IT SERVICES MARKET IN BANGLADESH

Enterprise resource planning (ERP) software is one of the most popular investments in Bangladeshs thriving IT sector, where overall spending is considerably up in recent years. New research by market intelligence firm AMI-Partners has found that the 220,000 businesses in the Asian country that own PCs have increased their expenditure when it comes to computing solutions in the last two to three years. It identified ERP software as one of the key drivers of this, describing it as having enjoyed drastic growth. Medium-sized enterprises and large organizations are responsible for about 45 per cent of all IT spending, despite only making up 2.5 per cent of the total number of companies. Somnath Das, assistant research manager at AMI-Partners, said: Business integration software such as ERP enables Bangladeshs medium and large businesses to view results of multiple group companies in a dashboard-like manner.

A Bangladesh ITES strategy

Entering a new market such as ITES is always difficult, even more so with strong competitors from other countries. The Bangladesh IT sector is not currently competitive in the global ITES market. Its only clearly identified market advantage is in low cost labor. However, this is balanced against high communications costs. Moreover, low cost is not a sufficient advantage if potential buyers are not confident of the ability of Bangladesh firms to deliver a high quality product. It is important to recognize that with no fundamental market advantage, firms and the government of Bangladesh must be prepared for a relatively high risk and long-term growth strategy. It is high risk because Bangladesh is not likely to be able to seize much of this market without beating competitors who are currently in better position. It is a long-term growth strategy because beating those competitors will require steady and constant improvements in the capacity and marketing of Bangladesh firms. The strategy must also be opportunistic, taking advantage of any openings in the market that present themselves. While there are promising segments in the market, Bangladesh firms must remain flexible in their focus. One of the advantages of a new market entrant is that they can react to market opportunities faster than firms already entrenched in the market. Bangladesh cannot afford to give up this advantage.

Bangladesh firms will also require considerable support from the government, donors, and any other sources available. At a minimum, the government must create a general business environment conducive to this venture into a new market. The government can also be useful in stimulating growth in the capacity of IT firms, and in marketing that capacity internationally.

A reasonable strategy for Bangladesh entry into the ITES market includes a number of components: Target segments of the industry where Bangladesh has a comparative advantage, but remain flexible in the search for growth prospects. Improve the deficiencies of the Bangladesh IT industry to make it more competitive. Market the sector well to overcome the unfamiliarity of the market with Bangladesh products.

Each of these components is discussed in detail below. The Philippines provides an example of a coordinated public and private strategy that is beginning to yield some success. While the Philippines appears to be gaining momentum in strengthening its competitive position as a supplier of ITES, the country is still developing this industry and its export potential. Strategic actions that have proved useful include:

Potential ITES Market Segments

The ITES market consists of a large number of segments, each with their own requirements. Some high-end segments, such as programming and web design, require special skills that are in short supply in Bangladesh. Other segments, including call centers and technical support, require real-time communications, which would be problematical with the current infrastructure of Bangladesh. Bangladesh has the greatest opportunities under current conditions in market segments requiring low cost workers with only general computer skills, and without a requirement for real-time communications. This does place significant restrictions on areas of focus. In the opinion survey, many of the NRBs suggested segments for Bangladesh to target. However, they also admitted a lack of knowledge in this area:

Software development

o Quality assurance o Smaller-scale applications or software modules o Projects must be well-documented for offshore development Data entry o Documentation data entry o Back office processing o Bill preparation, accounting Digitizing and conversion o CAD CAM, assisted conversion o Blueprints o GIS Web development Database management Transcriptions Call centers, specifically for IT-related, hardware or technical support

This study also did an extensive review of several promising segments of the market. An analysis of these segments is included in the annexes to this report. A summary of these analyses is included in the following table. It seems clear that the Bangladesh IT sector will have to start with the lower end market segments that make best use of their advantage in low cost labor. However, this generalization can hide a wide variety of market efforts from individual firms. The study revealed several Bangladesh firms involved in international markets in software development, graphics, medical transcription, and other areas. As each firm develops its own comparative advantages, the countrys ITES strategy should be receptive to emerging opportunities. Accordingly, the strategy should not adopt provisions that are specific to a particular market segment. For example, public assistance with training or marketing should not focus on specific areas such as transcriptions or animation. Rather, public support should be forthcoming for any market segment in which a firm can demonstrate a market opportunity.

