The annual market size^[1] for IT including computer hardware, peripherals and software was estimated to be worth approximately US$25m. The market is fast growing at an annual rate of over 25% and is forecast to rise to $43m in 2009.

Like many emerging markets, computer hardware accounts for around 65% of the IT market in Bangladesh. Software and IT services account for around 35% of the market. The packaged software market is dominated by multinational companies with Bangladeshi software companies accounting for 25-30% of the local packaged software market. Local packaged software companies are mainly involved in back office, content management, Internet and banking software. Software applications comprise more than half the packaged software market while systems Infrastructure make up 30% and applications development and deployment makes up the balance.

Hardware and software support and installation are by far the largest segment of the Bangladeshi IT services market, accounting for over 40% of revenues. Some of the hardware support and the vast majority of the software support are delivered on-line and over the phone as first and second level help desk support. Customization is the second largest segment accounting for 23% of revenues while system integration and IT education/training account for 18% and 8% of the market respectively.

Export earnings: recent reports from the Bangladesh Bank indicate that software export has seen significant growth over recent years, rising from $12.6m in 2005 to over $27m in 2006 – a rise of over 110%.

[1]  Source : Bangladesh Association of Software and Information Services