Blog Post

Bangladesh is rapidly emerging as a significant player on the global stage, demonstrating substantial growth and untapped potential. Its dynamic market and burgeoning reputation have attracted the attention of leading international companies. In May 2021, global giants Google and Amazon established their presence in Bangladesh by registering their businesses. Dhaka, the capital, hosts offices of tech leaders such as Huawei, Microsoft, Samsung, Oracle, and Cisco. Additionally, Bangladeshi software engineers are making their mark by working for prominent organizations like Facebook.

Bangladesh is embracing digitalization and technological innovation as it advances into the fourth industrial revolution. The country has recently attracted numerous international businesses with its cutting-edge technology and stringent compliance standards.

Despite the challenges of a global pandemic, Bangladesh’s manufacturing sector has become increasingly competitive due to the presence of these innovative brands. Bangladesh is also a leading provider of sales and marketing support services, with a growing number of offshore software development companies driving a modern revolution in the industry. In recent years, the country has made significant strides in the global market, fueled by high offshore demand for its ICT products and services, such as IT solutions and custom software development.

According to major international financial organizations, Bangladesh is on track to become the 24th-largest economy in the world by 2030. A recent report by the Asian Development Bank forecasts that Bangladesh’s GDP will grow by 6.8% in 2021 and 7.2% in 2022. Over the past few years, the country has seen a significant increase in offshored software projects, with the number doubling annually.

What is Off-Shore Software Development?

Offshoring software development is a sound corporate strategy, driven by both technological and financial benefits, especially given the sector’s rapid growth. Outsourcing a variety of software development tasks—ranging from basic coding to custom development, software support and maintenance, mobile application development, and website design and development—relieves companies from the challenges of sourcing and training skilled labor. This approach ensures the delivery of high-quality software solutions in the shortest possible time, ultimately shortening the development cycle and speeding up time to market. In recent years, the number of software projects offshored to Bangladesh has nearly doubled annually. The software development and IT services sector now employs thousands of people, reflecting the industry’s significant expansion.

Consequently, Bangladesh’s key software-related exports to international markets, including Europe and North America, encompass custom software development, software quality assurance (SQA), design, and graphics. Recent research from Accelerance Analysis 2021 indicates that software outsourcing rates are rising worldwide. In the South Asian region, rates range from $19 to $75 per hour. In Bangladesh, hiring a software developer costs between $15 and $50 per hour, depending on factors such as project complexity, developer experience, project duration, and other considerations.

Pros of Off-Shore Software Development:

Choosing between developing software with in-house developers and partnering with an offshore team can be challenging, especially considering the critical nature of custom software development. However, offshore software development offers significant business advantages, including:

• Cost Efficiency: Offshore development can reduce costs significantly due to lower labor rates in many countries.
• Access to Skilled Talent: It provides access to a vast pool of skilled developers and specialized expertise that might be scarce or expensive locally.
• Scalability: Offshore teams allow for easy scaling of development efforts up or down based on project needs without the constraints of hiring and firing locally.
• Focus on Core Business: By outsourcing software development, companies can focus more on their core business activities and strategic initiatives.
• Faster Time to Market: Offshore development can speed up the development process, ensuring faster delivery and time to market for software products.
• Quality Assurance: Many offshore partners adhere to high-quality standards and best practices, ensuring the delivery of robust and reliable software solutions.

These advantages make offshore software development a compelling choice from a business perspective.

Skilled & Bottomless Resource Pool

Bangladesh is now recognized as a prominent offshore IT hub. Software development companies in Bangladesh prioritize agile offshore software development, aligning with contemporary industry trends. The country’s ICT industry, supported by 2 million IT experts, generated $5 billion in sales. Notably, Bangladesh was ranked eighth in a 2019 CNBC report listing the top 10 nations for freelancers. The overall cost of operation for typical custom software outsourcing in Bangladesh is significantly lower than in leading offshore software development countries like India and the Philippines. Additionally, there is an abundant supply of skilled and successful software engineers, making Bangladesh an attractive destination for offshore software development.

Hassle-Free Communication

A strong prospective talent pool is cultivated by the fact that two-thirds of the young, English-speaking population in Bangladesh attend high-quality educational institutions. These recent graduates are ambitious, hardworking, tech-savvy, and proficient in direct customer communication.

Moreover, Bangladeshi developers are well-versed and experienced in utilizing various project management platforms, such as Trello, Hubstaff Tasks, ClickUp, Bitrix24, and others. These tools enable clients to receive comprehensive updates on the project’s status, facilitating effective communication and mutual understanding.

Custom Software at a Bargain

Bangladesh offers custom software development at highly competitive rates, making it an attractive destination for businesses seeking cost-effective solutions. The combination of a talented workforce, affordable labor costs, and a focus on quality ensures that companies receive excellent value for their investment. Bangladeshi software developers are adept in a variety of technologies and methodologies, providing customized software solutions that meet specific business needs without breaking the bank. This affordability, coupled with the expertise and dedication of Bangladeshi professionals, positions the country as a prime location for obtaining top-tier custom software at a bargain.

