ICT outsourcing and Bangladesh
December 7, 2008
THE global outsourcing business has seen a tremendous growth in past years. The outsourcing in software and information & communication technology (ICT)-enabled services (ITES) created an immense interest in Bangladesh seeing the success of the developing countries like India, Philippines and Vietnam. The factors for the growth of ICT industry from modest start in the successful countries ranged from government support, infrastructure roll-out, financial support and availability of human resource.
A industry experience report by Rob Kommeren & Päivi Parviainen titled, ‘Philips experiences in global distributed software development’, discussed the Philips experience of over 10 years of distributed development through outsourcing involving dozens of projects. The outcome is an aggregate of experience and lessons learnt of a long-term and large-scale development activity. Since the experience and lessons learnt discussed here have been found repeating in several projects over time, in different settings and observed by different people, they can be seen as general, common issues occurring in, and because of outsourcing.
The report, in its opening statement states, that — ‘The highly competitive business environment — with the ever increasing functionality of the products implemented in software — places intense demands on delivering higher quality software faster. Companies need to use their existing resources as effectively as possible, and they also need to employ multiple development teams on a global scale. The ability to collaborate amongst these teams has become a critical factor in software development life cycle’.
The report also states in its conclusion that — ‘The general lesson learnt from this experience is that the reality of distributed software development is significantly deviating from the theoretic hypothesis: the efficiency of distributed software development is perceived to be disappointingly low, whereas increased efficiency was expected. First measurements indicate that up to 50% of the development effort is spent on overhead (such as extra project management and team coordination) and communication. This has lead to that global distributed development which has in practice been two to three times more costly compared to one-roof development. Preliminary conclusion is that, in general, distributed software development should be avoided as far as possible’.
In February of this year, US President-elect Barack Obama proposed that he would stop providing tax breaks for companies that were shipping jobs overseas through outsourcing activities and instead give tax breaks to companies that invested in the United States. This was an ominous sign of a possible protectionist attitude that the US could adopt to curtail outsourcing activities of US firms.
These information are important for Bangladesh to take appropriate measures to develop into outsourcing destination. The main reason for the outsourcing is ‘delivering higher quality software faster’. This means higher productivity and efficiency, which translates to requirement of highly skilled manpower backed by appropriate copyright act and technical infrastructure. The ICT industry in Bangladesh today is more vocal on the issues of access to finance and the price of the bandwidth whereas in the light of the evolving global scenario after the current recession requires the industry to proactively ponder on the actual needs for the development of the industry.
Globally outsourced software development allows organisations to benefit from access to a larger, qualified resource pool with the promise of reduced development costs. Another potentially positive impact of global outsourcing is innovation: mixing of developers with different cultural backgrounds may trigger new ideas. On the other hand, several studies have indicated problems in outsourcing software development, including Damian et al. 2004; Boland and Fitzgerald 2004; VA Software 2005). Such problems are:
- Poor visibility and control of remote activities,
- Inadequate communication, collaboration and coordination across individuals, teams, time-zones and projects,
- Insufficient (or lacking) knowledge and asset management capabilities,
- Language and cultural differences,
- Trust factors, and
- Lack of shared contextual awareness.
The growth of the ICT industry in Bangladesh has been very slow due to the above challenges. This is visible from the number of software professionals’ employment in these companies. Baring a handful of ICT companies, most others have remained less than ten programmers’ company even though a considerable time has elapsed after their inception. The capability and technical competence of these programmers are also not accredited which is a barrier to winning client’s confidence. The government’s initiative to build qualified pool of ICT professionals initiated a six month internship programme for ICT industry. Under this programme, a qualified graduate on employment in ICT Industry gets 60% (@Taka 3000/month) from government and 40% (@Taka 2000/month) from the employer. The industry failed to absorb the desired 500 ICT Professionals per batch leading to 1000 professionals per annum even after the government subsidy on salary due to the quality of these graduates. That has resulted in very slow growth of the local ICT industry. The industry insiders point that the intake is falling due to the quality of the graduates.
The following data obtained from Bangladesh Association of Software & Information Services (BASIS) gives the picture of employment under ICT Internship programme.
After detailed discussion and analysis of this unfortunate situation with the industry, academia and the government, it was observed baring a few, most of the graduates lack the pre-requisites for employment. To overcome this bottleneck and to ensure growth of our ICT industry, a programme to develop the human capacity under ICT Professional Skill Assessment and Enhancement Programme (IPSAEP) was designed and was formally approved in the ICT Task Force meeting, chaired by the Chief Adviser. Unfortunately, the Ministry of Science & ICT is sleeping with the proposed IPSAEP.
