The global market for information technology, including information technology services, software and hardware, is about US$3 trillion. But despite having the largest IT population in the world, our revenue is $2.5 billion. Which is not that significant. Integrated planning and implementation is essential for the development of information technology sector.
DCCI President Ashraf Ahmed said these things at the seminar titled ‘Necessary Reforms for the Growth of Information Technology Sector’ organized by Dhaka Chamber of Commerce and Industry (DCCI) on Saturday (November 9).
Chief Adviser’s Special Envoy for International Affairs Lutfe Siddiqui was the chief guest at the seminar and Chowdhury Ashiq Mahmud Bin Haroon, Executive Chairman of Bangladesh Investment Development Authority (BIDA) was the special guest.
In the seminar, DCCI President Ashraf Ahmed said, besides enhancing the skills of our workers in this sector, we need to focus on providing higher value added services and expand production capacity in the semiconductor value chain. Apart from this we need to take effective initiatives in enhancing our skills in product design, assembly packaging and testing (APT) etc. In this case, opportunities for integrated device manufacturing (IDM) can be pursued for the emerging IoT market.
He said that short-term, medium-term and long-term integrated planning, proper implementation, strategic investment, coordination among all partners including public and private sectors are necessary to utilize this potential.
He also said that there has been a huge growth in the export of software and services and the export revenue has reached about 1 billion US dollars in the fiscal year 2024.
He said that if the existing policies are properly implemented, business activities will be easier along with civic services and the present government is giving more priority to this matter.
He also said that the current government has already formed several reform commissions, whose activities are continuing, where citizens from all levels of the country, as well as representatives of the private sector, can present their own expectations, based on which the reform activities will be more vigorous.
Executive Chairman of BIDA Chowdhury Ashiq Mahmud Bin Haroon said, after our ready-made clothing industry, the information technology sector is very promising. Where the expansion of local and foreign investment is possible, especially for the employment of the young population.
Mir Shahrukh Islam, Managing Director of Bondstein Technologies Limited presented the keynote at the seminar. He said that more than 2,600 IT companies are working in Bangladesh. The market size of this sector is 2.34 billion USD. And currently 450 Bangladeshi companies are exporting their products abroad.
He also said that Bangladesh has no device production capacity with limited scope of software services. He said that the largest export destination of IT products from Bangladesh is the United States. To boost exports, he recommended allowing local ICT companies to set up offices abroad and reinstating incentives to export ICT products.
Pointing out that ICT entrepreneurs are facing lack of supportive policy and strict collateral process in obtaining loans, he said that the protection of product intellectual property rights is very important for the development of this sector.
Bangladesh Bank Executive Director (ICT) Mohammad Zakir Hasan said that there is no alternative to integrated planning for the development of the country’s information technology sector. He said that the infrastructure development of this sector is still not as expected, where there is a lot of opportunity for private sector investment to come forward.
Syed Almas Kabir, former president of BASIS, said that incentives can be given to encourage entrepreneurs in the venture capital sector.
Taimur Rahman, Chief Corporate Affairs Officer of Banglalink Digital Communications Limited, said that reform of related policies is essential to increase foreign investment in the information technology sector. In particular, he proposed reforming the Telecom Act.
What are the key challenges facing the IT sector in underdeveloped regions?
Interview between Time.news Editor and IT Expert
Editor: Good afternoon, and welcome to Time.news. Today, we’re diving into an insightful discussion about the current state and future of the information technology sector. We have with us an expert on the topic, who recently participated in a seminar held by the Dhaka Chamber of Commerce and Industry. Thank you for joining us!
Expert: Thank you for having me!
Editor: The global IT market is a staggering $3 trillion, yet our region’s revenue stands at only $2.5 billion. Why do you think we are seeing such a disparity?
Expert: It’s indeed a striking contrast. Despite having the largest IT workforce, we haven’t been able to capitalize on our potential effectively. There’s a pressing need for integrated planning and implementation in our strategies. As DCCI President Ashraf Ahmed stated, we need to enhance our capabilities in higher value-added services and expand our production in areas like the semiconductor value chain to really make a mark.
Editor: That brings us to skills development. You mentioned enhancing the skills of workers. What specific areas should be prioritized?
Expert: Absolutely. We need to focus on product design, assembly, packaging, and testing. For example, with the rise of the Internet of Things (IoT), pursuing opportunities in Integrated Device Manufacturing (IDM) is crucial. We also need to invest in training programs that align with global standards to equip our workforce with the necessary skills.
Editor: That sounds comprehensive. However, what do you see as the role of the government in facilitating these changes?
Expert: The government’s role is pivotal. There has been a series of reforms initiated, and it’s imperative for these policies to be implemented effectively. Only then can we streamline business activities and foster an environment where both local and foreign investments can thrive. The government is prioritizing this sector, which is encouraging, but continued engagement with representatives from the private sector is essential for success.
Editor: You mentioned a significant growth in software export revenue, reaching about $1 billion for fiscal year 2024. What do you attribute this growth to?
Expert: The growth is attributable to several factors, including the rise of small and medium enterprises in the IT sector, globalization, and the increasing demand for digital solutions. This growth indicates that we’re on the right path, but if we can channel this momentum into higher-level innovations and strategic investments, the sky’s the limit.
Editor: Looking forward, what do you suggest as the main strategic focus for the IT sector in the coming years?
Expert: Short, medium, and long-term planning is vital. But there’s a need for seamless coordination among all stakeholders, public and private, to ensure that we are not just reacting but proactively shaping the future. Strategic investments in technology, skills development, and infrastructure will be key. If we harness our existing capabilities smartly, we can not only boost our revenue but also employ our growing young population effectively.
Editor: It’s evident that there’s both potential and challenges ahead. Thank you for sharing your insights today. It’s vital for us to continue this dialogue on such an important topic.
Expert: Thank you for the opportunity! It’s essential to keep the conversation alive as we work toward the growth of our information technology sector.