Bangladesh’s export earnings from computer-related services – which include software, IT-enabled services, consultancy services, and equipment maintenance, have recorded a 7.42 per cent negative growth to $548 million in the FY23.
On the other hand, the exporters also failed to reach the target of $597 million set for the year. According to Export Promotion Bureau (EPB) data, Bangladeshi IT service exporters earned $548 million in the FY23, which was $592 million the previous fiscal year.
As the demands of information technology related services up sharply due to the remote working during the Covid-19 pandemic, Bangladesh’s export earnings from computer-related services witnessed sharp growth by 94.91 per cent to $592 in FY22 compared to $304 million in FY21.
In FY23, Bangladesh total export earnings from the service sector posted 15.65 per cent decline to $7.50 billion compared to $8.88 billion in the FY22.
However, Bangladesh’s overall exports earning from merchandise rose by 6.67 per cent to $$55.56 billion in FY23, which was $50 billion in FY22.
Export earnings matrix
In the category of export of Computer Software, the set export target for FY 2022-23 was $62.00 million. Nevertheless, the actual export earnings from July to June 2022-23 reached $47.85 million, indicating a decline of -22.82 per cent in comparison to the target.
In the last fiscal year, the export earnings for the same category amounted to $59.56 million, showcasing a decrease of -19.66 per cent in export earnings during the current period.
For the export of Computer Data Processing and Hosting Services, the target was $485.00 million in FY 2022-23. However, the actual export earnings from July to June 2022-23 amounted to $458.62 million, reflecting a negative change of -5.44 per cent compared to the designated target.
During the last fiscal year FY 2021-22, the export earnings in this category were $484.4 million, presenting a marginal decrease of -5.32 per cent in the current fiscal year.
The export of Computer Consultancy Services aimed for an export value of $40.00 million in FY 2022-23. However, the export earnings during July to June 2022-23 reached $34.76 million, indicating a contraction of -13.10 per cent in comparison to the target.
In the last fiscal year, the export earning was recorded at $38.17 million, resulting in a decline of -8.93 per cent in FY 2022-23.
With an export target of $10.00 million for FY 2022-23, the actual export earnings from July to June 2022-23 was $6.88 million. This reflects a significant decrease of -31.20 per cent in comparison to the targeted export value.
Reasons for negative growth
Former president of BASIS, Sayed Almas Kabir said that the ongoing global recession has significantly contributed to the deceleration of development in the technology sector and its sub-sectors in numerous countries. This cautious approach is a consequence of countries taking time to assess the global situation, leading to a reduction in workload within the industry.
The emergence of Artificial Intelligence (AI) has transformed many job roles, resulting in a displacement of experts in the field. The global demand for intricate work involving high value, such as analytics and blockchain, is rising. However, there is a dearth of skilled professionals in these specialized areas in many regions, including Bangladesh, he added.
When discussing strategies to counter the decline in exports, he emphasized the need for a fundamental shift in approach.
Almas Kabir illustrated the situation with the example of buyers turning to countries like China and Vietnam due to the shortage of expertise in Bangladesh. The potential for individuals to earn significantly higher incomes, such as $30 or above, by mastering high-end, high-value work. This is a substantial increase from the current earnings of $10 to 15.
Speaking to The Business Post, AKM Fahim Mashroor, the CEO of Bdjobs said, “The Ukraine-Russia war resulted in disruptions that have affected the export dynamics of the tech industry. The decrease in startup investments on a global scale has contributed to a surplus of unemployed tech experts. In response, many of these experts are endeavoring to establish small companies as an alternative means of securing work.”
He underscored the importance of acquiring proficiency in cutting-edge technologies such as machine learning, artificial intelligence, and blockchain. This proactive approach is crucial to both adapting to changing market demands and positioning Bangladesh as a competitive player in the global tech landscape.
Anwar/Shamim
