Term paper
on
“Emerging IT Sector & Challenges Faced by Freelancers in
Bangladesh: A Survey”
Course: ENG102
Instructor: Habiba Akter (HA)
Dept. of English
Submitted by: Enamul Hasan
2022-1-60-149
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Table of Contents
Introduction ...............................................................................................................2
Significance of the topic ......................................................................................3
Research Questions ............................................................................................... 4
Methodology ............................................................................................................. 5
Survey Findings ....................................................................................................... 6
Discussion ................................................................................................................. 10
Internet speed ................................................................................................... 12
Internet price ..................................................................................................... 14
Equipment price ................................................................................................ 16
Conclusion ................................................................................................................ 17
References ............................................................................................................... 18
Appendix ................................................................................................................... 20
Table of Figures
Figure 1: Distribution of participants by gender...................................... 6
Figure 2: Interest by topic ...................................................................................7
Figure 3: Solution to low-speed internet ...................................................... 8
Figure 4: Solution to high internet price ...................................................... 9
Figure 5: Solution to high price of computer appliances ..................... 9
Figure 6: Number of internet users in Bangladesh in millions ......... 10
Figure 7: Internet speed in some Asian countries in Mbps ............... 12
Figure 8: Cost of 1Gb internet in cents ....................................................... 14
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Introduction
The first computer in Bangladesh was an IBM mainframe 1620
series which was installed in 1964 at the Dhaka office of the
Pakistan Atomic Center Commission, later named the Bangladesh
Atomic Center Commission. The ICT industry is a relatively new
sector in the country's economy. It was only after the 2000s that
the IT industry picked up the pace and contributed substantially to
the economy. High internet penetration is the main reason behind
this boost. In FY 20-21, Bangladesh earned US$ 1.3 billion from IT
and ITES exports, and approximately 1 million people were
employed in this sector. Bangladesh's government has set a target
of making the IT sector a US$ 5 billion industry by 2025. The most
significant part of Bangladesh's IT sector is the freelancers. They
mostly work for foreign clients. Freelancers bring in a large amount
of foreign money into the country. Due to flexible working hours
and many other facilities, more and more people are entering this
sphere every year. But despite the contribution and tremendous
prospect, some issues still haunt the IT sector and heckling its
growth. These issues are very much embedded into the system. But
there are also some proposed solutions to these problems.
(Information technology in Bangladesh, 2022) (Helal & Rahman,
2016)
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Significance of the topic
This topic was chosen to emphasize Bangladesh’s tremendous
success in the IT sector. Although the IT sector is relatively new to
our economy, it has grasped a strong foothold. The IT sector
maintained a stunning fifty percent growth from 2009 to 2018.
Today there are over 400 IT companies operating in Bangladesh.
This growth can be attributed to Bangladesh’s high internet
penetration in the last decade. A large portion of the population is
exposed to a new realm of opportunities spanning domestic and
international markets. The most significant contributors to
Bangladesh’s foreign earnings through the IT sector are
freelancers. Despite their contribution to the economy, they receive
little assistance from the government. There are a lot of obstacles
in the way preventing Bangladeshi freelancers from performing
better. These include high internet prices, low internet speed, and
the high price of IT equipment— this research paper intents to
address such problems and propose possible solutions.
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Research Questions
• What is the future of outsourcing in Bangladesh?
• What difficulties do freelancers face?
• What are the possible solutions to these problems?
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Methodology
This research paper will include two sorts of data. Primary data
collection and secondary data collection.
Primary data will be collected by surveyors through a series of
questionnaires and interviews. Subjects would be young and
interested in IT jobs. This data would indicate the public opinion
towards the issue—the problems they face, and if they support the
proposed solution.
Secondary data collection will be done through many different
sources. These include newspaper articles, journals, blogs etc. This
data would provide expert opinion to those said problems. Articles
and journals would consist of data and facts to address the issues
and propose possible solutions. These materials would further
solidify the argument.
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Survey Findings
There were 42 responses to the survey put out for this research
paper. The finding of the survey is given below in a categorized
order.
Among the 42 respondents, all were between 19-22. The research
paper wishes to focus on the youth; therefore, it will serve the
paper's purpose and more accurately integrate the targeted age
group.