We have missed the industrial revolution because of the various constraints and now the golden opportunity to enter the ICT revolution is being hampered by the delays from within the government. The new global environment emerging out of the recession in the developed world will mean stricter cost control in ICT outsourcing similar to the measures seen after the dot com burst.
Bangladesh has no dearth of human resource but delay in appropriate measures quickly to tap the resource will mean failure of our dream with ICT. In contrast to our effort, the Philippines government is creating ‘Next Wave Cities’ to increase its share in the ICT and ITES outsourcing business. So-called “next wave cities” are areas around the country outside Metro Manila and Metro Cebu which offer the best potential to support the growing outsourcing sector. The 30 cities considered for the list were scored on talent (50%), infrastructure (30%) business environment (15%) and cost of doing business (5%). The Philippines outsourcing industry is targeting to expand its market share to 10% of the global outsourcing market, which is expected to grow to be worth $130 billion by 2010. The Philippines currently corners 9.0% of the global outsourcing market - a far second to the worldwide leader, India which has around half of the global market. These cities are an important ingredient in the Roadmap 2010 initiative of the Philippines. Late last year, the Philippines industry group launched its Roadmap 2010, which projects the industry to grow to 900,000 to a million employees by 2010, from 300,000 in 2007. Export revenues are also expected to grow to $12 billion by 2010 from under $7.0 billion by yearend. However, unlike the proposed ICT Roadmap for Bangladesh this Roadmap 2010 of the Philippines does not prescribes anything against its national integrity.
The Indian government, industry and academia are working together to enhance the skill-sets to match the global demand. The growth of Software Finishing School ensures India remains the number one choice for ICT outsourcing whereas our Bangladeshi bureaucrats working in the Ministry of Science & ICT are ensuring that IPSAEP fails to take off. IPSAEP which bears contribution of over eight months of hard work from our academicians like Dr. Jaffar Iqbal, Dr. Lutful Kabir and Dr. Lutfur Rahman as well as ICT Industry and government and approval of the Chief Adviser is not given appropriate importance because of the programme brings no extra benefits to the bureaucrats. The Philippines experience shows that it has given highest consideration on talent by putting 50% weightage on building ‘Next Wave Cities’ and has created many institutions to nurture and shape the talent for national growth. The whole ICT-based business requires appropriate skill sets and knowledge attained through high standards of education and training program to supplement industry requirements.
In this month of December we snatched independence in great odds through determination and leadership. Will this December bring the same victory for the ICT industry? The answer is yes if the industry can show its determination and leadership quality.
This will surely wake our ICT leaders from their slumber to be proactive and tackle the odds with the same determination taught by our valiant freedom fighters.
Exporting more trained people
September 12, 2008
GREATER remittance can boost the country’s foreign exchange reserve as well as its import operations and support development projects. The remittances would support the families of the overseas workers to come out of poverty faster.
It is estimated that remittance can double or treble within a short period of time to achieve the objectives. But that would require coordinated and comprehensive policy and action. Many potential workers cannot go abroad due to some constraints. They are unskilled and there is little demand for unskilled workers. Besides, it is not desirable to send unskilled workers as their wages are always substantially lower than skilled workers. The government can play a very useful role by providing training to them in diverse areas. It can set up many skill training centres throughout the country at its own cost for the purpose. Establishment of such institutions would be an investment to get more returns in the longer run.
The trainees should be admitted free of charge on the condition that they would pay back for their training costs once they get employment. Neither the trainer nor the trainee stands to lose anything from this arrangement. But it would create more and more trained people to meet the country’s domestic needs, leaving a surplus for overseas markets. It will facilitate sending out a greater number of skilled people for a higher remittance flow.
Finance is formidable barrier faced by the workers in going abroad. Many desperate workers sell all their possessions to pay the private manpower exporters. This risky method discourages many from going abroad. In this area, the government can play a useful role by asking the state-owned commercial banks to extend collateral free loans to the workers keen to go abroad. The loans could be progressively repaid once they get the employment abroad.
The Bangladesh missions abroad need to be activated to be supportive of a dynamic manpower export policy. The missions should be expected to make government-to-government contracts or between the manpower exporters and the foreign employers. They should be obliged to work to protect the workers’ interests without fail. If foreign employers breach the terms of contract by paying less or resort to other abuses, the missions should take up the matter diligently.