ERP PROVIDERS IN BANGLADESH

Company Name Business Type Business Solution for Garment industry No. of Employees Main Markets Southeast Asia Contact

CSL Software Resources Ltd

51 - 100 People

CSL Software Resources Ltd. House# 53, Road# 7, Sector# 4, Uttara Model Town Dhaka 88-02-8955334, 8958176, 8954154 Fifth Generation ICT Systems Ltd. 12-C, 16-19 Mirpur, Dhaka Bangladesh 880-01816-417204

FIFTH GENERATION ICT SYSTEMS

Business Solution

50-100 People

Green Softs System

Business Solution

11 - 50 People

North America Eastern Europe Southeast Asia Oceania Mid East Eastern Asia Western Europe Central America Northern Europe Southern Europe South Asia Eastern Europe Southeast Asia Mid East Eastern Asia North America Southeast Asia

World Headquarters Green Soft Technology, Inc. 1260 Huntington Drive, Suite 208 South Pasadena, CA 91030 services@greensofttech.com

Divine IT Limited

Manufacturer

50-100 sales@divineit.net +88 017 30071011 +88 017 30071012 +88 017 30071015

Mid East Eastern

+88 017 30071017

PARTNERS OF MICROSOFT DYNAMICS IN BANGLADESH

Multimode Limited conglomerate 1000 people North America Eastern europe Anchor Tower, 10th Floor, 1/1B Sonargaon Road, DhakaBangladesh. +880-2-8618861 +880-171-1957585 info@multimodebd.com Bangladesh Representative Office, 4th Floor, Progress Tower, House No. 1, Road No. 23, Gulshan 1, Dhaka +880-2-88501700 +880-2-9861734 +880-171-3002829 muktadir@ingrammicroasia.com

Ingram Micro (India) Exports Pvt. Ltd.

Manufacturer

100-200 people

North America Eastern Europe Southeast Asia

CSL SOFTWARE
CSL Software Resources Ltd. Is one of the oldest software Development Company in Bangladesh, since its inception in 1998 CslSoft has created complete ERP solution for Garments Industry we working deeply in manufacturing business vertical. Over the years CslSoft has created its own niche in the market by providing professional implementation consulting service coupled with its products. CslSoft soft products its clients a clear vision of value proposition. Products or services: KANDAREE( ERP Solution for Garments Industries) KANDAREE(Production Planner(Comprehensive Planning Tool for RMG Production) KORMEE (Human Resource Management Software) SHOILEE (ERP Solution for Real Estate) DHEERAJ (Financial Management Solution) RMG Client list of CSL Software Resources Ltd. ABA Group ACS Textiles Ltd Aman Group Aman Knittings Ltd. Annata Apparels Ltd. Aswad Composite Mills Ltd. Beximco Group Capital Group Coats Bangladesh Cosmopolitan Industries (Pvt.) Limited (CIPL) Dulal Brothers Ltd. East west Industrial Park Esquire Knit Composite Ltd. Envoy Group Epic Garments Manufacturing Company Ltd. (EGMCL) Epic Designers (Vietnam)Limited Epyllion Group Fashion Concern Ltd. Fashion Knit Composite Ltd. Flamingo Fashion Ltd.