27 participants were male and 15 were female.
Female
33%
Male
67%
Figure 1: Distribution of participants by gender
All the participants were interested in pursuing a career in the IT
industry. They all answered to be aware of the growth of this sector
in the last decade. The subsequent oral interview of those
participants also confirmed their interest in freelancing was
partially or entirely based on the prospects in the aforementioned
sector.
Freelancers from Bangladesh usually work in developing,
designing, writing, and digital marketing. The survey had a
question on their preferred topic and an option to write name of
some other topic if they were not interested in any of the topics
presented in the options. Among the respondents, 16 were
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interested in developing, 7 in designing, 5 in writing, 10 in digital
marketing, and four selected others.
Digital
maketing
26%
Developing
42%
Writing
13%
Designing
19%
Figure 2: Interest by topic
When asked if they thought Bangladeshi freelancers earn less than
other countries, all the respondents answered ‘yes.’
Thirty-three of the respondents answered that the biggest obstacle
for anyone to become a freelancer in Bangladesh is the high price
of computer and their parts. Seven responded with low internet
speed, and two with high internet price. The overwhelming majority
thought the equipment price was the most significant problem,
stringing the industry behind.
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All the respondents agreed that Bangladesh had a lower internet
speed than other developing countries. As a possible solution, 28
favor purchasing more bandwidth from deep-sea cable, 10 favor
diversifying the sources, and 4 selected reintroduction of cache
servers.
Cache
server
9%
Source
diversification
24%
Deep sea
cable
67%
Figure 3: Solution to low-speed internet
According to all the respondents, Bangladesh's internet costs are
higher than in other developing nations. Of all the proposed
solutions to this problem, 17 supported investing in internet
infrastructure, 11 supported less taxation on internet providers, and
14 supported the government subsidizing essential internet
avenues.
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Govt
subsidy
33%
Internet
Infrastructure
41%
Less
taxation
26%
Figure 4: Solution to high internet price
In Bangladesh, the price of IT equipment is higher, and all the
responses were in favor of the statement. To tackle this problem,
the survey proposed three solutions. Fifteen were in favor of
reducing import tax on computer appliances, 3 were in favor of
giving out financial stimulus, and 24 thought manufacturing these
computer goods locally would be the most effective in reducing
cost.
Financial
stimulus
16%
Local
production
7%
Less import
tax
77%
Figure 5: Solution to high price of computer appliances
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Discussion
Information technology enables quick, simple access to
information, which is crucial for a country's progress. Around the
world, large IT companies are emerging, and nations are
developing and promoting their own IT industries. By fostering a
favorable atmosphere that encourages international IT companies
to invest there. Bangladesh, which has a large, underutilized labor
pool and is less expensive than India, Malaysia, and China, can also
profit from these initiatives if a solid foreign investment platform
is formed, along with a national IT infrastructure and skilled labor
force. Over the past few years, significant progress has been
achieved in the IT sector toward creating a "Digital Bangladesh."
We should support local entrepreneurs in starting IT businesses in
this region. A large IT workforce has also been created. The survey
has also found that people are aware of this industry's bright
future.
The most significant contributor to Bangladesh's IT boom was the
internet. After 2010, the number of internet users in Bangladesh
grew exponentially. High internet penetration exposed large parts
of the population to many wonders of the internet.
140
120
100
80
60
40
20
0
2015
2016
2017
2018
2019
2020
2021
Figure 6: Number of internet users in Bangladesh in millions
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Today, in almost every country, the IT industry is a big part of the
economy. In that area, Bangladesh is lagging. The IT industry
contributes less than 1% to the economy. But that number is
shapely rising. It is one of the fastest growing sectors.
Many of the newcomers to the internet found new ways of earning.
One of the most lucrative options was outsourcing. This avenue was
quickly overtaken by freelancers who worked for clients from many
different countries. Today there are approximately 500000
freelancers in Bangladesh supporting their livelihood by
outsourcing to foreign companies. And many youths are interested
in pursuing a career in this industry for many of the facilities.
In Bangladesh, freelancers also face some major issues while
working. These include high internet prices, low internet speed, and
the high price of IT equipment. (Information technology in
Bangladesh, 2022) (Helal & Rahman, 2016)
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Internet speed
Bangladesh has one of the lowest internet speed in the world.
