Collaboration Opportunities

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Collaboration Opportunities

• Software IT Enabled Services

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Outline of Presentation

• Software ITES Industry of Bangladesh

• Bangladesh Denmark IT Collaborations

• Danida Private Sector Development Programme

• UK, DK and BD Collaboration

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Software ITES Industry of Bangladesh Some
Numbers

• Around 450 software 1,000 ITES (IT Enabled
  Service) companies

• More than 60,000 professionals directly employed

• Current Market (Domestic) Size
• Software USD 33 million
• ITES USD 28 million

• Projected Market (Domestic) Size in 2008
• Software USD 170 million
• ITES USD 90 million

• Export Market
• USD 11.4 million in FY 2004-5
• Export Growth over FY 2003-4 76

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Major Obstacles - Real
Corruption and Bureacratic procedures
Poor transport and communication infrastructure
Unreliable Power supply
Hartals and Political Violence
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Obstacles created due to perception
Poor Image
Growing Fundamentalism
Natural Disasters
Lack of knowledge
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Bangladesh Denmark IT Collaborations

• AdPeople (www.adpeople.dk) Backoffice for
  advt. services
• CadPeople (www.cadpeople.dk) 3D Rendering of
  Arch. drawings
• Danish ICT Management Web development
  services
• ( www.danishictmanagement.dk )
• Groupcare (www.groupcare.dk) Offshore software
  Dev. Centre
• Ole Steen Knudsen (www.osk.dk) Ship Design
  services
• Marticco (www.marticco.dk) Portalchain
  solutions
• Mindworking (www.mindworking.dk) Offshore
  software Dev. Centre
• NetPeople (www.netpeople.dk) Offshore software
  Dev. Centre
• Scankort (www.scankort.dk) Digital Mapping
  services
• Vestergaards (www.vestergaards.com) Prepress
  Graphics and Design

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Danida Private Sector Development Programme

• Danida programme
• DKK 160 million per annum
• Fifteen countries in Asia, Latin America and
  Africa
• Business to business cooperation

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The Countries
Bangladesh Egypt Nicaragua Benin Ghana Tanz
ania Bhutan Kenya Uganda Bolivia Mozambique
Vietnam Burkina Faso Nepal Zambia
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Danida PSD at a Glance
Danida
Company in Asia, Latin America or Africa
Company in Denmark
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Danida Requires

• Local partner
• Danish partner
• Long term cooperation
• Mutually binding committment
• Commercial cooperation
• Conformity with Danidas objectives

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Modes of Co-operation

• Joint venture
• License agreement
• Sub-supply agreement
• Management contract
• Distribution agreements involving technology
  transfer

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Support in Preparatory Phase
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Support in the Project Phase
Total DKK 5.0 m.
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Growth of PSD Activities
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Approvals till date DKK 204 mio.
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Project Support DKK 180 mio.Forms of
Collaboration
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Project Flow

• Project idea
• Initial screening

• Partner identification study visit

• Development of business concept

• Feasibility studies

• Project proposal

• Appraisal and approval

• Project implementation monitoring

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Why DK companies have invested in Bangladesh ?

• Attractive project payback periods

• Benefit from the LDC status and the low cost of
  production

• Growing domestic market without serious
  competition

• First mover advantage

• Experiment with new business models

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Sucess Factors

• Clarity of objectives and the business potential

• Establish mutual interests (Goals and Needs)

• Chemistry gt Trust gt Commitment

• Understanding the Market / Access to Market

• Long-term Perspective

• Efficient Communication

• Transparency gt no hidden agendas

• Scale and Size of operations

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Why am I here???

• Share outsourcing experiences from Bangladesh

• Explore the possibility of establishing 3-way
  relationships that can be a win-win situation for
  all the parties.

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DK
UK
Access to larger markets
Innovative Technologies
Access to Danida Training Grants
Investments into the Joint Venture
JV
Access to Danida Training Grants
Local infrastructure and manpower
BD
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Questions ???
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Contact

• The Royal Danish Embassy, Dhaka
• Tel. [phone] ext. 210
• Fax [phone]
• E-mail amared_at_um.dk
• shaisl_at_um.dk
• Web www.psdbangladesh.com
• Mail House 01, Road 51, Gulshan 2
• Dhaka, Bangladesh

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Thank You