Analysis of ICT Industry In context Global and Bangladeshi company. (Full document)

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An Analysis Of
ICT Industry in context of Global and Bangladesh
Prepared By
MD. Fahad Hossain
ID 258
6th
Batch
Department of International Business
University of Dhaka
Supervised By
Md. Rashedur Rahman
Assistant Professor
Department of International Business
University of Dhaka
Date of submission: 22.01.2017

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Executive Summary
The report attempted to highlight the aspects of analyzing Information Communication
Technology (ICT) sector in Bangladesh as well as in global arena. Like other economic sector in
the world economy, ICT sector can make major contribution to the nation‟s economy. The report
tried to furnish the overview of the performances of ICT sector and also find out the comparison
among the various categories of ICT with respect to the profitability in both domestic and global
market. ICT industry in Bangladesh is relatively new in comparison to other business sectors.
However, the unlimited potential of the ICT sector has commended inquisitive interest from all
concerned. The impact of global hype of the ICT sector is clearly visible in Bangladesh as well.
In the recent years, the local ICT sector has grown enviably.
The shift toward more integrated economies has accelerated the growth of ICT sector worldwide.
According to the research consultancy IDC, the global information communication technology
(ICT) industry market, is expected to reach $3.8 trillion in 2016, up from $3.7 trillion the
previous year. The U.S. market accounts for approximately 28% of the total, or slightly more
than $1 trillion. Over the past decade, the biggest shift in global industry allocations stems from
growth of the Asian region, fueled primarily by the rise of China and India. Countries with
skilled in ICT sectors are doing exceptionally good in this industry. Bangladesh has come
forward to take the opportunity to establish itself as one of the ICT exporting country.
Bangladesh govt. and private enterprises has scrutinized the ICT sector to invest capital in this
sector to skim the outcome by utilizing the available resources. Bangladesh govt. has taken many
incentives and reformed various regulations to boost up the present ICT sector in Bangladesh.
The presence of high number of young entrepreneurs is one of the distinctive features of this
industry. In last decade many tech savvy young graduates, some of them returning from abroad
after finishing education, have started their IT ventures. Despite various local and global
challenges, these young spirited entrepreneurs have done remarkably well in building sustainable
business organizations through their hard work and passion. Surely, the enthusiasm and
resilience of the young entrepreneurs are the main driving force of Bangladesh IT industry. In the
last fiscal the revenue from ICT sector was around 600 million USD. The export amount was
124.72 million USD. Year by year Bangladesh is getting the nerve of the global ICT Industry.
Comparing to the neighboring country such as India, our country is still lagging in many aspects.
By using various analysis tools such as Porter‟s five force model, PESTEL analysis and SWOT
analysis this report has identified the restriction that impedes the growth of ICT sector in
Bangladesh and global arena.
This report has analyzed the ICT industry basing on the best ICT Company performing in
Bangladesh and globally. This shows a relevant analysis of domestic and global ICT industry.
An overall analysis of the ICT industry is also given in this report. Basing on the analysis some
recommendations are given to improve the current situation of ICT industry in Bangladesh.

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Table of Contents
1. Chapter 1................................................................................................................................. 1
1.1 Introduction...................................................................................................................... 1
1.2 Background of the Study.................................................................................................. 1
1.3 Objectives of the study..................................................................................................... 2
1.4 Methodology .................................................................................................................... 2
1.5 Limitation of the Report................................................................................................... 2
2 Chapter 2................................................................................................................................. 3
2.1 Literature Review............................................................................................................. 3
3 Chapter 3................................................................................................................................. 6
3.1 Industry Analysis In the context of ICT Industry ............................................................ 6
3.2 ICT Industry Analysis in the Perspective of Bangladesh................................................. 6
3.3 History of ICT Industry in Bangladesh............................................................................ 7
3.4 Performance of Bangladesh ICT sector ........................................................................... 7
3.5 Size, Composition and Market......................................................................................... 7
3.6 Domestic Market: Private Sector Demand Propelling Growth........................................ 9
3.7 Export Market: New Optimism...................................................................................... 10
3.8 ICT Industry at a Glance in Bangladesh ........................................................................ 12
3.9 ICT Industry Analysis in the Global Perspective........................................................... 13
3.10 History of Global ICT Industry .................................................................................. 13
3.11 Major Players in Global ICT Industry........................................................................ 14
3.12 Performance of Global ICT industry.......................................................................... 16
4 Chapter 4............................................................................................................................... 19
4.1 Chosen Domestic Company Profile ............................................................................... 19
4.2 Data Soft Systems Bangladesh Limited......................................................................... 19
4.2.1 Areas of Expertise................................................................................................... 19
4.2.2 Industry Verticals.................................................................................................... 19
4.2.3 Staff......................................................................................................................... 19
4.2.4 Offshoring Value Proposition................................................................................. 19
4.2.5 Indicative Price ....................................................................................................... 20
4.2.6 Financial Information.............................................................................................. 20
4.3 Chosen Global Company Profile.................................................................................... 21

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4.4 Tata Consultancy Services (TCS) .................................................................................. 21
4.4.1 Areas of Services .................................................................................................... 22
4.4.2 Revenue by services................................................................................................ 22
4.4.3 Growth in Geographic Regions .............................................................................. 23
4.4.4 Key Financial Trends.............................................................................................. 23
5 Chapter 5............................................................................................................................... 24
5.1 Company Specific Domestic Industry Analysis by Various tools ................................. 24
5.1.1 Data Soft Systems Bangladesh Limited Analysis by Porter‟s Five Forces ............ 24
5.1.2 PESTEL ANALYSIS of Data Soft Systems Bangladesh Limited ......................... 25
5.1.3 SWOT Analysis of Data Soft Systems Bangladesh ltd. ......................................... 27
5.2 Company Specific Global Industry Analysis by Various tools...................................... 29
5.2.1 Tata Consultancy Services (TCS) Analysis by Porter‟s Five Forces ..................... 29
5.2.2 PESTEL ANALYSIS of Tata Consultancy Services (TCS)................................... 30
5.2.3 SWOT Analysis of Tata Consultancy Services (TCS) ........................................... 32
6 Chapter 6............................................................................................................................... 34
6.1 Findings.......................................................................................................................... 34
6.2 Overall Market Analysis ................................................................................................ 34
7 Chapter 7............................................................................................................................... 36
7.1 Recommendation for Bangladeshi ICT Industry ........................................................... 36
7.2 Conclusion...................................................................................................................... 37
7.3 References ...................................................................................................................... 38
List of Figures
Figure 1 Bangladesh Software and ITES Industry ......................................................................... 7
Figure 2 Industry Revenue Proportion............................................................................................ 8
Figure 3 Business Specialization of ICT Member Companies....................................................... 9
Figure 4Domain and Industry Specialization of Software Companies......................................... 10
Figure 5 Top Export Dimensions.................................................................................................. 11
Figure 6 Worldwide information technology (IT) spending from 2005 to 2015.......................... 16
Figure 7 Areas of service .............................................................................................................. 22
Figure 8 Revenue by service sector .............................................................................................. 22
Figure 9 Growth in Geographic regions ....................................................................................... 23
Figure 10 key financial trends....................................................................................................... 23
List of Tables
Table 1Export Trends in Recent Years......................................................................................... 11
Table 2ICT Industry at a Glance In Bangladesh........................................................................... 12

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Table 3 Share breakdown of IT services....................................................................................... 17
Table 4 IT spending worldwide by vertical industry.................................................................... 17
Table 5 Projected yearly growth in IT spending worldwide......................................................... 18
Table 6 Global market size of outsourced services ...................................................................... 18
Table 7 Company Profile.............................................................................................................. 21

