Bangladesh can be the next big outsourcing destination: PwC

Bangladesh has tremendous potential to become the next big outsourcing destination banking on its demographic dividend and government initiatives aimed at attracting investments, a new study has said.

In its flagship report titled "Destination Bangladesh", PwC Bangladesh, a leading consulting firm, said Bangladesh managed to be an example of resilience in terms of economic recovery.

The economy recorded a 6.9% growth in the fiscal year 2020-21 and 7.2 % in 2021-22, despite the implications of the pandemic.

"With a high proportion of university-educated youth under 25 years of age, the outsourcing opportunity is attractive for the growth of the ICT or outsourcing-tech-savvy sector," the report said.

The PwC Bangladesh's report also highlighted the facilities Bangladesh was providing to attract foreign companies, including setting up 100 economic zones, in both public and private sectors.

Many of those are already operational and ready for investments and exports, said the PwC.

The report also underscored Bangladesh's extensive investment in the export sector and said it had provided 100% tax exemption to IT and IT-enabled service providers up to 2024.

It further highlighted the ICT infrastructure in the country, including the plan to develop IT professionals through 35,000 Sheikh Russel Digital Labs, and 39 hi-tech IT parks.

The report also touched upon the government undertaking various mega infrastructure projects, such as the Padma Bridge, metro rail and the Bangabandhu Sheikh Mujibur Rahman Tunnel under the Karnaphuli river.

"Significant progress has been made in terms of infrastructure development after the opening of the Padma Bridge," it said.

The PwC report said the incremental growth of the economy will be beneficial for the country in terms of its global economic standing. Investment in higher education, training, and healthcare from both public and private sectors will rise as a result of the country's graduation to a developing nation in 2026.

"Besides, the sovereign rating is also expected to lower risk premiums while making investments in debt and equity-based instruments," said the report.

It said Bangladesh has until 2027 to build the necessary infrastructure to remain competitive following the withdrawal of duty-free and quota-free market access after the country graduates from the group of least-developed countries.

Planning Minister MA Mannan launched the report at an event at the Sheraton Dhaka hotel.