Getting close to USD 1 billion export target

Bangladeshi software developers are turning out to be quite adept at providing ICT-related services to cater to the growing export market. This fiscal, the country earned USD 800 million and the government target of reaching USD 1 billion next year is very much within reach. Going digital and turning Bangladesh into a hub for software development have been key interest areas for the government and considerable resources are being allocated every fiscal. It appears that these efforts are beginning to pay off.

The export earnings of Bangladesh Association of Software and Information Services (BASIS) members have been growing healthily these past few years. More than 60 percent of the net foreign exchange earnings come from software export. That we have moved beyond the lower end of the market (outsourcing) to more value added products like software reflects growing capabilities of our programmers. When we learn that software made in the country is being exported to 70 countries worldwide, we are elated. Some of the leading companies are competing with foreign companies and landing deals in foreign countries. This gives us hope that this sector should be recognised as an emerging export sector.

This brings us to the question of whether firms falling under the aegis of ICT and IT products and services should enjoy "cash incentives" by the government. If we want to engage the vast majority of educated but unemployed youth productively, then the area of software programming must be recognised as a budding export sector. The government should implement the 10 percent cash incentive declared last year for ICT export earnings to encourage more youth-driven companies to come forward, because this sector requires minimal capital expenditure and more human capital.