Bangalore has been the undisputed capital of South Asian software development for over two decades. With a $200+ billion IT industry and the presence of every major global technology company, India's Silicon Valley sets the benchmark. However, Dhaka is emerging as a compelling alternative for cost-conscious companies seeking high-quality development talent. This comparison uses real data to evaluate both cities across the dimensions that matter most to outsourcing decision-makers.
Industry Scale and Maturity
Bangalore
Bangalore (officially Bengaluru) is home to more than 3,500 IT companies, including the headquarters of Infosys, Wipro, and HCL Technologies. India's IT industry generated approximately $245 billion in revenue in FY2024-25. The city hosts R&D centers for Google, Microsoft, Amazon, SAP, and virtually every Fortune 500 technology company. The talent pool exceeds 2 million IT professionals in the Bangalore metropolitan area alone.
Dhaka
Dhaka's IT industry is significantly smaller but growing rapidly. The city hosts approximately 2,500 of Bangladesh's 4,500+ registered IT companies. Total industry revenue is in the $3-4 billion range (domestic and export combined). The talent pool in the greater Dhaka area is estimated at 300,000-400,000 IT professionals. While the scale is not comparable, the growth rate tells a different story — Bangladesh's IT exports have grown at 20-25% annually, outpacing India's 8-12% growth rate in recent years.
Cost Comparison
This is where the comparison becomes most interesting for outsourcing clients. Annual salary ranges (USD) for equivalent roles:
| Role | Bangalore | Dhaka | Savings |
|---|---|---|---|
| Junior Developer | $12,000 – $20,000 | $6,000 – $12,000 | 40-50% |
| Mid-Level Developer | $25,000 – $45,000 | $15,000 – $25,000 | 40-55% |
| Senior Developer | $45,000 – $80,000 | $25,000 – $40,000 | 45-55% |
| Tech Lead/Architect | $70,000 – $120,000 | $35,000 – $55,000 | 50-55% |
| Project Manager | $40,000 – $70,000 | $20,000 – $35,000 | 50% |
Operating costs (office space, utilities, administrative overhead) follow a similar pattern. Grade-A office space in Bangalore's Whitefield or Electronic City costs approximately $15-20 per square foot annually, while comparable space in Dhaka's Gulshan or Banani district costs $8-12 per square foot.
Talent Quality and Availability
Education Pipeline
India produces approximately 1.5 million engineering graduates annually, of which roughly 250,000-300,000 are computer science graduates. Bangladesh produces about 30,000 CS/IT graduates per year. In absolute terms, India's pipeline is 8-10x larger. However, Bangalore faces its own talent challenges — intense competition among employers drives up wages and attrition rates (averaging 18-22% in the IT sector).
Bangladesh's top-tier graduates from institutions like BUET, DU, and SUST are competitive with top Indian graduates. BUET teams have consistently performed well in ICPC (International Collegiate Programming Contest) regional rounds, and Bangladeshi engineers have strong representation at companies like Google and Meta.
Specialization Depth
Bangalore has an unassailable advantage in specialized domains like AI/ML research, semiconductor design, and large-scale distributed systems — simply because companies like Google, Amazon, and Microsoft have invested billions in R&D centers there. Dhaka's strength lies in full-stack web development, mobile applications, and SaaS product engineering. Companies like Nexis Limited demonstrate this with products such as Ultimate HRM and Digital School, which are built entirely by Dhaka-based engineering teams.
Infrastructure
Connectivity
Bangalore benefits from direct international fiber optic connections and multiple undersea cable landing points via Chennai and Mumbai. Internet infrastructure is mature and reliable. Dhaka has improved dramatically with the completion of the SEA-ME-WE 5 submarine cable and multiple terrestrial fiber networks, though bandwidth costs remain higher than in India.
Transportation and Living
Both cities face significant traffic congestion. Bangalore's metro system (Namma Metro) has partially alleviated commute challenges. Dhaka's traffic congestion is more severe, though the ongoing metro rail project (MRT Line 6) is beginning to provide relief. International air connectivity is better from Bangalore, with direct flights to most major global hubs.
Business Environment
Regulatory Framework
India offers a more mature regulatory environment for IT businesses, with well-established SEZ policies, transparent tax structures, and strong IP protection enforcement. Bangladesh's regulatory framework is improving — the ICT Division has streamlined company registration for IT firms, and tax exemptions on export revenue are attractive — but overall ease of doing business still favors India.
Client Proximity and Track Record
Bangalore's decades-long track record with Fortune 500 clients gives it a significant trust advantage. Dhaka is building its reputation steadily, and for companies willing to invest in evaluating the destination, the cost-quality ratio can be exceptional.
When to Choose Dhaka Over Bangalore
Dhaka is the stronger choice when:
- Budget optimization is a primary objective
- The project scope involves web applications, mobile apps, or SaaS platforms
- Team size is 5-50 developers (large-scale operations of 500+ are easier to set up in Bangalore)
- You want a dedicated team with lower attrition (Dhaka's attrition rates average 10-14%, significantly lower than Bangalore's)
Explore successful project deliveries from Dhaka-based teams at Nexis Limited, or start a conversation about your specific requirements.