B'desh IT market defy challenges: Study

SINGAPORE: The Bangladesh IT market continues to overcome challenges and post solid growth despite social and political upheavals, reveals Springboard Research.

A recent Springboard Research study on the Bangladesh IT market found that domestic IT spending amounted to $235 million in 2004, an increase of 9% over the previous year.

"Amid natural disasters, economic setbacks, political instability and social unrest, the nascent Bangladesh IT market has managed to continue moving forward", said Dane Anderson, vice president for Springboard Research. "The August bombings are yet another challenge for the market to overcome, but amidst the volatility public programs, NGO support, multinational vendor investment and a resilient business community are generating IT market growth."

The IT market in Bangladesh is heavily dependent on hardware, which represents more than 75% of total IT spending. The software market is stifled by the early state of market development and prevalent piracy, which exceeds 90% in the consumer market.

Personal computers, which represent the largest portion of the market, registered shipments in excess of 135,000 in 2004. The PC market is led by the commercial desktop segment - which represents over 70% of total shipments - followed by the consumer desktop market with a 26% share.

Similar to other emerging markets, assembled PCs and small local brands represent roughly 75% of total PC shipments in the country. Among branded players, the market is led by HP, IBM and Dell.

The study pointed out that key challenges for the market in the next five years will continue to be social and political uncertainties. Furthermore, lack of IT skills in the

country and poor IT education are also growth inhibitors.