Internet blackout threatens Bangladesh’s $1Bn BPO industry

DHAKA, BANGLADESH — Bangladesh’s business process outsourcing (BPO) industry, which generates an estimated $1 billion annually, is facing a severe crisis following an internet blackout imposed by the government to curb anti-government protests.
The shutdown, which began on July 18, led to significant operational disruptions, with industry leaders reporting daily losses of $7 million.
Impact on client relationships and reputation
The abrupt disconnection left BPO firms unable to communicate with their international clients, risking long-standing business relationships.
Fahim Mashroor, CEO of Bdjobs.com, highlighted the gravity of the situation: “When a five-minute delay is not acceptable in this line of work, a total blackout is nothing short of a disaster.”
The inability to inform clients about the service disruption has exacerbated the problem, leading to fears that clients will shift their business to regional competitors like India, the Philippines, and Vietnam.
Potential closures and job losses
The blackout also placed thousands of jobs at risk. Monir Hosen, managing director of call center firm Creative Clipping Path, said, “It took us 10 years to build a clientele of 150 and I fear I lost all of them in a few days.”
The firm, which employs around 300 people, is now facing potential closures.
Similarly, Zayed Uddin Ahmed, CEO of outsourcing firm ASL, which employs 200 staff, warned that the extent of losses is immeasurable and might lead to layoffs.
“They are reliant on us 24 hours a day, and if we don’t provide what they need, they will divert the orders to our neighboring and competitor countries,” Ahmed stated.
Long-term consequences for Bangladesh’s BPO Industry
The internet blackout not only threatens immediate financial stability but also risks long-term damage to Bangladesh’s reputation as a reliable outsourcing destination.
Russell Ahmed, President of the Bangladesh Association of Software and Information Services, emphasized that continued outages could tarnish the country’s image in the international market, causing clients to lose confidence in Bangladesh’s ability to deliver timely and uninterrupted services.
He suggested implementing a mechanism that allows export-oriented firms to maintain internet access for serving their global clients.
Worker concerns and anxiety
Local BPO workers also expressed anxiety over the blackout’s effect on their jobs. Jannati Tazrimin, a trainer at ASL, expressed the fears gripping her team: “Since we work on a project basis, everyone in my project would lose their job if the client cancels the contract with us because of the blackout.”
“I want to get back to work. I need it desperately. But for that, I want internet service back immediately,” she added.
Humayun Kabir, a production manager at Creative Clipping Path, echoed similar concerns, stating that even during the COVID-19 pandemic, he did not fear unemployment as he does now.
“At mid-career, I will not be able to change my profession. My family will be destitute,” he added.
Bangladesh’s internet blackout
The internet shutdown in Bangladesh was imposed amid violent protests against a controversial quota system for government jobs. The system reserved 30% of these jobs for descendants of veterans from the 1971 Independence War.
The protests, which began peacefully, escalated into deadly clashes, resulting in over 160 fatalities. The government enforced the blackout to prevent the spread of what it termed “fake news” and to control the situation.
Despite the Supreme Court’s decision to reduce the quota to 5%, unrest continued, prompting the government to maintain the blackout and impose curfews with shoot-on-sight orders.
While the government has already started restoring the internet in selected areas, industry executives believe the damage may already be irreversible. The blackout has not only caused immediate financial losses but also threatened the future viability of Bangladesh’s BPO industry, potentially leading to long-term economic repercussions and job losses.