Export Performance (1) A few software companies have been exporting Software and Data Processing services. However, the total volume of such export is negligible and records are not available. Computer Solutions Limited, ANIRBAN, IBCS-Primax, BRAC, NACD and Machine Dialogue, are among the firms/organizations which have made some exports about which the Export Promotion Bureau (EPB) could collect some information. Despite their best efforts, EPB is still unable to procure documented evidence of actual exports Bangladesh has made. This is because the Committee says they can understand the reasons for the exporters' unwillingness to divulge such information. While all exporters received government patronage in some form or other, the government wants to increase the export level of software.
The following is a description of the three largest software export companies in Bangladesh, and the governmental support received by each:
IBCS-PRIMAX SOFTWARE LIMITED was recognized as an export oriented Software House and governmentally financed at a concessional interest rate.Page Index | Site Index
NORTH AMERICAN COMPUTING DYNAMICS was recognized as a 100 % export oriented Data Processing Service House. A bonded warehouse facility was made available and duty free imports of a substantial number of computers and peripherals were allowed.
BANGLADESH INFORMATION TECHNOLOGY GROUP LIMITED is a virtual Company consisting of 23 IT vendors in Bangladesh. This Company was expected to promote export of Software and Data Processing Services with the help of combined resources available with the share holding companies.
A report on the export of software from Bangladesh was prepared by ministry of commerce in September of 1997. The paper reviewed problems, and prospects of software development and exportation, and formulated short and medium term recommendations in "Fiscal," H/R, infrastructure, and marketing to promote exportation. The software industry in Bangladesh is small. Although bangladesh's neighbor, India, is one of the most successful countries in the software industry, only a few firms in Bangladesh are involved in export of software and data entry services, and the total volume of revenue generated is negligible. Major problems impeding the growth of the software industry were categorized into four functional areas:
| PROBLEMS | RECOMMENDATION |
| High rate of duties & taxes on software and hardware | Exempt all Duties & Taxes |
| Absence of export incentive | Tax Holiday for 10 years |
| Absence of Domestic software industry | Provide a 15% Domestic Price Preference for locally developed software |
| Complicated banking procedures | Allow export of Software and Data Processing services through Sales Contract, instead of Letters of Credit. |
| Bank borrowing rate is prohibitive | Reduce interest rate to the level of other export sectors |
| Difficulties in Customs clearance | Allow Special Custom bonded Warehouse facilities |
| Fund constraints for computer purchase | Create a Special Fund for giving interest free loans to teachers and students |
| Absence of sources of financing | Create a Venture Capital Fund of at least one million Tk. ($20,000) at Export Promotion Bureau |
| Absence of funds for market promotion | Create a Market Promotion Fund to be administered by EPB for meeting the expenses of promoting Bangladesh as a potential source of Software and Processing Services to the overseas markets. |
| Absence of funds for R & D | Create special fund for supporting industry oriented IT research and development activities, to be administered by BCC. |
Go To Report Topic: Fiscal, Human Resources, Infrastructure, and Marketing
Page Index | Site Index
| No strong government agency for promoting growth of IT, particularly HRD | Upgrade the BCC to the level of a Division, to be managed by professionals |
| Acute shortage of tutors | Ask BSS to produce within 1999 at least 1,000 trainers |
| graduates lack computer skills | Introduce 'Basic COmputer Skills' as a compulsory Subject for all students at Graduate level |
| Number of graduates in computer related degrees/diplomas in all institutions very low | Increase number of seats for IT related degrees in all Institutions (Universities, Colleges, BITs, Polytechnics) |
| Course curricula for computer related subjects do not reflect market needs | Review course curricula every two years and update as necessary |
| Quality control of computer training courses lacking | Empower BCC to develop national examination of certification system |
| Low level of computer literacy | Introduce compulsory computer studies at school levels |
| High level IT training facilities inadequate | Make BCC responsible for these needs |
| Little industry / academia interaction | Strengthen linkage of firms and institutions |
Go To Report Topic: Fiscal, Human Resources, Infrastructure, and Marketing
Page Index | Site Index
| No copyright protection for software, which deters foreign firms from out-sourcing from Bangladesh. | Enact copyright act as required under WTO Charter |
| Facility for high speed data communication is limited | Set up low-cost high speed data and voice communications with US and UK |
| Internet connection slow | Set up Internet Node in country |
| Internet connection expensive | Make connection available at affordable rate |
| No facility for video-conferencing | Make facility available through VSAT |
| BTTB satellite communication links slow and expensive | Allow private sectors to set up own satellite communication links |