FSB Ltd. Bangalore (India) FSB Ltd. Tripur (India) Graphics Textile Mills Ltd. HR Textile Mills Ltd. Indesore Sweaters Ltd. Jinnat apparels. Knittex Industries Ltd. Kwun Tong Apparels Ltd. Lenny Fashions Ltd. (DEPZ) Matin Spinning Mills Ltd. Misami Garments. Modele De Capital Moonlight Garments Ltd. MRS Fashions DLL (Bahrain) NAZ Bangladesh Orion Knit Textiles Ltd. Pacha Fabrics S.A.E (Egypt) Panache Knitted Creations Ltd. Palmal Group Pearl Garments Company Ltd. (PGCL) Saturn Textiles Ltd. Sepal Group Shanta Denim Ltd. Shanta Industries Ltd. (DEPZ) Simba Fashions Ltd. SQ Celsius Ltd. SQ Quantum Clothing Ltd. T&S Buttons (Bangladesh) Ltd. Vertex Wear Ltd. Valmont Fashions Ltd. Viyellatex Ltd. Zaber & Zubair Fabrics Ltd.

FIFTH GENERATION ICT SYSTEMS is a Next Generation Software Solution

House, Dhaka, Bangladesh, which has more than 10 years of experience in IT field of Bangladesh. A Bangladeshi Open bravo ERP, Web Based ERP, E-Commerce, Real Estate Development, Web Site Development, Just ten years ago, FIFTH GENERATION ICT SYSTEMS started its journey by introducing its services: IT training, Software development and Total IT solution. Since then, FIFTH GENERATION ICT SYSTEMS has experienced extraordinary growth; averaging twelve per cent annual enrollment increases. A highly skilled management team and well-qualified Board of Directors manage the affairs of the company. All projects in turnkey basis are managed and controlled by a strong project management team comprising of a Project Director, Technical Director, Project Manager and Co-coordinator. In addition to the members of the Board, the management is being supported by a combination of well groomed and skilled IT, administration, finance, research and marketing staff members. Background Fifth Generation ICT Systems Ltd. is a premier IT Education and Software Solution House, Dhaka, Bangladesh, which has more than 8 years of experience in IT field of Bangladesh. It is established in the year 2000. From that time, it provides quality services in the field of IT. FIFTH GENERATION ICT SYSTEMS started its journey back in 2000 with the vision of creating a proper IT work force in order to sustain its future activities in IT industry in Bangladesh. FIFTH GENERATION ICT SYSTEMS has successfully trained and developed 2500s of skilled IT professionals who are currently engaged in the ICT industry in home and abroad.

Green Soft System is an innovative, fast growing information technology house working in
the field of software development, Networking and data communication. Starting from its first contracts in 1996, GreenSofts System has proven to be a creative result-driven software developer. GreenSofts System has developed/developing integrated software system for local industrial and business concerns to monitor production and business paths, evaluate and analyze information to help make management decision ,increase productivity and efficiency. We help our customers achieve their business objectives by developing IT solutions that encompass our ideation, key skills, and technology partnerships

CLIENT BASE
Paragon Poultry Ltd Usha Feed Ltd. Jessore Feed Ltd. Chittagong Feed Ltd National feed Ltd. Lion Feed Ltd. Mono Feed Ltd Aleya Feed Ltd, \ Index Feed Ltd. Best Fried Chicken (BFC), Electra International Ltd. Meem Knitting Ltd. Shamrat Shoe Company Ltd. Sports Zone Ltd. Tweed Sweater Ltd. Hazi Nagar Tea Estate, Rahmania Tea Estate, Paragon Agro Ltd. (GP Project). Paragon Plast Fiber Ltd. Electra Telcom (BD) Ltd. Avon Animal Health. Subudh Bidi, X-Ceramics Ltd Elite Paint MyOne Electronics

MULTIMODE GROUP
The Multimode Group was founded by two time Federation of Bangladesh Chamber of Commerce and Industries President, Mr. Abdul Awal Mintoo on September 21, 1981. He is the current CEO of the diversified business conglomerate. Because of the hard work of countless creative and dedicated staff members, the tireless efforts of a world-class support team, and for the undying customer loyalty, the company has become one of the most prominent and experienced industrial conglomerates in present Bangladesh. The Group initially started off in the shipping industry, but has since diversified its portfolio to include a host of other business ventures. Multimodes business strategy has always been the continual progress of existing operations and a steady search for new ventures. Today, Multimode Group has presence in: Agriculture, Automobiles, Chemicals, Energy, Entertainment, FMCG, Hospitality, Information Technology, Investments, Real Estate and is continuing its diversification and consolidation in different industries.

