Information and communication technology (ICT) sector in Bangladesh has been recognised as a cornerstone of the country's aspiration for digital advancement. Yet, recent events have unveiled critical vulnerabilities that jeopardise this vital industry. In July, the unexpected suspension of internet services dealt a severe blow to several segments of the ICT landscape, exposing the sector to significant setbacks. This disruption coincided with the establishment of an interim government following the fall of an authoritarian regime, which had previously failed to effectively leverage the substantial investment allocated to the ICT sector. Subsequently, the industry is now mired in a landscape of corruption and mismanagement, causing unrest among local businesses that depend on skilled manpower.
Although the ICT sector comprises an immense array of services, the repercussions of the internet shutdown have mainly affected core areas like software development and other important services. Many businesses within these segments are facing dire financial constraints, lacking sufficient reserves to sustain operations without reliable bank support. This scarcity of transparency has significantly hindered their ability to navigate an increasingly competitive situation.
The roots of the current crisis can be traced back to last year, when the political situation surrounding the country’s national elections stalled the initiation of new projects, thereby stunting growth opportunities. The consequent internet disruption in July has exacerbated these existing challenges, generating a crisis that many stakeholders perceive as more severe than the economic fallout from the COVID-19 pandemic. As a result, questions abound about the sector's capacity for recovery and whether new orders will emerge to foster revitalisation.
A grave aspect of this unrest is the growing trend of corruption targeting legitimate initiatives within the ICT sector. It appears that established firms that have consistently delivered value are being sidelined in favour of uncertain practices that benefit a select few. This coordinated effort to destabilise the local industry is compounded by external pressures that loom to undermine its integrity. If local businesses falter, there is a substantial risk that entrepreneurs will increasingly rely on foreign solutions under the new administration. The spread of misinformation and corruption from within the government has led to a situation where genuine businesses face unjustified scrutiny and obstacles, obstructing their growth prospects.
Bureaucratic incompetence contributes significantly to the corruption cycle, making situations that stifle legitimate business operations. Entrepreneurs often receive project guidelines two to three years after the fact, severely limiting their ability to innovate and respond effectively to market needs. This misplaced blame detracts from addressing the fundamental issues that plague the sector. For example, despite extensive budgets allocated for training programmes by Hi-Tech Park and the Bangladesh Computer Council (BCC), minimal progress has been observed in enhancing human resource skills.
To address these persistent challenges, this sector requires a fundamental shift toward Integrated Governance (i-Governance). Historically, the ICT industry has not been legitimate to serve as a genuine partner in government initiatives, resulting in missed opportunities for collaboration and innovation. The new administration bears a crucial responsibility to enhance this partnership, ensuring that business leaders are actively involved in shaping policies that affect the sector.
Moreover, the government must transition from fragmented, project-driven efforts to a cohesive, data-driven governance model. By binding common data, policymakers may make knowledgeable decisions that benefit the business community and the general public.
The country’s youth are emerging as leaders within the ICT domain, creating it imperative for the government to reassess its digitalisation strategy. Instead of adhering to a firm, project-based framework, there must be an emphasis on nurturing an innovative mindset. The government should prioritise identifying main areas that require digital transformation, outline visual policies and security guidelines and establish an integrated framework that welcomes new talent into the market. This approach would facilitate problem-solving and empower the small and medium-sized enterprise (SME) sector, mirroring strategies employed by successful nations globally.
For Bangladesh’s ICT sector to realise its full potential, the government must commit to transparency and an innovation-driven approach. By fostering an environment conducive to genuine entrepreneurship, the country may empower its ICT industry to overcome current challenges and contribute to a robust, technology-driven future. This commitment is necessary for nurturing a thriving ICT ecosystem that benefits all stakeholders and positions Bangladesh as a key participant in the global digital landscape.
Niton Mohammed Kamruzzaman, an ICT Expert
