A strategy for developing the
ICT Enabled Services (ITES) sector in Bangladesh
Produced by the stakeholders of the sector ...
The strategy and implementation plans contained in this report are the result of work undertaken by the
International Trad...
CONTENTS
INTRODUCTION...............................................................................5
PURPOSE................
4 A strategy for developing the ITES sector of Bangladesh – September 2008
INTRODUCTION
The Bangladesh Quality Support Programme (BQSP) is funded by the European Commission (EC)
and consists of two...
 Manufacturers, exporters, supply and sales agents, banks, training institutions and trade
negotiators and related bodies...
A STRATEGY FOR DEVELOPING THE ITES SECTOR IN BANGLADESH
Macro Economic Environment Scenario and Analysis
ICT Enabled Servi...
A few Bangladesh ITES products and services companies have started to make significant entries
into export markets. These ...
Principle institutional actors and their areas of activity:
National/Local
Organizations
Areas of Focus Agencies Areas of ...
10 A strategy for developing the ITES sector of Bangladesh – September 2008
Strategic Vision
Bangladesh will evolve into the global hub for Graphic Design Services (GDS). This will bring
visibility,...
Main priority actions to be completed
 Form a sector strategy implementation and coordination project committee [3 months...
Progress indicators to monitor sector development:
The effective monitoring of the strategy requires the use of a set of p...
14 A strategy for developing the ITES sector of Bangladesh – September 2008
ITES SECTOR STRATEGY OBJECTIVES & ACTIVITIES
A strategy for developing the ITES sector of Bangladesh – June 2008 15
OBJECTIVE 1: NEW MARKET APPROACHES DEFINED AND EXECUTED
TO RESPOND TO INTERNATIONAL DEMAND
Businesses in the sector are fa...
The suggested activities to achieve Objective 1 are listed below in two parts:
1: New market approaches defined & executed...
 Engage commercial law and contract specialist from target markets to inform GDS
cluster members about the implications o...
OBJECTIVE 2: MANAGEMENT CAPABILITY & OPERATIONAL CAPACITY
INCREASED FOR NEW MARKETS
Counsel entrepreneurs and train manage...
Objective 2: Anticipated outputs
1. The technical level of entrepreneurs and managers skills in sales, marketing, manageme...
develop and implement appropriate HR retention policies and work environment
standards compliance – as started under the D...
OBJECTIVE 3: BUSINESS & TRADE FACILITATION SERVICES
UPGRADED
Reaching their sector development objectives requires a large...
3. Business & trade support services responsive to international business needs Priority &
Lead
 Form working group with ...
OBJECTIVE 4: POWER UTILITIES, TECHNICAL FACILITIES AND
COMMUNICATION INFRASTRUCTURE IMPROVED
The sector does not completel...
4. Infrastructure and regulatory environment foundation strengthened Priority &
Lead
 Government to set up task force to ...
SCENARIOS FOR POTENTIAL OUTCOMES
1 Optimistic scenario:
If the strategy is 100% implemented, it is deemed that there will ...
2. Alternative scenarios
If only 50% of the strategy is implemented, it is deemed that there could be the following
negati...
28 A strategy for developing the ITES sector of Bangladesh – September 2008
STRATEGY IMPLEMENTATION FRAMEWORK
A strategy for developing the ITES sector of Bangladesh – June 2008 29
Key participants in implementation activities
The key participants in the process of strategy implementation will be the s...
STRATEGY IMPLEMENTATION PLANS
A strategy for developing the ITES sector of Bangladesh – June 2008 31
33 A strategy for developing the ITES sector of Bangladesh – September 2008
34 A strategy for developing the ITES sector of Bangladesh – June 2008
ANNEXES
A strategy for developing the ITES sector of Bangladesh – September 2008 35
Annex 1. Market strategy options and success factors
IT-ES Dhaka, Nov 05-06 2007
Group: IT-ES
ÎTES Market Segments April 2...
CRM services and Call
Centers
-Inbound/Outbound
-Contact Centers
-Data & Voice
-Operation Maintenance
Corporates, Utilitie...
Segment markets + Contract requirements Score
Market approaches (Pillar objective 1)
Produce capacity profile, presentatio...
Support services infrastructure (Pillar objective 3)
Internet bandwidth cost and quality 3
Availability of power and relia...
Annex 2: ITES Value Chain Analysis
Sector Contribution to the Economy
ITES currently represents about 30% of total ICT cap...
It is worth mentioning here that, Many of the developing countries around the world, have been
providing institutional sup...
Typical Value Chain of the Sector
The value chain of ITES describes the full range of activities which are required to bri...
Constraints in Producing High Quality ITES Products especially for Export
(a) Problems Related to HR
• Not much trainable ...
Annex 3. List of documents & reports considered
44 Strategy for developing the Horticulture and Floriculture sector of Zam...
Annex 4. List of participants for the ITES Sector workshops 1 & 2
SL
#
Name of the
Company
Contact Person Address Tel Emai...
SL
#
Name of the
Company
Contact Person Address Tel Email
9
Computer Graphic &
Design
Mr. Md. Hasan-Uz-Zaman, Proprietor
&...
SL
#
Name of the
Company
Contact Person Address Tel Email
19
Star Computer
Systems Limited
Mr. Md. Ali Akbar Khan, MD
Fatt...
SL
#
Name of the
Company
Contact Person Address Tel Email
29
BQSP Component 2,
EPB
Mr. Shahid Hasan, PD EPB, Dhaka, Bangla...
SL
#
Name of the
Company
Contact Person Address Tel Email
41 Not Available
Mr. Ahmad Tabshir Chowdhury, IT &
MIS Consultan...
SL
#
Name of the
Company
Contact Person Address Tel Email
53 JICA
Mr. Takeshi Ueda, Project
Formulation Advisor
JICA 989-1...
Annex 5. Glossary of terms
TERM DESCRIPTION
ADB Asia Development Bank
BEIOA Bangladesh Engineering Industry Owner Associat...
Annex 5. The SHAPE technique for strategy development
The strategy development process
Representatives of the business com...
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Bd ites strategy_paper_final_draft_2008

  1. 1. A strategy for developing the ICT Enabled Services (ITES) sector in Bangladesh Produced by the stakeholders of the sector in collaboration with the Ministry of Commerce and the International Trade Centre, Geneva Final revision September 2008 Supported by The Export Promotion Bureau (EPB)
  2. 2. The strategy and implementation plans contained in this report are the result of work undertaken by the International Trade Centre UNCTAD/WTO (ITC), the stakeholders of the Light Engineering sector, government agencies, business and trade support organisations and non-government organisations in Bangladesh. The work was funded by the European Commission (EC) under Project BGD/75/21A. Acknowledgements The International Trade Centre would like to thank the stakeholders of the Bangladesh Light Engineering sector for their work in producing this strategy and the plans to implement it, in particular. ITC is grateful to the Ministry of Commerce, for accepting to be the country sponsor of the project, Mr. Md. Shahab Ullah, Vice Chairman (Additional Secretary), Export Promotion Bureau (EPB), for being an able and dedicated counterpart of the strategy development process and providing leadership. We are grateful to the sector team members who worked tirelessly and professionally throughout the whole strategy development process. There dedication, contributions, team spirit and technical know how in the light engineering sector is unmatched. The principal contributors for this edition were: The staff of the Export Promotion Bureau; Mr. Md. Abdul Qayyum, Director General, Mr.. Khalilur Rahman, Director General Mr. Faridul Hasan, Director General The staff of the Ministry of Commerce; Mr. Shahid Hasan, BQSP National Project Director, Mr. Abour Rauf, Deputy Project Director The staff of International Trade Centre (ITC) and International experts; Brig Gen (Retd) M. Mofizur Rahman, National Project Coordinator for BQSP of ITC Mr Ian Sayers, Senior Adviser for the Private Sector Mr Sophien Hanouz, Senior Trade Strategy and Value Chain Development Specialist Mr Ram Karan Verma, ITES International Market Expert The National Institutions and National experts BASIS – Bangladesh Association of Software and Information Services represented by its president: Mr Habibullah N Karim, Markets specialist Mr Fokhruz Zaman, Value Chain Analyst The working groups Mr Habibullah N Karim, Founder CEO, TechnoHaven Company Ltd Mr Fokhruz Zaman, Co-Founder CTO, Millennium Information Solution Ltd Mr Nazim Farhan Chowdhury, Director, Graphic People Mr Ahmed Ashrafuzzaman, ED, GAIL Mr Asif Yousuf, Managing Director, DCL Mr Shabbir Mahbub, Joint Managing Director, Devnet Limited Mr Mamnoon M. Chowdhury, CEO, Latitude 23 The designations employed and the presentation of material in this report do not imply the expression of any opinion whatsoever on the part of the International Trade Centre, UNCTAD/WTO (ITC), concerning the legal status of any country, territory, city, or area, or of its authorities, or, concerning the delimitation of its frontiers or boundaries. This report has not been formally edited by the International Trade Centre UNCTAD/WTO (ITC) 2 A strategy for developing the ITES sector of Bangladesh – September 2008
  3. 3. CONTENTS INTRODUCTION...............................................................................5 PURPOSE............................................................................................................................................................5 SCOPE OF THE STRATEGY..................................................................................................................................6 A STRATEGY FOR DEVELOPING THE ITES SECTOR IN BANGLADESH.....7 MACRO ECONOMIC ENVIRONMENT SCENARIO AND ANALYSIS........................................................................7 STRATEGIC VISION..........................................................................................................................................11 ANALYSIS OF BENEFICIARIES AND STAKEHOLDERS........................................................................................12 PROGRESS INDICATORS TO MONITOR SECTOR DEVELOPMENT:.......................................................................13 ITES SECTOR STRATEGY OBJECTIVES & ACTIVITIES..........................15 OBJECTIVE 1: NEW MARKET APPROACHES DEFINED AND EXECUTED TO RESPOND TO INTERNATIONAL DEMAND...........................................16 OBJECTIVE 2: MANAGEMENT CAPABILITY & OPERATIONAL CAPACITY INCREASED FOR NEW MARKETS.......................................................19 OBJECTIVE 3: BUSINESS & TRADE FACILITATION SERVICES UPGRADED .....................................................................................................22 OBJECTIVE 4: POWER UTILITIES, TECHNICAL FACILITIES AND COMMUNICATION INFRASTRUCTURE IMPROVED...............................24 SCENARIOS FOR POTENTIAL OUTCOMES..........................................26 1 OPTIMISTIC SCENARIO:.................................................................................................................................26 2. ALTERNATIVE SCENARIOS...........................................................................................................................27 STRATEGY IMPLEMENTATION FRAMEWORK.....................................29 .......................................................................................................................................................................30 KEY PARTICIPANTS IN IMPLEMENTATION ACTIVITIES.....................................................................................30 STRATEGY IMPLEMENTATION PLANS...............................................31 ANNEXES......................................................................................35 ANNEX 1. MARKET STRATEGY OPTIONS AND SUCCESS FACTORS..................................................................36 ANNEX 2: ITES VALUE CHAIN ANALYSIS......................................................................................................40 ANNEX 3. LIST OF DOCUMENTS & REPORTS CONSIDERED ...........................................................................44 ANNEX 4. LIST OF PARTICIPANTS FOR THE ITES SECTOR WORKSHOPS 1 & 2..............................................45 ANNEX 5. GLOSSARY OF TERMS ....................................................................................................................51 ANNEX 5. THE SHAPE TECHNIQUE FOR STRATEGY DEVELOPMENT ............................................................52 A strategy for developing the ITES sector of Bangladesh – June 2008 3
