Bangladesh BPO sector faces $34Mn loss after internet shutdown
DHAKA, BANGLADESH — Bangladesh’s recent internet shutdown, imposed amid violent student protests over government job quotas, has caused heavy losses in the country’s outsourcing and freelancing industries.
According to industry leaders, the blackout — which lasted from July 18 to July 23 — caused financial losses exceeding BDT 400 crore (US$34 million).
The shutdown has not only disrupted operations but also damaged client trust and tarnished the professional reputation built over the past 15 years.
Impact on BPO and freelancing industries
Bangladesh’s outsourcing and freelancing sector, comprising around 700,000 freelancers, relies heavily on uninterrupted internet access. The sudden disconnection from the global network has left many businesses struggling to meet project deadlines and maintain client communication.
“This industry has been built over the past 15 years, but the recent internet blackout has set us back by a decade,” stated an industry expert.
Extent of damage from internet shutdown
A survey conducted by the Bangladesh Association of Contact Center & Outsourcing (BACCO) among 83 members revealed the extent of the damage. The survey highlighted various impacts of the shutdown from over 400 outsourcing-related business owners, including:
- 23.7% faced communication issues with clients
- 20.7% experienced delays in project delivery
- 20.1% saw disruptions in customer support
- 16.7% struggled with internal communication
- 15.5% had problems accessing and storing data
Additionally, 54.2% of businesses had to reduce their workforce by more than 70%, underscoring the severe operational disruptions.
Mid-sized businesses hit hardest
Mid-sized businesses were the most affected, with 32.5% experiencing losses between BDT 5 lakh to BDT 10 lakh (US$4.2 million to US$8.4 million) and 31.3% incurring losses from BDT 10 lakh to BDT 30 lakh (US$8.4 million to US$25 million).
Larger businesses also suffered, with 8.8% reporting losses exceeding BDT 50 lakh (US$45 million). The survey projected that 4.9% of businesses might see their annual revenue drop by more than 80%, while 53.1% expect a moderate decrease between 11% and 30%.
Future uncertainty and potential solutions
Industry leaders have expressed uncertainty about the future, warning that losses could escalate to BDT 700 to 1,000 crore (US$59 million to US$84 million) in the next three to six months. They have suggested several potential measures to mitigate the impact, including:
- Relocating operations to other countries
- Reducing the number of employees
- Collaborating with companies in neighboring countries
- Recruiting remote workers from countries with stable internet infrastructure
Calls for policy support
The internet shutdown has highlighted the need for stronger policy support to ensure that internet services remain operational during emergencies.
Industry leaders are calling for incentives and easy loan conditions to support businesses in the sector. Without these measures, foreign investors may lose interest in investing in Bangladesh, further exacerbating the economic impact.
