The recent fiscal year unveiled a downturn for Bangladesh’s IT export sector, with a 4.4% decline recorded in the initial five months, underscoring the challenges posed by a global economic slump. This period saw the country’s IT export revenue fall to $221.15 million from $231.34 million, signaling a decrease in global demand for software products and developer services, as reported by the Export Promotion Bureau (EPB).
Key export destinations, notably the United States, United Kingdom, and European Union, have exhibited stagnant or declining demand, compelling IT firms to reconsider expansion strategies. The most significant revenue drop occurred in software sales, witnessing a 31.63% year-on-year decrease to $16.19 million.
Ferdous Mahmud Shaon, CEO of Cefalo, a prominent software company, reported a demand reduction of 15 to 20 percent from the European Union, with Norway—a crucial market—experiencing notable downturns. This trend reflects broader economic challenges affecting startups and large corporations, leading to reduced investments and hiring freezes.
The sector’s difficulties are further exacerbated by the depreciation of the Bangladeshi taka against the US dollar, prompting outsourcing firms to delay repatriation of earnings in anticipation of further currency devaluation. Fahim Mashroor, a notable figure in the Bangladesh Association of Software and Information Services (BASIS), pointed out the strategic postponements by companies aiming to leverage currency fluctuations.
Contrastingly, Raisul Kabir, CEO of Brain Station 23, identified a silver lining with burgeoning demand in the Middle East and Africa, hinting at diversification opportunities. Despite these emerging markets, the overarching narrative for Bangladesh’s IT exports remains one of caution, with the sector facing its first decline in half a decade during the previous fiscal year—a setback for the nation’s export diversification ambitions.
The reduction in IT exports raises concerns, especially considering the sector’s potential as a secondary export driver after the garment industry. Rashad Kabir of Dream71 Bangladesh Ltd termed the situation “alarming,” attributing the downturn to the global economic crisis and a local talent shortfall. He advocated for a strategic pivot towards cutting-edge technologies like Artificial Intelligence, Blockchain, and Big Data to secure the sector’s future.
This scenario underscores the urgency for Bangladesh’s IT sector to adapt through skill enhancement, technological innovation, and exploring new markets. Facing global economic headwinds, strategic recalibration is essential for harnessing growth opportunities and navigating the challenges ahead.
BUSINESS GENERAL | Turkey and Greece Target $10 Billion Trade Boost: New Era of Economic Unity