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1. Chapter 1
1.1 Introduction
The industry is a key sector of the economy for every country in the world. Public and private
partnership is the basis for the industrialization for any country. The condition for sustainable
economic development is to ensure the ecofriendly industrialization. Global and National
Industrialization has an immense contribution to the world economy. The contribution of
industry sector in Bangladesh is about 28.1% (en.wikipedia.org/wiki/Economy_of_Bangladesh,
2015). Bangladesh govt. had taken vision to make Bangladesh a middle income country within
2021. Bangladesh govt. has taken many steps to revolutionize the industry sector to achieve the
vision 2021. The govt. has formulated an industry policy to provide the guidelines to encourage
and provide facilities to the public and private initiatives to furthermore strengthen the industry
regime of the world corresponding with the global industry trend. The world is marching toward
a more integrated and interconnected industrial phenomena. The industry is not only confined in
products but also to a wide range of services. The modern era has seen a rapid growth in
Information Technology related Industry. Countries are moving towards service industries rather
than manufacturing. Greater potentiality exists in these industries with minimum cost.
Bangladesh Govt. has also realized the potentiality of Information and Communication
Technology/ICT Industry in Bangladesh. Bangladesh has recognized the ICT Industry as one of
the prioritized sector for industrial development in Bangladesh. To ensure a diversified industry
structure in the ICT industry can play a vital role.
1.2 Background of the Study
A country is called developed only when its economy is developed. Industrial sector of a country
mainly holds the development key. In Bangladesh, industry is one of the strongest economic
sectors. Bangladesh will have within a decade a sizable industrial sector will account for at least
35 per cent of the GDP and at least 20 per cent of the employed workforce. This will mean a
considerable rise from the figure of 10 per cent around which the sector's share in GDP and
employed population have hovered for most of the past two decades.
A vibrant and dynamic private sector will be the principal actor in Bangladesh's industrial arena.
The industrial sector of Bangladesh will be competitive in the liberalized internal market as well
as in the external market. The industrial sector of Bangladesh shall have a dominant export
orientation.
This report is an attempt to provide an orientation to a real life industry situation, particularly in
ICT sector which we can observe and evaluate the use and applicability of the theoretical
concepts of industry analysis. This report reflects about understanding about the various aspects
of the selected companies and the ICT industry on the whole both Global and National. Study of
the ICT industry will enlighten us make investment decisions regarding the various industries.

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1.3 Objectives of the study
 What is the present condition of the industrial sector of Bangladesh?
 What is the present condition of the global industrial sector?
 What is the performance of the Industry sectors?
 What are the aspects of the ICT industry both in Bangladesh and globally?
 To know the overall internal and external environment of “ICT Industry of
Bangladesh”
 To evaluate the current industry situation and
1.4 Methodology
This report has been prepared on the basis of secondary and primary sources. For preparing the
report, I have also got the information from annual report, website of the companies, online
newspapers etc. I have presented my experience and finding by using different chart and tables
in the analysis part.
 Primary source:
From two executives in IT firm‟s I gathered the primary information. To collect the information I
communicated with them face to face. Md. Mazharul Islam Oniek and Md. Naimur Hossen was
the two executive from two firms Kazi IT Centre and Data Soft Bangladesh ltd. respectively.
 Secondary source:
To prepare this report I used different newspapers, journals, articles which are secondary
information. Especially I used various websites as well as BASIS generated news and
documents.
1.5 Limitation of the Report
Since the study is based on both primary and secondary data, there is a possibility of getting
biased information. If the surveyed personnel provide us with any fabricated information about
their opinion of their organization, then the report findings may be erroneous.
The notable ones are as under:
 The report was conducted in a very short time so I was not able to collect more information.
 Firms were not willing to provide information.
 Only two companies were selected as sample.
 The questionnaire contains some questions that, if answered properly, might damage the
company‟s image. In this type of questions, the respondents might provide socially
acceptable answers. This risk was unavoidable.
 Lack of experience in this field.

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2 Chapter 2
2.1 Literature Review
Every business plan should include market analysis. This is one of the first and most important
reasons to do a business plan. And whether starting a new business or reviewing an existing
business, one should renew your market analysis at least every year. Markets change--a business
needs to watch for changes in its market. The market need to look at is potential market, not the
actual market served, the one that's limits existing customers. The target market is much wider
than just the people you already reach. It's the people you might someday reach, or people you
could reach, that you need to be concerned about. Investors need to understand what's going on
within the market. What marketing trends and fashions do have an influence on market
segments? If someone is selling cars, for example, is there a trend that shows people responding
to higher gasoline prices or more environmental concerns? In computers, is there a trend toward
more power and lower prices? How does the increase in TV recorder equipment affect the
market? The questions that affect target markets will be different for every business, and these
are just examples. That's why it is important to conduct industry analysis; become aware of the
market trends that affect specific market.
Bangladesh is keeping commendable pace towards achieving the status of a middle income
country by 2021 over the last couple of years by sustaining a healthy growth rate of 6 per cent,
but nevertheless the country needs to grow at around 8 per cent yearly to reach middle income
status. Bangladesh has placed poverty alleviation on the top of its development agenda. Being a
country with a lion's share of its population aged below 30, Bangladesh has set youth
employment as one of its top priority areas. Admittedly, the country suffers seriously from
inadequacies in infrastructure and energy which appears to be a great barrier to setting up heavy
industries like automobile or electronics, and it is here that ICT has a crucial role to play.
(Chowdhury, 2016)
ICT sector is the next big thing for Bangladesh as a source of earning foreign currency.
Bangladesh has to identify and create opportunities to maintain its relatively stable economic
state. ICT and also the telecommunication industries have harnessed welfare for the economy of
this country. It is a one-of-a-kind industry which, with slight input, gives outstanding output in
the form of economic development, education and employment along with benefits in areas of
investment, banking, security, sociability, marketing, tourism and a number of other areas with
unimaginable fruits. While we have to say that these spectra of benefits have not yet been fully
utilized by the governments for the welfare of citizens but the sector has already managed to
change the lives of many people, especially among the youth, for the better. (theindependentbd,
2016)
Considerable achievements in the IT sector have already been made over several years towards
building a 'Digital Bangladesh' and more initiatives are coming. However, to fully capitalize on
the opportunities offered by the worldwide IT expansion, Bangladesh should thrust heavily
towards further developing the IT sector to draw the attention of foreign investors competing
with other technologically advanced/well-invested Asian countries. At the same time, we should

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encourage our entrepreneurs to launch IT companies here. Both these efforts would create
hundreds of thousands of IT jobs and, consequently, help Bangladesh become a middle-income
country by 2021. Emerging Asian countries like India, China, Malaysia, etc. have opted for
digitization to exploit opportunities offered by the Digital Age and catch up with technologically
advanced countries. These countries have heavily invested in IT sectors, reaping considerable
benefits in higher employment/income, and accelerating growth. For example, continuous
growth of the IT sector in Malaysia, fully supported by the government, has created 800 new IT
companies with over 98,000 new jobs, while 200 foreign companies have set up regional centers
in Malaysia, bringing billions of dollars in investment and creating significant new jobs. Indian
IT industry growth was spurred by huge foreign investment, contributing significantly to India's
GDP growth. It is estimated that the outsourcing sector has a worldwide market of USD 500
billion; India's share is USD 140 billion compared to Bangladesh's USD 700 million. (Rahman,
2016)
Bangladesh can draw on experiences of these countries to design and implement a rapid IT
promotion strategy tailored to her own resources/objectives. The government can consider the
following strategy to compliment the ongoing 'Digital Bangladesh', which will accelerate the IT
industry and utilise this sector as a platform for sustainable growth. Through injecting a major
investment of USD 1.0 billion over five years (USD 200 million per year), the government can
accelerate progress in this sector. This strategy can intensify efforts in specific areas: (a)
Speeding up IT training/skills; (b) Actively attracting international IT companies/investors to
establish IT centres (R&D, Service); and (c) Helping Bangladeshi entrepreneurs to start IT
companies by providing funds/incubation, sales/business development/marketing support. The
proposed strategy can generate the two main positive outcomes that will set Bangladesh towards
the goal of sustainable growth: one is the creation of high paid IT jobs, further leading to the
expansion of small Bangladeshi IT companies, while the second is to generate massive inflow of
foreign exchange through Foreign Direct Investment.
Enabling conditions such as, improving transportation, communication, physical infrastructure of
major IT hubs, installing work ethics, transparency, accountability laws, strengthening regulatory
roles, and ensuring homeland security can turn Bangladesh into a popular investment destination.
Institutions already working towards developing the IT sector (for example, BASIS) can become
partners in this effort and senior representatives from key government agencies (for example, the
Computer Council) should be included to advice investors on policies and procedures. Together,
they can attract foreign investment in Bangladesh's IT industry. A global network of small
overseas IT trade offices can also be established to attract and assist investors in setting up IT
companies and service centres in Bangladesh.
Efforts to sub-contract from IT advanced Asian countries can be fruitful. Small scale companies
not considered by India and China can be attracted to Bangladesh. India and China can also see
the benefits in helping Bangladesh expand its IT sector. Moreover, the public and private sector
can advertise IT careers to the youth and encourage entrepreneurship by providing start-up
capital or easy bank loans to start IT companies. (thedailystar.net, 2016)

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The Bangladesh government has been playing a key role in framing policies to foster
infrastructure developments in ICT. With Digital Bangladesh in mind, people are also in the
correct mental space to move forward with government agendas of economic growth through
developing the IT sector. However, it is important that ICT initiatives and implementation under
both existing and new schemes be closely linked to the overall economic development and
poverty reduction strategy to turn Bangladesh into a middle-income country by 2021.

