Why European Countries Choosing Bangladesh as Their Desired Outsourcing Destination?
South Asia has always been a lucrative destination for offshoring. Numerous global enterprises are eyeing up countries like Bangladesh to remedy their outsourcing needs and there is a big reason behind it.
Outsourcing requires three major incentives —
- Cost Effectiveness/Efficiency,
- Expertise in the Field and
- Quality Work.
Fortunately, Bangladesh ticks all the boxes. With a growing IT industry and a huge skilled workforce, Bangladesh continues to be on the radar as a top offshore destination.
Continue reading as we explain why Europeans are strongly reaching out to Bangladesh for IT resources.
Analyzing the Demand: Trending Technologies in Europe
Mobile Application Development:
1. Market Growth: The European market for mobile devices is strong, with smartphone subscriptions expected to grow by 4–11% per year between 2016 and 2022.
2. Cost Reduction: 60% of executives cite cost reduction as the main reason for outsourcing IT services like mobile application development.
3. Rapid Development: Mobile application development is one of the most outsourced IT services among European companies, driven by Europe’s increasing IT skills shortage.
Augmented Reality & Virtual Reality:
1. Growth Rate: The European VR and AR market is expected to grow at an average annual rate of 35%, reaching a value of around €43 billion in 2026.
2. Market Leadership: Europe is expected to outpace North America in VR and AR market growth by 2023. By that year, 25% of global AR/VR revenue will be attributed to Europe.
3. Sector Distribution: Currently, the market consists of about 30% AR and 70% VR spending. However, AR is expected to surpass VR in the coming years.
Blockchain:
- Expanding Applications: Blockchain is no longer just for cryptocurrencies. It’s being used in supply chain management, data sharing, smart contracts, and even healthcare.
2. Cost Reduction: About 60% of executives cite cost reduction as the main reason for outsourcing blockchain services. European companies often lack the in-house technical skills required for blockchain, making outsourcing an attractive option.
3. Skill Shortage: There is a considerable lack of IT training and experience in the European workforce, leading to a potential shortage of 400,000 data professionals by 2020.
Artificial Intelligence & Machine Learning:
1. High Demand: There is a large demand for AI and ML software development services in Europe, driven by a severe skills shortage and an increasing understanding of the potential of these technologies.
2. Growing Market: The European market for AI and ML software is expected to grow by almost 40% annually between 2021 and 2028. The global market for ML software is growing at a similar rate.
3. Skills Shortage: There is a significant gap between the number of software development jobs and available developers. More than half of European companies have had difficulties filling these vacancies.
4. Country-Specific Opportunities: Northern and Western European countries are the largest outsourcing markets. Countries like the United Kingdom, Germany, and the Netherlands are particularly open to AI and ML technologies.
The Internet of Things Growth:
1. Growth Rate: The annual growth of the European IoT market is in double digits (more than 10%). The market was estimated to reach €184 billion in 2021 and is expected to experience double-digit growth through 2025.
2. Skills Shortage: There is a shortage of skilled specialists, particularly in security, data science, and technical support, which is driving the demand for outsourcing.
Software Development Services:
- Skills Shortage: There is a significant gap between the number of software development jobs and available developers in Europe. This has led to increased outsourcing.
2. Digital Transformation: Almost every company needs software but most do not want to hire an in-house development team, making software development one of the most outsourced IT services.
3. Growing Market: Surveys indicate that 34% of European companies plan to outsource at the same rate, and 38% plan to outsource more in the next two years.
4. Cost Reduction: Companies in developing countries can often offer similar services at lower prices, making them attractive for European companies operating on tighter budgets.
Why Europe chooses Bangladesh as their IT resource
In recent years, Bangladesh has emerged as a go-to destination for European companies seeking to outsource their IT projects. But what makes Bangladesh so attractive for European businesses? Here are the key reasons:
1. Lower Cost, Committed Workforce, Better Result
Bangladesh offers highly competitive rates for skilled IT work, with hourly rates often far below those in Europe. This affordability comes without sacrificing quality, making it a win-win for European companies, especially those tightening their belts during economically challenging times like the COVID-19 pandemic.
2. Expertise in IT Technology Allowing Advanced Solutions
From web development to software engineering, Bangladeshi professionals have expertise in a range of IT fields. Their skills are up to date with the latest technologies, ensuring that European clients receive advanced solutions.
3. Advanced IT Infrastructure Ensures Seamless Project Execution
With rapid advancements in technology, Bangladesh has also invested in upgrading its IT infrastructure. The country boasts reliable internet connectivity, secure data centers, and modernized workspaces.
Bangladesh’s unique blend of affordability, specialized skills, advanced infrastructure, and commitment to quality makes it a top choice for European companies looking to outsource their IT needs.
Companies that Outsource to Bangladesh :
- Nissan
- Volkswagen
- L’oreal Paris
- Toyota
- Siemens
- PayPal
To Summarize
Bangladesh has the potential and capabilities to solve the outsourcing demands of the European countries. With a skilled workforce and quality work, it can be said without a doubt that Bangladesh should be your choice for outsourcing.
Hope this article succeeded in providing you with a better insight about the prospect of offshoring and where it is headed.
