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Asian Tiger Capital Partners, Level 16, UTC Tower, Panthapath, Dhaka-1215,  Tel: +88 0171 584 0112 (Dhaka)   Web: www.at-capital.com

Strategy and Opportunities

Bangladesh can benefit from the rapid increase in wage costs in India's IT sector coupled with the appreciation of the Indian Rupee versus the USD has reduced India's comparative cost advantage.

There is a growing shortage of skilled labour in cities like Bangalore along with increased worker turnover/problems with staff retention. The absence of a developed tech sector in Bangladesh clearly reduces the competition for highly skilled workers by technology companies growing there.

Bangladesh can benefit from the increasing concern among leading companies about over-reliance on India and to diversify their outsourcing requirements. In the same way that Vietnam benefitted from an “China+one strategy”, other  Asian countries can position themselves as “India+one” technology providers.

By developing its IT talent pool and breadth of capabilities, Bangladesh can position itself to benefit from “secondary outsourcing” from Indian companies that need an additional labour supply. Also from Indian  IT companies looking to expand into a rapidly growing domestic market of 150 mn people.

It is our view that Bangladesh has barely tapped the intellectual and commercial capital of the relatively large numbers of NRBs working in the technology sector in the US. What is needed is an effective interface and platform for such NRBs to engage in the Bangladesh technology space.

We believe that a number of changes in the global competitive landscape argues that this is not just a “thrust sector” in name but is genuinely at a tipping point with the prospects for explosive growth.

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