Bangladesh boasts a large pool of skilled professionals well-versed in various domains such as software development, graphic design, content writing, and digital marketing. These individuals have embraced freelancing as a means to leverage their expertise and tap into global markets. The industry started gaining traction in the early 2000s and has become increasingly popular over the last decade.
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Currently, more than 6 lakh freelancers are involved in this industry, earning approximately $1 billion per year, according to the Information and Communication Technology (ICT) Division.
Freelancing has emerged as a significant contributor to Bangladesh’s economy, revolutionizing the way work is done and opening up new avenues for skilled professionals. With technological advancements and the rise of digital platforms, freelancing has experienced exponential growth in recent years. This trend not only offers economic benefits but also plays a crucial role in skill development and fostering socio-economic advancements.
Freelancing, Playing Key Roles
A study by the Oxford Internet Institute (OII) reveals that Bangladesh has the second-largest supplier of online labourers, with a 16 percent labour share, trailing only India at 24 percent. Notably, 60% of Bangladeshi freelancers are engaged in the creative and multimedia sector, while 16%, the second-highest number, are involved in software development. Additionally, 9% work in writing, translation, clerical, and data entry sectors, while 6% contribute to sales and marketing support, and 0.2% provide professional services.
The economic benefits derived from freelancing are multifaceted. It has created employment opportunities for thousands, enabling them to work independently without being tied to traditional office settings. This has led to increased job satisfaction and improved work-life balance. Freelancers also have the flexibility to choose projects that align with their skills and interests, maximizing their earning potential.
Moreover, freelancing has significantly contributed to foreign exchange earnings through remittances. Skilled professionals in Bangladesh now provide services to clients worldwide, earning valuable foreign currency that flows back into the country’s economy. This influx of foreign remittances strengthens the national currency and boosts overall economic growth.
Freelancing plays a crucial role in skill development by providing opportunities for continuous learning and professional growth. Freelancers constantly upgrade their skills to stay competitive in the global marketplace, acquiring new knowledge through online courses, webinars, and collaborations with international clients. This enhances individual capabilities and contributes to building a highly skilled workforce in Bangladesh.
In addition to economic benefits and skill development, freelancing has brought about significant socio-economic advantages. It has empowered individuals, especially women, by providing opportunities to work from home or flexible locations. This has enabled more women to join the workforce and contribute to their families’ income while balancing domestic responsibilities.
Socio-Economic Benefits
Freelancing has brought numerous socio-economic benefits to Bangladesh. It has empowered women by enabling them to work from home while managing domestic responsibilities. Freelancing has also reduced urban-rural migration, as individuals can now work remotely from anywhere in the country. It has improved work-life balance by allowing professionals to set their own schedules and choose projects aligning with their interests.
Moreover, freelancing plays a role in addressing unemployment and poverty by providing opportunities for skilled professionals. It allows individuals to tap into global markets without the need for extensive infrastructure, fostering cross-cultural collaboration and knowledge exchange. Through freelancing platforms, Bangladeshi freelancers connect with clients and peers globally, creating a skilled global network.
Few Problems Persisting in the Sector
Despite the thriving freelancing industry, it has been dealing with a few problems in recent years, such as a lack of proper training and communication, being banned from freelancing platforms, suffering from poor rural internet connectivity, inability to use international domains, restricted payment gateways, and low bidding.
The COVID-19 pandemic posed a series of challenges for freelancers, forcing them to find solutions while still grappling with some issues. Although many training centers now provide guidance, most are subpar and ineffective.
Payment has been a real headache for freelancers since the beginning. While it has become easier, widely recognized platforms like PayPal are still unavailable in Bangladesh. Their only hope lies with either Payoneer or Skrill, which are not as popular for digital transactions. In contrast, India has access to Payoneer, PayPal, direct bank transfers, Stripe, and Escrow, eventually inspiring the sector’s growth.
This situation has created a fuss for freelancers, as they cannot work for all the clients they wish. Furthermore, due to privacy issues, they cannot even accept bitcoins or cryptocurrencies as payment, although they are widely accepted globally.
Privacy policies and lack of communication skills have led freelancers into many loopholes. As they are not very fluent in English, they cannot communicate well, eventually becoming a reason for dropping back and making them less confident.
The monetary value of this industry has made it a hot cake for both trainees and trainers. Many unskilled freelancers have entered this market, creating a bad impression. Bangladeshi freelancers have faced the worst situations on platforms like Upwork. This wrong impression has caused banned accounts and barred them from international bidding for a couple of years.
However, the number of such forgery cases has decreased significantly as many conscientious freelancers have started creating awareness. Online training centers are becoming more popular in Bangladesh, like in other countries, especially during the pandemic.
Govt’ Initiatives Seeing Success
Around two-thirds of the freelancers trained under a government project in Bangladesh are now outsourcing their skills to foreign clients, thereby contributing to the country’s foreign reserves. The Tk 47.5 crore project, initiated in 2022 across 16 districts, aimed to train 6,400 freelancers by June 2023. As of December 2023, the government had trained about 1,900 people under this initiative, with 64 percent having already secured jobs, according to Abdul Baki, member (secretary) of the Socio-Economic Infrastructure Division of the Planning Commission.
Prime Minister Sheikh Hasina has directed officials to equip the syllabus under the National Skill Development Authority (NSDA) to focus on the needs of freelancers, considering it a global issue. The premier emphasized that the assessment process should be globally accepted.
Furthermore, Sheikh Hasina has directed the disbursement of an allowance of Tk 500 per day for freelancers through their respective bank accounts. Under the new project, to be implemented by the Directorate of Youth Development, educated youths will receive training on computer applications, freelancing, basic English, and digital marketing.
The project aims to make freelancers eligible for earning foreign currency by outsourcing their skills. Over the next three years, it seeks to provide such training to 28,800 people.
Conclusion
Freelancing offers incredibly lucrative opportunities and can even provide a lifeline for those unable to secure traditional jobs. If the proper environment and policies are established, Bangladesh has the potential to become a major freelancing hub. Our low labor costs give us an advantage to dominate this field globally, allowing other countries to gradually outsource their freelance work to us.
With the right conditions, Bangladesh could rise as a freelancing powerhouse, leveraging our cost-effective workforce to become a central outsourcing destination for freelance needs worldwide.
