market in Bangladesh has huge potential. The banking, telecom and government agencies are using the services of large BPO’s in the country to outsource number of processes that includes telesales and other contact center services. To sum up, this growth can be attributed to the following factors-
#1 Supportive Infrastructure
Outsourcing, namely the BPO sector is seen as a major thrust to get closer to the “Digital Bangladesh Vision 2021”. In view of this, the Government of Bangladesh have taken various steps by encouraging IT skill development. The decision to link Bangladesh to global highway through submarine cable link has fostered the ICT infrastructure in the country. This has lead to the improvement of internet connectivity and bandwidth, both necessary for the expansion and growth of the BPO industry.
#2 Cost Efficiency
As the outsourcing cost to traditional destinations like India, Philippines is increasing, Bangladesh is seen as the next terminal for diverting outsourcing needs. However, lack of proficiency in the English language is seen as a big hurdle. Mr. Hossain, general secretary of BACCO feels that emphasis on vocational training and tapping the full potential of the domestic BPO market will open up opportunities in the international market.
#3 Growing Competition
With the growth in internet connection, the ecommerce and digital banking sector in Bangladesh is slowly opening up. In 2009, the banks approved online payment and in 2013, online shoppers in Bangladesh could finally use debit/credit card for online transaction. Since the improvement in the delivery system, the e-commerce industry in the counter has boomed and the competition is becoming intense in this space.
With time, delivering unmatched customer experience and service will become the call of the day, furthering the relevance of BPO and contact centre in Bangladesh
BPO Summit Bangladesh 2018- 15th & 16th April
A joint collaboration between Department of ICT (DoICT) of ICT Division under the Ministry of Posts & Telecommunications and Information Technology of Bangladesh and Bangladesh Association of Call Center and Outsourcing (BACCO) , the BPO Summit Bangladesh 2018 was held on 15th and 16th of April at Dhaka. The summit hosted nearly 80 local speaker, 20 international speakers to discuss the future of BPO industry, especially in the context of job creation. For further understanding, the primary objectives of the summit can be summarized as under –
- Celebrate and showcase the success stories of Bangladesh BPO industry
- Discuss the impact and benefit of BPO industry and raise awareness amongst policymakers
- Portray the possible development and align it with Digital Bangladesh Vision 2021
- Create right value proposition and environment to direct both domestic and foreign investment
- Seek and adopt global innovation and best practices
Key Takeaways- BPO Summit Bangladesh
The crux of the BPO Summit Bangladesh was to raise awareness and transform Bangladesh as a global outsourcing hub, starting with business process outsourcing. To that effect, the key agendas discussed as the summit were-
# 1 Transition from 1st Generation to 3rd Generation Contact Center
In order to attract business process outsourcing from international destination, the BPO sector must undergo an infrastructural overhaul. This includes the incorporation of complete contact center suite that is designed to not only support great customer experience, but also acts as an enabling tool for businesses to improve their service.
# 2 Emphasis on Vocational & Soft Skills Training
It is important to invest in training and development centers so that the domestic workforce is at par with international standards. Emphasis on learning the English language, computer education and general awareness about the BPO sector is relevant for this exercise.
# 3 Adapting to Changing Requirement of Start-ups
Although the startup ecosystem in Bangladesh is still at a nascent stage, it has shown signs of growth. However, due to the lack of skilled manpower and laid back ICT infrastructure, these companies find it difficult to engage with local partners. Modernizing the existing infrastructure and driving a customer centric culture is therefore relevant to adapt to the changing requirement of the new breed of organizations and entrepreneurs.
How Ameyo Fits In This Vision?
The history and growth of Ameyo is parallel to the advancement in the domain of contact center industry. Ameyo contact center technology has witnessed the test of time and is aware of the challenges faced by an emerging economy, standing on the threshold of development. As a participant at the event, Ameyo has the requisite expertise to take Bangladesh closer to the 2021 vision.