AI push lifts outsourcing exports near $1b already in first half

Infograph: TBS

Fewer people, less time, better output.

This is how the rapid adoption of artificial intelligence (AI) is transforming Bangladesh's IT, IT-enabled services (ITES), business process outsourcing (BPO) industry and individual freelancers.

AI tools are enhancing both the technical and English proficiency of the country's young workforce, narrowing the long-standing skills gap with global competitors. They are driving faster automation and opening the door to more sophisticated, higher-value opportunities.

The payoff is already visible. Bangladesh's outsourcing earnings surged to $900 million in the first half of 2025, surpassing the $850 million earned in the whole of 2024, according to Tanvir Ibrahim, president of the Bangladesh Association of Contact Center and Outsourcing (Bacco).

"AI is a blessing to minimise our skill gap with other countries. Our work orders have increased," Tanvir told The Business Standard.

Consider medical transcription. It once took a decade to train 1,000 skilled professionals, but with AI, the industry can now prepare 1,000 per year.

Even computer science graduates in Bangladesh often lack the technical depth required for global outsourcing. 

"Let's not even talk about coding. But they desperately want jobs," added Tanvir, who also serves as country director of Automation Solutionz Bangladesh. "Now 75% of our coding tasks are done by AI and the rest by humans. It saves time and money."

AI tools are also cutting costs in video editing and animation, which were once expensive and time-consuming.

The transformation is equally visible at the Kow Company. Its co-founder, Kowser Ahmed, had just set up the firm in March 2020 when the coronavirus pandemic hit. Instead of retreating, he doubled down on AI, hiring engineers to build AI-driven imaging solutions.

That gamble is paying off. Today, 30–40% of the company's imaging work is AI-powered. A 3D design that once took six hours is now finished in just one. "Before AI, the work we did with 100 people is now done by 25–30," Kowser told The Business Standard.

The Kow Company, which produces images and videos for e-commerce, retail, apparel, automotive, food and real estate firms, has since emerged as one of Bangladesh's fastest-growing outsourcing firms. Nearly 600 people now work there, while exports grew by over 20% in FY2024-25. This year, they are projected to grow as high as 35%.

Rashed Noman, CEO of Augmedix BD Ltd, said the outsourcing market is expanding rapidly thanks to AI tools that deliver higher efficiency and better quality.

"We are receiving more work orders, and the volume will continue to rise in the coming days," Rashed told TBS. To meet the additional demand, Augmedix hired 40 data analysts in July alone, he said.

Augmedix, now a leading Bangladeshi outsourcing company with 1,300 people and monthly orders worth over $1 million, recalls its early days when medical transcription was entirely manual.

"We had to type extensively and then review for accuracy. It took a lot of time and manpower. Life is easier now because we've developed our own AI tools," he said. "This allows us to serve more customers."

Bangladesh's earnings from BPO still peanuts

Bangladesh's export earnings from BPO and ITES are set to cross $1 billion for the first time this year. But the figure remains negligible compared to regional giants India and the Philippines.

India, a global outsourcing powerhouse with strong dominance in IT and related services, earned nearly $200 billion from outsourcing exports last year. The Philippines, meanwhile, generated around $75 billion from BPO, business process management (BPM) and ITES exports.

Bacco President Tanvir said the country's outsourcing income will continue to grow as new firms enter the sector. "Some 15 companies are joining every month," he noted.

He also pointed out that Bangladesh's actual earnings are at least double the reported figure since a significant portion of proceeds never enters the country through formal channels.

Augmedix CEO Rashed said Bangladesh has a strong opportunity to tap into the outsourcing boom, but success depends on skilled manpower.

"Our students must upgrade themselves and gain deeper knowledge in technology and data," he said.

According to Bacco, there are approximately 450 BPO companies in the country, employing around 90,000 people. Approximately 650,000 more are engaged in freelancing.

Freelancers moving up the value chain

Individual freelancers, who once survived on low-skill and low-paying tasks, are now riding on artificial intelligence to move up the value chain – boosting productivity, improving quality, and shifting towards better-paid work.

Take Saiful Islam, a Dhaka-based freelancer. For the past five years, he has been doing data entry jobs for overseas clients. With AI tools at his disposal, Saiful no longer just enters data – he analyses market information to identify emerging trends and in-demand skills.

Data entry and virtual assistance have long been the entry point for many Bangladeshi freelancers, involving routine tasks like data collection, spreadsheet management, and administrative support. But now, with AI, the scope is widening.

Bangladeshi freelancers are increasingly sought after for designing logos, websites, banners, and social media graphics. 

Many have moved into more complex areas such as video editing, motion graphics, and even 3D modelling. Content writing is another big area – ranging from blogs, copywriting, and translation to proofreading and editing.

Ashik Mahmud, who left journalism a few years ago to freelance full-time, now works on due diligence assignments for clients looking to invest in Bangladesh, alongside content writing.

"I found AI very helpful. I check grammar and fine-tune my content with it," he told The Business Standard on Wednesday.

Challenges of AI adoption

While AI has unlocked new opportunities, many Bangladeshi freelancers still struggle to fully benefit from the technology.

The high cost of advanced tools remains a major barrier. Platforms such as ChatGPT, Adobe Firefly or professional video-editing suites charge between $20 and $100 a month, an expense that is steep for freelancers with irregular incomes. 

Many therefore rely on free or trial versions, which limit functionality and raise security risks.

Another concern is changing client expectations. Overseas employers often assume that AI can deliver instant results at lower costs. Freelancers say this perception overlooks the value of human judgement and creativity.

"Clients now ask why I charge $50 for a task when an AI tool can generate a draft in minutes. But they forget I spend hours refining, fact-checking and making it usable," said one Dhaka-based freelancer.

Digital literacy is another factor. While younger freelancers are quick to adopt new tools, a large share of Bangladesh's freelance workforce struggles with cloud-based workflows, advanced software and prompt engineering skills required to get the most out of AI.

Despite these obstacles, industry leaders say Bangladesh's BPO and freelance sector is only at the start of its AI-driven transformation. 

With global demand for data analytics, healthcare support, creative design and multilingual content services on the rise, Bangladeshi firms see the chance to expand into more specialised and higher-value niches.