Technical and Managerial Problems Hinder Outsourcing Business Processes to Bangladesh

By

ACKNOWLEDGEMENT

I would like to take this chance for thanking my research facilitator, friends & family for support they provided & their belief in me as well as guidance they provided without which I would have never been able to do this research.

DECLARATION

I Thomas Korlue Collins, would like to declare that all contents included in this thesis/dissertation stand for my individual work without any aid, & this thesis/dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views & not essentially which are associated with university.

Signed _________________ Date _________________

ABSTRACT

In this study, we try to explore the problem prevailing in Bangladesh. Despite simplification of customs procedures in recent times, customs formalities in Bangladesh are still lengthy and less than efficient, leading to delays in the release of goods from Customs. Managing one or more external service providers as part of an outsourcing strategy is essential as relationships become of greater importance to mitigate risks and to reduce costs, etc. After reviewing the finished software product according to the agreement and contracted pricing model. Gartner has very recently included Bangladesh as one of its top 30 offshore destinations. Thus, Bangladesh has an IT industry estimated at a value of $150 million and growing at an estimated 20% per year.

TABLE OF CONTENTS

ACKNOWLEDGEMENTii

DECLARATIONiii

ABSTRACTiv

CHAPTER 1: INTRODUCTION1

Background of the Study1

Research Question2

Objectives for the Research-In-Progress2

CHAPTER 2: LITERATURE STRUCTURE4

Potential Problems in It Outsourcing4

Outsourcing in Bangladesh:6

Goals of Outsourcing6

The problems faced by outsourcing Bangladesh: Asia's Next Big Opportunity7

Bangladesh Economic SWOT7

Strengths7

Weaknesses8

Opportunities8

Threats8

Inward Remittances for Providing Business Process Outsourcing (BPO) Services8

The protection of intellectual property assets and expertise9

Loss of control9

Potential loss of organizational learning9

The Risk10

Small and Medium Enterprises (SMEs) and Outsourcing11

The Threats of Outsourcing in Bangladesh11

Constrains of Outsourcing12

Obstacles to Handle13

CHAPTER 3: METHODOLOGY15

Methodology Used In the Thesis15

The Research Process16

CHAPTER 4: CONCLUSION AND RECOMMENDATION17

REFERENCES18

CHAPTER 1: INTRODUCTION

Trade facilitation is defined as: 'The simplification and harmonisation of international trade procedures' where trade procedures are the 'activities, practices and formalities involved in collecting, presenting, communicating and processing data required for the movement of goods in international trade'. Grainger has further extended the definition of trade facilitation. In his view, trade facilitation also covers the improvement of transport infrastructure, removal of government corruption, reduction of customs tariffs, and resolution of non-tariff trade barriers, export marketing and export promotion.

The main objective of trade facilitation is to improve the overall trade environment and reduce trade costs. Trade facilitation is of significant importance because it is all about reducing time in international trade. It provides a comparative advantage for the country undertaking trade-facilitating reforms in its Customs, port and other agencies. Li and Wilson (2009) find that time to export is a significant determinant of comparative advantage. Facilitation of trade through improving Customs and port administrations, as well as removing other non-tariff barriers supports the just-in-time supply chain approach required by internationally competitive manufacturers. It has been estimated that each day of delay in shipping time approximates ...