  4. 4. 4 A strategy for developing the ITES sector of Bangladesh – September 2008
  5. 5. INTRODUCTION The Bangladesh Quality Support Programme (BQSP) is funded by the European Commission (EC) and consists of two components with Component 1 implemented by UNIDO, and Component 2 implemented by the ITC. Activities under Component 2 (Supporting Export Diversification) are aimed at improving the private sector understanding about quality and packaging requirements in export markets, and its capacity to apply the value chain approach to find ways to enhance product competitiveness in these markets. This component will in particular assist Bangladesh in harmonising the efforts of all relevant stakeholders through the development of export strategies at sector level using value chain approach and focusing on supply chain management, quality management and packaging to achieve export diversification objectives by enhancing the competitiveness and quality of products. One outcome of this project component aims at improving the competitiveness of exports from the ICT Enabled Services (ITES) sector in Bangladesh by assisting stakeholders to design strategies for sector trade and value chain development and using market requirements to organise improvements in quality management systems, export packaging and supply chain operations to a level acceptable to international buyers. Activities will be undertaken to enhance the knowledge and capacity of the private sector to adapt to international quality standards, technical and non-technical barriers to trade, packaging and transportation standards. Information, training, and coaching will also be provided to help enterprises respond to market opportunities and develop new approaches for selected markets. The ITES strategy has been developed as an intervention tool that provides a rational approach, by both public institutions and private sector individuals, to the promoting of sustained growth of this sector in particular, and the economy in general. The Ministry of Commerce has invited The International Trade Centre (ITC) of Geneva to support the development of the sector by providing a methodology and facilitation to produce a trade strategy for the sector, including strategic market options and help to organize its implementation with domestic counterparts The contents of this strategy have been designed by stakeholders representing each stage of the sectors’ value chain, government agencies, business and trade support services – both inside and outside of Bangladesh – large and small entrepreneurs – exporters, international buyers, international sector specialists, academic researchers and recognised experts in economics and development (see the workshop and meeting participants lists in the Annex). The strategy is intended to provide a platform for the implementation of the activities described in it to improve the performance of the sector, balancing out the costs of implementing upgrading measures with improved social and economic returns to the economy. This document covers the ITES sector and highlights issues and potential solutions that may be also applicable across the whole IT sector. Purpose The strategy is designed to develop a consensus amongst stakeholders about development priorities align implementation activities, provide implementation progress measures and list the resources required to implement each activity. It is also designed to communicate to sector stakeholders, who could not take part in the ITC-led workshops in Dhaka, the way that improvements to the sector environment should lead to improved profitability and exports for stakeholders. As such the strategy has three main audiences: A strategy for developing the ITES sector of Bangladesh – June 2008 5
  6. 6.  Manufacturers, exporters, supply and sales agents, banks, training institutions and trade negotiators and related bodies  Government agencies and policy-making bodies involved in the sector e.g.: Ministry of Science & Technology, Ministry of Education, EPB.  International development agencies, donors that may wish to support the implementation programme Scope of the strategy The strategy outlines general and specific intervention measures in areas key to the sustained growth of the ITES sector in Bangladesh. These include:  Policy, regulatory and institutional framework  Support services and infrastructure  Nature of private sector players including their production capacities  Market options  Technology transfer, technology assimilation and dissemination  R&D to develop appropriate technology and indigenous technology The sector strategy has been designed by moving from a general full sector to a specific market segment focus. Inputs under the project include field activities such as field missions, workshops, one to one meetings with public and private institutions and international development agencies and specialists both within Bangladesh and abroad. Stakeholders from across the whole sector defined the specific market segment options focus in a public workshop. This was the result of a debate about market options, key success factors and the degree of “fit” with the capabilities and capacity of Bangladesh companies. Due attention was also paid to the potential evolution of both markets and Bangladesh suppliers’ capacities over time. 6 A strategy for developing the ITES sector of Bangladesh – September 2008
  7. 7. A STRATEGY FOR DEVELOPING THE ITES SECTOR IN BANGLADESH Macro Economic Environment Scenario and Analysis ICT Enabled Services (ITES) Sector constitutes a small but growing segment of the economy of Bangladesh in terms of their contribution to employment, output, value addition and exports. ITES occupies a unique position in the Bangladeshi economy. Studies have shown that economic growth for poverty alleviation and improving quality of life depends largely on the development of healthy SMMEs (Small, Medium, and Micro Enterprises). Analysis shows Bangladeshi SMMEs are the motor of domestic economic activity and have contributed substantially to Gross Domestic Product (GDP) and employment growth during the last few decades. At present, all the companies in the ITES sector are SMMEs. Although the ITES sector contribution to GDP is still not very significant, it has the potential to grow very quickly in GDS (Graphic Design Services) and Business Process Outsourcing (BPO) areas to provide a similar success to that of Thailand, Philippines, and Vietnam. Other reasons for promoting the ITES sector as a focus for development assistance The ITES sector requires less capital and generates more employment per unit of capital than, for example, the garments industry. It is well known as a labour-intensive industry. Relatively low skills requirements in ITES enterprises can contribute to the livelihood of large number of poor citizens, training and employing a significant number of college and high-school leavers who cannot reach University degree level and who currently make up a large proportion of the unemployed in urban areas. The industry also promotes the diffusion of technology among a mass of people. Industry units can be sited near to significant populations of suitable labour and do not have to be located in city centres, alleviating traffic congestion and overcrowding. It is a “quiet and clean” industry that can be sited near residential areas. Work can be undertaken in shifts around the clock providing flexible working hours that enable people otherwise excluded from work to participate. ITES enterprises enjoy relatively low capital investment needs, shorter start-up periods, lower capital output ratio, low energy cost, moderate infrastructure requirement, and contribute foreign earnings growth and environment friendly production processes. The current cost of labour resources for this industry in Bangladesh is among the lowest in the world – and less than our main competitors in Vietnam, Philippines and China. Linkages between the Strategy Process and other Government Initiatives and Policies In recent years the Government of Bangladesh has taken bold initiatives for encouraging investment and promoting growth. Trade liberalization measures were introduced, exchange controls were eased, financial sector reforms were initiated and steps were taken to deregulate private investment. These initiatives do appear to reflect a major change in Government attitude to the private sector, but they need refinement and reinforcement. It would be fair to say that these changes have brought about a very significant improvement in the investment climate, but significant foreign investment is still slow to materialise. A pervasive network of Government regulations and controls remains. This strategy highlights some additional efforts that are needed to further improve the investment climate. The creation of an enabling environment for ITES activities will be a very important step that may also be suitable for other services industries. The strategy also highlights specific areas of regulatory, institutional, planning, legislation and competition policies that need refinement to bring the Bangladesh environment for this type of business activity into line with that of its competitor countries. Market Options and Future Outlook A strategy for developing the ITES sector of Bangladesh – June 2008 7
  8. 8. A few Bangladesh ITES products and services companies have started to make significant entries into export markets. These companies face a growth in demand in the form of firm orders from existing customers over the next few years that outstrip current supply capacity by a long way. This situation applies to specific market segments of the sector, namely: • Graphic design Services: Design Data Services, Prepress Graphics, Advertising, Publishing, Digital printing on a variety of media (mobile phones, billboards, digital TV services, Corporate reports. Buyers include: global businesses such as: leading computer suppliers and software suppliers, sports retailers, auto and tyre makers • Steel detailing, civil and marine construction (including support for the burgeoning ship-building industry), Finite element analysis, CAE/CAM design & graphics rendition; Visualization and 3 dimensional modeling. Buyers include: Civil and Structural engineers, Civil engineering contractors, Architects, Builders, Steel fabricators, Ship designers and ship yards. • Multimedia graphics services: Web Publishing, Web Content, Animation, 2 dimensional Studio graphics. Buyers include: Corporate, advertising agencies, real estate developers, E-Learning companies, TV Commercial production centers. • Mobile telephone content: Voice activated and voice recognition applications, Graphic animation and visuals. Buyers include: Large corporate entities, Telephone service providers, 3rd-party content and service providers. • Offshore data services: Data entry and transposition, Data /Documentation conversion and migration, GIS data conversion, Graphics data processing, Back-office outsourcing support. Buyers in this segment include: Corporate entities, Utilities, Hospitals, Banking & Finance, Insurance • Customer Relationship Management services and call centers: Inbound/Outbound centres, Contact centers, Data & voice operational and facilities maintenance. Buyers include: Domestic and Indian corporate entities with large manufacturing sites, Utilities, Banking & Finance, Insurance MoSCT of the currently successful ITES companies were started under a project that was managed by DANIDA between 2005 and 2008. The problem now is how to assist Bangladesh companies to obtain appropriate market information to enable them to grow their businesses for themselves into new markets. There is an information gap. Potential buyers across the world are not aware of the high-quality services that Bangladeshi companies could provide and, in turn, Bangladeshi companies need help in organising their market presence and customer-facing marketing networks. International professional services bodies reports all point to a situation of insufficient supply to meet demand at a fair price for several years to come. 8 A strategy for developing the ITES sector of Bangladesh – September 2008