More remittance houses could be opened to provide the workers the needed service to ensure higher remittance flows. Bonds and special saving schemes could be introduced to benefit the expatriate workers. Investment schemes would inspire the expatriate Bangladeshis to invest more in them.
Proper motivation and incentives for the personnel would ensure efficient and honest functioning of the remittance houses abroad.
Bangladesh must gear itself to exporting more skilled labour
August 27, 2008
Bangladesh must gear itself to sending more skilled workers abroad, said speakers at a roundtable Saturday.
Prof Muzaffer Ahmed, chairman of Transparency International Bangladesh, called for a change in the education system to create more skilled manpower for export.
Speaking at the roundtable on ‘Manpower Export and Prospects: What to do to check cheating’, he said: “There are growing demands for skilled manpower in the world. So the present education system has to be changed to produce that skilled manpower.”
“When I attended my local zila school, I learnt about agriculture, metalwork and carpentry.”
“Now these schools do not provide such educations. There is doubt about the quality of the country’s 900 government and private colleges,” the TIB chairman said.
He went on to address the recruiting process for overseas workers: “Our embassies are not efficient. There is doubt whether our embassies abroad have the proper papers of those who are going to work in other countries. The responsibility of the recruiting agency should be to reach those papers to the embassy in the (target) country.”
“Alongside exporting manpower, ensuring workers have the skills required by providing training is also the responsibility of the recruiting agencies,” Prof Muzaffer said.
“The remittance process should also be made easier.”
On salaries of overseas workers, the TIB chairman said: “If India can bargain over the minimum salary of their workers, then why can’t we?”
Executive director of NGO ‘Shishuk’, Shakiul Millat Morshed, pointed out that 25 years ago the minimum wage in Middle Eastern states was around 750 dirham, but now it has fallen to just 350 dirham.
Prof Atiur Rahman of Dhaka University said the middlemen play a big role in exporting manpower.
“How these middlemen can be brought under a legal framework is the biggest challenge now. Giving them licences could be considered.”
The Dhaka University professor said how to send more skilled manpower to Western Europe, Russia and Korea should be considered seriously.
President of the Bangladesh Association of International Recruiting Agencies, Golam Mostafa, said licensed recruiting agencies cheated workers less, but went on to claim that the ministry of expatriates’ welfare and overseas employment does not provide the expected cooperation.
Former inspector general of police ASM Shahjahan said: “The workers must themselves be made aware of their rights and these issues in order to curb cheating and bring more transparency in the system.”
Sustainable policies must be formulated for the welfare of overseas workers, he added.
Sheba Bangladesh Foundation and Prochesta Kalyan Sangstha organised the roundtable at the LGED auditorium in the city Saturday.
Russia looks to Bangladesh for garment expertise
July 20, 2008
First batch of skilled worker expect to leave in next two months
Skilled Bangladeshi textile workers are being hired to work in Russia, further evidence of Bangladesh’s growing status as a world leader in garment expertise.
Abdul Matin Chowdhury, secretary to the Ministry of Expatriates’ Welfare and Overseas Employment, said 60 skilled workers will go to Russia in the first batch within the next two months. More could soon follow, he added.
Although garment industry leaders have previously complained of a shortage of skilled labour in Bangladesh, yesterday they welcomed the Russian initiative as proof of the strong development and international competitiveness of the local garment sector.
Read more
Bangladesh’s manpower export reduces as international demands drop
April 4, 2008
High cost of migration coupled with reduction of international demands are thwarting the promotion of manpower export of Bangladesh.
The country’s manpower export to traditional markets like the Middle East countries is declining and an unhealthy competition among the recruiting agencies is increasing the cost of migration, The Daily Star reported Sunday. Read more
Availability of Manpower in Bangladesh
December 2, 2007
Unemployed labor force of Bangladesh is estimated to be about 15 million. Beside a huge number of un-skilled labor force, skilled, semi-skilled and professional manpower is also available for foreign employment. Some relevant data in this regard are given below:-
(A) TECHNICAL MANPOWER:
Skilled workers and technicians play a key role in all sectors of the economy. To produce skilled technicians there are mid-level technical and vocational training systems in the country. Mid level technical education is provided after tenth year of schooling. Polytechnic sub-system offers well organized 3 year’s diploma courses in engineering and technology. There are twenty one Polytechnic Institutes in the country with annual intake capacity of 5268 students. Besides Polytechnics, there are a number of agricultural and allied industrial, textile and leather technology institutes and commercial institutes and other specialized polytechnic institutes offering diploma level course in their respective fields.
