Assessing Bangladesh As A Software Outsourcing Location

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Bangladesh is one of the emerging concerns outsourcing finish in the universe. It is seeking to make everything at one time, variegation of merchandise, utilizing local engineering and copying the merchandises, planing and developing high quality merchandise, doing EPZ, guarantee good usage of IT and E-Commerce or other engineering, develop necessary substructure, dash to vie in the universe and maintain running the concern. Average living criterion of Bangladesh is highest degree ( per capita income 599 USD in 2009 ) now after industrial revolution of Bangladesh. It was a dream for Bangladeshi ‘s before this revolution. The ground behind success is their entrepreneurial energy, contending capableness with world and good dream for future coevals.

Bangladesh has become major fabricating hub in this part for many grounds. Business procedure outsourcing and Information engineering outsourcing is the chief ground behind this. In the recent, developed states ( Japan, USA, UK, and Denmark etc. ) certified that it is a most feasible outsourcing finish in the universe.

This paper explains why Bangladesh has been moneymaking outsourcing finish, particularly for developed states. Our research describe the cardinal factor behind package outsourcing finish, what the strength in package outsourcing companies of Bangladesh, overall substructure, explicate what to avoid when outsourcing to Bangladesh that means hazard, treatment about other package outsourcing elephantine India, China and in comparison to Bangladesh.

Information of this paper is based on a diary, research paper, intelligence article, column, white paper and remarks of assorted IT practician, advisers, and research workers. All the IT practician, advisers, research workers are working assorted package farm whole over Bangladesh particularly capital Dhaka and larboard metropolis Chittagong.

There are some basic grounds why Bangladesh has become emerging finish of package outsourcing. Bangladesh has emerged moneymaking outsourcing location because of low labor cost, good substructure, investing friendly statute law, high coder productiveness, being of an experience package sector. If we analysis current substructure Bangladesh will be the perfect field of following coevals outsourcing. ( Tija, P. , 2003 )

Software outsourcing and Information engineering has bit by bit come of age and its annual gross ‘s now 25 billion or USD 350 million in the twelvemonth of 2008-2009. Twenty old ages ago IT industry merely based on hardware seller market and added no value for local economic system. Today, there are more than 320 package and IT houses registered as member of BASIS ( Bangladesh association of package and information services ) which adds full spectrum USD 100 million in value of package and IT services in local and abroad client. ( Daily Star, Jan 06, 2010 )


The growing in BASIS rank is important for the IT industry for a figure of grounds a ) it indicates handiness of IT skills locally b ) turning assurance of globally c ) Local purchasers has faith on local IT endowment and degree Celsius ) promoting concern entrepreneurship theoretical account to physical-labour-intensive market.

Bangladesh now is one of the largest exporters in dresss concern and will assist to do healthy Bangladeshi export basket in future. However, literacy rate, secondary school instruction rate and third instruction rate acquire better, capableness for knowledge-based concern besides upward. One of the best illustrations of this betterment is near about 60 call Centres set up with a joint capacity of over 2,000 seats in a length of 2 old ages since 2007. Software gaining of Bangladesh was about USD33 million from July 2008 to June 2009 which is 32 per centum up than last twelvemonth despite of economic recession in most purchasers of developed states. The growing inclination is making stronger by agencies of clip as IT enterpriser ‘s magnitude up their operations ride on greater than before abroad market place incursions and better investings ( Source BASIS 2010 ) .

The figure of users of the Internet in Bangladesh was estimated at 0.45 million in 2006 and increase at 50 million in 2009, harmonizing to the International Telecommunication Union ( ITU ) mobile cellular incursion of around 30 % countrywide at the terminal of 2009 ( ITES 2010 ) .

However, there is plentifulness of Internet Service Providers ( ISP ) in whole over Bangladesh, largely functioning broad scope of cyberspace installation. The first group of ISP started their operations in 1996, and since so there has been a proliferation of ISPs. Harmonizing to Telecommunication Regulatory Commission ( BTRC ) , there were 209 ISP operated whole Bangladesh in August 2007.

Computer incursion in Bangladesh was really low, with an estimation of 1.3 % computing machines, in 2005 ( World Bank, 2006 ) but it increases 5.6 % in 2009.

