IT exports up 14% in Jul-Nov on AI-driven demand

Bangladesh’s information technology (IT) exports grew 13.54 percent in the first five months of fiscal year 2025-26, buoyed by accelerating global artificial intelligence (AI) adoption and the widening digitalisation of services, according to government data.

Between July and November, the sector’s exports reached $269.84 million, up from $237.67 million in the same period a year earlier, shows Export Promotion Bureau (EPB) data. IT service exports stood at nearly $629 million in fiscal year 2024-25.

The gains were broad-based across the sector, which encompasses software development, IT-enabled services, computer consultancy, and hardware support, though the composition of growth reveals a market in transition.

SOFTWARE GETS BOOST, CONSULTANCY STUMBLES

Installation and hardware support posted the sharpest growth, nearly tripling to $3.09 million, a 136 percent year-on-year jump, reflecting rising demand for physical infrastructure alongside digital transformation.

Software exports also surged strongly, climbing 54 percent to $21.39 million, as global clients ramped up demand for custom solutions, automation tools and AI-integrated applications.

IT-enabled services, including business process outsourcing, expanded more steadily, rising 16.74 percent to $235.72 million.

Computer consultancy, however, contracted sharply, falling 53.9 percent to $9.64 million, suggesting clients increasingly prefer bundled service packages over standalone advisory engagements.

According to industry executives, AI is simultaneously expanding the market and compressing the workforce needed to serve it.

Ferdous Mahmud Shaon, managing director (MD) of Cefalo, a Dhaka-based software firm with around 300 employees, said his company has seen a substantial rise in orders as businesses worldwide race to embed AI into their operations.

“AI is not replacing software, it is actually increasing the need for new types of software,” Shaon said. “Many processes still require customised solutions, integration and ongoing development.”

At the same time, productivity gains are reshaping how companies hire. The Cefalo MD noted that AI tools are enabling companies to produce software faster and at lower cost.

“Previously a task might require ten engineers; now five can deliver the same output using AI tools,” Shaon said.

Cefalo has invested heavily in AI-assisted development tools, enabling teams to complete projects 25-50 percent faster.

While this improves competitiveness and delivery speed, it also creates pressure on employment, leading to downsizing in some cases, a trend visible across global tech companies as well.

“Companies must adopt these technologies or risk being pushed out of the market,” Shaon said, noting that AI is reducing routine work. “In the future, we will need to focus on more complex and sophisticated tasks that machines cannot easily handle.”

He also cautioned that the growth trajectory may remain moderate in the short term due to broader global uncertainties.

Despite the solid headline figure, Shaon flagged three structural risks to sustained growth: the global economic slowdown dampening client budgets, domestic instability undermining Bangladesh’s appeal as an outsourcing destination, and AI-driven workforce disruption requiring rapid reskilling.