There is an Islamic Institute of Technology IIT (formerly Islamic Center for Technical & Vocational Training & Research, ICTVTR), a subsidiary organ of the Organization of the Islamic Conference (OIC). The Center has been mandated to help develop the vast human resources of the member states and provide technical training of international standard needed for the industrial, economic and social development of Muslim Ummah through offering of long regular courses in engineering and technologies and trades and organizing short and special knowledge and skill updating courses along with technological and industrial research and research in the field of human resources development with particular emphasis on technical and vocational education. In IIT a great variety of academic and training programs are offered starting from the lowest trade Level to the highest Post Graduate Diploma and Master’s Degree in Technical Education encompassing Certificates and Diploma in Vocational Education, Diploma a B.Sc. in Technical Education, Higher Diploma and B.Sc. Engineering Degree in Electrical and Electronic and Mechanical Engineering with various specialization in different rare technologist, such as Computer Science and Technology, Power System, CAD/CAM, Energy, Production and instrumentation Engineering.
There are 51 Vocational Training Institutes (VTI’s) and 13 Technical Training Centers (IIC’s) and 1 Bangladesh Institute of Marine Technology (BIMT) which cater to the training needs for craftsmen in the basic trades. Diploma in Marine Technology is also offered from BIMT. The Marine Academy at Juldia, Chittagong turn out certificated officers for merchant navy. 13 TTC’s and 1 BIMT produce annually about 7,000 highly skilled technicians on different trades, suitable for overseas employment. Tele Communication Engineers and Technicians tradesmen skilled in basic engineering and building trades like electricians, petrol/diesel mechanics, air conditioning mechanics, radio/TV mechanics, fabricators, marine mechanist, molders, tatters, plumbers, pipe fitters, painters, steel fixtures, carpenters, masons, garments workers, draftsmen, etc. are available for employment.
Testing facilities on different occupations are available in the modern Technical Training Centers both in public & sectors.
(B) MEDICAL MANPOWER :
Bangladesh has facilities for imparting graduate and post-graduate medical education and training in the country. Facilities exist in the country for turning out 2500 medical graduates and 200 dental surgeons every year. More than 5000 General Physicians (graduates) are now available for employment abroad. A good number of specialized consultants/ physicians are also available for overseas employment. Facilities to train Blood Bank Technicians, Radio Therapist, x-ray technicians, Radiographers, compounders, Dressers, Dental Technicians, Health Assistant, Sanitary Inspectors, etc. also exist in the country. Bangladesh has about 47000 paramedics and medical personnel available for employment at home and abroad. There are also 38 Nursing Training Institutes which offer 4 years Diploma course (including one year Midwifery) in other countries with excellent professional reputation. At present 8500 Diploma and 800 Graduate nurses are available for foreign employment.
(C) ENGINEERING MANPOWER :
Engineering Institutes (2 University of Engineering & Technology, 4 Bangladesh Institute of Technology, 4 Engineering College and 1 Marine Academy) produce about 1000 Graduate Engineers annually. In addition 21 Polytechnic Institutes in the country produce about 3000 Diploma Engineers annually.
At Present about 1000 Engineers and 25000 Technicians are available for employment at home and abroad.
(D) INDUSTRIAL MANPOWER :
The country’s industries employ about 1.5 million workers of different categories. Professional, managerial, administrative, technical, skilled, semi-skilled and unskilled workers including experienced garments workers, both male and female with several years of experience in different industrial fields are available for overseas employment.
(E) COMPUTER PERSONNEL :
Bangladesh has now a large number of Computer Operators, Computer Engineers (both Hardware and Software), Programmers, Web Page Developer, Networking Specialist, System Analyst, etc. available for overseas employment.
(F) POWER STATION, PETROLEUM, AND FERTILIZER MANPOWER :
Bangladesh has vast reservoir of professional, highly skilled and skilled manpower in electricity/power, petroleum and fertilizer sectors.
(G) ROAD TRANSPORT WORKERS :
Professional, technical and skilled personnel experienced in operation, repair and maintenance of all categories of vehicles including trucks and heavy vehicle equipment’s are available for employment.
H) MANPOWER FOR FINANCIAL INSTITUTIONS, INSURANCE, AUDIT AND
ACCOUNTS :
Bangladesh has a network of commercial Bank and Financial Institutions covering even the remotest areas of the country. Persons experienced in central banking operations are also available in Bangladesh. Normally University Graduates are recruited for supervisory and managerial postions in the bangking institutions and they are traind through a scheme for training for bankers. In addition, the Bangladesh Institute of Bank Mangement provides higher training of international standard to in-sevice banking persdonnel. Similarly, Chartered Accountants Cost Managemnt Accounts, Actuaries, and persons with long experience in Insurance business, Government and Commercial Audit and Accounting are available in the Country, and they can be spared for service abroad.
