Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
10,829.3588.0
Stock Analysis, IPO, Mutual Funds, Bonds & More

Tech Mahindra sees "stable growth" market in Bangladesh

Tech Mahindra receives more than 5% of its overall business from India currently, and is looking to create more opportunities in neighbouring markets.

, ET Bureau|
Jul 15, 2019, 08.04 AM IST
0Comments
BENGALURU: Tech Mahindra is eyeing opportunities in neighbouring Bangladesh, as India's fifth largest IT services exporter considers it a politically stable and growing economy.

The $4.9 billion IT services firm receives more than 5% of its overall business from India currently, and is looking to create more opportunities in neighbouring markets.

Bangladesh was one of the most prominent among emerging markets in the Asian region and its technology projects are similar to those in India, said Sujit Bakshi, President, India Business at Tech Mahindra.

“Bangladesh… economy is growing 6-7% consistently for the last couple of years, the currency is stable, and there is political stability. That gave us a message that we should focus on that market," Bakshi told ET. “If you look at the Indo-Bangladesh relationship, India has been a good friend and they are both equally looking at digital and cashless economy.”

The South Asian nation’s GDP grew 7.3% in 2017.

Apart from banking and financial services, Bangladesh's wide network of inland waterways connected through river ports offers ample scope for tech services, Bakshi said. Both freight and passenger transportation systems have historically been dependent on waterways in the country, and the sector may need digitisation to scale up faster.

"We have won one small deal from an NBFC. That is the start, and the funnel is fairly large, and we have met with 10 large banks and shipping officials," Bakshi said.

The Indian IT services sector, which has traditionally focused on the United States and Europe, has started concentrating on India and other emerging markets such as Bangladesh.

The Indian IT services company will have access to a large talent pool in the country and, unlike the traditional practice, will not resort to labour arbitrage, but send leaders from India to train employees there, he said.

"Many tech services companies are on the ground. One of the reasons Bangladesh has woken up to create a strong technology infrastructure is the cyber attacks on banks there," said Sanchit Vir Gogia, chief executive, Greyhound Research.

Three banks — Dutch Bangla Bank, NCC Bank and Prime Bank — have faced cyber attacks recently.
0Comments

Also Read

Shah holds talks with Bangladesh counterpart

Abrogation of Article 370 India's internal matter: Bangladesh

PMs of India and Bangladesh to bat for effective regional connectivity

Foreign Ministry hails security coop with Bangladesh & Bhutan

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service