Software outsourcing to Bangladesh has accelerated significantly since 2020. International companies — from Silicon Valley startups to European enterprises — are increasingly choosing Bangladeshi development teams over traditional outsourcing destinations like India, the Philippines, and Ukraine. This article examines the concrete factors driving this trend with real data and practical considerations for companies evaluating Bangladesh as an outsourcing destination.

The Cost Advantage: Real Numbers

Cost remains the primary driver for outsourcing decisions. Here is how Bangladesh compares to other popular destinations for a mid-level full-stack developer (annual salary in USD):

  • Bangladesh: $15,000 – $25,000
  • India: $25,000 – $45,000
  • Philippines: $18,000 – $30,000
  • Vietnam: $20,000 – $35,000
  • Ukraine: $40,000 – $65,000
  • Poland: $50,000 – $75,000

Bangladesh offers savings of 40-60% compared to India and 60-80% compared to Eastern Europe. For a team of 10 developers, this translates to $200,000-$400,000 in annual savings — a significant number for startups and mid-market companies alike.

English Proficiency and Communication

A common concern with outsourcing is communication quality. Bangladesh has a strong English-language education system — English is a compulsory subject from primary school through university. IT professionals in Bangladesh generally demonstrate high English proficiency, both written and verbal. Business communication, documentation, and agile ceremonies (standups, sprint reviews) are conducted in English as standard practice at companies like Nexis Limited.

This is a meaningful differentiator compared to destinations like Vietnam and China, where English proficiency among developers can vary more widely.

Technical Talent Pool

University Output

Bangladesh's top engineering universities produce highly capable graduates. Bangladesh University of Engineering and Technology (BUET) consistently ranks among the top engineering schools in South Asia. BUET graduates frequently place in the top tiers of international programming competitions (ICPC). Other strong programs include Dhaka University (CSE), KUET, RUET, SUST, and the growing number of private university CS departments.

Technology Stack Coverage

Bangladeshi development teams work across a broad range of modern technologies:

  • Frontend: React, Next.js, Angular, Vue.js
  • Backend: Node.js, Python (Django/FastAPI), Java (Spring Boot), .NET
  • Mobile: React Native, Flutter, native iOS/Android
  • Cloud: AWS, Azure, Google Cloud Platform
  • Data: PostgreSQL, MongoDB, Redis, Elasticsearch

Nexis Limited, for instance, uses this diverse technology stack across products like Digital Menu and Bondorix, demonstrating the ecosystem's ability to handle multi-technology product development.

Time Zone and Work Culture

Bangladesh operates on GMT+6, which provides meaningful overlap with both European and Asia-Pacific business hours. For US-based clients on EST (GMT-5), there is a natural handoff window in the Bangladesh morning / US evening, enabling asynchronous collaboration patterns that effectively extend the development day.

Work culture in Bangladeshi IT companies tends toward dedication and commitment. The typical work week is Sunday through Thursday (with some companies operating Monday through Friday for international clients), and overtime during critical project phases is common and generally accepted.

Government Support and Incentives

The Bangladeshi government actively supports the IT outsourcing sector through:

  • 100% tax exemption on IT export revenues (extended through 2027)
  • Subsidized office space in hi-tech parks
  • Simplified company registration for IT firms
  • Reduced import duties on development hardware
  • Special economic zones with uninterrupted power supply and redundant internet

Intellectual Property Protection

Bangladesh is a signatory to the WIPO Copyright Treaty and the TRIPS Agreement. The Copyright Act of 2000 (amended 2005) explicitly covers software. While enforcement infrastructure is still developing, contractual IP protections are standard practice and legally enforceable through commercial courts.

Risks and Mitigations

No outsourcing destination is without challenges. Key risks and their mitigations include:

  • Infrastructure reliability: Top IT companies operate from purpose-built facilities with backup power and redundant internet connections.
  • Talent retention: Competitive compensation packages and strong company culture help mitigate attrition.
  • Political stability: While Bangladesh has experienced political disruptions, the IT sector has historically been insulated from their direct operational impact.

How to Get Started

Companies considering Bangladesh for software outsourcing should begin with a pilot project — a well-scoped 2-3 month engagement with clear deliverables. This allows both sides to evaluate communication patterns, code quality, and cultural fit before scaling. Explore Nexis Limited's portfolio to see examples of delivered projects, or reach out directly to discuss your requirements.