  9. 9. Principle institutional actors and their areas of activity: National/Local Organizations Areas of Focus Agencies Areas of Focus (at present) BASIS Training / Advocacy Trade support institution development DANIDA, BQSP (IT/EU) Market Research / HR skill development/ access to finance/ Policy reforms/ Technology and know-how transfer/ Export market linkages IDB selected Training Institutes Training IDB HR Skills Development EPB Export N/A Export market information Art Institute, Dhaka University Education N/A Educate / Train Students to become professional Artists in different focus areas Graphic Art College Diploma in Graphic Design /Training N/A Educate / Train students in Graphic Design Polytechnic school colleges and training centres of GoB at district level Diploma in CAD / Drafting /Training N/A Educate / Train students in Computer Aided Design; and/or Drafting using tools like, AutoCAD, etc.. A strategy for developing the ITES sector of Bangladesh – June 2008 9
  10. 10. 10 A strategy for developing the ITES sector of Bangladesh – September 2008
  11. 11. Strategic Vision Bangladesh will evolve into the global hub for Graphic Design Services (GDS). This will bring visibility, international contractor and investor interest to the expansion of other high value-added ITES segments, such as engineering services, 3-d modelling, multimedia and mobile telephony content. With the implementation of this strategy graphic design services alone are expected to benefit from USD 20 Mn of new investment by Bangladesh companies creating 20,000 new direct employment positions before 2011 with annual revenue increasing to USD 150 million. Within the next 7 years it is anticipated that the entire ITES industry could create another 100,000 new jobs. Overall strategic approach: Bangladesh ITES companies will form themselves into clusters of excellence to share market intelligence, a resource pool and, in some cases, development facilities – such as the planned Science & Technology Park. Through a system of self-regulation of quality and business relations cluster companies will build a brand image to attract high-quality contractors and long-term relationships. Management capability will be strengthened through educational and know-how exchange linkages with renowned international management institutions and foreign sectoral professional bodies. Sector support institutions will be established and strengthened with the help of project partners to extend management and entrepreneurship development know-how to new entrants into the business. At least one institution will manage and coordinate international marketing and market information services for the sector. A public/private funded, internationally accredited, technical training institution will be created to train and prepare school and college leavers for the fundamentals of technical and supervisory work in the sector. Banking and payment regulations and facilities will be urgently updated as planned and agreed by banks to allow payments and receipts to or from foreign persons to Bangladeshi credit cards, reduce costs of small foreign currency payments and receipts, reduce requirement to keep foreign currency accounts outside of the country. Anticipated outputs and expected benefits  Potential revenue target of BDT 1000 Crore achieved by 2011  20,000 new employment positions generated by 2011, many with flexible working hours - improving family lifestyles  Average monthly income increased to USD 200 per person per month  Significant populations of currently disadvantaged groups participate in the success of the sector, eg: Women and the partially disabled, undergraduate high school and college leavers  Major contribution to improving the image of Bangladesh overseas as a place to do business  UP to 100,000 additional jobs created directly and indirectly across the ITES sector by 2015. Objectives In order to realize the full potential of the industry all the stakeholders need to be committed to finding lasting solutions to the prevailing problems by achieving the following objectives: Objective 1: New market approaches defined and executed to respond to international demand Objective 2: Management capability & operational capacity increased for new markets Objective 3: Business & trade facilitation services upgraded - to respond to international market standards. Self-regulatory code of practice established. Objective 4. Power utilities, technical facilities and communication infrastructure improved - to match those of competitor countries and comply with basic international market contractor expectations. A strategy for developing the ITES sector of Bangladesh – June 2008 11
  12. 12. Main priority actions to be completed  Form a sector strategy implementation and coordination project committee [3 months].  Conduct market research, prepare and execute a marketing plan by engaging international experts [3 months].  Complete an industry segment profile and publish as a brochure of existing companies and suppliers to give equal visibility to all ITES businesses [3 months].  Start dialogue and detailed planning with potential international partners to establish graphic design and ITES services training institution [6 months].  Establish accredited training centres with government or foreign donor assistance as a separate, and eventually, sustainable business [9 months].  Engage international experts to improve degree and robustness of process automation [12 months].  Design sector self-regulatory quality code criteria for selection of initial international marketing project participants (20 max) [6 months]. Inputs analysis In Bangladesh, since the cost of infrastructure facilities (such as electricity, gas, transportation, telecommunication, etc.), labour and buildings, are comparatively lower than other countries, production costs will remain competitive in global markets if the strategy activities are implemented. Improved management techniques & a proper marketing strategy will contribute to improvements in efficiency and reduce the net costs. The main inputs to ITES businesses are finance, market information, training, infrastructure development, R & D, management tools, licenses technology, skills and links with professional support and accreditation institutions. The business environment should be conducive to ITES development, with minimal transaction costs, clear and transparent rules and a stable macroeconomic environment. For strengthening ITES around the country, the public and private sectors will have to cooperate effectively. With the implementation of appropriate policies & strategies, ITES will be able to grow as one of the Most dynamic sectors in Bangladesh. Analysis of beneficiaries and stakeholders The implementation of the strategy will benefit all the sector stakeholders. However, the primary beneficiaries of the strategy will be:  Eventually more than 100 SME ITES enterprises.  Capacity and capabilities of at least 10 support and service provider organizations.  Currently unemployed school and college leavers with good reading, writing, coordination and concentration skills.  Women are expected to make up the majority of the 20,000 immediate new recruits, but partially disabled employees will also be targeted where facilities can allow access. Implementation should also contribute to more sustainable growth in the country, a reduction in suburban depression and bring Bangladesh closer to achieving donor, NGO and development agency goals in relation to poverty reduction and employment in rural and poor communities 12 A strategy for developing the ITES sector of Bangladesh – September 2008
  13. 13. Progress indicators to monitor sector development: The effective monitoring of the strategy requires the use of a set of progress indicators to track the Most important developments in the sector and its environment. Indicators should include: • Value and volume of exports and record of new business won. • International service charges and sales volume for products / services specified in the 3 areas in comparison to competitor countries such as Thailand, Philippines, India, Vietnam, Korea. • Number, potential and actual, production capacity, shifts worked and employment in the enterprises in the 3 areas. • Market structure and number of new investments in the 3 areas. • Accessibility of market information by the sectors stakeholders. • Quality of market information by the sector stakeholders. • Registrations of participations in international trade fairs and registrations of actual results. A strategy for developing the ITES sector of Bangladesh – June 2008 13
  14. 14. 14 A strategy for developing the ITES sector of Bangladesh – September 2008
  15. 15. ITES SECTOR STRATEGY OBJECTIVES & ACTIVITIES A strategy for developing the ITES sector of Bangladesh – June 2008 15
  16. 16. OBJECTIVE 1: NEW MARKET APPROACHES DEFINED AND EXECUTED TO RESPOND TO INTERNATIONAL DEMAND Businesses in the sector are facing an unprecedented level of demand for their services. In this type of high growth situation the greatest risk is of over-extending a business and then damaging reputations by not performing according to expectations. Business owners need to develop a market approach plan for achievable growth, focus their service offer, maximise return on management effort and minimise non-performance risk. This should be seen as a way to lay the seeds for eventual differentiation and branding of their businesses, building the reputation of Bangladesh for quality, respect for intellectual property and reliability. Market approach plans will enable new markets to be systematically opened-up with corresponding managed incremental growth in operational capacity. Plans should contain both entry and exit strategies for the businesses concerned. The cost of entering new markets is considerable and many businesses in the sector expressed a wish to participate jointly in market intelligence and training in how to plan market approaches, initial sector-level country representation costs and information. Participants of the workshop suggested that BASIS could organise this and act as initial implementing partner. BASIS has already foreseen a marketing resource centre and allocated space for one in its new office extension, but this facility has yet to receive any resources. The goal of the leading 15 to 20 actively exporting businesses is to grow their operations into well-managed large companies within the next 2 years each with a workforce between 500 and 1,000 workers. This would enable them to win and maintain more long-term business service partner contracts with good quality large contractors and multi-national organisations. The overall goals and objectives of these “marketing approaches” can be partially achieved by establishing a capable ITES market research and networking cell in BASIS, and eventually in a suitable forum active for ITES. The ITES industry segment should also play its role in contributing to execute its global market entry and business growth activities. They should encourage the exchange of learning on new market entry contracting conditions and expectations with global trade associations like the Paris Chamber in France, Professional bodies in the UK, Denmark and the USA, and other friendly associations. Objective 1: Anticipated outputs 1. Marketing and resource cell set-up and functional, research conducted and shared. 2. Self-regulatory quality and working practices code established for export cluster members. 3. Publications and government embassies receive promotion material to raise awareness of GDS capabilities and successes. A new international promotion and referral network is developed. 4. ITES enterprise owners and managers attend training and counselling sessions and improve their management techniques and customer communications / service levels.. 5. Country and international partners strongly supporting the ITES sector development. 6. Positive feedback from current good quality contractors and buyers – customer and business retention stated as “likely of probable”. 16 A strategy for developing the ITES sector of Bangladesh – September 2008
