Over time Bangladesh has developed a lot in the sector of IT and software industry. In the last few decades there has been a significant improvement in this field and time has brought the recent outcome. It gains maturity with such improvement which was quite undesirable at a certain period. But not anymore, it’s going to be ignored or avoided by its contribution to the national income. Day by day it is creating more scopes for employment along with playing a vital role in dispelling the unemployment problems of the young graduates. It’s one of the sectors which is bringing more and more new entrepreneurs. The number of young graduates starting their entrepreneurship in this sector is too damn high. These enthusiastic young entrepreneurs are remarkably building sustainable business organizations through their hard work and passion. Their resilience is supposed to be the key force of Bangladesh's IT industry.

The software and information technology-enabled services (ITES) industry is one of the most promising sectors of Bangladesh, with several growth drivers, like a large pool of efficient young professionals, a collaborative environment with the government, dynamic leadership from Bangladesh Association of Software and Information Service (BASIS) and positive media involvement. Some twenty years ago, this industry predominantly existed as a hardware vendor market with little or no value addition on the local front. A series of programs was initiated in 1997 with a specific focus on the export of software and IT services. Over the last decade, Bangladesh has pushed the idea of an Information and Communications Technology (ICT) driven society, but with no significant progress except on the telecommunications front. The government amended copyright laws for software and other intellectual properties in 2000, instituted an ICT Task Force in 2001, approved ICT policy in 2002, and established an ICT incubator along with an e-governance program under the ICT Task Force in 2003. The IT sector was declared a key priority by the previous government (2007-2013) since it fits their ongoing campaign to create a ―Digital Bangladesh‖ by 2021. However, poor infrastructure, including frequent power crises, and slow and unreliable internet connections are the most immediate problems. IT companies have created a sizable market space in service industries like telecommunications, retail and wholesale, healthcare, education, publishing, and real estate. The growth in the software and ITES industry has been driven by this growing IT automation demand in the domestic market. The impressive trends in software exports in recent years played a deterministic role as well. Bangladesh has made major strides in laying the groundwork for a diverse and successful outsourcing market, particularly in 2010 and 2011. A new trend is the individual/group-based outsourcing, also known as freelancing. These are informal initiatives taken by young IT professionals and students to acquire clients through various online marketing channels. Freelancing activities mainly include software, web design, mobile application, graphic design, search engine optimization, social media marketing, and data processing.

Growth of the Software Industry in Bangladesh

The growth of Bangladesh's software industry can be attributed to several key factors

•  Government Initiatives: The government of Bangladesh has implemented a series of policies aimed at fostering the growth of the IT sector. The “Digital Bangladesh Vision 2021” initiative was a significant driver for expanding the software and IT-enabled services (ITES) sector. Through this vision, the government focused on creating an ecosystem conducive to IT development by building tech parks, providing incentives to IT businesses, and facilitating ICT education.
• A Growing Tech Workforce: The government of Bangladesh has implemented a series of policies aimed at fostering the growth of the IT sector. The “Digital Bangladesh Vision 2021” initiative was a significant driver for expanding the software and IT-enabled services (ITES) sector. Through this vision, the government focused on creating an ecosystem conducive to IT development by building tech parks, providing incentives to IT businesses, and facilitating ICT education
• Export Growth: Bangladesh’s software and IT services exports have experienced robust growth. The country's cost-competitive advantages, coupled with improvements in infrastructure and internet connectivity, have enabled local firms to compete on the global stage.

The Future of the Software Industry in Bangladesh

Looking ahead, the future of the software industry in Bangladesh holds immense potential. Key trends and developments likely to shape the industry include:

• Artificial Intelligence and Automation: AI, machine learning, and automation technologies are expected to drive the next wave of innovation in the software industry. Bangladesh has the opportunity to become a hub for AI development, particularly in sectors like healthcare, agriculture, and manufacturing, where automation can bring significant efficiency gains.
• Rise of Startups and Innovation Hubs: The Bangladeshi tech startup ecosystem has gained momentum in recent years, with several incubators, accelerators, and venture capital firms supporting entrepreneurs. Startups focusing on fintech, e-commerce, health tech, and education technology are emerging as key players in the local and global markets. Continued investment in this ecosystem will foster innovation and job creation.
• Increased Government and Private Sector Collaboration: To address skill gaps, infrastructure limitations, and market challenges, greater collaboration between the government, educational institutions, and private industry is crucial. Initiatives such as training programs, research and development (R&D) centers, and public-private partnerships can accelerate the industry’s growth
• Expanding Global Reach: As Bangladesh strengthens its position as an outsourcing destination, local software companies are likely to explore more global markets. Partnerships with international firms, enhanced branding, and certification of Bangladeshi IT professionals could further boost the industry’s reputation on the global stage.

Bangladesh’s hi-tech industry is moving forward on the back of the following growth drivers:

• Strong Economy Vitals for Tech Products and Services: The majority of the population of Bangladesh are young and tech-adaptable where 62%+ are under 35 years. The Middle class is growing at 10% per annum to reach 34 million by 2025. Of the total population, 98% have a mobile phone connection, and more than 62% are on the internet, accounting for 102 million+ individuals with 94 million mobile internet penetrations.

Alongside steady economic growth, the investment-to-GDP ratio of Bangladesh has grown to 32% (U$ 96Bn) in FY 2018-19 from 26% (U$ 26Bn) in 2009-10. However, the country’s FDI stood at a mere 3% in CY 2019.

• Local and Global Initiatives: Technological infrastructure and network enhancement services, national laptop assembly, and mobile manufacturing factories from global giants like Samsung, Huawei, and Xiaomi have propelled the growth of the industry in Bangladesh. Notable initiatives from local pioneers Walton, Aamra and Data soft include smartphone manufacturing and assembly, and the development of world-class IOT devices.
• Tech Startups attracting FDI: The Bangladesh Entrepreneurship Ecosystem is at an inflection point with an excess of U$ 200 million in international investments from big-name corporate investors and venture capitals, investing in industries like FinTech, Logistics, and Mobility over the last four years.
• Government Initiatives building capacities and fostering Investments: More than 70,000 professionals from entry, mid, and top management levels trained over the last year. Multiple dedicated spaces ranging from 50,000 sq ft. to 62,000 sq ft. are allocated for Incubation and Training programs in software parks and universities. In addition, exemptions on Tax, Import Duty, and VAT are attracting investments from developers and IT & ITeS firms.
• Large workforce and price attractiveness are major drivers of growth: Currently, the country’s employment stands at 77mn with over 5mn in the apparel sector. While labor wages have risen in China, Bangladesh still capitalizes on lower wage rates. Moreover, Bangladesh has the cheapest industrial electricity tariff among peers