More Emphasis on Core Business Pursuits

Offshore software development allows businesses to focus more on their primary strategies and executions by eliminating the need to oversee the intricate and time-consuming software development process. This approach frees up your business to concentrate on its core competencies, ensuring that your primary objectives receive the attention they deserve while expert offshore teams handle the development tasks efficiently.

Indulging in Popular Services and Technologies

In today’s fiercely competitive marketplace, businesses place significant value on tailored solutions that cater specifically to their unique needs, prompting the demand for custom software development. Software companies in Bangladesh have embraced this growing market trend, leveraging the latest technologies to meet the evolving demands of clients. With a commitment to innovation and adaptability, these companies are poised to deliver bespoke software solutions that empower businesses to thrive in dynamic environments.

Let’s see, which services are offered by top custom software development companies:

• Cloud-Based Solution Development
• Business Intelligence & Data Mining
• Native Android & iOS App Development
• Blockchain Development
• Software as a Service (SaaS) Development
• Ecommerce Development
• DevOps Solutions
• System Analysis & UX/UI Design
• Artificial Intelligence (AI) Based Application Development & Custom Software Development
• Website Design & Development
• Software Testing, Quality Assurance & Technical Support

.Net, Angular, React, NodeJS, Magento, Cross-platform and Hybrid Deployment, Big Data Analytics, Cloud-Based Solutions, Java, Kotlin, and Scala, among many others – are some of the most well-known and contemporary technologies used by off-shore software developers

Ecommerce software development is one of the most demanded services today and a crucial business opportunity for any company. Considering all of its advantages, Magento is one of the most widely used tools for creating eCommerce software. Consequently, developing your eCommerce platforms for the business using Magento is a wise investment

Obstacles of Hiring an Off-Shore Software Development Team:

• Different Time Zones
• Lack of highly experienced and qualified personnel
• Cultural & Language Differences
• Poor Understanding & Visibility of the Project’s Status
• Absence of face-to-face interaction
• Misalignment of Project Budgets
• The Possibility of Onsite and Offshore Teams Working Independently

Insights for Anyone Who Wants to Hire a Off-Shore Software Developer based in Bangladesh

Bangladesh primarily works with the USA and Europe on IT-related projects. The quick expansion of Bangladesh’s offshore development centers has made achieving such tremendous growth possible. Bangladesh used to see an annual increase in the number of offshore projects. Additionally, as the software sector has developed, it has created many new businesses
and provided opportunities for independent contractors.

Here are some recommended practices to help achieve your business goals, when you’re considering hiring an offshore software development team for your custom solutions:

 

• Get introduced to all of the off-shore developers, which creates a lucrative understanding.
• Create a highly skilled & qualified team.
• Employ an onshore and offshore team lead, who will monitor the progress & status of the project constantly.
• Set up video conferences for scheduled & timely meetings.
• Make use of the right tracking tools for software development.

These are all the essential elements that guarantee efficient and effective team communication. Consequently, they will be able to comprehend the nature of your needs and offer you the best possible software solution for your company.

Let us look at some of the most-hyped services that are being offered by software development companies in Bangladesh:

• Software Development and Web Application & Website Development
• Development and Hosting Services for Websites & Mobile Apps
• Technical Support & Maintenance for Software
• Development of Databases & Managed services
• Cloud Services & Infrastructure Development
• Services for Off-shore Custom Software Development

To Wrap Up!

It’s evident that outsourcing your software solutions makes financial and business sense. While it may seem daunting, offshore software development companies in Bangladesh are not as intimidating as they may appear if you take the time to select the right team and understand the risks involved. Maintaining transparency, fostering clear communication, and ensuring proper coordination throughout the project are essential factors for success. By adhering to these principles, you can navigate the offshore development process effectively and achieve your project goals efficiently. Thus, choosing the ultimate and right software development company will ensure that possibility and seamless experience.

Frequently Asked Questions (FAQs)

·       What factors should you focus on when choosing an offshore software development company?

When considering outsourcing partners, key factors to prioritize include their track record of accomplishments, geographical location, and capacity to scale in alignment with your business objectives.

·       What advantages do choosing an offshore software development company offer?

The benefits of choosing an offshore development company are saving money. interacting with professionals, lower risk factors, and thinking about other things.

·       Why is choosing offshore software development services preferable?

Companies opt for offshore software development services for these factors: the total cost for the project is lower, shared responsibility, turnkey basis, and finally, the constant availability of experts. They will always assist you if you are unsure of what to do.

·       Which is potentially the better option for software development, offshore or nearshore?

Nearshore software outsourcing is an option if you’re on a tight budget, want to communicate more easily in your native tongue, and are in the same time zone. However, you can choose offshore software outsourcing if you intend to have the best quality of the project.

