DHAKA, Bangladesh — Bangladesh’s call centre industry has struggled to deliver on early expectations of becoming a major global outsourcing hub despite nearly two decades of growth, according to a Feb. 28 The Business Standard report.

Slow growth despite early promise

The sector began taking shape around 2008 and 2009 with the introduction of call centre licenses, but industry observers say structural misunderstandings, talent shortages and policy challenges prevented it from developing into a major export-oriented service industry.

Today, roughly 100,000 workers are employed across call centres and business process outsourcing services in Bangladesh. While the workforce has grown significantly from only about 300 workers in the early 2010s, industry expansion has remained far below initial expectations.

Misunderstanding the business model

Early development of the industry was hampered by confusion about the nature of call centre operations. Bangladesh previously had widespread public call office booths offering long-distance calling services, and many early entrepreneurs mistakenly believed call centre licenses referred to similar services rather than structured customer support outsourcing.

According to industry leaders, companies had to build much of the industry from scratch because Bangladesh lacked the outsourcing ecosystem seen in countries such as India and the Philippines.

“India entered the IT and IT-enabled services sector at least 30 years before us,” Tanvir Ibrahim, president of the Bangladesh Association of Call Center and Outsourcing (BACCO), said. “They developed a clear roadmap, took deliberate steps, and created awareness among students that IT and ITeS could be viable career paths. As a result, a large number of graduates entered that sector.”

Narrow demand and limited diversification

Early demand for call centre services primarily came from telecommunications companies. Over time, outsourcing expanded into sectors including fast-moving consumer goods, automotive, electronics, pharmaceuticals and certain government services.

Some public services also rely on call centre operations, including the national emergency hotline 999 and health service hotlines. However, weak demand from sectors such as tourism, retail, manufacturing and broader government services has limited the expansion of the domestic outsourcing ecosystem.

Workforce challenges persist

Call centre jobs initially attracted university students and young graduates because they offered flexible schedules, moderate pay and exposure to digital work environments. Workers were often English-speaking urban youth seeking entry-level professional experience.

However, the sector has become less appealing to many young workers due to wage stagnation, limited career growth and the stigma associated with night-shift work. Parents often discourage younger workers, particularly women, from pursuing call centre employment.

High employee turnover also remains a persistent challenge. Workers frequently leave for overseas migration, opportunities in other industries or preparation for government job examinations, creating recurring recruitment difficulties for operators.

Low-value work and language barriers

Despite employment growth, most work remains concentrated in lower-value services such as voice-based customer support, basic data processing and routine service operations. Higher-value services including data analytics, specialized technical support and advanced outsourcing remain limited.

Language skills remain a major barrier to global competitiveness. Operators often struggle to recruit sufficient English-speaking agents, with some reporting difficulty filling even a 50-seat international call centre with qualified staff.

The gap is particularly evident compared with the global outsourcing industry. The global business process outsourcing market is valued at roughly $550 billion, while Bangladesh’s call centre and outsourcing sector generates about $1 billion, much of it from domestic clients rather than international contracts.

Policy hurdles and operational risks

Regulatory requirements also slowed industry growth. Earlier rules required companies to operate from physical offices with dedicated servers and separate infrastructure for domestic and international services, limiting operational flexibility and scaling.

Operational disruptions have also affected the industry’s credibility with foreign clients. During political unrest in July, internet shutdowns forced some companies to suspend operations, prompting some overseas clients to move work elsewhere.

“When internet services were suspended during the July movement, many member companies lost clients,” Tanzirul said. “Imagine a Bangladeshi firm handling 24-hour customer support for a foreign company. If its operations suddenly stop and it cannot communicate with its client, the client will not wait. The client will shift the work to another country — India or the Philippines, for example.”

Entry-level salaries have increased only modestly over time. Starting pay previously averaged about Tk10,000 per month and now ranges between Tk15,000 and Tk17,000, with incentives raising total income to around Tk20,000. Even so, many workers still view the job as short-term employment rather than a long-term profession.

AI and the next phase

Industry leaders say artificial intelligence is likely to reshape the sector further. While call centre operations are not expected to vanish, low-skilled voice-based roles may shrink as automation becomes more common.

“Call centres will not disappear because of AI. But low-skilled call centre jobs will,” said Tanzirul Basher, vice president of the Bangladesh Association of Call Center and Outsourcing, or BACCO. “The question is whether our workforce is prepared to move beyond basic voice support into more skilled, technology-driven roles.”

Analysts say Bangladesh’s next phase of growth will depend on whether the industry can strengthen education and training, improve English proficiency and move into higher-value outsourcing services.

Nearly two decades after the sector’s launch, Bangladesh’s call centre industry has achieved steady but limited growth. According to the report, its long-term prospects will depend on whether it can overcome structural weaknesses and shift beyond low-value outsourcing work.