According to speedtest.net, Bangladesh ranked 101th in the global
internet index. It has the lowest internet speed among its
neighbours.
Mobile
Broadband
80
70
60
50
40
30
20
10
0
Bangladesh
India
Pakistan
Vietnam
Figure 7: Internet speed in some Asian countries in mbps
There are several proposed solutions to this problem.
Reintroduction of cache servers, purchasing more bandwidth from
deep-sea cable, and diversifying the sources from which we get our
internet. In the survey for this research paper, most participants
selected purchasing more bandwidth as the best solution for
solving this problem.
Web cache servers solve the problem of slow internet speeds by
storing web content and serving it from your local network. With a
web cache comes bandwidth saving up to 40%, and increasing
internet speed. BTRC recently instructed all internet providers to
stop using cache servers citing reasons for system loss. But this
step is hurting people, especially those whose work heavily
depends on the internet.
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Bangladesh will be connected with a third submarine cable to meet
the rapidly growing demand for internet bandwidth and ensure
uninterrupted broadband internet services. Bangladesh will be
connected with the undersea cable SEA-ME-WE 6. The country now
has a bandwidth capacity of 2,600 Gbps from two submarine
cables. The third undersea cable will add another 7,200 Gbps.
Reducing the stress on existing submarine cables. (Maisha, 2021)
(SPEEDTEST, n.d.) (Byron & Alamgir, 2020)
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Internet price
Internet price in Bangladesh is one of the highest in the world.
Comparison gets worse if we consider the average income of a
Bangladeshi to the average income of a person living in a country
where internet price is like Bangladesh’s. Internet is to get costlier
due to the use of higher volume of the internet after the removal
and transfer of cache servers across the country.
80
70
60
50
40
30
20
10
0
India
Bangladesh
Srilanka
Vietnam
Figure 8: Cost of 1Gb internet in cents
The government and the regulatory commission should address the
issue of internet prices. The government must first guarantee highquality internet services if it wants to lead the world in deploying
the 5G telecom service and reap its benefits. To ensure that internet
service providers do not overcharge customers, the regulatory
commission would be wise to allot the necessary spectrum and
implement a monitoring system. The survey respondents selected
this solution as the most effective in solving the internet price
problem.
Reduced taxation is another way of relieving the consumers of the
burden of high internet costs. The IT industry of Bangladesh is now
in the middle of a revolution. So, it would be unwise to implement
high taxes on goods crucial to this sector.
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The government could also stimulate some avenues of the internet
to boost internet activity. For example, government websites
should be made free to make government services more
accessible. Other web services such as educational, technological
websites should also be made accessible so that they can be
accessed at any time.
(Tech Observer Desk, 2021) (NUMBEO, n.d.)
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Equipment price
In Bangladesh, the price of computer appliances has always been.
Microprocessor, ram, graphics card, motherboard, SSD, HDD, etc
all crucial components that are costlier in Bangladesh compared to
other countries. This price factor makes these equipment
unaffordable to many, keeping the in the dark from the wonders of
what could be done using a computer. This problem could be solved
in many ways. These are reducing taxes on importing technological
equipment, handing out financial stimulus to interested
candidates, and producing these goods locally.
According to Bangladesh Customs, the import tax on technological
goods can range from 25% to 55%. This high taxation increases the
price of these goods. Reducing tariffs on these particular goods
make them more affordable and accessible. The government would
be compensated for these taxes by the foreign currency that will
enter the country from the works of the new outsourcing
freelancers.
Many who live in poverty but have an interest in technology are
unable to afford computers to explore their passion. Introducing a
program of fiscal stimulus could aid them. Computers will either be
directly provided to them or purchased for them with money. And
the money could be paid back once they enter the workforce.
In the survey, the highest number of respondents chose ‘producing
goods locally’ as the most effective way of solving the
abovementioned problem. There are not many companies and
factories in Bangladesh that manufacture technological products.
That is why most of the equipment needs to be imported from
abroad. That increases their price. If production could be done
locally, this significantly reduces IT equipment costs.