  17. 17. The suggested activities to achieve Objective 1 are listed below in two parts: 1: New market approaches defined & executed Priority & Lead A: Segments: Graphic design services & visualisation  Get counselling in production of capacity profiles, introductory presentations, brochures (like the recent JICA initiative) & other collateral information media.  BASIS to lead candid self-assessment with owners of segment company strengths and weaknesses.  Develop a marketing and resource cell in BASIS initially for the GDS segment with support from a foreign National Counsel in communication, eg: Find out how to develop references, publicity and capability sheets. GDS-1.1 BASIS  Find donor funded-resources / distance support / subsidy for the first year of operation.  Request project and foreign professional institution support to research ways that other country's expanding ITES sectors have achieved market penetration, eg: through local presence for direct client contacts or otherwise.  Form a GDS cluster companies to have overseas presence for export marketing. GDS-1.2 BASIS  Engage specialist to facilitate workshops to help enterprise owners define, build and “live” the definition of the Bangladesh ITES brand.  Define minimum GDS quality and working standards criteria. Start the creation of a self-regulatory mechanism to ensure compliance with minimum working, business and technical standards. GDS-1.3 BASIS, EPB  Start public relations exercise to showcase the segment’s successes in selected trade journals (eg: civil & structural engineering, advertising & marketing, media services, sales).  Find project funds from a donor to engage a journalist with experience of customers in the sector to conduct interviews in Bangladesh and write editorial articles for syndicated circulation to publications and Government of Bangladesh foreign consulates in target markets.  Publicise Bangladesh companies’ unique compliance with Danish and EU graphics rendering, aesthetics and design standards.  Identify Chargé d’affaires in each embassy as responsible for the ITES sector as was done for the IT software sector.  Engage business consultants in target markets to assess potential new customers’ operating standards and contractual compliance requirements.  Request EPB assistance to support the preparation of groups of Bangladesh ITES enterprises for match making missions through practical exercises, language and cultural training or supervised non-sales visits to major trade fairs.  Create industry road show programmes with EPB. Arrange introductions and awareness presentations on behalf of Bangladeshi companies. EPB to promote GDS. GDS-1.4 BASIS BASIS EPB  BASIS to emphasize GDS both locally and globally with SIGs (Special Interest Groups).  Confirm government intention to broaden current Special Resource Ordnance declaring ITES in same category as IT software sector. Ensure inclusion of GDS in ITES extension of July 2008. GDS-1.5 BASIS  Communicate marketing strategy to operational managers and match sales push with uptake and training of new personnel or preparations for new industry training institute so that the Sales Cycle Time is drastically reduced (i.e. prospect to proposal and pilot delivery turn around time may be reduced to 1 month instead of current 6 months). GDS-1.6 BASIS  Assist businesses to develop customer relationship management systems and practices to improve follow-up and retention of good customers. GDS-1.7 BASIS A strategy for developing the ITES sector of Bangladesh – June 2008 17
  18. 18.  Engage commercial law and contract specialist from target markets to inform GDS cluster members about the implications of different legal contract forms and types of business relationship customary to the sector. GDS-1.8 BASIS  Enlist the Graphics Design Companies on search engines like Google, Yahoo, etc to improve web prominence of Bangladesh GDS cluster with web research (SEO - Search Engine Optimization). GDS-1.9 GDS Cluster B: All ITES including engineering services, web and mobile media content  Obtain short-term donor funding to complete an industry segment profile and candid self-assessment of national segments’ capacity, strengths and weaknesses and produce brochures in various media as for the initial Graphic Design Service and Software segments (JICA). Publish brochure and disseminate through consulates and trade fairs. ITES-1.1 BASIS  BASIS marketing and resource cell to update non-resident Bangladeshis (NRB) networks information and create a database of NRB accessible by members through web portal.  Invite NRBs to visit and meet Bangladeshi IT-ES companies.  Produce regular news e-bulletins for NRB and hold regular seminars with them when visiting their countries. ITES-1.2 BASIS  Replicate GDS self-regulation and quality criteria Activity 1.3 across full ITES sector –providing export pre-qualification criteria briefing to new entrants based on up-to-date information about target market requirements from BASIS cell. ITES-1.3 Clusters  Coordinate efforts across BASIS and EPB to improve ITES visibility.  Create a working group for organizing trade fairs in Bangladesh, at least once a year in the winter. Enhance capacity of BASIS to do this. Target 1 or 2 countries, do research on prospects & invite to trade fair.  Increase fund allocation for trade fairs and visibility activities in foreign markets (article placement in journals, etc.). Confirm Public Funds that EPB can provide to support fairs and other events in Bangladesh. ITES-1.4 EPB, BASIS EPB  Invite/bring serious prospective buyers to events in Bangladesh.  Counsel exhibitors on how to manage stalls professionally.  Start with international consultant counselled, non-sales visits for a selection of export-ready enterprises from each segment to trade fairs and foreign professional bodies to observe/evaluate what works/doesn’t work with buyers ITES-1.5 BASIS  Reinforce own marketing push with public support from MoSICT Minister, as in other successful countries.  BASIS, together with other industry assocs. To organise "future of the industry" information exchange session with government - consider supporting cost of fact-finding tour for key Government advisers to go visit other countries ITES-1.6 BASIS  Extend graphics design journalist work to provide news of successful commercial activities in international media in non GDS ITES segments and gain government support.  Develop demonstration and referral examples based on successful performance in similar markets  Request special emphasis on IT-ES promotion by our embassies. BASIS to train & counsel consular staff ITES-1.7 BASIS  Set up government / enterprise task force to plan and coordinate overall sector and country image building, positioning and eventual branding.  Find donor and allocate matching government funds to bring in world class experienced specialists to help. ITES-1.8 BASIS 18 A strategy for developing the ITES sector of Bangladesh – September 2008
  19. 19. OBJECTIVE 2: MANAGEMENT CAPABILITY & OPERATIONAL CAPACITY INCREASED FOR NEW MARKETS Counsel entrepreneurs and train managers to understand target market customer operating and contractual requirements. Assist Bangladeshi ITES management teams to improve their working practices to meet order-winning factors and order-qualifying standards in markets in 3 years. The Graphic Design Service (GDS) Segment particularly needs to urgently reduce turnaround time for new contracts from prospecting to start of delivery work from 6 months to maximum two months. To do this, business processes need to be aligned with customers’ expected international standard practices and made more efficient, managers and supervisors need to be trained. The workforce also needs to be expanded. A large number of new technical personnel certified to international professional standards are required to meet projected needs of contract extensions and new contracts over the next 18 months. The GDS segment will need to employ 20,000 new technical staff, administrative and operations managers within the next 3 years Individual business owners do not have the time, facilities or personnel to address this speed of growth at the moment. To overcome this problem the segment’s leading enterprises would like to establish an accredited technical training facility in association with an existing higher education facility. It would need to produce about 500 trained ITES personnel in the first 6 months and treble output every 6 months after that to respond to the planned growth of the segment. Several “campuses” could be established with the help of external donors. Training will be required in two parts: basic technical and administrative functions for work, and proprietary tools for specific tasks for each target market. It is the first of these types of training that enterprises would initially like to confer on a technical training institute. These institutions could also provide training and coaching to improve English language skills before technical training. Assistance from foreign institutions will be sought to counsel BASIS, the ministries of Science and Technology, Education and Labour and ITES sector companies to complete this activity quickly. Training institution student entrants will require basic level 12 college qualifications such as those held by many thousands of urban Bangladeshi’s. Most of these people will be recruited from currently unemployed school or college leavers in urban areas. At the moment these people face few prospects of good jobs or future personal development. As working hours in the industry are generally flexible and conditions safe, clean and attractive, many female workers will be attracted as well as the partially disabled and male workers. Currently the industry pays on average Taka 12,000 per month, which is about eight times the average wage in the RMG sector. Much of the cost of trained personnel employed in the export oriented Bangladeshi ITES firms was initially borne by the DANIDA Private Sector Development (PSD) and later the Business-to- Business (B2B) development programs. Employers themselves have now taken on this burden but without the fiscal incentives enjoyed by the IT software sector. Strategy workshop participants called on Government institutions to work alongside potential employers, BASIS and sector training institutions to develop their own technicians’ basic skills and knowledge for the sector as a prelude to providing commercial and trade promotion support. The skills and understanding of the management teams of newly created enterprises should be brought up to a minimum standard before they engage in significant export work so that their public image is consistent with the Bangladesh ITES “Brand” and its vision for the future and trained personnel are retained. This will be a more difficult task and external consultants with experience in this area will be sought to provide curricula and counselling in how to achieve this goal. A strategy for developing the ITES sector of Bangladesh – June 2008 19
