$5b ICT export target missed by huge margin. Here's why
Around 87% of Bangladesh’s total ICT exports in FY25 came from computer services – including software development, outsourcing, and IT-enabled services – while 13% came from telecommunication services, and less than 1% from information services
Highlights:
- Bangladesh's ICT exports hit $724.6m, far below $5b target
- Computer services make up 87% of total ICT exports
- Growth slowed by low investment, skills gaps, and policy issues
- Experts estimate true exports may exceed $1b, underreported officially
- Big investors avoid ICT due to slow, intangible returns
- Training in AI and emerging tech seen as key growth driver
Bangladesh's information and communication technology (ICT) service exports reached $724.6 million in the 2024-25 fiscal year, achieving only a fraction of the ambitious $5 billion target set by the ICT Division.
According to the latest data from the Export Promotion Bureau (EPB) and other official data, the export figure marks a 7.7% year-on-year growth, but it lags significantly behind regional competitors like Pakistan, which saw an 18% increase to a record $3.8 billion, and global leader India, whose IT exports soared by 12.48% to an estimated $224.4 billion.
Keep updated, follow The Business Standard's Google news channel
Computer services drive export growth
Around 87% of Bangladesh's total ICT exports in FY25 came from computer services – including software development, outsourcing, and IT-enabled services – while 13% came from telecommunication services, and less than 1% from information services.
Exports from computer services have grown steadily, from $239.9 million in FY19 to $629.5 million in FY25, driven by global demand for digital solutions, remote work, and automation. The segment now dominates Bangladesh's ICT export basket.
Currently, Bangladesh hosts more than 4,500 software and IT-enabled service companies, employing over 3,00,000 professionals. About half of these firms are members of the Bangladesh Association of Software and Information Services (BASIS).
According to BASIS data, the top ICT exporters as of June 2024 included Service Engine, Graphic People, BJIT, Therap (BD), Brain Station 23, Secure Link Services Bangladesh, Cefalo Bangladesh, KAZ Software, Golden Harvest Infotech, and Dynamic Solution Innovators.
Factors that limit expansion
Industry insiders have attributed the shortfall to low investment, policy gaps, limited private sector readiness, skills shortages, and corruption.
"Official data show IT exports at just over $600 million. But we believe the actual figure could exceed $1 billion, as the earnings of freelancers, small outsourcing firms, and some foreign-partnered companies are not captured in official statistics," said Habibullah Neyamul Karim, former president of BASIS, speaking to The Business Standard.
Karim added that the sector's growth remains largely organic, funded by reinvested profits from small and medium enterprises.
"With such organic growth, annual expansion beyond 10-15% is difficult," he noted. "If the total market is $1-1.5 billion with 5% net profit, that means only $75-100 million is being reinvested each year. To achieve $5 billion in exports, we need at least $10 billion in investment."
He stressed the need for both foreign and domestic large-scale investment, pointing out that Bangladesh lags in both areas.
"If the government offered training incentives, recruitment support, and tax benefits to foreign companies – as seen in Vietnam, the Philippines, or India – it would attract investment from both foreign and local investors," Karim added.
Investment and risk aversion
Experts note that large local conglomerates prefer to invest in manufacturing, where returns are more tangible and faster. By contrast, ICT investments often go into intangible areas such as skill development, marketing, human resources, and payroll – expenditures that take longer to yield returns, making large investors hesitant.
According to market intelligence firm Mordor Intelligence, Bangladesh's ICT market reached $8.88 billion in 2025 and is projected to grow to $12.07 billion by 2030. The ICT Division had set targets of $5 billion in exports by 2025 and $20 billion by 2031.
Skill development seen as a key driver
Currently, about 5,00,000 professionals are employed in the ICT sector, according to BASIS.
Industry leaders believe that targeted skill development in emerging technologies could unlock Bangladesh's export potential.
"Bangladesh can compete internationally by leveraging its cost advantage and large human resource base," said Musabbir Alam, chief financial officer of Brain Station 23. "Our workforce must be properly trained and marketed in the right way."
Former BASIS president Karim added that around 80,000-90,000 engineering graduates enter the job market each year, many of whom remain unemployed.
"If we can equip them with skills in AI, computer vision, blockchain, drone software, and 3D printing, they could serve clients worldwide from Bangladesh," he said. "Some success stories exist in semiconductor design and 3D printing, but the scale remains too small. We need 10,000-20,000 skilled workers in each sub-sector."
Unequal treatment and banking barriers
ICT entrepreneurs also expressed frustration over the lack of equal treatment compared to the ready-made garment (RMG) sector.
"For 20 years, we've heard that the government wants to diversify exports, yet all the benefits still go to garments. The IT sector doesn't enjoy the same support," said Rifat Abedin, executive director of Tiger IT.
She highlighted restrictive banking policies as another major obstacle.
"Banks demanded a 100% margin – Tk25 crore as security – just to issue a bank guarantee. If we lock away Tk25 crore for five years, where will we get working capital?" she asked.
Rifat also criticised Bangladesh Bank's restrictions on long-term performance guarantees, which limit local firms' eligibility for global projects.