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Conclusion
The national economy of Bangladesh benefits significantly from
the IT sector. This sector boosts the national economy and
establishes a respectable place on the international stage. In 2017,
the domestic market had a value of US$ 0.9 to 1.1 billion. Despite
this growth, Bangladesh’s IT sector can be considered an untapped
market because there is still a lot to accomplish. There are many
different avenues to explore. Foreign earnings from this sector are
increasing every year. And it is expected to rise for many years to
come. Foreign investors are finding interest in investing in the IT
sectors of Bangladesh. Many students finish their undergraduate
and graduate degrees each year while working hard to find
employment. Bangladesh sadly lacks sufficient employment
opportunities. In this instance, the IT industry is expanding a lot of
room. Such a crucial industry needs to be cherished. Many
problems in this sector need to be addressed and solved. This would
enable the economy find another strong pillar to hold onto.
Bangladesh has limited liabilities, but the situation will improve if
people utilize these correctly. The government and industry must
take bold measures to assuage their impact and create a
harmonious ecosystem for the growth of the IT sector.
(Business Haunt, 2021)
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References
Business Haunt. (2021, July 2). Future of IT in Bangladesh.
(Business Haunt) Retrieved September 7, 2022, from
https://businesshaunt.com/future-of-it-in-bangladesh/
Byron, R. K., & Alamgir, M. (2020, December 1). Country to join 3rd
submarine cable. (The Daily Star) Retrieved September 7,
2022, from
https://www.thedailystar.net/frontpage/news/country-join3rd-submarine-cable-2003709
Helal, M., & Rahman, M. (2016, December 3). Bangladesh's IT
Industry. (The Daily Star) Retrieved September 7, 2022, from
https://www.thedailystar.net/op-ed/bangladeshs-itindustry-1324174
Information technology in Bangladesh. (2022, July 3). (Wikipedia)
Retrieved September 7, 2022, from
https://en.wikipedia.org/wiki/Information_technology_in_
Bangladesh
Maisha, A. (2021, July 24). Preparing for a successful freelance
career. (The Financial Express) Retrieved September 7, 2022,
from
https://thefinancialexpress.com.bd/views/views/preparingfor-a-successful-freelance-career-1627105299
NUMBEO. (n.d.). Price Rankings by Country of Internet (60 Mbps
or More, Unlimited Data, Cable/ADSL) (Utilities (Monthly)) .
(NUMBEO) Retrieved September 7, 2022, from
https://www.numbeo.com/cost-ofliving/country_price_rankings?itemId=33
SPEEDTEST. (n.d.). Retrieved September 7, 2022, from
https://www.speedtest.net/global-index#mobile
Tech Observer Desk. (2021, June 7). Broadband Internet in
Bangladesh: How much a package cost? (Tech Observer)
Retrieved September 7, 2022, from
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https://techobserver.in/2021/06/07/broadband-internet-inbangladesh-how-much-a-package-cost/
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Appendix
1. How old are you?
2. You gender
☐Male
☐Female
☐Non-binary
☐Other ______
3. Are you aware of the growing market of IT jobs in Bangladesh?
☐Yes
☐No
4. Have you ever been interested in freelancing?
☐Yes
☐No
5. What type of freelancing are you interested in?
☐Developing ☒Designing ☐Writing ☐Digital Marketing
☐Other ____
6. What do you think is the biggest obstacle a freelancer has to deal
with?
☐High internet price ☐Low internet speed
☐Price of computer parts ☐Other _____
7. Do you agree in Bangladesh we have low internet compared to other
countries?
☐Yes
☐No
8. Which of the following action do you think might make internet
faster?
☐Cache servers
☐More bandwidth from sea cable
☐Diversification of source ☐Other _____
9. Do you agree in Bangladesh we have to pay a higher internet price
compared to other countries?
☐Yes
☐No
10. Which of the following action do you think might make internet
more affordable?
☐Investing on internet infrastructure ☐Less taxation
☐Subsidize important avenues of the internet ☐Other ____
11. Are you aware that in Bangladesh we have to pay a higher price on
computer or technological equipment?
☐Yes
☐No
12. What could solve this problem?
☐Reducing taxes
☐Financial stimulus to interested candidates
☐Manufacturing equipment locally
☐Other _____
13. Do you have any suggestions on how the aforementioned
challenges could be overcome?
________________