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3 Chapter 3
3.1 Industry Analysis In the context of ICT Industry
To conduct the analysis I have chosen the ICT Industry both in National and Global context. The
reasons for choosing ICT industry are –
 The ICT infrastructure and internet facilities have been expanded up to rural level.
 An attractive incentive package has been offered for the investors in the Hi-Tech Park
creating an enabling environment and attractive destination for the investors.
 Work with policymakers to nurture ICT infrastructure investments. The goal is to take into
account both the commercial interests of industries as well as social responsibilities and
develop practical solutions that enable the further development of intelligent networks and
promote investment.
 Creating a service based high potential industry.
 Lack of risk for infrastructure deployment
 Enable customers to choose their Quality of Service (QoS) preferences individually.
 Aim for international policy alignment on data privacy and processing.
 Create mechanisms that will win consumers' trust in the way personal data is handled.
3.2 ICT Industry Analysis in the Perspective of Bangladesh
The report attempted to highlight the prospects and opportunities of Information Communication
Technology (ICT) sector in Bangladesh. Like other economic sector in the country, ICT is one of
major sectors which contribute to the national economy. The report tried to furnish the overview
of the performances of ICT sector and also find out the comparison among the various categories
of ICT with respect to the profitability. Despite having 50 years of history the government has
only from 1997 officially recognized the potential of the Bangladeshi ICT industry and its impact
on the economy. In collaboration with industry associations (BCS, BCC, BASIS and BACCO)
and international trade support institutions the government has taken both short and long term
measures (Vision 2021, Digital Bangladesh) to support and enhance development of the
domestic sector and increase the export of ICT products and services. The Information
Communication Technology (ICT) industry has consistently grown in recent years at 20 to 30
percent per annum.
Over 1500 registered ICT companies generated total revenues of approximately $600 million.
More than 75 percent of companies are involved in customized application development and
maintenance, 50 percent are dedicated to IT enabled services, and 45 percent offer E-
commerce/Web services (BASIS, 2014). However, 60 percent of companies solely focus on the
domestic market. In addition to the registered workforce, thousands of independent freelancers
offer their services at online market places and 5,500 students annually graduate from ICT
courses at more than 80 public and private universities. (Mansur Ahamed, 2014)

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3.3 History of ICT Industry in Bangladesh
In 1982 a computer center was established at the Bangladesh University of Engineering and
Technology. This center, later renamed the Department of Computer Science & Engineering has
played a pivotal role in Bangladeshi IT education since its inception. Over the years several
Information Communication Technology (ICT) related associations have been established. The
Bangladesh Computer Society („BCS‟), Association of the IT Professionals, for instance was
formed in 1979. The Bangladesh Computer Council (BCC) is the consequence of the evolution
of the National Computer Committee which the government constituted in 1983. The
Bangladesh Computer Samity (BCS), the ICT industry association, was found in 1987.
Bangladesh Association of Software and Information Services (BASIS), established in 1997,
promotes the ICT sector through awareness building, practical education for new graduates and
paid internships, and training programs for mid-career employees.
3.4 Performance of Bangladesh ICT sector
Software and IT service industry in Bangladesh has crossed a long road over the last few
decades. It has matured. The industry no more remains at the sideline. It joined the mainstream.
Not only the industry is contributing significantly in the national income, but also it has been
playing very crucial role in creating high quality employment for a sizable portion of young
graduates of the country.
The presence of high number of young entrepreneurs is one of the distinctive features of this
industry. In last decade many tech savvy young graduates, some of them returning from abroad
after finishing education, have started their IT ventures. Despite various local and global
challenges, these young spirited entrepreneurs have done remarkably well in building sustainable
business organizations through their hard work and passion. Surely, the enthusiasm and
resilience of the young entrepreneurs are the main driving force of Bangladesh IT industry.
3.5 Size, Composition and Market
Figure 1 Bangladesh Software and ITES Industry
Source: BASIS Survey (http://www.basis.org.bd/index.php/publications)
1500 +
firms No
(US$ 600 million)
Revenue of Software & ITES
Industry
2,50,000 + Professionals
Total Human Resource Employed in the Industry

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Figure 2 Industry Revenue Proportion
The total industry size is estimated to be US$ 600 million. Approximately 250,000 professionals,
majority IT and other graduates, are employed in the industry. Though, compared to other
traditional mainstream industry, the contribution for overall employment creation is not
significantly high, but if considered in terms of creating high quality, software and IT service
industry is surely one of the top graduate employment sectors in the country. (BASIS, 2015)
BASIS recently carried out a survey on three hundred of its member companies. Analysis has
been done on business nature, business volume and size of companies. Over 55% of the
companies are found to be involved in development and maintenance of software for their
clients. A number of those are simultaneously engaged in providing different IT enabled services
for their clients as well. In total, almost half of the surveyed companies are involved in providing
range of IT enabled services Interestingly, a significant number of companies (18%) have
developed software products or productized services; most of those have been developed over
time after repeated installations for multiple clients. A number of companies are in digital
content development and delivery business, mainly providing content services through mobile
platform.
One of the most encouraging recent trends in the industry is that, leveraging on recent positive
changes like larger Internet user-base, better connectivity as well as introduction of new payment
methods (online payment – through credit card and mobile payment), a good number of
companies (around 45%; some dedicatedly and some along with their core software or IT service
business) are focusing or diversifying on different web based services that include specialized
portals, listing services, e-Commerce, e-Learning, payment intermediary services etc. A number
of these ventures have done quite well in terms of popularity as well as financial viability. Off
late, some companies are also developing web applications based on cloud/SaaS delivery model.
These emerging new business and service delivery models might define the new wave in the
coming years for Bangladesh IT industry.
Industry Revenue Proportion
ITES
Software

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Figure 3 Business Specialization of ICT Member Companies
3.6 Domestic Market: Private Sector Demand Propelling Growth
Local market still constitutes the major part of business of the software and IT service industry
(63% of BASIS member companies are focused only in local market). There has been a
consistent growth (around 20-30%) in this market over last few years. The trend also shows that
the market is maturing in terms of both client requirement and solution response from IT
companies.
Although there is high level of interest for IT jobs in public sector, market share is still
dominated by private sector. From a survey carried out on 110 IT solution companies who are
focused mainly in domestic market, it is found that a large part of them provide business
application solutions including ERP, Accounting software, HR software, Sales Automation,
Inventory Management system etc. to private sector business enterprises. Banking and other
financial sectors (including capital market, Insurance, Leasing, and MFIs) still continue to be the
major focus for a large portion of IT companies. In the banking sector, the core banking software
market is dominated by foreign software though in a number of cases local solution companies
are working for implementation and maintenance for those softwares. Manufacturing sectors
including RMG, textile, pharmaceuticals and other consumer goods industries have created
sustainable demand for IT solutions like ERP, HR information system, production and financial
management solution. On the other hand, service industries like telecom, retail & wholesale,
healthcare, education publishing/media and real state have created sizable market space for IT
solution companies.