| Customs clearance ports time consuming | Create separate cells at selected ports so that goods are cleared within 24 hours |
| Lack of latest books, journals, manuals | Create Central Resource Center at BCC |
| Association of firms involved in Software development/Data processing services does not exist | Encourage firms to form an association in line with NASSCOM., Assign one assistant director of EPD for software export on a full time basis |
| Non availability of facilities with essential IT infrastructure | Set up an Information Technology Village on Tongi-Ashulia Road near Dhaka with all necessary facilities |
| Poor national telecom infrastructure | Ask BTTB to set up ISDN/HDSN lines all over country, and a fiber optic backbone |
| No communication hub in country | Set up a communication hub in Bangladesh |
| No mechanism to implement, monitor, and update software export policy | Form a standing committee for software and data processing services. |
Go To Report Topic: Fiscal, Human Resources, Infrastructure, and Marketing
Page Index | Site Index
| Capability of Bangladeshi software is not internationally known | Arrange meetings/seminars in USA with a concentration of IT professional of Bangladeshi origin (e.g. Silicon Valley) |
| Piracy deters foreign firms | Ban piracy in public and private sectors |
| Domestic market is small | Encourage public to replace manual systems with computers through use of locally developed customized application software |
| Efforts to market Bangladeshi ability/products lacking | Send Marketing Missions to NA/EU, consisting of Members from IT Associations and EPB, on a regular basis. |
| No organized publicity of firms in software development | Create a database (by EPB and BCS of all major organizations engaged in outsourcing of software/data processing, and maintain a home page on the internet |
| Hard to obtain direct access to market | Explore sub-contracts from other countries |
| No participation in international fairs | Have EPBB ensure regular participation in major international exhibitions |
| No opportunity for exhibiting local software capabilities | Ask concerned trade association to organize international fairs in Bangladesh |
| No marketing in large software markets | Set up permanent liaison offices in USA/UK |
| Info on Bangladeshi IT professional lacking | Create database on IT professionals |
| Quality of Bangladeshi software unknown | Encourage IT industry members to take steps for certifications |
| Opportunities for IT manpower not exploited | Produce IT professionals for export |
Go To Report Topic: Fiscal, Human Resources, Infrastructure, and Marketing
Page Index | Site Index
Dolphin Computers Ltd is LARGE software house in Bangladesh. They have an infrastructure which includes high speed workstations with allied Servers fully equipped with utility software for high volume database software development and
text writing. They also have IT professionals that add up 30 wo/men-years of experience. Skills that people in software development posses include: C and C++, Microsoft Visual basic, Microsoft Visual Fox Pro, Microsoft Fox Pro, Microsoft SQL Server, and Oracle. They are also trained on state-of-the-art software development and tools such as HP Backup systems, IMMATION Super disk drives, 3Com LAN and WAN products, Microsoft Software products (As a value added reseller), Novell Netware Operating System, and SCO UNIX operating System.
The company undertakes large scale database software development job, Web/Internet software, and Internet-Intranet solution development etc. They have developed software for applications such as Production planning and control, Store management and Inventory control, Finance and MIS, Payroll and Personnel analysis, Shipping software, Garments software, Material and Asset management for industries.
Page Index | Site Index
Innumerable computers across the country went out of on April 26 this year (1999), due to a computer virus that is programmed to affect computers operating on Windows 95 and 98 on April 26 every year. Over 3,000 of the 50,000 computer hit of the computers hit were in high profile organizations, not to mention the chief Aftabul Islam. Backed up data may have been recoverable, but the computers still had to be reformatted, and all software re-installed. The US Embassy and Dhaka Stock Exchange, banks and pharmacies, and even Proshika and Dolphin Computers (from above) were hit. The virus, named CIH 1.2, was to hit on April 26 to mark the 13th anniversary of the Chernobyl disaster. It was spread through pirated software. The virus, originating in Taiwan, effects the .exe files and goes unnoticed till it is intended to hit. However, anti-virus programs (even free ones) could've detected it. The government even put warnings on it out, and how to find out if your computer had it.
Page Index | Site IndexGrowth In Software (4)
The Bangladesh Computer Samity has a show every year at which they continue to hold an anti-piracy drive at the end of the show. They apprehended more than 3,500 software programs this year, but they were undecided what to do with the seized illegal software. Executives of the Samity said they successfully convinced the participants in the show to give up the illegal trading. All of this anti-piracy is part of a prospectus to expand the local software market by creating a safe industry for development of local software entrepreneurs. There has also been a recent boost in software development industry by setting up the proposed soft-ware technology park (STP) without any further delay. It is currently not in effect.
Page Index | Site Index