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Star Business Report
Bangladesh has been recognised by a US company as the
26th best destination for IT outsourcing globally.
AT Kearney, a leading management consultancy firm with
offices in more than 40 countries, has for the first time included Bangladesh
in its Top 50 Global Services Location Index.
The index assessed 51 countries based on metrics under
three categories -- financial attractiveness, people skills and availability,
and business environment.
India remains the top offshoring destination for IT
companies, followed by China and Malaysia.
“This will significantly boost ICT investment and
outsourcing to Bangladesh as global companies and investors follow this report
and ranking for decision making,” said Shameem Ahsan, president of Bangladesh
Association of Software & Information Services (BASIS).
But in terms of cost competitiveness in outsourcing
services, Bangladesh ranks first, he said at a press conference at BASIS office
in Dhaka yesterday.
Asia continues to dominate the global market, with six
countries from the continent being among the top 10 offshore destinations in
the index.
However, there are some challenges for the region. Global
IT firms started outsourcing back-office operations in mid-2000s, but
multinationals are reassessing their outsourcing strategies now.
There is a course correction where some functions are
being repatriated from vendors back to the companies' own service centres and
employees, according to a study by AT Kearney.
These regions also face challenges from increasing
digitisation and automation, which could negate cost competitiveness. Greater
automation and freelance-based outsourcers are eventually making physical
location less relevant.
“Automation, wherein robots are programmed to perform
for even less than low-cost labour, is becoming increasingly accessible and
could dent the region's low-cost advantage,” the study said.
Although China offers an alternative to Eastern Europe
for high-end IT and analytics, rising wages are limiting its cost
competitiveness in lower-end functions compared with India and other Asian
destinations.
Zunaid Ahmed Palak, state minister for ICT, was also
present at the press conference.
Published: 12:00 am Friday, September 19, 2014
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