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Domain (Functional) and Industry Specialization of Software Companies
(Amounts refer to percentage of surveyed companies specialized in respective categories)
Figure 4Domain and Industry Specialization of Software Companies
3.7 Export Market: New Optimism
It is a fact that despite high expectation, over last decade the software and IT service industry
could not perform according to its potential in the export front. The export value is still meager
compared to other outsourcing countries in the region. As reasons behind this lackluster
performance, industry experts have identified a number of problems including lack of proper
infrastructure, shortage of qualified IT resources, absence of international branding & marketing
activities etc. In December 2010, Gartner, one of the most respected global consulting groups,
has published a list of top 30 outsourcing destinations of the world (this list is published every
two years by Gatner). The list included Bangladesh for the first time. This recognition is
certainly going to positively influence perception of prospective overseas clients on the
capability of Bangladesh IT industry.

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Export Trends in Recent Years
Fiscal year Export
(in million USD)
Growth
(over last year)
2007-08 24.09 -4.83%
2008-09 32.91 32.59%
2009-10 35.36 7.44%
2010-11 45.31 28.14%
2011-12 70.81 56.28%
2012-13 101.63 43.53%
2013-14 124.72 22.71 %
Table 1Export Trends in Recent Years
Source: Export Promotion Bureau
Above the figure we found that in 2014 ICT exports volume growth has increased 5.17 times
compare to 2007. There are over 400 BASIS member companies who have export in their
portfolio. Around one third of those companies are 100% export based
Top Export Destinations
Countries of export (% of BASIS member companies who export to foreign countries)
Figure 5 Top Export Dimensions
Source: BASIS survey

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3.8 ICT Industry at a Glance in Bangladesh
No. of Registered Software & ITES Companies 1,500+
No. of BASIS Member Companies 838
Approx. Revenue of Local Industry
(incl. Export)
600 million USD
Export (FY 2014) 124.72 million USD
No. of Exporting Companies
(Only registered companies. Does not include
no. of freelancers)
400 +
No. of Export Destination Countries 60+
Approx. No. of Human Resource Employed in
the Industry
250,000+
Table 2ICT Industry at a Glance In Bangladesh
Source BASIS

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3.9 ICT Industry Analysis in the Global Perspective
The global information Communication technology (ICT) industry market, encompassing
hardware, software, services, and telecommunications, is expected to reach $3.8 trillion in 2016,
up from $3.7 trillion the previous year. The U.S. market accounts for approximately 28% of the
total, or slightly more than $1 trillion. Over the past decade, the biggest shift in global industry
allocations stems from growth of the Asian region, fueled primarily by the rise of China. The
ICT channel plays an integral role to facilitating the flow of information technology goods and
services from producer to customer. The channel ecosystem, consisting of solution providers,
MSPs, VARs, vendors, distributors, cloud service providers, and more, work in concert to supply
and support customers‟ technology needs. Estimates suggest upwards of two-‐thirds of ICT
products and services sold to U.S. businesses flow through or are influenced by indirect channels
in some way.
Only the U.S. IT sector employs an estimated 5.9 million workers in technical (e.g. software
developers, network administrators, etc.) and non-‐technical (e.g. HR, finance, and marketing)
positions. The second element of the IT workforce, IT occupations, consists of an estimated 5.04
million workers as of yearend 2015 found in IT departments across businesses in every industry
sector of the economy. Based on how 2015 data is tracking, the year could record the highest IT
job growth rate in over a decade. (comptia.org, 2016)
3.10 History of Global ICT Industry
The phrase information and communication technology has been used by academic researchers
since the 1980s and the abbreviation ICT became popular after it was used in a report to the UK
government by Dennis Stevenson in 1997 and in the revised National Curriculum for England,
Wales and Northern Ireland in 2000. But in 2012, the Royal Society recommended that ICT
should no longer be used in British schools "as it has attracted too many negative connotations",
and with effect from 2014 the National Curriculum uses the word computing, which reflects the
addition of computer programming into the curriculum. (National curriculum in England, 2013)
Connecting people in a vast and distributed network of computers not only increased the amount
of data generated but also led to numerous new ways of getting value out of it, unleashing many
new enterprise applications and a new passion for “data mining.” This in turn changed the nature
of competition and gave rise to new “horizontal” players, focused on one ICT component as
opposed to the vertically integrated, “end-to-end solution” business model that has dominated the
industry until then. Intel INTC -0.25% in semiconductors, Microsoft MSFT +0.04% in operating
systems, Oracle ORCL +% in databases, Cisco in networking, Dell in PCs (or rather, build-to-
order PCs), and EMC in storage have made the 1990s the decade in which “best-of-breed” was
what many ICT buyers believed in, assembling their ICT infrastructures from components sold
by focused, specialized IT vendors.
The next phase in the evolution of the industry, the next quantitative and qualitative leap in the
amount of data generated and how we use networked computers, came with the invention of the
World Wide Web (commonly mislabeled as “the Internet”). It led to the proliferation of new
applications which were no longer limited to enterprise-related activities but digitized almost any

14
activity in our lives. Most important, it provided us with tools that greatly facilitated the creation
and sharing of information by anyone with access to the Internet. While computer networks took
IT from the accounting department to all corners of the enterprise, the World Wide Web took IT
to all corners of the globe, connecting millions of people. Interactive conversations and sharing
of information among these millions replaced and augmented broadcasting and drastically
increased (again) the amount of data created, stored, moved, and consumed. And just as in the
previous phase, a bunch of new players emerged, all of them born on the Web, all of them
regarding “ICT” not as specific function responsible for running the infrastructure but as the
essence of their business, data and its analysis becoming their competitive edge. (Press, 2013)
3.11 Major Players in Global ICT Industry
IT sector is one of the fastest growing sectors in the world. With information technology now at
the center of businesses, the current time is really great for the sector. The market is growing and
IT adoption rates are rising every year. New fields like cloud, mobility are leading the services
now. All companies are now offering a big spectrum of IT services ranging from conventional IT
services to modern technology offerings. The top IT companies in the world have companies like
IBM, Accenture; Microsoft followed by companies like TCS, Cap Gemini and enterprise
software giants Oracle & SAP. Cognizant and CSC are also in the list. Here is the list of top 5 IT
companies in the world 2016 on the basis of Revenue and Profit.
1. IBM
IBM is one of the giants of technology and is the largest IT Company. IBM is a brand which
has stood the tests of time and reinvented itself every time. IBM which was once seen as a
computer maker only is now an IT services giant. IBM sold its PC business to Lenovo to
concentrate on enterprise IT service business but it still manufactures and sells Servers,
storage in hardware. IBM started in 1911 as CTR but over the years it became International
Business Machines and eventually just IBM. It also offers services to all industry verticals
like BFSI, Retail, manufacturing etc. Because of its extensive services and global reach, IBM
is the leading IT service provider in the world.
Revenue: 72155 Million $ in 2016
Profit: 11691 Million $ in 2016
2. Microsoft Corporation
Microsoft is one of the biggest names in the technology companies which revolutionized the
way people and businesses used technology. With windows and PC revolution Microsoft
became a household name because of its Windows software. Microsoft offers lots of software
services and products. Microsoft has also entered enterprise business and competes with likes
of Oracle and SAP. With Windows, Office it also offers products like Microsoft Dynamics
which is enterprise software like what Oracle, SAP and Sales force offer but Dynamics is
mainly in areas of CRM and ERP. It also is very active in the developer community with
Visual Studio and Microsoft SQL Server being top products in the market from many years.
Microsoft has services and products in all domains. Microsoft has also come up with