  20. 20. Objective 2: Anticipated outputs 1. The technical level of entrepreneurs and managers skills in sales, marketing, management and finance meets international expectations’ and equals those of competitor countries. 2. Training institutions are set-up and proposing to employees’ up-to-date accredited programmes. Entrepreneurs and student’s cost of training is supported by the government either directly or through fiscal measures. 3. At least 1,000 graduates complete training to the satisfaction of entrepreneurs in year 1. 4. Training institutions train new entrepreneurs in international standards & working practices. 5. Private sector, R&D institutes and Universities align their activities around the needs expressed by ITES sector companies. The suggested activities to achieve Objective 2 are listed below in two parts: 2: Management capability and operational capacity developed for new markets Priority & Lead A: Graphic design services & visualisation  Engage international consultants from 2 or 3 target markets to assist Bangladeshi enterprises to upgrade their technical working practices, back-up services and contractual engagement processes to fully comply with those of overseas customers. GDS-2.1 BASIS  Engage ITES business process improvement and technical work flow specialists to systematise and automate many currently manual and inefficient processes to enable enterprises to respond to new prospects within maximum of 2 months GDS-2.2 BASIS  Build a partnership with one or more international industry institutions in advanced countries to set up a technical vocational training institution in alliance with an established Bangladesh education facility to train school and college leavers in technical and commercial fundamentals of the industry.  First priority would be focused training schools to build graphics design and web/mobile telephony-based content capabilities led by international specialists working in parallel with local lecturers to kick-start the process and provide immediate relief to shortage of labour.  Eventually develop international joint-venture with accredited technical schools GDS-2.3 BASIS, MoSCT MoEd, MoEd MoL DCCI  Provide at least 300 education loans, grants or scholarships for college leaver students per year for technical vocational studies and training in ITES to cover cost of essential accommodation and family support especially for missing resource areas, eg: project management, foreign marketing, etc. GDS-2.4 MoEdn. DCCI  Request available specialised industrial tools and graphics hardware licenses to be provided from OEM’s at special lower rates to start-up businesses and the training institution to preclude eventual damaging software piracy claims. GDS-2.5 BASIS  Technical training institution to develop training curriculum for specialized industrial tools and graphics as second phase of training institution development.  Training institute to expand curricula to encompass internationally accredited project management skills development. GDS-2.6 BASIS MoEd  Government to reduce import duties and taxes on specialised software tools and graphics hardware to promote use of licensed inputs and broader investment in order-winning technology, image object banks and software for GDS companies. GDS-2.7 BASIS, MoSCT, MoF  Alliance to be expanded with international standard institution eg: in UK (CIPD) or Denmark (DIPD) to start human resource management and trained personal development training in Bangladesh to raise industry standards so that personnel retention is improved.  Engage foreign technical specialists to assist Bangladesh ITES companies to GDS-2.8 MoEdn MoL 20 A strategy for developing the ITES sector of Bangladesh – September 2008
  21. 21. develop and implement appropriate HR retention policies and work environment standards compliance – as started under the DANIDA B2B project in 2005/6.  BASIS encourages all enterprises to introduce international working practices aligned with customers’ time zones and consumer expectations, eg: following clients' working calendars as a condition of membership. GDS-2.9 BASIS, Cluster B: All ITES including web and mobile media content  Develop accreditation system for business coaching and mentorship: BASIS to list and evaluate consultants and mentors (Blog to evaluate performance).  Expand awareness of international labour laws, customer ethical standards and foreign quality of work standards applicable to ITES.  Develop experience-based entrepreneurship coaching in: What to do and What not to do. ITES-2.1 BASIS  BASIS to develop additional services to member companies such as: find international or local partners to develop middle management layers through visiting fellows programme at training institution and direct in-enterprise counselling (training & counselling in IT-ES project mgt., marketing, achieving quality standards compliance, etc).  Create Panel of advisers and alliances with notable institutions to be formed by BASIS. ITES-2.2 BASIS  Create and manage technical & professional certifications scheme for employees in Bangladesh with new technical training institute and established education facility. ITES-2.3 MoSCT, MoEd  Extend GDS scheme of student grants, loans or scholarships to provide at least 500 education loans for college leaver students per year for technical vocational studies and training in ITES to cover cost of essential accommodation and family support especially for missing resource areas, eg: project management, foreign marketing, etc. ITES-2.4 MoEdn. DCCI  Impart real English language and communication skills into the industry - update teaching methods and teachers’ English skills to improve results. Bring in foreign teachers for English and software tools skills upgrading. ITES-2.5 MoEd. A strategy for developing the ITES sector of Bangladesh – June 2008 21
  22. 22. OBJECTIVE 3: BUSINESS & TRADE FACILITATION SERVICES UPGRADED Reaching their sector development objectives requires a large financial and management effort investment by owners of Bangladeshi companies. Although they have not been in business for many years, those companies that could spearhead this development and secure new business for the country have proved that they can survive and run well-managed entities. To take advantage of the market’s interest in Bangladesh as a supplier they need to respond quickly to the current increase in market demand. There are three main areas where immediate assistance is required to bring the ITES business environment into line with the business environment in Bangladesh’s main competitor countries to preserve existing customers and demonstrate thee country’s commitment to improving standards and the competitiveness of the industry: Payments and receipts to and from persons or companies abroad are currently not allowed on Bangladeshi credit cards. At the same time other forms of making and receiving small payments (cheque or telegraphic Transfer) up to values equivalent to USD 1,000 are much more expensive than they are in other countries. This is holding back the creation of new small enterprises in the country and also impacts payment for sample and pilot tests. Out of a total export base of USD 25Mn more than 20% of business in this category is being lost (Figures corroborated by national banks). In addition MoSCT medium and large-scale entrepreneurs keep accounts outside of Bangladesh for these purposes, reducing the countries foreign exchange receipts by up to 50% in total if services purchased with foreign currency remittances are also taken into account. Some examples of the types of business being affected are: 1. Pilot projects and demonstration sales 2. Initial transactions for market prospecting 3. Delivery of samples 4. Ad-hoc maintenance services and multiple deliveries of small value work before long-term high-value contracts are established. 5. Web-design and small multi-media design service contracts A revision is urgently needed of the Bangladesh National Bank’s (BNB) regulations on small foreign currency receipts and payments, including allowing businesses and individuals entrepreneurs to hold foreign currency accounts and make payments for foreign purchases with their credit cards. The draft rules on electronic transactions must be finalised and enacted as soon as possible, eg: e-payments, and bring e-payment services into action – especially for small amounts, receipts from and payments to foreign customers and suppliers. Banks have stated that they are ready and willing to deliver these services. Targeted and time-bound fiscal, regulatory and planning incentives are needed to help to balance the considerable investments required from the private sector for the next 3 to 4 years. The recent revision of the definition and recognition of the segments of the overall ITES sector needs to be refined to include GDS. It is believed that there is no reason why it was specifically left out of the revision of July 2008. As part of the greater “IT sector”, ITES companies will then qualify to receive “Thrust or priority sector” benefits from the Government. Objective 3: Anticipated outputs 1. Special ITES fiscal support policy formulated to support the export growth in this sector. 2. Electronic Payment Gateway Established and Operating. 3. Access to international market information and e-commerce centres facilitates access to small payments and new markets 22 A strategy for developing the ITES sector of Bangladesh – September 2008
  23. 23. 3. Business & trade support services responsive to international business needs Priority & Lead  Form working group with BNB to rapidly conclude liberalisation of the electronic transaction rules & banking regulations to allow small businesses the right to receive low value receipts and make small value payments in convertible foreign currencies to other companies and banks abroad.  Allow businesses and individual entrepreneurs to hold foreign currency accounts.  Allow business owners and individualls to make payments by credit card for foreign purchases. ITES-3.1 BASIS, BNB, MoF  Finalise and enact the draft law on e-payments so that e-payment systems and mobile payment can be introduced in Bangladesh for both domestic and foreign purchases and receipts through new Eldorado settlement clearing system hub. Reduce currency spreads to ~ 2% maximum. ITES-3.2 BASIS, BNB, MoF  Confirm Special Regulation Ordinance (SRO) for ITES includes GDS and other ITES segments in the same “thrust or priority sector status” as the IT software sector. Extend current tax holidays programme beyond 2008 for another 3 to 5 years to counterbalance new enterprise investments required for growth in employment. ITES-3.3 BASIS  Permit ITES to buy electricity and gas at commercial rates and buy power generators under similar tax and duty concessions to those enjoyed by the IT Software, RMG, and similar export-oriented thrust industries. ITES-3.4 BASIS, EPB, MoF  Accelerate development of newly announced MoSCT space Science and Technology Park (STP) in Dhaka City centre and especially the part set aside ITES (site not cleared yet).  Evaluate impact of alternative routes to physical capacity expansion. Explore plans for USD 4Mn infrastructure for a high tech park near the airport. Discuss and decide on what advice to give government on how to develop the site: One interim solution is that leading ITES companies buy more space than they immediately need and make temporary leases to other company's needing reliable power & communications. ITES-3.5 BASIS, EPB, MoSCT, MoF  MoF and Government entities to support rapid growth - promote foreign alliances to obtain investment finance for growth. Request banks to create and train specialised units to support ITES industry. ITES-3.6  Find investment finance sources and projects and how to access funds that can support the sector’s expanding businesses (eg: Islamic Development bank, IFC, ADB, MATRADE, SeDF). The top 20 companies need USD 1Mn each. In investment capital to respond to the current increase in customer demands. Companies need investor capital because banks perceive the sector as too high a risk because of its limited collateral. ITES-3.7 BASIS  Share background checks and experience of potential investors needs through BASIS ITES-3.8  Obtain blanket planning authorisation to allow clean and quiet ITES enterprises to be allowed to operate in, or near, residential areas (less distance for staff to travel) as their industrial “nuisance” level is lower than that of a hotel or other types of business. This would alleviate the current lack of suitable office space sites. ITES-3.9 A strategy for developing the ITES sector of Bangladesh – June 2008 23
