SUBMARINE CABLE IN BANGLADESH PROSPECTS AND POSSIBILITIES IN INFORMATION TECHNOLOGY ENABLED SERVICES (ITES) SECTOR

INTRODUCTION

Research project on Submarine Cable In Bangladesh

Prospects And Possibilities In Information Technology Enabled Services (ITES) Sector Information from relevent sources Extensive Interviews for carrying out the the Research Analysis of collected data to prepare recommendations on the field of Information Technology Enabled Services (ITES) Sector

BACKGROUND STUDY
The rapid development in the ICT has ushered in paperless office virtually practiced, even at thousand km apart Outsourcing has made the whole world a common office The whole hype of virtual office, e-commerce, telemedicine, outsourcing etc and a plethora of similar words have been triggered and made possible by submarine communication cables

A submarine cable is a cable laid beneath the sea to carry telecommunications between continents

BACKGROUND STUDY
Bangladesh agreed to be a partner of the South East AsiaMiddle East-West Europe (SEA-ME-WE)-4 consortium in 2004 and is logged on to the cable since June 2006 IT services and ITES, commonly known as IT/ITES, are branches of ICT, devoid of the telecommunication sector IT Services typically include IT applications and engineering services, while ITES include a wide range of services delivered over electronic networks

In this presentation we shall use the term ITES generic to refer both IT and ITES sectors

PROJECT OBJECTIVE AND SCOPE

The primary objective is to make out the prospects of Information Technology Enabled Services sector in Bangladesh It will also make an overview of the current state of Information and Communication Technology infrastructure in Bangladesh The Scope is to analyze the current ITES business trends Identifies impediments to ITES growth. Finally venture on the economic prospects offered by ITES

PROPOSED METHODOLGY
The study is based on both primary and secondary research.

Data required for the primary research will be collected

through the interview techniques A number of interviews will be carried out using questionnaires A case study will also be conducted on a local ITES firm Newspapers, magazines, reports and internet sources will be extensively used as secondary research material

PROPOSED WORK PROGRAM

Primarily the prevailing ICT infrastructures, labour force and the favorable government policy support initiatives for ITES will be studied Secondly the study will make an overview of the current state of the ITES business trends in Bangladesh, measures the reach of local companies in international and domestic markets and also identifies the impediments to the growth of the potential sector Finally it will discuss the economic prospect of the ITES sector by analyzing the global market trends and identifies the ITES sector status of few neighboring

PROJECT ORGANIZATION AND STAFFING

Project manager

Project coordinator

Documentation controlar

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TIMING AND COST

TIMING - Since it is a simulated research module and considering time constraints in submission of the paper, we would require 30 days from the date of acceptance

COSTS - Considering the realistic study the project may require $ 1000.Since its a staged research, requires no cost

SUMMARY OF PROJECT DELIVERABLES

Three copies of draft report Eight copies of final report Soft copy of the report and data base in CD Library of literatures consulted Filled in and blank instruments (questionnairs), etc

APPENDICES

The profile of the key personnel's of the firm The questionnaires for interview

REPORT ON SUBMARINE CABLE IN BANGLADESH PROSPECTS AND POSSIBILITIES IN INFORMATION TECHNOLOGY ENABLED SERVICES (ITES) SECTOR

AIM

The aim of this project is to contour the economic prospects and possibilities of ITES sector in Bangladesh presented by the submarine cable and identify ways to harness its potentials

STATISTICAL ANALYSIS

Tools Used for Gathering Information

Purposive Sampling Snow ball Sampling for interview method

STATISTICAL ANALYSIS
CHAPTER 1 - OVERVIEW OF CURRENT STATE OF ICT IN BANGLADESH
CHAPTER 2 - ITES BUSINESS TRENDS IN BANGLADESH CHAPTER 3 - ECONOMIC PROSPECTS OF THE ITES SECTOR AND THE WAY AHEAD