15
Microsoft Consulting services. It offers other business software‟s also like Exchange email
service, Sharepoint document collaboration solution.
Profit: 8156 Million $ in 2016
3. Accenture
Accenture is an IT giant in terms of numbers and its presence in technology, consulting and
outsourcing. Accenture is a relatively a new IT player. It was founded as Andersen
Consulting in 1989 and was later renamed to Accenture in 2001. It is not only the third
largest in terms of Revenues and Profit but it also has a large number of employees across the
globe. Accenture provides services in almost all industry verticals namely automotive,
banking, finance, retail natural resources, health, media, utilities etc. Pierre Nanterme is the
chairman and CEO of the company. Accenture has been a top employer from many years and
it is listed on NYSE.
Profit: 3250 Million $
4. Oracle Corporation
Oracle like SAP is a major enterprise software provider in the world. In fact SAP and Oracle
are biggest competitors. Oracle is known for its acquisitions. Oracle is also present in
hardware business after acquisition of SUN. in this list we have taken the software/IT
business revenues and figures. Oracle is present worldwide with customers in all geographies
across the globe. It has more than 135000 employees across the world. Oracle is also quite
well known for its acquisitions. It acquired a lot of big companies for growth like SUN, BEA
etc. Oracle is headquartered in Redwood Shores, California. Oracle has formed alliances with
all major IT companies like SAP to help them integrate and support Oracle software in a
better way. Oracle is a big brand and like SAP a lot of IT professionals depend upon Oracle
for their career. Oracle offers lot of certifications through various partners.
Revenue: 29037 Million $ (Dec-Nov)
5. Hewlett Packard Enterprise
Hewlett Packard is one of the biggest and oldest names in technology industry who
revolutionized the way people used PCs. They also increased their presence in enterprise
services, software over the years. HP Enterprise is a recent company which was formed in
November 2015 after separating from its parent company HP & Now there are two
companies HP Inc. and HPE(HP Enterprise).
HP Enterprise offers Servers, Storage, Software and IT services. HP Acquired EDS, a major
IT company, to increase its footprint in the IT industry. As per recent news HP Enterprise
and CSC would form a merger to make a new company which would be a major IT player in
the market. We have considered IT service and software revenues for the ranking of HPE.

16
HPE is headquartered in Palo Alto, California. HP innovation labs are also part of HPE. Meg
Whitman is the president of the group. The company has the slogan “Accelerating Next”.
HPE has more than 100000 employees across the world. The services business of HP was
born when HP bought EDS (Electronic Data Systems) in 2008. By 2009 the name of the
brand became HP Enterprise Services which was still part of the main Hewlett-Packard. It
provides
1) Application services
2) BPO
3) Infrastructure Services
3.12 Performance of Global ICT industry
Worldwide information technology (IT) spending
From 2006 to 2015 (in billion U.S. dollars)
Figure 6 Worldwide information technology (IT) spending from 2005 to 2015
Source www.accelerance.com

17
The spending on global ICT sector is increasing rapidly year by year. If we look at the past and
present we will see the market size is also growing. In 2005 the total global spending was 2.856
trillion US dollar but in 2015 it has become 3.517 trillion US dollar.
Share breakdown of ICT services spending worldwide in 2015 and 2016 by region
Region 2015
North America 39.33%
Western Europe 31.74%
Asia Pacific 19.14%
Latin America 4.45%
Middle East &Africa 2.84%
Central & Eastern Europe 2.5%
Table 3 Share breakdown of IT services
Source www.statista.com
ICT spending worldwide by vertical industry 2014 (in billion U.S. dollars)
Vertical Spending
Banking & securities 498.38
Manufacturing & natural resources 498.99
Communications: Media Services 444.64
Government 447.11
Insurance 187.96
Retail 179.54
Utilities 149.38
Transportation 133.79
Healthcare providers 107.93
Wholesale trade 87.71
Education 66.52
Table 4 IT spending worldwide by vertical industry

18
Projected yearly growth in IT spending worldwide from 2014 to 2015, by segment
Year
Vertical
Devices
Data Center
Systems
Enterprise
Software
IT
Services
Communications
Services
Total IT
spending
2014 2.4 1.8 5.7 1.9 0.2 1.6
2015 -5.8 1.8 -1.4 -4.5 -8.3 -5.8
Table 5 Projected yearly growth in IT spending worldwide
Global market size of outsourced services 2000-2015
Table 6 Global market size of outsourced services
So from above all the information we see a positive trend in global ICT sectors. This will
eventually lead to more rapid growth in ICT sector.

19
4 Chapter 4
4.1 Chosen Domestic Company Profile
4.2 Data Soft Systems Bangladesh Limited
DataSoft Systems Bangladesh Limited is a CMMi level 5 apprised, ISO 9001:2008 certified
leading software company in Bangladesh. Founded in 1998, DataSoft has successful track
records for delivering most innovative and cost-effective technical services to customers in both
commercial and Government sectors. Since its inception back in 1998, DataSoft stepped into the
core field of ICT to cater to the needs of enterprise, governance and economy. Strengthened by a
strong team of experienced professionals, DataSoft has a unique approach towards continuous
training and development of human resources to adapt to the market demands for the national
and international venues. DataSoft is incorporating new technology to further expand its client
base and continue to serve clients with a little more than utmost satisfaction.
Data Soft Systems Bangladesh Limited was established in 1998. Various issues regarding the
firm is given bellow –
4.2.1 Areas of Expertise
 Mobile services and applications development
 Web Applications
 Customized Software Development
 Website Design
4.2.2 Industry Verticals
Finance & Banking, Government (civil, military) - local, national, Port/Logistics Technology
Profile & Skills .net, java, open-source CMS (joomla, drupal, typo3..), python, Objective C
Apple, Windows mobile, Android Certifications: ISO 9001, PCMM, CMMI level 5, Oracle
certified, Oracle APEX, IBM Mobile first Platform.
4.2.3 Staff
 Total IT staff: 295
4.2.4 Offshoring Value Proposition
Data Soft is a 17 years old software products and services company with process oriented
approach (CMMI Level 5 processes) within competitive price
 Expertise in two major business domains:
 Banking (Core Banking System: Temenos, AML, Microfin360, Cash Payment System
and etc.);

20
 Port & Logistics (Customs House, Ports, Transportation Logistics and etc.)
 Collaborating customers business idea with our technical expertise. For example, we
have immense expertise of working with global software products and services delivery
companies in USA, UK and other European countries
 Provides services on product testing, prototyping
 Leading edge practices on Data Science (Big Data)
 Advance development in Mobile Apps (Apple, Android)
4.2.5 Indicative Price
Price per hour: 16 USD average (java/.net/Obj-C)
4.2.6 Financial Information
Annual revenue in USD

21
4.3 Chosen Global Company Profile
4.4 Tata Consultancy Services (TCS)
Tata Consultancy Services (TCS) is a global leader in IT services, digital and business solutions
that partners with its clients to simplify, strengthen and transform their businesses. TCS has been
recognized by Brand Finance as one of the Big 4 Global IT Services Brands. Tata Consultancy
Services is an IT services, consulting and business solutions organization that delivers real
results to global businesses, ensuring a level of certainty that no other firm can match. TCS is the
largest Indian company by market capitalization and is the largest India-based IT services
company by revenues. The company operates in Americas, Europe, Middle East, and Asia
Pacific. The company is headquartered in Mumbai, India
Tata Consultancy Services was established in the year 1968.Its early contracts included
providing punched card services to sister company TISCO (now Tata Steel), working on an
Inter-Branch Reconciliation System for the Central Bank of India, and providing bureau services
to Unit Trust of India.
Various issues regarding the firm is given bellow –
TYPE PUBLIC
INDUSTRY IT SERVICES, IT CONSULTING.
FOUNDER: J R D TATA (Jehengir Ratanji Dadabhoy Tata)
in 1968
KEY PEOPLE Ishaat Hossain (Chairman)
Natarajan Chandrasekaran (CEO & MD)
AREAS SERVED WORLDWIDE
PARENT COMPANY TATA GROUP
SUBSIDARIES CMC LIMITED, TCS CHINA ,TRDDC, TCS E-
SERVE LTD.
HEADQUATER : MUMBAI,MAHARASHTRA, INDIA
Table 7 Company Profile

22
4.4.1 Areas of Services
Figure 7 Areas of service
Source http://www.tcs.com/news_events/analyst_reports/Pages/default.aspx
4.4.2 Revenue by services
Figure 8 Revenue by service sector

23
4.4.3 Growth in Geographic Regions
Figure 9 Growth in Geographic regions
4.4.4 Key Financial Trends
Figure 10 key financial trends
Source Annual report 2013