  24. 24. OBJECTIVE 4: POWER UTILITIES, TECHNICAL FACILITIES AND COMMUNICATION INFRASTRUCTURE IMPROVED The sector does not completely meet some critical market qualifying requirements and customer expectations. This is contributing to a loss of business or costly “work around” solutions involving individual communications and power generation back-up facilities. The government has recently promised to introduce a second high bandwidth submarine cable connection (although it has not set a date) and has passed legislation to allow VOIP communication protocols for private companies. However the price of bandwidth and communications is still far higher in Bangladesh than in competing countries. The ITES sector needs to guarantee 99.4% up time to win international orders. Bangladesh’s moves in this direction should be accelerated. Although legally Bangladesh complies with international norms on intellectual property (IP) protocols, protection of copyright and personal data security, external contractors believe enforcement would be almost impossible at the moment. This is a very sensitive area with international customers. Many recent high profile abuses of personal data security as a result of errors through outsourcing arrangements or transmission of data outside of the source country have led to public outcry. It could take only one such incident in Bangladesh to destroy the whole market for a long period. The risk of such an incident occurring increases exponentially with rapid growth and the entry of more new companies into the market. Participants called for BASIS to take the lead in setting-up, with the respective Ministries, a strict voluntary code of conduct and minimum standards of operation in relation to IP. Companies would need to pass a periodic peer review audit to obtain a license evidencing that they operated at international standards. The Special Resource Ordinance passed by government in July 2008 should extend to the ITES sector the same status as that currently enjoyed by the IT software sector for access to gas and gas-powered generators at a commercial tariff, fiscal incentives and special interest rate development grants to balance the personal investment of company owners in developing their businesses and industry technical training facilities. Objective 4: Anticipated outputs 1. Special Technology Park for ITES established and Operating. 2. Regulatory Framework for ITES simplified. 3. Government support the sector financing under specific actions, like Power, Infrastructure, and Communications 24 A strategy for developing the ITES sector of Bangladesh – September 2008
  25. 25. 4. Infrastructure and regulatory environment foundation strengthened Priority & Lead  Government to set up task force to investigate alternative backup communications redundancy routing to ensure 99.4% minimum required uptime for industry.  BTTB to set date for operation of second cable gateway and plan for a third redundancy cable gateway backup. Current downtime deficiencies are overcome by costly investment in additional communications facilities and generators. Current BTTB service does not comply with ITES customers’ minimum uptime requirements.  BASIS to introduce and enforce service level agreement contracts with bandwidth providers and back-up power supply maintenance agreements for real reserve power. ITES-4.1 MoSCTC BTTB BASIS  Introduce bulk-buying STPI and reselling of space (BASIS proposal) to increase market incentives for more telecommunications bandwidth and reduce bandwidth cost to global average. ITES-4.2 BASIS  BASIS & New telecommunications operators to lobby government together to reduce bandwidth cost to business towards that in neighbouring/competing countries, maintain VSAT PN's or provide additional backup communications cable gateway ITES-4.3 BASIS  BASIS to consider supporting the cost of sending MoPT permanent secretaries and BTTB managers with government backing to review government agency working practices and the regulatory environment in India, Thailand, Malaysia, Singapore with a view to adapting and implementing similarly efficient practices in Bangladesh. ITES-4.4 BASIS  The visa issuance process must be streamlined to allow visas for short-term business visitors to be delivered within 3 working days at the MoFA or upon arrival as for visiting international agency staff, for example. ITES-4.6 MoFA A strategy for developing the ITES sector of Bangladesh – June 2008 25
  26. 26. SCENARIOS FOR POTENTIAL OUTCOMES 1 Optimistic scenario: If the strategy is 100% implemented, it is deemed that there will be the following impacts in the sector 1. Overall productivity and turnover of the sector will be enhanced giving rise to higher national economic growth and increased employment generation. 2. More export products will be produced to enter into the international market (expected to be about 150M USD Export Revenue by GDS alone in 3 years after implementation of the strategy) 3. The sector periphery will be enlarged and viable economic zones will be built at different parts of the country 4. Continuous training will help to upgrade human resources. The technical level of the employees will be raising in different kind of technologies Human resources will be developed targeting 2 categories of people: i) management & ii) workers/technicians. A skilled and qualified workforce will be developed for the GDS and other ITES. 5. Capacity building of the enterprises will continue with respect to access to finance, acquisition of technology and better corporate management 6. New entrepreneurs will be grown and encouraged to enter into the sector with higher knowledge, capability. Entrepreneurship development; strengthen entrepreneurs motivation and business entrepreneurial culture 7. Quality standards will go high and production facilities such as testing and control laboratory will be established in order to be competitive in the international market. 8. Knowledge on sales management, marketing, accounting management, e-commerce, export processing, finance, marketing and regulations, import, export processing and export financing, mechanisms how to approach banks, etc, will be disseminated amongst the entrepreneurs. 9. Banking costs will be reduced and mechanisms will be improved to provide finance to the sector at lower rates. Single digit interest rate is the target. 10. Leasing programmes or grants will be encouraged and promoted to encourage ITES to modernise their setup / equipments / energy & security / training and backups to increase volumes and quality of services, foreign earnings and employment. 11. Venture capital mechanisms will be encouraged and promoted allowing foreign investment to be attracted to the ITES sector opportunities. 12. New financial mechanisms will be enacted to have access to financing under appropriate and acceptable conditions. 13. Entrepreneurs will have a better understanding on how to access to export financing. 14. Measures will be taken to implement technology up-grading, development, technology transfer & dissemination and R&D. 15. A self-regulatory quality assurance system will be enacted throughout ITES. 16. Implementation of strategic marketing measures will be facilitated using advanced marketing techniques both for domestic and international markets. To establish display centres and proliferate international trade & export and to search for new markets. 26 A strategy for developing the ITES sector of Bangladesh – September 2008
  27. 27. 2. Alternative scenarios If only 50% of the strategy is implemented, it is deemed that there could be the following negative impact in the sector are as follows: 1. If the training institute is not established then the sector will find it difficult to respond to even current customers expanded demand – international contractors may find other suppliers who can meet their entire needs with only a small increase in costs. 2. New business may be turned away reducing export earnings. 3. Increased production costs reduce competitiveness and profits, discouraging new entrants and current investors. 4. Lack of a self-regulatory mechanism will mean that sooner or later a major infringement of industry standards, IP compliance or working practices could result in Bangladeshi suppliers effectively being banned from the market for some years. 5. If the banking regulations and new protocols are not enabled soon – even more foreign earnings may be lost to accounts and service companies set up abroad. 6. If the GDS segment is not included in the overall SRO for IT and ITES entrepreneurs will be unfairly limited in their ability to compete abroad and also will find it more difficult to finance their expansion. If the strategy is not implemented at all Foreseen growth in the sector will not be up to potential. Still there will be a little growth, but that will be insufficient with respect to the pace of the world progress and the development that is being occurred in the surrounding countries of Bangladesh and the sector will probably vanish. A strategy for developing the ITES sector of Bangladesh – June 2008 27
  28. 28. 28 A strategy for developing the ITES sector of Bangladesh – September 2008
  29. 29. STRATEGY IMPLEMENTATION FRAMEWORK A strategy for developing the ITES sector of Bangladesh – June 2008 29
  30. 30. Key participants in implementation activities The key participants in the process of strategy implementation will be the selected ITES Companies, BASIS, Ministry of Science, Information & Communications Technologies, Ministry of Commerce, Ministry of Finance, Ministry of Planning, Ministry of Industry, the Export Promotion Bureau (EPB) and implementation project donors’ representatives. Engagement in the management and coordination of the strategy implementation is as important as the engagement of stakeholders in the design of the strategy and implementation plans. It is suggested that EPB and BASIS, take a prominent role in the day-to-day monitoring or implementation progress according to the implementation plan and implementing partners’ pledges. They will be represented in the sector strategy implementation committee (SSIC) set-up by ITC under the BQSP Project. Membership of the SSIC should not exceed 20 people. Ad-hoc working groups may be convened by the committee to address specific issues from time to time. In this way full representation from key technical institutions. International development agencies, NGO’s and other institutions contributing to the implementation of the strategy (eg: EC, ITC, UNIDO, DANIDA, SEDF, JICA & JETRO) may be obtained without overloading the membership of the committee. The suggested framework is illustrated below: The principle role of the SSIC is to mainstream, monitor and follow-up on the progress of implementation of strategy activities by the different implementing partners. For the duration of the BQSP, the sub-committees should maintain strong links with the Programme Steering Committee, which meets every six months. They should report to the PSC on progress, issues encountered and adjustments required to achieve the expected results. In addition, the committee should be responsible for the overall implementation of the export sector strategies and for coordinating inputs from other government institutions, private sector organisation and development agencies including changes to policies related to the strategies. One person on the ITES SSIC should be given responsibility for leveraging good solutions across sectors, crosscutting policy change recommendations and cross-sector coordination. The same person should also join the Programme Steering Committee meetings. The SSIC should formally review implementation performance every three months evaluating progress by implementing partners against the agreed progress indicators in the implementation plans. The outcome of these meetings should be reported to the EC-BQSP Programme Steering Committee and the regular coordination meetings held by the Bangladesh Government. Proposed committee activities  List existing development activities and projects that relate to activities described in the strategy implementation plans.  Immediately hold meetings with suggested lead implementation partners and development agencies undertaking activities related to the sector. Confirm their engagement and capacity to undertake the activities prescribed in the implementation plans.  Identify activities in the plans for which no partner has been found and find appropriate partners and resources to undertake the work.  Coordinate implementation among all stakeholders concerned, agree start dates and determine completion dates for the activities listed in the implementation plans. Agree progress measures to be applied and update implementation plans accordingly.  Convene periodic (at least every 2 months) meetings of development partners to coordinate and manage the work, identify impediments, prioritise solutions and publicise successes.  Formally review implementation performance and key market performance indicators every three months evaluating the progress of implementing partners against the agreed progress indicators in the implementation plans.  Report to the EC – BQS-Programme Steering Committee, Cabinet and the regular development coordination meetings held by the Bangladesh Government 30 A strategy for developing the ITES sector of Bangladesh – September 2008