Divine IT Limited is a pure python software development company specializing in web

based ERP solution.It is also one of the leading IT advancement contributors in Bangladesh. Founded on the principle that Customer-Commitment-Technology, Divine IT has assisted clients in the implementation and integration, development of custom applications, business to business interfaces/applications and optimization applications utilizing custom modeling. We have a good reputation for our extraordinary attempt after sales support and service in the local & global market. Prism ERP - ERP Solution for Distribution & Manufacturing Prism ERP is a Web Based Enterprise Resource Planning (ERP) software solution which is flexible enough to run on any operating system. Prism ERP software is a complete solution that delivers outstanding value based on exceptional price/performance and functionality. Prism ERP has a rules based design to help many industries. Prism ERP is a complete end-to-end solution that includes Financials, Distribution (supply chain), Manufacturing and Customer Relationship Management. Prism ERP incorporates a suite of integrated products that enables you to move seamlessly between all facets of your business, from order management to the plant floor to distribution. Prism ERP consists of following major modules

Financial Accounting Inventory Control Human Resources Management Supply Chain Management Customer Relationship Management Production Control Administration & Business Intelligence.

Client base
ARTEKA BUREAU VERITAS Button Tex Ltd. Celltone CT Impex Diesel Power Distribution Excel Telecom Limited Fair distribution General Electronics Inland Technologies L Usine Limited Leading Edge Mark Trading MEDs IT Limited Pinaki Group Progressive International Reckitt Benkiser Sahco International Shah Kaderia Latifia Ltd Shishir Group Shovon sanitary SolarEn Foudation STH group Sunny Trading Uptrend Distribution Versatile Coaching Centre

Praxis ICT is a leading software development company in several identical verticals of ion
based Technology solution service for both on-site and offshore development. It provides process automation, software development & web soluoftware development services to small and medium businesses in various industry verticals with QA & validation. Snapshot: Established in 2003 RJSC Incorporated in 2007 Outsourcing service provider for Global engagement mostly in USA & Canada. Company sales & support executives in USA & Canada to increase our global presence. Successfully completed 300+ projects Global & Local client base more than 200. Industry expert IT resources Focused Practice Group Flexible engagement models Commited towards all stakeholders Global vision, strategies and values for building and nurturing relationships with cost effective solution with maximum throughput

CLIENT BASE
SnA Fleet Operations Promise Group SnA Supply Chain Kuashtia Medical Institute Nextalk, Canada Information & Technology Managares Association Bangladesh All Graphic Corp, USA Tatuit Inc, Canada Micro Fib Group, Bangladesh Nexes Sweaters Ltd, Bangladesh SnA Trading Call Plus llc, USA SnA Media & Publication Liberty Denims Ltd, Bangladesh Fair Apparels Ltd, Bangladesh Kamala Vandar Mega Bazar, Sylhet Mithila Food Products JobBank, Sweden Helmeran INC Pangery Group Ltd PBS chain Ltd Satas Corporation Skillshop Bd

Mirpur Adhunik Hospital ALO Health Centre SnA Shares & Securities Paradise Group Crecent Hospital SnA Properties Picard Bangladesh Ltd Aviva Fashion Gallery Divine Telecom Inc., USA Atish Dipankar University, BD North East Medical College, Sylhet Sagar Publishers,Dhaka Prominent Apparel, Hong Kong CKR Int inc, USA Grameen Star Education, BD Asian University of Bangladesh SnA Agro & Fisheries Exotic Group, BD Rani Enterprize Pick n gift, BD