Beginning: The Economist Pocket World In Figures ( 2004, 2005, 2006, and 2007 editions ) and Profile Books ( 2003, 2004, 2005, and 2006 )

On the other manus computing machine purchase rate in Bangladesh is relatively high plenty than old old ages. Harmonizing to a Singapore based research Centre Springboard Research, Personal computer market of Bangladesh registered an escalation of 19.2 % in 2006 while compared to 2005, with 193,600 units shipped in 2006 as opposite 162,400 units in 2005. The growing in the economic system and the higher disbursement on IT coupled with the low incursion base powered this growing. The growing in the Personal computer gross revenues is expected to direct to an extension in require for Internet entree.

In order to cognize the usage of Internet before undersea connectivity among families in capital metropolis Dhaka conducted a study of families was conducted in several locations in Dhaka. The study looked at families that were populating in multi-storey flat edifices in Dhaka. The study was carried out in the subsequent countries of Dhaka: Motijheel, Nikunja, Ramna, Gulshan, Banani, Baridhara, Uttara, Mohammedpur, New Eskaton and Mirpur. Such families are possible to afford usage of computing machines and entree of Internet. There were 1,509 families were approached and 1,484 of these families consented to being interviewed.

Harmonizing to that study can be seen from the most families are paying US $ 29 ( Tk 2,000 ) or less than per month. In the same manner chiefly families ( 70 % ) have paid US $ 29 or less ( Tk 2,000 ) for puting up their connexions. There are nevertheless a little figure of family ( 7 % ) who have paid US $ 70 ( ~Tk 4,800 ) or more as initial charges for their connexions.

As remarked antecedently the sum of ISPs has improved radically since 1996 the usage of Internet start in Bangladesh. At the minute there is a immense competition among the ISPs for clients ( ISPAB 2010 ) .

Another affair is the turning importance of VOIP ( Voice over internet protocol ) services. A scope of companies had been working call expiration services for several old ages, yet in the deficiency of clearly distinguishable lawful position of VOIP. In the twelvemonth 2003 the authorities cabinet of Bangladesh gave countenance to VOIP installation but there have been abundant holds in passing out licences for this procedure.

The authorities has been taking stairss to legalise the usage of VOIP. A commission of experts recommended that all phone, Mobile and Internet operators should be eligible to use for licences for VOIP ( Daily Star, March 5, 2007 ) . The authorities has announced that it would auction VOIP licences to private operators in October 2007 ( Daily Star, Aug 21, 2007 ) . Legal VOIP operations would profit the Internet market, by increasing demand.

Finally Bangladesh has got connectivity with pigboat overseas telegram ( SEA-MEWE 4 overseas telegram ) , before that connectivity ISP of Bangladesh had to trust on Expensive VSAT connexion ( BASIS 2010 ) . It is a welcome development of Bangladesh. After acquiring connexion in 2006 BTTB ( Bangladesh Telegraph and Telephone Board ) had announced duty construction which was one 4th of old expensive VSAT duty. That means people acquiring connexion in a cheapest rate of all time before functioning ISP Company ( BTTB ) .

Harmonizing to Malakar and Sarkar ( 2008 ) , The writer of globalization, outsourcing and hegira of workers: experience of Bangladesh:

The growing in package and IT services exports in 2008-09 financial old ages is particularly important since growing was somewhat negative in the old two old ages. Harmonizing to some concern clime studies done in early 2008, the sulky export public presentation in IT services so was due in big portion to the political uncertainness prevailing in the state in that period. However, the return to robust growing points to the basically strong base of the industry that is hungry for bigger successes in the coming old ages ( Bangladesh Bank 2009 ) .

Dr. Keiko Morisawa from Osaka City University, Japan, told The Daily Star that for developing overall IT substructure, Japan helps Bangladesh in footings of fiscal, infrastructural and new engineering. ( Daily Star, Aug 21, 2009 )

Since last twosome of decennaries Japan and Bangladesh has really good bilateral relationship. Japan is assisting Bangladesh in footings of economic cooperation, developing IT services/sector. Japan is really good developing spouse of Bangladesh

However, more of import is that a batch of our IT companies are embarking off-shore and earning recognizable footfalls in industries such as IP telephone solutions to high-end waiter care services in many states. This is positively a welcome tendency in a concern where accomplishments and competences are largely worldwide

IP Telephony

BTRC ( Bangladesh Telecommunication and regulative committee ) is one of the supreme supervisory organic structure telecom industries. It has launched 14th March 2010.Now, Internet users of Bangladesh are allowed to speak via IP Telephony services. There are 18 company Bangladesh launched this services together.