Tech talent pool and young talent

Around 20,000 fresh Computer Science and Engineering (CSE) students are graduating every year in Bangladesh.
The growth of offshore software development in Bangladesh can be attributed to several key factors, including the availability of a large and young tech talent pool. Bangladesh boasts a significant number of skilled professionals, particularly in computer science and engineering, thanks to its robust education system and technological advancements.

The country’s improving literacy rate, driven by technology integration in education and government and NGO support, has further enhanced the skill level of the local workforce. This increased preparedness has fueled global demand for outsourcing custom software development from Bangladesh.

With a population exceeding 160 million, Bangladesh offers a vast pool of potential IT outsourcing employees, particularly since over 60% of the population is under 30 years old. This demographic advantage ensures a steady supply of young, skilled developers for the IT industry.

The Bangladeshi government has played a crucial role in supporting the growth of the IT sector by offering tax incentives, establishing special economic zones (SEZs) for IT companies, and attracting foreign investment.

Furthermore, freelancing has emerged as a significant source of income for Bangladeshi developers and graduates, with over 65,000 registered on platforms like Upwork. This trend highlights the country’s growing prominence in the global freelance market, further bolstering its reputation as a hub for software development outsourcing.

Low Cost of Talented Developer

The cost of living and labor in Bangladesh presents a significant advantage for companies seeking to outsource their IT needs. In comparison to developed countries, the average monthly salary for a software engineer in Bangladesh is just $288, a fraction of the $4,000 average in the United States. This wage gap becomes even more pronounced when considering the cost of living; for instance, the average rent for a one-bedroom apartment in Dhaka and Khulna is $250, compared to $1,500 in San Francisco.

Such discrepancies allow companies to save substantially on labor costs by outsourcing to Bangladesh. Moreover, the low cost of living makes the country an appealing destination for foreign workers. For instance, a meal at a restaurant in Dhaka costs just $5, compared to $20 in New York City, enabling workers to maintain a comfortable lifestyle on a lower salary.

These factors, including low labor costs and cost of living, are driving the growth of IT offshoring to Bangladesh. Companies can realize significant savings on labor while ensuring a high standard of living for their employees. As a result, offshore software development companies in Bangladesh emerge as highly attractive destinations for companies seeking to outsource their IT needs.

Advanced Infrastructure

The growth of IT offshore software development in Bangladesh is significantly propelled by the development of advanced infrastructure. The country boasts well-built and maintained roads, a reliable power supply, and excellent internet connectivity, ensuring smooth and uninterrupted execution of outsourced development projects.

Furthermore, Bangladesh has witnessed a rapid expansion in its telecommunications and power sectors, further enhancing its appeal as a destination for outsourcing IT needs. The telecommunications sector has undergone a notable transformation with the introduction of high-speed broadband and mobile networks, making Bangladesh an attractive choice for outsourcing. Similarly, significant investments in new power plants and transmission lines have bolstered the power sector, reinforcing Bangladesh’s allure for outsourced IT projects.

The Government of Bangladesh actively encourages foreign investment in the ICT sector and has set ambitious targets, aiming to generate export revenues of $5 billion by 2030. To support this goal, the Bangladesh Hi-Tech Park Authority is dedicated to facilitating technology policies, adoption, and employee skill development throughout the investment journey. Construction of 12 high-tech parks across Dhaka and other districts, initiated in February 2022, further underscores the government’s commitment to fostering a conducive environment for IT development and outsourcing.

• High-tech solutions: The project aims to better strengthen the ‘Digital Bangladesh’ program and the local IT industry with state-of-the-art networking systems, smart building solutions, and fiber optic connections.
• Supports the training of multiple individuals: These parks stimulate the training of 2,400 budding Bangladeshi developers dealing in robotics, machine learning, artificial intelligence, IoT (Internet of Things), and other advanced technologies.

Education that focuses on skill-building

The education system in Dhaka/Bangladesh is strongly focused on skill learning and building, making it an ideal location for offshore software development. Schools in Khulna, Dhaka/Bangladesh are well-equipped and staffed with qualified teachers who ensure students acquire the knowledge and skills necessary to excel in the workforce. This assures companies that their employees will receive a quality education while working in the region.

Additionally, universities in Khulna, Dhaka/Bangladesh maintain high standards, offering a wide range of courses to cater to diverse needs and interests. Skill-based learning fosters self-sufficiency, enabling individuals to generate their own income and contribute effectively to offshore software development in Bangladesh.

The dedication of the Khulna, Dhaka/Bangladesh government to enhancing the education system adds to the region’s appeal for offshore software development services.
Significant investments are being made to enhance the quality of education, ensuring a promising future for skill development.

With these favorable conditions, Bangladesh emerges as a country with immense potential in IT outsourcing and investments, poised for exponential growth in the years ahead.
Engaging in offshore software development in Bangladesh presents a strategic business decision for companies seeking to unlock their true potential and elevate their software development endeavors.

If you’re looking to harness the full potential of your business and elevate your software development aspirations, don’t hesitate to reach out to our team of software experts for assistance.