A research study submitted in prut.ial fulfillment. of the requirements for the degree of Master of Busines::; Administration.

Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 1992

The developed world has seen a tremendous growth in softwarn industiy. The demand for soflware far outweighs 1he capability of the developed world to deliver it because of skill shortage. This is further complicated by high cost of labor, schedule and cost overruns, high maintenance effo1ts needed for existing software and application backlogs. This crisis in the developed world hfls prompted developed country firms to exploit the advantage of low labor cost of the developing countries by getting them to develop needed software. This trend creates opportunities for developing countries to pursue software development for exporting. Software development is labor and skill intensive. Developing countries have the obvious advantage of low labor cost. The advantage of low labor cost, however, may he offset if the requisite skills and technologies are not available. Conside1ing the fact that Bangladesh has low labor cost and some companies are doing some export-oriented work, the present research study was carried out to study the status of the Bangladesh software industry with an emphasis on export- orientation possibilities. A framework was developed incorporating the outputs produced and inputs used by the firms and the national business climate within which the firms operate. In order to study the outputs produced by the firms, an integrated classification for describing software complexity has been developed. An analysis of the Bangladesh software industiy was canied out based on the framework and strategies for the firms are suggested. Policy recommendations for fostering the software industly and enhancing its export- orientation have also been made.