Bangladesh call centers struggle to compete globally — report

DHAKA, BANGLADESH — Nearly two decades after its launch, Bangladesh’s call center sector remains far behind global competitors, struggling with workforce shortages, limited skills, and structural constraints that have stalled its growth as an international outsourcing hub, The Business Standard reports.
The origins and early missteps of Bangladesh’s BPO sector
The country established its first call centers in 2008, which led to the industry being recognized as a potential game changer that would create job opportunities for young people while developing international trade connections for Bangladesh.
Today, roughly 100,000 people work in call centers and business process outsourcing (BPO) operations, yet the sector remains unevenly developed due to a fundamental misunderstanding that shaped the industry’s early trajectory.
“This misunderstanding created a rush for licences,” said Tanvir Ibrahim, president of the Bangladesh Association of Call Center and Outsourcing (BACCO).
“In a single round, around 450 [licenses] were issued. But once [license] holders [realized] that call [centers] were not about facilitating calls but about delivering structured customer service, which requires technology, trained manpower, process management and client acquisition, the gap between expectation and reality became evident,” Ibrahim added.
Over time, only about 150 operators have remained active.
Unlike India or the Philippines, Bangladesh’s call center sector developed in isolation, with telecom companies driving early demand. Banks and other industries entered later, limiting early diversification.
Licensing requirements, including physical offices and separate infrastructure, further restricted scalability, while internet disruptions have periodically damaged credibility for international clients.
Language barriers, workforce challenges in call centers
At its peak, call centers were seen as aspirational jobs for young, English-speaking urban workers. Today, stagnating wages, night-shift stigma, and limited career progression have turned them into temporary roles.
“Earlier, young people saw call [centers] as an opportunity,” said Tanzirul Basher, vice president of BACCO. “Now they see them as temporary jobs, not careers.”
English proficiency remains a major barrier for international operations.
“For a 50-seat international operation, it is extremely difficult to find and retain even 50 competent English-speaking agents,” Basher said.
As a result, Bangladesh’s US$1 billion BPO footprint pales in comparison with the $550 billion global market. Most workers remain in low-value voice support or data processing, while high-value roles like analytics and technical support remain scarce.
How AI and upskilling will shape the future of Bangladesh BPO
Artificial intelligence (AI) can pose many challenges but also provide numerous opportunities to Bangladesh.
“Call [centers] will not disappear because of AI, but low-skilled call [centers] jobs will. The question is whether our workforce is prepared to move beyond basic voice support into more skilled, technology-driven roles,” Basher said.
The country’s future in outsourcing depends on both technological development and the improvement of educational programs, workforce training systems, and the implementation of policy changes.
Bangladesh can establish itself as a competitor in advanced BPO through proper training programs and necessary structural backing that will help the country maintain its call center operations in a rapidly evolving global market.

Independent




