Monday, May 20, 2013

Offshoring 01: Software Offshoring to Bangladesh

Bangladesh is at this moment could be the best place to setup an offshoring operation for any software company. In this blog series I will try to explain why and how you could setup an offshoring operation and look at the major challenges you will have to overcome.

Why Bangladesh? I summarize them into 2 reasons, Cost and Talent pool. Let’s have a closer look.


Bangladesh is still cheap. Office space rent in Dhaka is 50% of Bangalore, India, 33% of Kuala Lumpur, Malaysia. Later we will take detail look at each of the infrastructural costs but in summery Bangladesh is cheap in all respect comparing to India or any other surrounding emerging economy. Developers salaries are still quite low as the living cost is low. Service cost is minimal, administration salaries are almost invisible. You could run an 50 employee team in Dhaka with full infrastructure with the cost of a 10 employee office in US.

Talent Pool

Scrum Team @ Selise
Bangladesh has produced a huge pool of Computer Science graduates over last 20 year and still continuing. It has over 30 public and more than 100 private universities where 45 of them are located in Dhaka. Many of the them are specialized Science and Technology university and almost all of them have dedicated Computer science departments. As the industry is growing many of the talented minds are driven towards CS and that gives you access to a huge pool of experienced developers, QC, UxD and project managers.

Bangladesh is a gold mine now, its a window of 5 to 10 years. Prices will go up, all the big players like Google and Microsoft will be here, talent pool will get drained in this time. If you can move in now you will rule the place.

Many are already in. Samsung, Vizrt, Metatude , Orbitax, Cefalo, Selise,  IMH health,  ImpleVista  are just a few of them. Some of them are here for over a decade.

On the next episode we will talk about finding the right partner to start your venture.

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