  31. 31. STRATEGY IMPLEMENTATION PLANS A strategy for developing the ITES sector of Bangladesh – June 2008 31
  32. 32. 33 A strategy for developing the ITES sector of Bangladesh – September 2008
  33. 33. 34 A strategy for developing the ITES sector of Bangladesh – June 2008
  34. 34. ANNEXES A strategy for developing the ITES sector of Bangladesh – September 2008 35
  35. 35. Annex 1. Market strategy options and success factors IT-ES Dhaka, Nov 05-06 2007 Group: IT-ES ÎTES Market Segments April 2008 Market Segments (actual & researched opportunities) Target Countries Value added Market attractiveness & fit in 2008 3 = Highest 5 = Highest Contract-based service provision transactions Business IT-enabled service partner (Time based contract) 3 Graphic design Services -Data Services -Design Services -Prepress Graphics Advertising, Publishing, Printing, Media, Corporate Denmark, Norway, Germany, Sweden, Japan, Finland, USA, Australia 2 5 Steel detailing Civil and marine construction Finite element analysis CAE/CAM design+ graphics Visualization & 3 dimensional modeling Civil and Structural engineers Civil engineering contractors Architects, Builders Steel fabricators USA, UK, EU (Denamrk, Germany), Switzerland, Middle East 3 4 Multimedia -Web Publishing -Web Content -Animation -2D Studios Corporate, Ad Agencies, real Estate, E-Learning Companies, TV Commercial Production Centers USA, Switzerland, UK, Denmark, Norway, Germany, Sweden, Japan, Finland, USA, Australia 2 4 Mobile telephone content -Voice Applications -Graphic Animation, Visuals Corporates, Service Providers, 3rd-party Content Service Providers Switzerland, Denmark, France, Sweden, Japan, Korea, China 2 3 Data Services -Data Entry -Data /Documentation Conversion and Migration -GIS Data Conversion -Graphics Data Processing -Back-Office, etc. Corporates, Utilities, Banking & Finance, Insurance Switzerland, Canada, Japan, USA, Australia 1 3 A strategy for developing the ITES sector of Bangladesh – September 2008 36
  36. 36. CRM services and Call Centers -Inbound/Outbound -Contact Centers -Data & Voice -Operation Maintenance Corporates, Utilities, Banking & Finance, Insurance Bangaldesh, India, Myanmar, Nepal USA, UK, Australia 1 3 Market entry and Buyers' common requirements ITES - BPO Buyers Common Requirements 1 Comprehensive service provisions & delivery flexibility 2 Policies & processes mapping to the buyer's needs 3 IP and data protection 4 Secured delivery systems and assurance 5 Turn-around time & operational efficiency 6 Cost arbitrage/advantage ITES - BPO Market Requirements 1 Skilled HR 2 Market Contacts 3 Communication infrastructure 4 Process maturity 5 Language and communication skills 6 Disaster, risk mitigation, recovery and safety measures 7 Satisfied customer referrals and good reliability record 8 Compatible legal and admin processes 9 Standards and certification compliance A strategy for developing the Horticulture sector of Bangladesh – September 2007 37
  37. 37. Segment markets + Contract requirements Score Market approaches (Pillar objective 1) Produce capacity profile, presentations, brochures & other collateral information media 3 PR Exercise to showcase IT-ES successes in appropriate trade journals. Journalist with customer sector experience to conduct interviews and write editorial articles for syndicated circulation Engage business consultants in target markets to assess potential customers requirements and arrange introductions and awareness presentations for Bangladeshi companies. Telemarketing is appropriate. 3 Build Bangladesh ITES brand 3 Improve "Bangla" competency in graphic design processes with successful projects-secondary language/culture competency 3 Reduce turn around time for new orders to one month maximum 3 Retaining business using CRM/follow-ups/Repeat Customers 3 Communicate with customers/References/ with successful customers 3 Create Road Shows, Have persons in embassy, build Bangladesh brand, Group participation for match making exercise, market research by segments 2 EPB to promote the graphics design industry 2 BASIS to emphasize the graphics industry both locally and globally/focusing with SIGs (Special Interest Groups) 2 Web research/SEO(Search Engine Optimization)/Enlist the Graphics Design Companies on search engines like Google, Yahoo, etc. 2 Unique standards compliance in graphics rendering for Danish market/EU markets 1 Contract issues: Exclusive vs. Non-exclusive 1 Capacity Development (Pillar objective -2) Trained HR by Focused training schools on graphics design-Setup vocational training school to industry international institution partnership 3 B2B Program(International Joint-venture recognized school) 3 Training on specialized industrial tools 3 HR retention Policy 3 Availability of specialized graphics hardware 3 work environment standards compliance 3 project management 3 Process automation to handle scale/size 2 Process alignment with overseas customers 2 Following Clients' working calendar 2 Deploy appropriate quality implementation tools for capacity building 1 Segment markets + Contract requirements Score 38 Strategy for developing the Horticulture and Floriculture sector of Zambia – April 2006
  38. 38. Support services infrastructure (Pillar objective 3) Internet bandwidth cost and quality 3 Availability of power and reliability 3 Availability of space designed for ITES industry (STP) 3 Clubbing and Classifications 3 Foreign exchange earning retention percentage and procedure 2 Bureaucratic regulatory hurdles 2 Income tax issues 2 Access to finance 1 Visa and travel - both ways business visa expedite 1 Support services infrastructure (Pillar objective 3)-2 Banking-e-billing, Back and front office System uptime and responsiveness 3 Physical security and power 3 Reach of service(urban/rural areas) 3 Application System/data capacity 2 Hardware and networking capacity 2 Interfacing capability 2 E-collection, integrity/accuracy of billing system 2 Logical /system security -DB -Application System -OS 1 Note: 3 = Most important A strategy for developing the Horticulture sector of Bangladesh – September 2007 39
  39. 39. Annex 2: ITES Value Chain Analysis Sector Contribution to the Economy ITES currently represents about 30% of total ICT capacity in Bangladesh. The other 70% being composed mainly of IT software programming services and a small number of specialised hardware producers. Several independent evaluations (Danida 2006 and World Bank 2007) have cited tremendous potential for expansion and fast-growing demand for these kinds of services and the ability of the sector to provide a large number of good-quality jobs for college leavers. The proposed employment pool represents a segment of the population of high concern to both the Government and development agencies. Currently, Grade 12 college leavers; even with good command of English, are not finding suitable jobs and many remain unemployed for a long time, especially women. The ITES companies have potentials to make significant contribution towards technological and economic development along with wide opportunities for employment generation. Analysis shows that the SMMEs (Small, Medium, and Micro Enterprises) have made substantial contribution to Gross Domestic Product (GDP) during the last few decades and created appreciable employment opportunities. At present, all the companies in the ITES sector are SMMEs. Although the ITES sector contribution to GDP is still very insignificant, but it has the potential to grow very quickly in GDS (Graphic Design Services) and different Business Process Outsourcing (BPO) areas to follow the similar success of Thailand, Philippines, Vietnam. Almost all the ITES companies in Bangladesh are located in the capital city, Dhaka. The other divisional cities have few ITES companies. In general, the print and publishing industry, the Newspapers, TV & Electronic Media, the Ad Agencies are the main customers of the ITES units for the local markets in Bangladesh. There are not much import substituting ITES services. Very recently, small but growing number of ITES companies started to export. The ITES companies form forward as well as backward linkages with other industries making a cluster network in generating employment and contributing to the overall economy. The over-riding vision must be for setting up a market-based economic order with a level playing field for all ITES enterprises. Some Pertinent Accreditation of ITES Sector • ITES along with the ICT has been declared as one of the five ‘Highest Priority Sectors’ by the Government of Bangladesh (Export Policy 2003-2006) • The sector is one of the potential thrust sectors declared by the Government of Bangladesh (Industrial Policy 2005). Size / Configuration of ITES Companies in Bangladesh There is no reliable data for the overall size of the full ITES sector in Bangladesh. This study focuses on the export oriented ITES enterprises. There are about 5,000 people working in the ITES sector Mostly dedicated to exports. Many of these ITES companies employ less than 100 persons. The annual turnover of this small sub-sector is about BDT 300 crores. Perspective of ITES Sector in Bangladesh The locally focused ITES companies Mostly serve the local print and publishing industry, the Newspapers, TV & Electronic Media, the Ad Agencies. There are ample opportunities to go for large-scale exports by these traditional companies adopting new business plans. Like any sector, the ITES companies form forward as well as backward linkages with other industries. The conventional ITES companies serve the local needs and can function in any economic sphere of the country. For those companies, there are some backward and forward linkages between ITES and other sectors of economy by supplying wide range of products / services. 40 Strategy for developing the Horticulture and Floriculture sector of Zambia – April 2006
  40. 40. It is worth mentioning here that, Many of the developing countries around the world, have been providing institutional support services to their ITES sector through setting up of different types of technical training centres to help their technical work force to update their skills and knowledge. ITES Products / Services Spectrum in Bangladesh Process Potential IT-Enabled Service Product Development Market research, data gathering Data mining and analysis Engineering design Production, Service Delivery Pre-production; layout and graphic design Data conversion Publishing Records and transcriptions Distribution, Sales and Marketing Logistics, inventory tracking Sales support Content, web development Outbound marketing, e.g. telemarketing Customer Service Customer care, e.g. call centers Insurance claims Technical support E-mail help Finance, Accounting and Legal Administration Data capture, conversion, processing Billing, payables, general ledger Record keeping Transcriptions Human Resources Administration Data, forms handling and capture Training, including remote education Payroll processing Employee benefits services A strategy for developing the Horticulture sector of Bangladesh – September 2007 41
  41. 41. Typical Value Chain of the Sector The value chain of ITES describes the full range of activities which are required to bring a product or service from conception, delivery to final consumers. Typical ITES value chain of. 42 Strategy for developing the Horticulture and Floriculture sector of Zambia – April 2006
  42. 42. Constraints in Producing High Quality ITES Products especially for Export (a) Problems Related to HR • Not much trainable Human Resources because of the lack of basic education quality. (b) Problems Related to Infrastructure, Innovation Promotion and Management • Efficient and skilled manpower is not available. • Load shedding problem in electricity supply. • Absence of R&D facilities. • Lack of standard and quality of product (1SO 9000, ISO 9002, 1SO 14000). • Problems Relating to Marketing (b) Problems Related to Market Information and Marketing Skills • No Information about the specific ITES market segments Lack of entrepreneurial and marketing skills to identify the emerging and attractive ITES market segments and to align internal resources with those opportunities. A strategy for developing the Horticulture sector of Bangladesh – September 2007 43
