Information Technology in Bangladesh

Analysis:  Impacts on the Business

Software development as become the golden fleece for Bangladesh in recent years.  Weather or not these wishes to become the next India form or not depend on what the government wants to do with privatization and enforcement of property rights.  No company wants to spend years on a project to have it stolen by the kid next door.  At this point, privatization seems to be at a stand still, but enforcement of property rights is coming along.

Since internet connectivity reached bangladesh in 1997, people in Bangladesh has been able  to open their doors to the outside world more than before.  Slowly, companies were able to post messages on web sites from hosts outside of Bangladesh.  Then companies within Bangladesh became ISPs, thus paving the way for companies with in Bangladesh to eventually have a web site of their own.  This means greater market penetration for Bengali business people.  However, as yet, e-commerce in the 'traditional' sense is not available (one can't order on line).

Since the infrastructure in Bangladesh was so lousy, companies couldn't reach rural areas via tradition means such as telephone.  Then cellular came along, unregulated and aimed at growing.  Now businesses can set up shop in small towns, and be able to be within a phones reach for emergencies or even day to day updates on business activities.  This again means more market expansion for Bangladesh's business wo/men.

A major ingredient needed for IT, which we in the U.S. sometimes take for granted, is electricity.  Bangladesh is constantly in a state of black outs and brown outs.  They don't import electricity to fix this either (India, their only real next door neighbor, has the same problem).  Currently the government is working with the World Bank on an electricity solution.  Until this occurs, businesses will have to have generators on constant back-up, which can be quite costly.

Due to the insignificant numbers and percentages of IT requirements (computers, telephone lines, electricity), IT hasn't been able to make the impact that it has in the west.  For instance, enterprise wide systems are slim to none in Bangladesh.  However, as IT capabilities (and cash flow) in Bangladesh begin to expand, ERPs will probably make their way.  Then bangladesh will be able to re-think the way they do business from an IT point of view.

In a nut shell, IT does impact Bangladesh, but not to the point that businesses can re-think how they do business.



About Bangladesh        Telecommunication Infrastructure        Privatization & Deregulation
Hardware manufacturing        E-Commerce      Software Development      IT Usage
 IT Geographics        IT Financing        IT Labor Market        Government Policies
Legal Environment        IT Strengths & Weaknesses       Impacts on Business
Sources and Links     About the Author        Main Menu for Bangladesh


Last updated December 17, 1999 by Anjali Phukan