24
5 Chapter 5
5.1 Company Specific Domestic Industry Analysis by Various tools
5.1.1 Data Soft Systems Bangladesh Limited Analysis by Porter’s Five Forces
Porter‟s Five Forces
Data Soft Bangladesh faces the threat of new entrants, the bargaining power of customers, the
threat of substitutes and the rivalry between the existing firms. Being itself as a supplier it do not
have problem with the suppliers.
 Threat of New Entrants: The entry of new companies has reduced potential revenues that
might have been received by Data Soft Bangladesh ltd. Data Soft ltd. have developed and
grown prominent in the market share, size and reliability with the customers. Though, the
companies struggle to decrease their straight rivalry through demarcation of manufactured
goods, in every market there has been enormous competitors.
 Bargaining Power of Suppliers: DATA Soft ltd. has to work carefully upon reducing the
bargaining power of customers. DATA Soft ltd. can prevent price strategy in mixing up with
purchase decision. It means that DATA Soft ltd. should bring more than undifferentiated
indoctrination by moving up the cost sequence. Such approach might be difficult in the
software outsourcing business as the clients have an in-depth domain enterprises and rights
of inclination to hold on to the work allocated under considered consulting most vicious
customers. By the means of expertise and knowledge this firm can reduce this threat.

25
 Threat from Industry Rivalry: The main anxiety for DATA Soft ltd. is opposition from
existing companies like ServicEngine Limited, IBCS-PRIMAX Software (Bangladesh) Ltd
as it has produced rivalry for active dealings and twisted noteworthy pricing stress. This
proposes an organically-driven expansion strategy for DATA Soft ltd. as DATA Soft ltd.
should persist to do the similar sort of job that it presently do, but should attempt to arrest a
better section of the value-addition by accepting bigger projects. Although it has exhibited a
potential in distant project management, DATA Soft ltd. Will require increasing the same
capability.
 The Threat of Substitutes: The threat of substitutes are mainly from the India, China,
Philippines and Eastern Europe which are the biggest threats to the Bangladeshi IT
companies, which is mainly due to the low cost. The companies from these countries quote
very low price for the same quality of products as the Bangladeshi Companies do, which
creates a great impact on medium to long term projects. It is difficult for DATA Soft ltd
being operated from Bangladesh to attain the organic growth.
As the globalization is at its peak growth DATA Soft ltd view on competitors should be
broad and effective. The domestic competitors itself is capable of offering a strong
competition for DATA Soft ltd.
5.1.2 PESTEL ANALYSIS of Data Soft Systems Bangladesh Limited
Pestle analysis will analyze the organizations political, economic, socio-culture, technological,
Environmental and legal analysis of organizations. The Data Soft Systems Bangladesh being a
domestic and exporting company, these changes will affect the company's strategies.
 Political: The three major revenue zones of Data Soft Systems Bangladesh ltd are US,
Europe and Bangladesh. The political structure in Bangladesh is now constant as the ruling

26
party started to rule again after a majority win in the 2014. The new frontiers in USA and
European political issue are creating a careful observation for the company. The election of
Donald Trump and Brexit has paved the way to rethink about the business plan of this firm.
 Economic: The Steady fluctuation in the International market and the fluctuation in the
country's currency rate are considered to be the major negative influences. But in the last few
years there has been a positive trend in the world economy. Data Soft Systems Bangladesh
ltd managed to maintain their reasonable profits. The Markets had grown by 15% and
approximately reached USD 4.2 million in 2014. The crash in the Real estate market is also
considered as one of the advantages for the companies as they can buy sites for new branches
for lesser rates and the reduction in the Rental costs. The rapid increase in the complexities in
IT Industry, the new innovative services and products from competitors. The new
competitors entering the IT market is not a very big threat but also to be taken in account.
 Social: Cultural differences among the countries pose the biggest social threat to Data Soft
Systems ltd. Organization to make the business dealings with the English speaking nations
like US and Western Europe this firm needs good English speaking employees. The lack of
skilled manpower available in Bangladesh is a disadvantage for the Bangladeshi IT firms.
The availability of Technicians in Bangladesh is less than the resources available to the other
countries.
 Technological: Bangladesh is a developing country in the telecommunication field which
provides the moderate call rate which makes Bangladeshi firms like to thrive moderately in
the field of BPO, as the core of this business is to communicate among customers and
company representatives. The Internet system is also increasing day by day in Bangladesh.
But people are not skilled enough to use the blessings of this.
 Environmental: The ICT industry environment includes the govt. regulation, rules.
Incentives, cyber security etc. Facilitation of business procedures and legal procedures are
essential for the establishment of a strong ICT industry.
 Legal: IT firms in Bangladesh is frequently facing the legal issues from the employees and
other mutual competitors, Bangladeshi IT Companies is extended their boundaries
internationally and have their own global HR policies, all the IT companies including Data
Soft Systems ltd have undergone the issue of legal bonding made to make the employee to
stick into their companies for long term which is an negative aspect on Data Soft Systems ltd.

27
5.1.3 SWOT Analysis of Data Soft Systems Bangladesh ltd.
 Strengths: The popularity of Data Soft system has reached the domestic market as well as in
some international market. It has made Data Soft system a reputed and known firm in the IT
Market. Data Soft system made clear and strong economic presentations in Bangladesh
which makes its clients a financial confidence about the company. Its skilled employees in
made Data Soft system strong in Human resource. Data Soft system is also skilled in the
management. Data Soft system has a reasonable good infrastructures and innovative labs
with the latest technologies which help Data Soft system employees to update the latest
technologies and to make research in various fields. The fame of the founder is also an added
strength for the Data Soft system.
 Weakness: The excess exposure on the financial service markets which usually need to be
kept confidential is considered as the main weakness of Data Soft system. Data Soft system
lacks in publicity and supply of skilled manpower. Being a company which works on
Outsourcing projects usually needs a very good effective consulting team which acts as the
bridge between the clients and company. Data Soft system also lacks in that.
 Opportunities: Data Soft system being a fast growing IT firm is very keen in establishing
and expanding its business to almost all the parts of world. The Focus in the SMB segments
is also lays a very good business opportunity for Data Soft system. Expanding the global
branches to void countries like china, Asia-pacific will extend the business opportunities of

28
Data Soft system in future. Data Soft system has a very good opportunity in high end
business and consulting in the future if they rectify their weakness in consulting service.
 Threats: The rapid growth and development in Bangladesh and other global areas, A
common demand for employees arise which result in the increase of cost for employees. Data
Soft system has to face a very high competition from overseas and well established
companies. Increase of competition from low wages is another threat.

29
5.2 Company Specific Global Industry Analysis by Various tools
5.2.1 Tata Consultancy Services (TCS) Analysis by Porter’s Five Forces
Porter's tool will help to analyses the main five competitive factors which affect the company's
growth.
 The threat of Suppliers: Being TCS itself is an supplier, it do not have problem with the
suppliers, the other four forces which are problematic to TCS are the threat of new entrants,
the bargaining power of customers, the threat of substitutes and the spirited rivalry between
the existence.
 Threat of New Entrants: The entry of new companies have reduced rapidly as the huge
companies like TCS, Infosys and Wipro have developed and grown huge in their market
share, size and reliability with their customers. Though, the companies struggle to decrease
their straight rivalry through demarcation of manufactured goods, in every market there has
been enormous competitors.
 Bargaining Power of Customers: TCS has to work seriously upon reducing the bargaining
power of customers. TCS can prevent price strategy in mixing up with purchase decision. It
means that TCS should bring more than undifferentiated indoctrination by moving up the
cost sequence. Such approach might be difficult in the software outsourcing business as the
clients have an in-depth domain enterprises and rights of inclination to hold on to the work
allocated under considered consulting. The clients very well know that the complete
bargaining power lies in the strategic consulting; outsourcing that may reduce their
bargaining power. TCS have to build up enough knowledge so as to construct outsourcing
these errands a convincing worth plan. Of course, it is exactly in this empire that the
multinational outsourcing firms such as Accenture, IBM, and EDS are the most vicious
customers.
 Threat from Industry Rivalry: The main anxiety for TCS is opposition from existing
companies like Wipro, Infosys and CTS as it has produced rivalry for active dealings and
twisted noteworthy pricing stress. Internationally, Companies like EDS have sited themselves
as competent of handling huge, "turnkey" ventures which can distinguish themselves from
contestants such as Accenture and IBM that spotlights on superior value-added jobs such as
consulting. This proposes an organically-driven expansion strategy for TCS: as TCS should
persist to do the similar sort of job that it presently do, but should attempt to arrest a better
section of the value-addition by accepting huge projects. Although it has exhibited a potential
in distant project management, TCS would be requisite to increase the same capability.
 The Threat of Substitutes: The threat of substitutes are mainly from the China, Philippines
and eastern Europe which emerge as a biggest threats to the Indian IT companies, which is
mainly due to the low cost. The companies from these countries quote very low price for the
same quality of products as the Indian Companies do, which creates a great impact on
medium to long term projects. It is difficult for TCS being operated from India to attain the
organic growth. As the globalization is at its peak growth TCS view on competitors should
be broad and effective. The domestic competitors itself is capable of offering a strong
competition for TCS.