  43. 43. Annex 3. List of documents & reports considered 44 Strategy for developing the Horticulture and Floriculture sector of Zambia – April 2006 • • •
  44. 44. Annex 4. List of participants for the ITES Sector workshops 1 & 2 SL # Name of the Company Contact Person Address Tel Email 1 Ababil IT Industries Limited Md. Ashraf Uddin, Managing Director 147/4, Arambag (1st Floor), Dhaka-1000 7100680, 01713-083584 aitilbd@yahoo.com 2 Aftab IT Limited Mr. Rabindranath Roy, Manager, Marketing Eastern Trade Center (14th Floor), 56, Inner Circular Road, Dhaka-1000 9331278, 9335325, 9352356, 01678002403 robinroy@aitlbd.net 3 AIMINLIFE DOT COM Ltd. Mr. M. Shoeb Chowdhury, President & CEO House # 21, Suit A/4, Road # 17, Banani, Dhaka - 1213 8832106, 01711594796 info@aiminlife.com 4 Anupam Infotek Limited Mrs. Nazneen Khaleque Managing Director 222, Tejgaon Industrial Area, Dhaka - 1208 01911-354178 (Mrs. Kamal), 01714-164444 (Mainul) sskamal-ecmsl@siriusbb.com,sskamal@a ilbd.com 5 bdjobs.com Limited Mr. A.K.M. Fahim Mashroor, CEO BSRS Bhaban (8th Floor -West), 12, Kawran Bazar, Dhaka-1215 911-7179, 914-0345 fahim@bdjobs.com 6 BETS Consulting Services Ltd. Mr. Md. Badiuzzaman, Head, ISS House # 10, Road # 135, Gulshan - 1, Dhaka-1209 9889923 - 4 bets@betsbd.com,info@betsbd.com,pnd @betsbd.com,bzaman@betsbd.com 7 Business Automation Limited Mr. Jahidul Hasan, ED BSRS Bhaban (9th Floor - East), 12, Kawran Bazar, Dhaka-1215 9134510-11, 8110379, 0189 224 119, 8144817-19 mitul@batworld.com, info@batworld.com 8 CACTS Ltd. Mr. Md. Nurul Islam, Managing Director 25/2 Lake Circus (3rd Floor) Kalabagan, Dhaka – 1205 8123748, 01711534197 cacts@bttb.net.bd,basis@cacts.com.bd A strategy for developing the ITES sector of Bangladesh – September 2008 45
  45. 45. SL # Name of the Company Contact Person Address Tel Email 9 Computer Graphic & Design Mr. Md. Hasan-Uz-Zaman, Proprietor & CEO 147/4 Arambagh (1st Floor), Dhaka-1000 7100680 info@cgdbd.com 10 Digital Construction Limited Mr. Asif Yusuf, Managing Director 5/6 Gajnabi Road, Block-B, Mohammadpur, Dhaka-1207 8111426, 8111911, 8116678 info@dcl-online.com 11 Electro Craft Corporation Ltd. Mr. Amir Hossain, Managing Director BSRS Bhaban (8th Floor), 12, Kawran Bazar, Dhaka-1215 913-9523,01714-084442 info@electrocrft.org;ecraft@gononet.com 12 Graphic Associates International Limited Ahmed Ashrafuzzaman Executive Director House 46, Road 2, Banani, Dhaka - 1213 9860567, 7171235, 7170009,0167-8009814 ahmed.gai@mindworking.dk 13 Graphic People Limited Mr. Nazim Farhan Choudhury, Director 14 South avenue, Gulshan - 1, dhaka 8835608, 8835609 farhan@nazimcorp.com 14 IBCS-Primax Software (BD) Limited Mr. S. Kabir Ahmed, Managing Director House # 44, Road # 13/A, Dhanmondi R/A, Dhaka-1209 8110699, 9141876, 8115517 (R ), 0191-350092, 0191350093 aparna@ibcs-primax.com; info@ibcs-primax.com 15 ICE Technologies and Services Ltd. Mr. Rubaiyat Jamil CEO & Head of Operations Erectors House (13th Floor), 18 Kemal Ataturk Avenue, Banani, Dhaka - 1213 8836831-2, 01713030510 info@icebd.com 16 Latitude-23. Mr. Mamnoon M. Chowdhury, Partner & CEO House# 382, Road # 28, New DOHS, Mohakhali, Dhaka -1206. 9883161, 8850802 info@latitude-23.net; mamnoon@latitude-23.net 17 Mantrust Information & Communication Technology Ltd. Mr. Imtiaz Ahmed Khan Managing Director House # 63 (2nd Floor), Road # 1, Block # I Banani Dhaka - 1213 8810132, 9888751, 01711541217 msoft@mantrust.net 18 Ryans Computers Mr. Ahmed Hasan, Chief Executive 123/5, BCS Computer City, IDB Bhaban (1st Floor), Agargaon, Dhaka-1207 9125148, 8118298, 01711-541217 ah@agni.com 46 Strategy for developing the Horticulture sector of Bangladesh – September 2007
  46. 46. SL # Name of the Company Contact Person Address Tel Email 19 Star Computer Systems Limited Mr. Md. Ali Akbar Khan, MD Fattah Plaza (7th & 8th Floor) 70, Green Road, Dhaka-1205 8629206, 8629403, 01819-229115, 0187045635 scs@citechco.net;rezwana@stargroup-bd .com;info@stargroup-bd.com 20 The ICT Associates Limited Mohammed Tazin Alam Managing Director & CEO Hakam Foundation (4th Floor) House#98, Road#11, Block#C, Banani, Dhaka 8814309, 8855122, 8861827, 01678003200 basis.member@mkrdhaka.com, tazin@mkrdhaka.com 21 Trade Textile Bangladesh.com Ltd. Mr. Faisal Alim, Chairman House # 2, Road # 1/A, Gulshan-1, Dhaka-1212 9860960, 8810905, 8833463 commercial@wintelbd.com 22 Zanala Bangladesh Mr. Tamzid Siddiq Spondon Managing Director BSRS Bhaban, Level-4 (West) 12 Kawran Bazar, Dhaka-1215 8129475, 01199388098, 01819-200559 info@zanala.com, spondon@zanala.com 23 CSL Software Resources Ltd. Mr. Rafiqul Islam Rowly 01819-200-559 Rafiqul.Islam@cslsoft.com 24 ITC Mr. Ian Sayers, Senior Adviser ITC, WTO, UNCTAD, Geneva Sayers@intracen.org 25 ITC National Project Brig Gen (Retd) M. Mofizur Rahman, ITC National Project Coordinator (NPC) BQSP Component 2, EPB, Dhaka 01713-023939 mofiz@intracen.org, mofiz374@yahoo.com 26 ITC ITES Project Prof. R. K. Verma, ITC International Consultant (ITES) Apeejay Institute of Technology (ITES), Greater Noida, India ramkaran.verma@gmail.com 27 ITC ITES Project Mr. Habibullah N. Karim, ITC National Consultant (ITES) TechnoHaven Company Ltd., Fattah Plaza, 9th Floor, 70, Green raod, Dhaka – 1205 967-0567 karim@technohaven.com 28 ITC ITES Project Mr. Fokhruz Zaman, ITC National Consultant (ITES) Millennium Information Solution Ltd, 18th Floor, Grameen Bank Tower, Mirpur – 2, Dhaka - 1216 01819-253-640 zamanmisl@gmail.com A strategy for developing the Horticulture sector of Bangladesh – September 2007 47
  47. 47. SL # Name of the Company Contact Person Address Tel Email 29 BQSP Component 2, EPB Mr. Shahid Hasan, PD EPB, Dhaka, Bangladesh 01552477274 Niznim2006@yahoo.com 30 ReliSource Technologies Ltd Mr. S. M. Mahbub Alam, Head of Engineering Gulshan – 1, Dhaka - 1212 01818608995 smmhbalam@yahoo.com 31 BRAC Bank Ltd Mr. Mizanur Rahman Chowdhury, Head of Technology 1. Gulshan Avenue, Dhaka - 1212 0171-309-0112 Mizan.chowdhury@bracbank.com 32 BRAC Bank Ltd Mr. Md. Abdullah Al Mamoon, Head of Infrastructure Development 1. Gulshan Avenue, Dhaka - 1212 0171-303-0333 Abdullah.mamoon@bracbank.com 33 Bioscopewala Intl Mr. Sahadat Hossain Gulshan, Dhaka 0173-139-0667 beddut@yahoo.com 34 JobStreet.Com Mr. Md. Shumsud Doha, Sr. Manager, Finance & Admin BSRS Building, 12, Kawran Bazar, Dhaka 0171-142-7821 doha_74@yahoo.com 35 Daffodil Software Ms. Farzana Ferdouse. Sr. Executive, Software Kalabagan, Dhaka 0172-754-9735 touchytossy@gmail.com 36 Trust Bank Ltd Mr. S. M. Akram Sayeed, VP, IT & Card Division, Head Office Dhaka 0171-301-0897 sayeed@trustbanklimited.com 37 IBPC, Ministry of Commerce Mr. Mir Shariful Bashar, EO - IBPC IBPC, Kawran Bazar, Dhaka 0173-000-1567 ibpc@intechworld.net 38 Convince Computer Ltd Mr. Rafez Alam Chowdhury Mirpur – 2, Dhaka 901-0603 racub@bdonline.com 39 EPB Ms. Saleha Haque, Deputy Director, EPB EPB, Dhaka 9144821-24 40 Not Available Mr. Mohd. Abdul Halim, Admin Officer EPB, Dhaka 0191-337-5264 48 Strategy for developing the Horticulture sector of Bangladesh – September 2007
  48. 48. SL # Name of the Company Contact Person Address Tel Email 41 Not Available Mr. Ahmad Tabshir Chowdhury, IT & MIS Consultant Not Available 0171-302-4413 atabshir@hotmail.com 42 Planning Commission Mr. Md. Altaf Hossain, Joint Chief, Physical & Infrastructure Division Planning Commission, Shere Bangla Nagar, Dhaka 911-7820; 0171-601-1820 Not Available 43 Systech Digital Mr. M. Rashidul Hasan Uttara, Dhaka 0171-324-9541 Not Available 44 Dream Door Soft Mr. Khan Md. Anwarus Salam, PM Not Available 0155-234-6126 anwar@dreamdoorsoft.com 45 BASIS Mr. Shoeb Ahmed Masud, Secretary General Business Automation, BSRS Building, 12, Kawran Bazar, Dhaka 815-1196 shoeb@batworld.com 46 Daud IT Mr. Rafiqul Islam Not Available 0171-583-3373 Not Available 47 Renaissance Consultants Ms. Parveen S. Huda, Managing Director Apartment 1C, House CWN(A) Plot 3B Road 49, Gulshan 2, Dhaka 885-2494 pshuda@gmail.com 48 EPB Mr. M. Abdur Rauf, Deputy Project Director, BQSP 2 TCB Bhaban, 1, Kawran Bazar, Dhaka – 1215 0181-943-2131 rauf1917@hotmail.com 49 TTBC Limited Mr. ATM Mahbubul Alam, Managing Director Not Available 0171-159-8528 mahbub@wintelbd.com 50 Convince Computer Ltd Mr. Md. Ishtiakh Matin, Director Plot # 68 – 71, Block – K, Rupnagar, Section – 2, Mirpur, Dhaka - 1216 901-0603, 0181-948-1378 ishtiakh@convincebd.com 51 Zanala Bangladesh Ltd Mr. S. M. Mobasser Hossain, Chairman BSRS Building, 12, Kawran Bazar, Dhaka 812-9475, 0181-927-7433 mobasser@zanala.com 52 JICA Mr. Anisuzzaman Chowdhury, Program Officer, Bangladesh Office JICA, Gulshan Avenue (South), Dhaka 0171-521-9796 Not Available A strategy for developing the Horticulture sector of Bangladesh – September 2007 49
  49. 49. SL # Name of the Company Contact Person Address Tel Email 53 JICA Mr. Takeshi Ueda, Project Formulation Advisor JICA 989-1897, 989-1899 Ueda.takeshi@jica.go.jp 50 Strategy for developing the Horticulture sector of Bangladesh – September 2007
  50. 50. Annex 5. Glossary of terms TERM DESCRIPTION ADB Asia Development Bank BEIOA Bangladesh Engineering Industry Owner Association BQSP Bangladesh Quality Support Programme BRAC Bangladesh Rural Advancement Committee BRC Banking Reform Committee BSTI Bangladesh Standards and Testing Institution DANIDA Danish International Development Agency DCCI Dhaka Chamber of Commerce and Industry DFID UK Department for international development EC European Commission EPB Export Promotion Bureau EU European Union EU-EDP European Unions´ Export Development Programme GTZ Germany Technical Assistance ISO International Organization for Standardization ITC International Trade Centre JICA Japanese International Cooperation Agency LGED Local Government Engineering Department MOC Ministry of Commerce MRLs Minimum Residue Levels NBR National Board of Revenue NGO Non Governmental Organisation NORAD Norwegian Aid for Development R&D Research and Development SHAPE Strategic and Holistic Approach to Performance Enhancement SEDF SouthAsia Enterprise Development Facility SGS Inspection, Verification, Testing and Certification Company TPO Trade Promotion Organisation TSI Trade Support institution UNCTAD United Nations Conference on Trade and Development UNDP United Nations Development Programme UNIDO United Nations Industrial Development Organization UK United Kingdom US United States of America USD United States Dollar WB World Bank WTO World Trade Organisation
  51. 51. Annex 5. The SHAPE technique for strategy development The strategy development process Representatives of the business community, government agencies & other stakeholders involved in the sector, were brought together in a series of meetings and workshops in Dhaka to formulate the strategy and implementation plans. In between the workshops, other meetings were held with manufacturers, retailers, exporters and government agencies to increase the level of representation and participation. The outputs therefore represent the views and interests of each stage of the sector’s value chains. The ITC SHAPE methodology was used to guide sector stakeholders through the strategy development process and leave workshop participants free to concentrate on the content of the strategy and its implementation plans. A thorough examination of the specific points of the strategy and the implementation activities was provided with close support from the ITC’s office in Geneva under a project funded by EC and the Ministry of Commerce of Bangladesh ITC has taken steps to inform other technical assistance agencies and potential strategy-implementing partners of the strategy development process, so that they can participate in it. ITC may also undertake implementation activities described in the strategy and that relate to its own mandate and area of expertise – if funding becomes available and ITC support is requested. For further information: Contact: Mr Ian Sayers, Senior Officer for the Private Sector Bureau of Policy and Programmes International Trade Centre Tel: +41 22 730 0260 E-mail: sayers@intracen.org or Mr Sophien Hanouz, Senior Trade Strategy and Value Chain Development Specialist International Trade Centre, Tel: +41 22 730 0339 E-mail: hanouz@intracen.org Postal address: 54-56 rue de Montbrillant c/o Palais des Nations CH1211 Geneva 10 Switzerland Web pages: www.intracen.org/ipsms/tsd A strategy for developing the ITES sector of Bangladesh – September 2008 52

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