STATISTICAL ANALYSIS
COST OF UTILITY SERVICES Dhaka Dalian Hanoi Bangalore Karachi Colombo
Electricity Rate per 1 Kwh Water Charge Rate per 1 M Gas Charges Rate per 1 M Fuel Charges Gasoline (1 ltr) Diesel (1 ltr) 0.05-0.12 0.36 0.03-0.12 0.1 0.7 0.2 0.09-0.1 0.47 1.18 0.1 1.54 1.43/kg 0.06-0.11 0.39 4.63/Min BTU 0.86 0.52 0.15-0.2 0.45 1.34/kg

0.97 0.58

0.7 0.77

0.81 0.64

1.29 0.9

1.17 0.74

Source: Table reconstructed with data from PricewaterhouseCoopers (PwC) as quoted in the Draft Interim Brief: Study on IT/ITES Industry Development in Bangladesh, conducted jointly by The World Bank and International Finance Corporation on December 04, 2008.

[1]

Ibid

STATISTICAL ANALYSIS
GLOBAL TRENDS IN ITES SECTOR
90 80 70 60 50 40 30 20 10 0

India 2000 2002 2005 2008 3 8 50 80

China 0.25 2 10 25

Philippines 0.25 0.4 2 8

Russia 0.25 0.75 1.5 3

Worldwide Offshore IT Services Share by Region

STATISTICAL ANALYSIS
2.1% 3.3% 3.8% 4.5% 1.7% 2.3%

6.8%

75.5%

India Philippines China MEA

CEE Latin America Canada Others

Worldwide Services Spending (Current and Projected)

STATISTICAL ANALYSIS
WORKFORCE DYNAMICS OF ICT INDUSTRY IN BANGLADESH
Year 2000 2001 2002 2003 2004 2005 2006 No. of professionals 11,440 15,840 18,960 19,720 20,480 22,400 25,200 Yearly growth 38.46% 19.70% 4.01% 3.85% 9.38% 12.50%

Computer Science Graduates / Software Engineers ICT Graduates/ ICT related Engineers

Total number Yearly production of available in the Graduates and/ Engineers country 15,000 2,500 40,000 5,500

Number of ICT Graduates/ Engineers[1] per year

STATISTICAL ANALYSIS

Industry Profile and Statistics Bangladesh

STATISTICAL ANALYSIS

Industry Profile and Statistics Bangladesh

Industry Profile and Statistics Bangladesh

STATISTICAL ANALYSIS
9.2 10 9 8 7 6 5 4 3 2 1 0 2.944 3.38 4.928 6.72 2004 2005 2006 2007 2008

Revenue Growth of Graphic People, Bangladesh (in crores BDT)

Industry Profile and Statistics Bangladesh

STATISTICAL ANALYSIS
PROJECTED GROWTH OF ITES REVENUE

FY Yearly Growth Rate: projected and Targeted Export (US$ Millions) Export revenue per employee assumptions Estimated number of employees required Additional number of employees / year

2007 26 10,000 2,605 -

2008

2009

2010

2011 55% 151

2012

2013

2014

40 10,00 0 4,042 1,434

63 12,00 0 5,221 1,179

97

233 15,000 15,555 5,520

362

561

6,475 1,253

10,03 6 3,561

24,111 8,555

37,37 1 13,26 1

Source: Table reconstructed with data from the Draft Interim Brief: Study on IT/ITES Industry Development in Bangladesh, conducted jointly by The World Bank and International Finance Corporation on 04 December 2008

CONCLUSION Adequate infrastructures are already in place to achieve a smooth lift off The security of the submarine cable or its backhaul is a prime concern for the foreigners

CONCLUSION

The government has declared ICT as a thrust sector and introduces favourable policies

Upgrading the capacity of existing fibre optic network and ensure quick introduction of planned ICT parks.

RECOMMENDATIONS

GoB should ensure availability of adequate infrastructure, necessary utility and continue and increase its policy support to the nascent ITES sector. It should also make MoSICT as the apex body for IT matters by smoothing the complex rules of business An expert panel should be formed to establish standardised curricula that suit the needs of the local and international market with qualified NRB representatives which should be followed by all the institutions

RECOMMENDATIONS

GoB should undertake active country branding programme to project Bangladesh as an attractive ITES outsourcing destination with the help of BTRC, BASIS etc NRBs with IT background should be encouraged to settle or invest in ITES sector and pursue to broaden Bangladesh interest abroad from their present positions