30
5.2.2 PESTEL ANALYSIS of Tata Consultancy Services (TCS)
Pestle analysis will analyze the organizations political, economic, socio-culture, technological,
Environmental and legal analysis of organizations. The TCS being a Multi-National company,
these changes will affect the company's strategies.
 Political: The three major revenue zones of TCS are US, Europe and India. The political
structure in India is constant as the ruling party started to rule again after a majority win in
the 2009 General Election which is a positive view for the company as the political influence
will remain constant in this zone. In US the government had announced a new rule on
outsourcing as the companies which outsource the work outside US; they will not get the Tax
benefits which even creates a negative phase. TCS is very well established in US as it can
work from US itself, but even then the ratio of outsourcing the new projects will be much
reduced in future. The government organizations and PSU had decided to give more
domestic projects to TCS which is positive strategy.
 Economic: The Steady fluctuation in the International market and the fluctuation in the
country's currency rate are considered to be the major negative influences. The Global
meltdown which paused the IT's vigorous growth had reduced the IT business
internationally. But even then the TCS and other firms where managed to maintain their
breakeven profits. The Domestic Markets had grown by 20% and approximately reached
USD 25 billion in 2009-10 which was estimated by NASSCOM which is an advantage for
the Indian companies in order to maintain the equilibrium. The crash in the Real estate
market is also considered as one of the advantages for the companies as they can buy sites for
new branches for lesser rates and the reduction in the Rental costs. The rapid increase in the
complexities in IT Industry, the new innovative services and products from competitors. The

31
new competitors entering the IT market is not a very big threat but also to be taken in
account.
 Social: English is taken as the official language of TCS which made the organization to
make the business dealings with the English speaking nations like US and Western Europe.
The manpower available in India is an added advantage for the Indian IT firms. The
availability of Technicians in India is bit more than the resources available to the other
countries. India is going to lead the next twenty years of spam for holding the highest
working population globally, which is a major advantage for all the IT companies. The recent
job cuts in US and other European countries where TCS widen their business boundaries
which lead to give new job offers to the native peoples, which created a soft bond towards
the company. The availability of high quality manpower globally, the frequent and rapid
transform in consumer lifestyles, the improvement in the relationships between the clients.
 Technological: India is considered to be a well-developed country in the telecommunication
field which provides the lowest call rate which makes Indian firms like TCS to thrive high in
the field of BPO, as the core of this business is to communicate among customers and
company representatives. India holds the largest population with mobiles and an average
population expected to have the subscriber base of 503 million the end of 2010. TCS holds
its global headquarters in India which has the highest telephone network after china. TCS is
much more concentrating in the next generation on wireless which the global technology is
attracted towards that.
 Legal: IT firms in India is frequently facing the legal issues from the employees and other
mutual competitors, Each Indian IT Company is extended their boundaries globally and have
their own global HR policies, all the IT companies including TCS have undergone the issue
of legal bonding made to make the employee to stick into their companies for long term
which is an negative aspect on TCS. Except in US TCS is getting tax benefits globally.
 Environmental: The Environmental concern of TCS shoots from the Tata Group which is
also added in the "Code of Conduct". TCS considers the change in the climate is considered
as the main aspect which affects the economic stabilities. TCS is much more concentrated on
the environmental issues like global warming, energy utilization, water consumption and etc.

32
5.2.3 SWOT Analysis of Tata Consultancy Services (TCS)
 Strengths: The popularity and the reach all over the global markets made TCS a reputed and
known firm in the Global IT Market. The TCS had launched the branches all over the world
which can be considered as the primary strength for the TCS. TCS made clear and strong
economic presentations around the globe which makes its clients a financial confidence about
the company. The International base of TCS, India is known for its skilled employees in IT
field which naturally made TCS very strong in Human resource. TCS is also skilled in the
management skills as its board of directors is from overseas countries in order to adopt the
strategies from all the parts of the world. TCS have a very good infrastructures and
innovative labs with all the latest technologies which help TCS employees to update the
latest technologies and to make research in various fields. The fame of the founder is also an
added strength for the TCS.
 Weakness: The excess exposure on the financial service markets which usually need to be
kept confidential is considered as the main weakness of TCS. TCS is also lack in effective
consulting team which shows a strong reflection of decline in the growth cycle of the TCS,
Being a company which works on Outsourcing projects usually needs a very good effective
consulting team which acts as the bridge between the clients and company. TCS really lacks
in that.
 Opportunities: TCS being a fast growing IT firm is very keen in establishing and expanding
its business to almost all the parts of world right from India, China, Latin American
countries, Asia-pacific and etc. which opened up a great business opportunity for TCS. The

33
Focus in the SMB segments is also lays a very good business opportunity for TCS.
Expanding the global branches to void countries like china, Asia-pacific will extend the
business opportunities of TCS in future. TCS have a very good opportunity in high end
business and consulting in the future if they rectify their weakness in consulting service.
 Threats: The rapid growth and development in India and other global areas, A common
demand for employees arise which result in the increase of cost for employees. TCS has to
face a very high competition from overseas and well established companies like IBM,
Accenture and etc. The complete merge in the End markets is also a biggest threat for TCS.
The advantage on rupees always stands as the biggest threat to all IT companies in general.
Increase of competition from low wages is another threat. The similar Indian firms like
Wipro, Infosys are also at their full phase of capturing global markets. TCS has to face a cold
war against the threats which the company faces. As all the competitors of TCS are equally
strong and effective in which TCS can't ignore the supple one.

34
6 Chapter 6
6.1 Findings
To date the ICT industry could be seen as one of the top sectors in the country for graduate
employment in terms of creating high quality jobs. According to BASIS the average monthly
compensation for an ICT employee is approximately US$ 200 per month (BASIS,
2014)Comparing the size of the national population and the size of the national economy, it
seems that the ICT industry in Bangladesh, especially the ICT and ITeS exports, is still relatively
small. Looking at the characteristics of the market, the global trends in offshoring, and the
growth of ICT services and products exported from Bangladesh over recent years. We can
conclude that the significance of the ICT sector for the Bangladeshi economy will grow in the
near future.
There are huge possibilities of the Information Communication Technology (ICT) sector in
Bangladesh. These are below:
 ICT industry of Bangladesh has a great opportunity to become a major sector of the national
economy. As we know that availability of a lower labor cost in Bangladesh to helps the ICT
industry to secure a very strong position in the market.
 As a Least Development Country (LDC) Bangladesh has duty free access to global market
for ICT Materials. This advantage may accelerate expansion and growth of Bangladesh ICT
industry.
 Bangladeshi ICT products are being exported different countries. It is increasing gradually
worldwide.
 Bangladeshi ICT industry is very much capable to ensure proper quality of the product as per
requirement of the global buyers of the international ICT market.
 Increasing labor cost all over the world. However, Bangladeshi ICT sector labor cost is
comparatively cheap; as a result Bangladeshi ICT products can be fulfilled global demand.
6.2 Overall Market Analysis
Overall the interviewees recognize that the Bangladesh ICT sector has the potential to become a
global destination for offshoring. The summary of the main strength points are given below:
Main Strength:
 The biggest strength in Bangladesh is the young population that we have. They can be trained
easily and fit in the sector needs.
 As a result of a decent education system, the average level of technical knowledge is
surprisingly. In addition to the talented workforce, Bangladeshi ICT companies are very
flexible in acquiring additional workforce if a project scales up.
 The technical knowledge of the Bangladeshi workforce is considerably high. In addition to
that, Bangladeshi companies are rather flexible in scaling up the workforce when needed.
 Costs in Bangladesh are approximately 40 percent lower than in India and Philippines.