By utilizing this service the bing users can have and reassign informations via IP telephone and those users who are connected via local ISP. Internet users can bask non merely data service but besides can do picture calls audio/video conferencing and name forwarding etc.

Harmonizing to IPTSPs ( Internet protocol telephone service suppliers ) foremost, they want to cut down intra office communicating cost. That is why they gave precedence corporate client.

Harmonizing to day-to-day star study, nomadic company of Bangladesh claims that near about 50 hundred thousand ( 5 1000000s ) users are taking advantage of nomadic cyberspace.

At present, ISP based cyberspace service users can get down audio/video conferencing, voice call, informations transportation by utilizing PC2 dialler package. The present cyberspace users besides can speak land line, nomadic phone ; even can reassign voice via USB phone.

Daily Star besides mentioned that traditional phone set users with internet connexion can bask VOIP services by put ining a adapter of parallel telephone. The Wi-Fi countries will benefitted even they use SIP ( session enterprise protocol ) enabled French telephone and all of the users can speak abroad via IP phone which is cost effectual for all the degree of cyberspace users in Bangladesh.

There is really much lucrative offer from IP telephone operators for cyberspace users. Initially, operators are giving free PC2 package installing. Now USB phone cost Tk. 1000 ( & A ; lb ; 10 ) , phone set cost minimal Tk.3000 ( & A ; lb ; 30 ) and maximal Tk. 30000 ( & A ; lb ; 3000 ) and linear adapter cost from Tk.2000 excessively Tk. 6000.

Harmonizing to IPTSPs for limitless call client has to pay connexion charges Tk. 100 ( & A ; lb ; 1 ) , Tk. 0.20 ( & A ; lb ; 0.020p ) for IPTSP-IPTSP call and Tk. 0.65 ( & A ; lb ; 0.065p ) per minute for IPTSP to mobile/ land line.

IP telephone in Bangladesh is a new stat mi rock economic advancement. Widespread execution of IP telephone will convey BPO ( Business procedure outsourcing ) and ITO ( Information engineering outsourcing ) .The ground behind this, if we look at the duty of IP telephone services. It is an astonishing cost effectual award for cyberspace services users of Bangladesh.

Country side peoples are depend on Wi-Max engineering. Wi-Max is playing critical function to distribute cyberspace installations in some distant countries as good. If IP telephone engineering nexus with Wi-Max installations, it will hike economic system of Bangladesh quickly.

Bangladesh is larning from Vietnam where Wi-Max installations employed rural people. By taking lesson from Vietnam can salvage cost and use more rural people in ICT related services.

Dr. Zafar Iqbal, a celebrated scientist in Bangladesh, professor of Shahajalal university of scientific discipline and engineering ( SUST ) said to startech that IP telephone service is assuring engineering and could be the blessing engineering of Bangladesh. He besides added that our pigboat overseas telegram has tonss of bandwidth and our immense population is thirstily waiting for IP telephone. This engineering is unfastened the door to go cognition based state.

Sumon Sabir, Managing Director of BDCOM, a taking ISP in Bangladesh told they are ready ; they have all the accomplishments, professional to distribute IP telephone. We are giving IP phone set relatively inexpensive rate which is convenient for client.

Dell’oro group, which is involved in research sing IP telephone services, projected that following five old ages IP phone gross of Bangladesh two-base hit than old old ages, which is USD $ 12 Billion by 2012.

Over the old ages, the instruction system of Bangladesh has highly deep rooted links to the English linguistic communication. This tendency made English as a 2nd linguistic communication of Bangladesh. It is noteworthy that English is the first linguistic communication in trade and commercialism in Bangladesh that makes Bangladesh a suited seaport for package outsourcing/offshoring.

In the twelvemonth of 2008, the World Bank had study on economic growing of Bangladesh.In that survey ; they said Bangladesh is one of the Anglophone states in the universe which is poised ternary digit growing in package export services. It is besides reported that package export will make 500 million dollar by 2014.

Harmonizing to international trade centre which is based on Geneva, package and IT services based export will make 150 million dollar by 2011.

Another related survey which is done by Japan International Cooperation Agency ( JICA ) in 2007-2008, it ranked Bangladesh in front of all other offshoring states in Asia except India and China on package outsourcing and IT service competences. Nevertheless, Bangladesh has ranked top in footings of fight harmonizing to same bureau.

