BACCO Calls for Extended Policy Support to Boost Bangladesh’s IT-BPM Sector Growth

The Bangladesh Association of Contact Center and Outsourcing (BACCO) has urged continued budgetary policy support and incentives to ensure sustainable growth of the country’s information technology-enabled services sector, including Business Process Outsourcing (BPO), IT, and IT-enabled services (ITES).

BACCO President Tanvir Ibrahim said Bangladesh is steadily strengthening its position in the global outsourcing market, with the sector playing a significant role in earning foreign currency and creating employment opportunities for young professionals. He emphasized that long-term policy support is essential to maintain the sector’s competitiveness.

He noted that although the existing tax exemption for the BPO, IT, and ITES sectors is set to remain in place until June 30, 2027, it should be extended until June 30, 2031 to remain competitive in the global market. He also called for simplifying and fully digitizing the process of obtaining tax exemption certificates.

BACCO further proposed increasing the existing 6% cash incentive on IT and BPO exports back to 10%, along with the withdrawal of the 5% source VAT. According to industry stakeholders, these measures would enhance the competitiveness of local firms in the international outsourcing market.

The association also recommended the creation of a dedicated skill development fund to strengthen human resource capabilities in the sector. It stressed expanding training in emerging technologies such as cybersecurity, artificial intelligence (AI), and cloud computing, along with incentives for establishing Tier-3 and Tier-4 data centers.

Tanvir Ibrahim further highlighted the need for tax benefits for freelancers and tech-based startups, easier access to loans, and the establishment of venture capital funds. He also emphasized the importance of a data protection law and prioritizing local IT firms in government project implementation.

He added that increasing participation of women and persons with disabilities in the workforce, along with establishing BPO parks outside the capital, would help expand employment and regional economic activity.

According to BACCO, the organization currently has over 500 member companies. The sector has already created more than 100,000 jobs and generates approximately $1 billion in annual revenue.

The association has set a target of creating 300,000 sustainable jobs and generating $5 billion in annual revenue by 2030. BACCO believes that with coordinated policy support, investment-friendly conditions, and skilled workforce development, Bangladesh’s BPO sector can strengthen its position in the global outsourcing industry.

//DBTech/QMH/MI/OR//