Maruf Mallick
bdnews24.com correspondent
Dhaka, Feb 26 (bdnews24.com)— Software and IT sector export earnings decreased in 2007, according to the Export Promotion Bureau, after years of phenomenal growth.
Though export in the sector more than doubled the previous year, it dropped in 2007 due to what observers said was the government's stern action against illegal VoIP trade.
EPB statistics show export earning from the software and IT- related sector in 2007 was US$ 26.08 million.
The export earning from the sector in 2003 was US$ 4.2 million, which increased to US$ 7.19 million in 2004.
In 2005 the amount stood at US$12.68 million. The amount more than doubled to US$ 27.01 million in 2006.
According to the information from Bangladesh Software and Information Services (BASIS), though the sector was small compared to the economy of the country, over the last five years its average annual growth rate has been over 40 percent.
BASIS president Rafiqul Islam Rawly told bdnews24.com that though software exports increased in 2007, the income had dropped.
BASIS members also said their business was on the rise, but according to the EPB index, export earnings have dropped.
Government action against illegal VoIP activities was cited as the cause by BASIS members as well as other industry insiders.
As one software businessman told bdnews24.com: "Many showed the money earned from VoIP as earnings from software export."
VoIP activities have come down now following government steps including frequent raids against illegal VoIP, he said.
"So the figures for export earning has also come down."
Thirty-nine percent of the country's IT sector, which has a total market value of over $ 300 million, comprises software and IT enabled services (ITES). At present more than 400 individual software and ITES companies in the country employ over 2,000 IT professionals.
According to BASIS, around 100 of these firms are exporting software to 30 or so countries. The rate of export was 61.2 per cent over the last five years.
Though the US is the main export destination, export of software to European and East Asian countries has recently been on the rise.
BASIS president Rafiqul Islam Rawly said that for overall development of the sector, the price of internet would have to be lowered and government investment increased. B
Tax holidays would also have to be continued. The government is expected to withdraw tax breaks for the sector in 2008.
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