Bangladesh is welcome ever international investing. The authorities of Bangladesh has taken inaugural to do easy environment for foreign investor and it entrepreneurs. That is why, authorities are giving inducements for IT industries. If any foreign investor wants to put IT sector authorities will supply high degree of infrastructural installations and securities. The authorities of Bangladesh is made IT villages sponsored by province, high tech office which is secured both Bangladeshi and foreign investor.

Bangladesh can take opportunity to develop labor their accomplishments. Japan is enrolling 30000 international pupils by 2020 as portion of their planetary scheme.

Bangladesh has started journey to do healthy and secured environment. They already linked with IT industries, educational establishment, and IT experts of authorities.

Information engineering outsourcing ( ITO ) will be large milepost for Bangladeshi economic growing.


Companies from Bangladesh was arranged a conference in London in May 2002 which sponsored by BASIS and some largest Bangladeshi farm including techno Vista, Flora Systems, TCL, CreateMatix and CSL Software Resources to stand for current chances of package industries ( Tija, P. , 2003 ) .

Bangladesh export publicity agency was participated in a conference where 40 top executives 26 companies from Bangladesh presented their capacity to outsource universe. The meeting was held Jacob Javits convention centres New York, USA,15-16 October,2008.

Bangladesh is advancing everyplace such as Europe, America, England, Japan, some other Rich and Developed states their lifting assurance in IT industries. That is why the Goldman Sachs, European committee ranked Bangladesh top package outsourcing finish in the universe. The Goldman Sachs besides ranked Bangladesh go following 11 ( N-11 ) states who has got possible skills/information for his current economic growing.

Digital Bangladesh and Young coevals:

In the universe, immature coevals ever lead from front any singular alteration of the state. That is why they vote for alteration in last general election. In this election they vote Awami conference who announced in their manifesto vision of digital Bangladesh by name ‘vision 2021 ‘ . Peoples of Bangladesh are ready to accept any digital engineering, knowledge base society ; they do non desire any more cyberspace, computing machine as an amusement tool. The chief ground is the world-wide planetary alteration in ICT and Bangladeshi people is ready to vie with the outside universe.

Bangladesh need strong ICT substructure to construct digital cognition based society. That is why present authorities is taking measure to develop more IT substructure and concentrate on relevant issue:

1 ) Power shortage

2 ) Network substructure

3 ) Use of cyberspace

4 ) Submarine Cable

5 ) Network Readiness

6 ) Use of unfastened beginning package

7 ) English literacy rate

Low labor cost:

Minimizing cost is one of the cardinal issue of outsourcing developed states are taking benefits of these new tendencies ; on the other manus developing states have a tonss of unemployed or under employed skilled workers are the chief strength which is utilizing developed states for low cost. Third universe states like Bangladesh two indispensable thing for working demand of outsourcing which are manpower and infrastructure.ITO ( information engineering outsourcing ) concern is a new sector in comparing to other Business. It is clear that the impact of planetary ITO tendency has bright future due to moo labour cost. And IT professional has got every bit low as $ 75 per month and higher salary scope could be $ 1000-1200 per month ( Malakar and Sarkar 2008 ) .

China has become IT outsourcing finish because of it cheap labor, immense market potency, and Chinese authorities investing. China already proved that his labor is cheaper among other states in the universe. They are functioning systematically international market over the old ages. China has created the chances for companies to use the big population. Chinese authorities invested $ 142.3 billion in information and communicating engineering ( Lacity and rottman, 2008 ) to reconstruct overall IT substructure. The ground behind the big investing is to hike their economic system and acquire them ready to vie with other parts of the universe ( Jones, 2009 ) .

Harmonizing to Hanseen, M. W. , Schaumburg-Muller, H. and, Pottenger, E. , ( 2008 ) cost decrease is the chief triping factor of offshore outsourcing and 20-40 per centum cost nest eggs is the chief mark.

As like as China, Manpower is the chief Strength of Bangladesh ‘s IT. Every twelvemonth, tonss of quality alumnuss coming out from public and private university seems to be acceptable. As discuss above, three basic grounds for China as an outsourcing finish is more clearly seeable in Bangladesh than China. In footings of lower cost and investing and skilled work force Bangladesh has available more prospect than China ( Malakar and Sarkar, 2008 ) .

Harmonizing to Bangladesh interest holders study 2008, in the package outsourcing field is critical the ability to pull off the house at low labor cost. This is one of the major advantage of Bangladeshi houses have over Indian and Chinese houses. The undermentioned figure shows that low labor cost is competitory in Bangladesh. The figure particularly shows non-resident Bangladeshis and several houses in the field of ICT.

