Offshoring in India vs. Bangladesh: Choosing the Right Offshoring Destination

6 min readDec 13, 2019


Offshore software development is off course, a great way to reduce the development costs while ensuring quality and control. Offshoring is quite similar to outsourcing software development. It can be said that; offshore software development is the process of offshoring software development services in another country where development costs are significantly lower compared to the customer’s country. The term “Offshore” is used because offshore development companies are situated far away, off the shores from the main company

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Why do you go for Offshore Software Development?

Many US and European companies are now getting offshore services for their software products to develop. There are certain reasons to choose an offshore software development company for software development services. Let’s have a look at those benefits;

• Significantly lower labor cost
• Reduced resource cost
• While offshoring software services, it is possible to keep more focus on the core company values
• There are always reduced risks in offshore software development as the offshore company will be responsible for delivering the final product or service.
• There is no need to conduct a training program for the employees to develop a quality product
• There is a certain tax advantage to use offshore software development services

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These are the primary benefits of hiring an offshore software development company. Along with these benefits, some disadvantage comes along, which includes Communication Issues, Time Zone Differences, and Cultural and Social Barriers.

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However, these issues can be reduced if the selected offshore software development company can communicate effectively and provide their deliveries in a timely manner. There are a lot of companies around the world now offering to outsource software development, removing those barriers. India, China, Philippines, and Bangladesh are considered to be ideal for offshoring, as these countries offer quality services with a significantly low budget.
In this article, we will focus will on India and Bangladesh. We will discuss the strengths of these countries and some weaknesses as well. And finally, we will compare India and Bangladesh and draw a conclusion telling you which country you should pick for your next offshore software project.

Offshoring in India vs. Bangladesh: Choosing the Right Offshoring Destination

It is no doubt that India has more maturity in selling software services than Bangladesh. However, according to Shameem Ahsan, president of the Bangladesh Association of Software & Information Services (BASIS), in terms of cost competitiveness in outsourcing software services, Bangladesh ranks first. Let’s see why that is,

India as an offshore software development country

When it comes to software outsourcing, the first name that appears to most of the IT people’s heads in India.

• India has been the number 1 country to outsource software services for more than a decade.
• A lot of offshore software development company has grown to serve as an offshore software destination in India. The offshoring/outsourcing put great value in the economy of India. The reason behind this great success is the reduced cost and improved processes to provide quality software services.
• According to the UN, India will surpass China as the most populous country in the world by 2028.
• The Indian IT industry contributed more than 7.7 percent to the country’s GDP in Fiscal Year 2018.

Bangladesh, as an offshore software development country:

Just east of India, the small country of Bangladesh sits in the shadow of other software outsourcing giants in South Asia, but you should not dismiss it as an option for your offshore development.

• Bangladesh is fast-gaining recognition as an emerging software outsourcing destination.
• Recently, Bangladesh has been recognized by AT Kearney, a US company as the 26th best destination for Software and IT outsourcing globally.
• AT Kearney is a leading management consultancy firm that has offices in more than 40 countries. For the first time, it has included Bangladesh in its Top 50 Global Services Location Index.
• According to the Bangladesh Association of Software & Information Services (BASIS), more than 800 software companies are now available in Bangladesh.
• Bangladesh stands out distinctly as an offshore software development country.
• The reason is the Low Development Cost and Excellent Product Quality.
• USA, UK, Canada, Australia, Japan are top export destinations.

Labor Costs: Hourly Rates comparison for Junior Level Software Engineer

• USA: $105 — $140
• India: $30 — $40
• Bangladesh: $18 — $20

Because of the experience and popularity of India in the global market, the price of Software engineers is increasing rapidly. While Bangladesh kept its focus on quality deliveries to gain more popularity in the global market.

In terms of quality deliveries, Bangladesh is a great place to choose from. There a lot of ISO certified software companies you will find in Bangladesh.

Communication Skills
• India and Bangladesh were colonized by Britain from 1612 to 1947, as India and Bangladesh remained the same country before 1942 when they become separated. For this reason, both India and Bangladesh have similar maturity levels in mastering the English Language.
• Being a large country, there are more than 20 major languages in India. For this reason, a lot of people tend to learn more about two or three languages which represent a challenge to master English skills.
• However, being a very small country, Bangladesh has only one major Language; they learn English as their second major language, which helps them to master this skill more effectively.

Job Specialty vs. Versatility
• A major issue facing university graduates and professionals in India is the skills gap. The current skills gap is because of two issues — a lot of graduates who lack the skills that companies need, and millions of professional’s skill sets are becoming redundant at a rapid pace who need to upskill their skills.
• A 2016 study by Aspiring Minds, an employment solutions company based in New Delhi, studied engineering students who graduated in 2013. The study showed that about 94% of the engineering students are not fit for software development jobs.
• However, In Bangladesh, most of the university offers very focused education system that allows students to get mastery skills in any specific field. A lot of Private universities in Bangladesh also follow an international curriculum, which brings a new dimension to the country’s education system.
• A lot of students in Bangladesh also come back, receiving a graduation degree from USA, Canada, Australia, Japan, and other European countries. So you can always trust Bangladeshi talent.

Final Thoughts:
Bangladesh is growing as a leading offshore software development center of the world and getting bigger every year. Bangladesh is also a better choice compared to neighboring countries like India and China, as development cost is significantly lower, and engineers of this country are highly talented and professional. Compared to software development outsourcing companies in the USA, Bangladeshi IT outsourcing companies are 9 times cheaper! From Bangladesh, many offshore software application development companies provide their services to USA, UK, Canada, and Japan.

BJIT Limited is one of the leading offshore software development companies in Bangladesh. It offers service that mixes with vision, best marketing strategy, and cutting-edge technology without compromising the quality. As an offshore software company, BJIT is continuously growing as an offshore software development company. Now, BJIT provides services in 6 different countries, which are Japan, the USA, Singapore, Finland, Sweden, and with an offshore development center in Bangladesh.
With more than 600 engineers, 18+ years of experience, and clients like Sony, Qualcomm, Valmet, NTT Docomo, BJIT can provide you the service that you need.




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