35
 Due to the large population the wages are still very competitive. Bangladesh is even cheaper
than competing countries such as Sri Lanka and Philippines.
 Employee readiness to work and lower costs are the ultimate beauty of the Bangladesh
market.
 Bangladeshi services and products are better priced than in other ICT offshore destinations.
With better quality, lower prices and a better commitment (understanding of the client
problem, time schedules and resources to be put in) Bangladesh could compete with Indian
companies.
Weaknesses
As a developing market Bangladesh has a fair set of weaknesses. Most of them come from lack
of skills, know-how and investment in the country.
The main weaknesses are given below:
 The main weakness of the Bangladeshi market remains infrastructure and power shortages.
 The main weakness is the lack of reliable infrastructure. Internet speed, bandwidth and
electricity are key problems that regularly affect daily operations. Since many of the
companies are dedicated to software development, damage of poor internet connectivity is
limited.
 The Bangladeshi ICT sector also suffers from poor international visibility and lack of brand
name as a global offshoring destination.
 The ICT sector in Bangladesh is comprised of mainly small ICT companies that currently
seem to lack focus and scale to take up large long-term projects.
 Scalability is an issue as 90 percent of the companies have 10-30 employees.
 The companies in Bangladesh do not manage to create a unique sales proposition. They all
offer a wide range of products and services. 80 percent of the companies in Bangladesh are
offering the same services. Whereas the technical work can be done, the long term service is
not very reliable because of the size of the companies.
 There is a big lack of soft skills in Bangladesh. If you have 100 candidates for the job,
probably just 2 have the right soft skills (listening, keeping conversation going, etc.) This
makes training costs high.
 Sometimes there is a gap between the industry needs and the IT graduates. To solve the
problem, companies need to offer trainings and internships for post-graduates.
 Due to the lack of investments the competition is not tough and the turnover of employees is
lower than in other countries. The investment climate is good; hence there is a lot of room for
growth.
 Bangladesh as a young democracy, Infrastructure to support economic growth is an
inadequate and often not able to serve companies with basic needs such as a stable power
supply and access to high speed internet.

36
7 Chapter 7
7.1 Recommendation for Bangladeshi ICT Industry
 Market Bangladesh as an ICT Offshoring Destination: The visibility of Bangladesh as an
ICT offshoring destination needs to be improved upon. Both private and government industry
supporting associations, such as DCCI, BASIS, BACCO, and BCC, should jointly leverage
marketing efforts, actively seeking collaboration with international TSIs. Proactively
partnering with foreign trade development organizations is recommended as the GoB and
sector organizations together with TSIs can enhance domestic and foreign commercial
interests. Their aim is to develop the Bangladeshi economy through the increase of bilateral
trade and foreign.
 A Collaborative Bangladesh ICT Industry: As a result of both the limited size and lack of
international track record most Bangladeshi companies face difficulties to attract and serve
larger international clients. Besides collaboration between industry peers through short-term
partnerships or long term joint-ventures lead to more available technical know-how and
additional financial, organizational and marketing resources. These are necessary to ensure
access to foreign markets. Companies can also exchange or rotate workers in order to
develop additional technical or commercial skills.
 Improve Infrastructure: Next to the existing sea cable and the landline with India an
additional undersea optical fiber cable will be installed. This cable is expected during 2016
and will be essential for further development of the ICT sector. Establishing additional
internet hubs and broadband networks in remote areas is set up that could be considered.
 Crate a Quality Controlled Match-Making Platform: Potential foreign clients should be
able to find Bangladeshi companies and examine their offerings easily. Currently it lacks a
quality controlled and well promoted platform showcasing Bangladeshi ICT companies. It
would create business opportunities if Bangladeshi companies offer products and services on
a standardized platform based on several market segments within the ICT industry.
 Support Innovation: Based on the rapid changes and developments in the global ICT
landscape, it is important that the Bangladeshi ICT sector continues to innovate and to move
up the value chain. To create the right conditions for innovation, the following measures need
to be taken into account: developing specialized training facilities for talented ICT engineers,
establishing ICT hubs, business development and management.

37
7.2 Conclusion
This report has provided an overview of the ICT industry in Bangladesh and Global arena. A
deeper analysis has been completed understand the ICT industry related aspects. Bangladesh
economic data show a solid average annual growth rate of its GDP of 5.6 percent between 1994
and 2013. This flourishing environment for growth is created by a young, skilled and motivated
workforce, numerous initiatives of the Government of Bangladesh stimulating the economy and
improving the educational system, high ranking of easiness to do business, and cost
competitiveness compared to the surrounding markets. However Bangladesh, as a young
democracy, has a constant battle to maintain with the large countries such as India, China in ICT
Industry. Infrastructure to support economic growth is inadequate and often not able to serve
companies with basic needs such as a stable power supply and access to high speed internet. In
addition the financial sector is not developed to the level at which it is able to accommodate
economic growth with adequate financial services and additional funding. Gartner places
Bangladesh on its list of top 30 offshore ICT services destinations. Looking at the Bangladeshi
ICT offshoring industry it can be concluded that although it is relatively young it is rapidly
developing. It is estimated that within five years 1 percent of Bangladesh‟s total GDP will come
from the software and IT services sector. The world is also experiencing that a trend towards
more service based industry rather than manufacturing. We live in an asymmetric world marked
by wealth and poverty. The digital divide has widened the development gap. However, we have
now devised a technology that can overcome these differences and lead to a global society with
minimum poverty and maximum equity. Bangladesh must, indeed, resolutely commit itself to
build the Information Society and implement her Plan of Action.

38
7.3 References
https://www.gov.uk/government/publications/national-curriculum-in-england-computing-
programmes-of-study. (2013, September 11). Retrieved from www.gov.uk:
https://www.gov.uk/government/publications/national-curriculum-in-england-computing-
programmes-of-study
en.wikipedia.org/wiki/Economy_of_Bangladesh. (2015). Retrieved from https://en.wikipedia.org:
https://en.wikipedia.org/wiki/Economy_of_Bangladesh
BASIS. (2014). ICT Industry in Bangladesh.
BASIS. (2014). ICT Sector Study.
BASIS. (2015, November). www.basis.org.bd/index.php/publications. Retrieved from
www.basis.org.bd: http://www.basis.org.bd/index.php/publications
Chowdhury, M. I. (2016, march 16). Exploring prospects of ICT in Bangladesh.
thefinancialexpress-bd.com.
comptia.org. (2016). www.comptia.org/resources/it-industry-outlook-2016-final. Retrieved from
www.comptia.org: https://www.comptia.org/resources/it-industry-outlook-2016-final
Mansur Ahamed, P. (2014). Information Communication Technology (ICT) Sector of
Bangladesh.
National curriculum in England. (2013, September 13).
www.gov.uk/government/publications/national-curriculum-in-england-computing-programmes-
of-study. Retrieved from www.gov.uk: https://www.gov.uk/government/publications/national-
curriculum-in-england-computing-programmes-of-study
Press, G. (2013, April 4). www.forbes.com/sites/gilpress/2013/04/08/a-very-short-history-of-
information-technology-it/#23761a6c70a5. Retrieved from http://www.forbes.com/:
http://www.forbes.com/sites/gilpress/2013/04/08/a-very-short-history-of-information-
technology-it/#23761a6c70a5
Rahman, M. H. (2016, December 03). Bangladesh's IT Industry.
thedailystar.net. (2016, october 14). Bangladesh's IT Industry The Next Frontier?
theindependentbd. (2016). ICT sector in Bangladesh.

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