While Bangladesh is acquiring a batch of advantage from low labor cost over other state like Chinas and India, high communicating cost is a major disadvantage ( Heeks, 2002 ) and it was besides supported by ( Tjia, 2003 ) .

”It was found from the instances that the most common ground for ICT ( Information and Communication Technology ) outsourcing cost film editing and the focal point on nucleus competencies. This is in line with the positions expressed by Barthhelemy ( 2001 ) , Costa ( 2001 ) , kakabadse and kakabadse ( 2002 ) and Kem and Willocks ( 2002 ) .In a bulk of the instances, the feeling generated was that cost optimisation had been achieved through ICT outsourcing. ” ( Choudury and Maguire 2009 )

High Programmer productiveness:

Harmonizing to Shahriar Manzoor ( Octobor,2005 ) , Professor of South East University, Dhaka, Bangladesh, Member of Elite Problem compositors ‘ Panel, ACM Valladolid Online Judge, Online Contest Wing ”Programming competition is likely the fastest spread outing co-curricular activity related to computing machine scientific discipline. The chief ground is because set uping a scheduling competition does non necessitate excessively much alteration in infra construction. Generally each type of programming competition has an one-year international event, but squads for these competitions are selected via many preliminary competitions which take topographic point in national degree, regional degree or sometimes as on-line competitions. ICPC ( ACM International Collegiate Programming Contest ) is one of the most outstanding scheduling competitions in the universe. ”

Bangladesh is set uping programming competition to distribute programming linguistic communication locally. That is why they are forming regular Basis. The last international competition was ACM-ICPC 2009 held North South University, Dhaka, 23-24 October 2009.bangladesh performed really good in this competition where some international university, Maximum local populace and private university participated and the right figure was 89 squads from 36 universities participated including one squad from China. A squad named ‘HappyHeaven ‘ from Fudan University of China became the title-holder by work outing 7 jobs out of 11. A squad named ‘Rand Ecliptic ‘ from Bangladesh University of Engineering and Technology ( BUET ) became the 1st smuggler up by work outing 7 jobs. A squad from Dhaka University named ‘Ouranos ‘ became the 2nd smuggler up by work outing 6 jobs ( ACM-ICPC 2009, Regional site, Dhaka event ) .

Bangladeshi pupil perform internationally every bit good in programming competition. they are demoing their strength in regular footing and in footings of endowment they are in front from India. One of best illustration, The Final Round of the ACM-ICPC 2009 Asia universe concluding Shanghai Jiao tong University from China became the title-holder by work outing 7 job out of of the squad from Bangladesh named BUET became 36th topographic point by work outing 4 jobs and from India named International Institute of Information Technology – Hyderabad stayed behind Bangladesh ( ACM-ICPC 2009 Asia universe concluding ) .

ACM-ICPC competition is a major platform to construct a coder. There is a batch of quality coder coming out from those competitions. Bangladeshi pupil is viing globally and executing good. Harmonizing to Shahriar Manzoor ( Octobor 2005 ) , Programing competition is a most popular event in Bangladesh. He mentioned that if we check submission history of UVa last nine old ages in comparing with population Bangladesh is in really good place. It took 16th topographic point whole over the universe. The history besides indicate that India and China out of the top 40 states. Best place of states in ICPC in last eight old ages ( The IBM Years ) China became the first place and India and Bangladesh hold same place 29.

Comparison with India, China and some developed states:

Rich and developed states activities are progressively outsourced. They are looking new seaward states except some top outsourced states like China, India, Brazil etc. ( Hanseen et al. , 2008 ) .

Dr. Morisawa said four states ruling offshore market those are Brazil, Russia, China, and India. These states are confronting serious jobs now. Russia and China are non utilizing their possible decently and Russia does non hold adequate authorities support. Largely, China and India is turning to Non-BRIC states such as Bangladesh for low labor cost and handiness of accomplishments.

Presently, China is the chief outsourcing finish from Japan. Geographically, Bangladesh is environing by China and India. That is why, Bangladesh can look for ‘near shoring ‘ alternatively of compete with China and India. ( Daily Star, Aug 21, 2009 )

Bangladesh can follow Vietnam because it has got cheaper labour market every bit good. They are offshoring from Japan because Vietnam has political stableness like Bangladesh. Bangladesh is rehearsing democracy long clip since 1990.Investment security in Vietnam a impulsive factor of Nipponese involvement. ( Ishenko, O. , 2005 )

Like this favorable status of package and IT services, it is non surprising affair a batch of transnational company, package and IT Services Company want to utilize its local resources and puting up their operation.It is noteworthy that local companies has got strength and assurance to vie with planetary universe. This is high clip for Bangladesh to make greater tallness for all over to see.