(I) PORT AND WATER TRANSPORT WORKERS :
Personas of all categories needed for administration and operation of port facilities are available. These include inland Masters, Engine Drivers, Oil Men, Pre-sea Trained Nautical Caders, Stevedores, Tally Clears, Crane Op[ertors, Fort Lift Operators, Riggers, Secrurity Personnel, Management Personnel and other categories of Personnel. They have international level of efficiency to the credit.
(J) AGRICULTURAL, ANIMAL HUSBANDRY, FISHERIES, LIVESTOCK, HORTICULTURE
EXPERTS, TECHNICALS AND FARMERS:
There are two Agricultural Universities and 10 Agricultural College and several training institutes in the country offering degrees, diplomas and certificates of educaiton and training in agricultue, animal husbandry, forestry, fisheries, lifvestock, horticulture and related fields. Experts with Bachelor’s Master’s and Ph.D. degrees and technicians with several years’ experience in agricultural development, livestock, fisheries, forestry horticulture development and research activities are available in the country, in addition skilled, semi-skilled and unskilled shepherds with sufficient experience are also available for foreign emplyment.
(K) UNIVERSITY/COLLEGE/SCHOOL TEACHERS :
A large number of persons with university degrees in engineering science, humanities, fine arts and sicial sciences with experience of teaching in Schools, Colleges and Universities are available in the country for foreign employment.
(L) ADMINISTRATIVE AND DEFENSE PERSONNEL :
To man public administration Bangladesh with Bachelor’s , Master’s and Ph.D degrees and specialized training and long experience in public administration are available for employment. Besides, persons educated and experienced in eeconomic planning and research are also available for overseas employment. Retired army, navy and air force personnel with adequate experience can also be devloyed abroad for manning defense and security services.
(M) HOTEL MANAGEMENT AND CATERING STAFF:
A large number of Bangladeshi hotel personnel are working in various reputed hotels abroad, mainly in the Middle Eastern countries. The Hotel Management Training Institute run by Bangladesh Tourism Corporation turns out a good number of trained hotel personnel every year. All catergories of trained hotel staff experience or working in five star hotels can be provided for the departments of food and beverage, house keeping, front office, accounts and engineering.
(N) MARINE CREW :
Bangladesh has a large number of qualified and experienced Ship/Cargo/Vessel Crew possessing Continuous Discharge Certificates (C.D.C.) Crew can be provided from Bangladesh at short notice. Certificated merchant navy officers are also available for overseas employment.
(O) MISCELLANEOUS MANPOWER:
Qualified photographers, printers, printing technicians, journalists, translators, musical entertainers, operators, tailors, sewing men, barbers, shoe makers, domestic servants, house keepers, cleaners and all types of semi skilled an unskilled workers are available for employment abroad. Besides, Bangladesh has a huge numbers of manual workers to do heavy and difficult jobs like agricultural work, plantation, timber extraction, pottering and excavation work, etc.
QUALITIES OF WORKERS:
Bangladeshi workers are loyal, disciplined, hardworking and have the rare quality of adaptability to new situation.
Bangladesh: Art of tangail weavers struggling to survive
December 2, 2007
The economy as well as weavers of Tangail district are going through their toughest time as 50,000 handlooms shut because of high prices of raw materials like yarn and dye.
Weavers from this region have been facing difficulties over the last several years. Prices of cloths including saris did not increase in accordance with the rates of yarn, dye and other materials needed to produce them.
Statistics show that the price of one bale of yarn increased at least Tk10,000 compared to last year. Rate of a bell of Gulshan-82 yarn saw a swell of Tk13,200, that of Nahid-82 was up Tk12,000; Setu-82’s price rose by Tk15,000, Saiham-82 by Tk 13,000 and Delta-82 by Tk 14,000. All these rates are in comparison to that of last year.
Few organizations are urging the Government to pay heed to the prevailing pathetic situation of the weavers and let them import yarns which are much cheaper in the international market. This is the only way to keep alive the famous handicraft which is struggling to survive.
Tangail District in Bangladesh is the home of world famous tangail saree. It is a handloom saree that is made of both cotton and silk threads. This saree has hand-woven butti design, flowery fabrication or modern art motiff which has been appreciated and marked a place in the hearts of thousands of women the world over.