She said Bangladesh considered competent in package outsourcing among others. She besides recommends that current substructure proved Bangladesh non merely ready for ITO ( Information Technology outsourcing ) but besides for BPO ( Business procedure outsourcing ) every bit good.

The Bangladeshi package industry is comparable to that of the China and India package industries in footings of grosss and exports. Since, Bangladesh starts package outsourcing export figure alteration dramatically. Harmonizing Bangladesh bank study ( 2007 ) in 2004-2005 financial old ages, annually growing was 75 % and 2005-2006 financial old ages it was 113 % than old twelvemonth ( Malakar and Sarkar, 2008 ) .

Harmonizing to NASSCOM ( India ‘s National Association of Software and Service Companies ) package and service exports in India have reached a value of $ 12 billion in 2004-05, 34 % higher than $ 9.2 billion in 2003-04. ( Ishenko, O. , 2005 )

The universe Bank mentioned four standard is an of import dominating factor in footings of package outsourcing concern among assorted states ( Garry, 1999 ) : as a affair of low cost China taking than all other states in the universe, Singapore and Ireland has really good English speech production capablenesss, healthy environment for concern has India, and Singapore and at last, in footings of specialised people in this sector India is in front than other package outsourcing states. Recently labour cost in India is higher than some lower labour cost effectual state like China, Vietnam and others.

However, the degree of net incomes per package professional in Bangladesh appears to be well below that in China and India. IT professionals of Bangladesh have got minimal $ 75 per month and maximal $ 1000 per month ( Malakar and Sarkar, 2008 ) .

Chinese authorities investing is outstanding to sponsor their IT industry. Harmonizing to Lacity and Rothman ( 2008 ) , Chinese authorities invested $ 142.3 billion dollar to help IT houses of China. As like as China, Bangladesh authorities introduced assorted stairss to advance IT industries. The stairss will be benefitted non merely local companies but besides foreign companies ( Choudhury,2000 ) .

Ministry of commercialism of Bangladesh established a undertaking force in the twelvemonth of 1997 to happen out method that might be helpful for IT industries of Bangladesh. After the commission study, some of the recommendation is implemented by the authorities instantly. First, revenue enhancement and responsibility free computing machine hardware and package imports. Second, revenue enhancement vacations for ten old ages if package and IT services related companies established. Third, foreign companies is thirstily welcome for IT sector investing even if it is 100 % foreign companies and besides in footings of net income 100 % net income for remittals, capital additions for foreign investor is possible. A batch more like this stairss and jurisprudence is implemented to pull foreign and local investing in package and IT service sector of Bangladesh.At last, Cyber offense jurisprudence, rational belongings rights jurisprudence, and electronic dealing jurisprudence implemented by the authorities ( Tija, P. , 2003 ) .

All three, Bangladesh, China and India, have some common features including an abundant supply of work force from a extremely educated, and comparatively cheap, English speech production work force. Each state besides has some particular features that have enabled it to emerge as important participants in the universe package markets, albeit in different types of activities and spheres.

Since early 1990s globalisation of package development has been involvement ( Joness, 1994 ; imperativeness, 1993 ) and subsequently ( Heeks, 1999 ) .There are tonss of states has started package outsourcing. Those exporting states are divided four-tier taxonomy harmonizing export grosss as a package exporting state: tier-1include major exporting states ( USA, UK, CANAdA, INDIA, IRELAND etc ) , tier-2 considers passage exporting states ( Russia, China ) , tier-3 package exporting states are emerging exporting states ( Brazil, Philippines etc. ) , tier-4 include infant phase exporting states ( Vietnam, Bangladesh etc. ) ( carmel 2003 ) . Heeks and Nicolson ( 2002 ) mentioned two grade of package exporting states. But Madon and Bhatangar ( 1997 ) supported four grade of package exporting states.

If look at carefully recent figure package exporting states, in export grosss of Bangladesh in the twelvemonth of 2005-2006, $ 27.1 million, and one-year growing about 113 % than old old ages ( Bangladesh Bank, 2007 ) . If analyses above figure, Bangladesh is emerging package exporting states now which keeping place of tier-3.