DHAKA, BANGLADESH — Bangladesh’s $1 billion information technology (IT) and business process outsourcing (BPO) sectors are facing severe threats after an abrupt government-imposed internet blackout on Thursday night.
The blackout, intended to curb anti-government protests, began without prior warning on July 18, causing significant operational disruptions. Industry leaders report daily losses of $7 million.
The abrupt loss of connection has left BPO firms unable to contact their overseas clients, which may jeopardize carefully established business partnerships.
“We have not been able to inform our clients of our current situation—even during the depths of the pandemic there was no service disruption,” said Md Riajul Islam, CEO of Bright River Bangladesh.
Bright River serves clients in 16 countries in North America and Europe and saw increased client intake during the pandemic by proving itself a dependable service partner.
Now, due to this disruption, foreign clients may divert orders to competitors in India and the Philippines, even at higher rates.
Job losses and industry impact
With businesses at risk, thousands of jobs are also on the line. Fahim Mashroor, CEO of Bdjobs.com, described the situation as disastrous, stating, “When a five-minute delay is not acceptable in this line of work, a total blackout is nothing short of a disaster.”
Monir Hosen, managing director of Creative Clipping Path, expressed fears of losing all 150 of their clients and potentially closing down, which could impact their 300 employees.
Similarly, CEO of outsourcing firm ASL Zayed Uddin Ahmed said that with the losses, he may need to lay off his staff of 200.
“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,” he said.
“The extent of losses is immeasurable for us.”
The internet shutdown occurred amid violent protests against a controversial quota system for government jobs, which reserved 30% of jobs for descendants of 1971 Independence War veterans.
Despite the Bangladesh Supreme Court’s decision to lower the quota to 5%, public unrest persisted, leading the government to continue the internet blackout and enforce curfews.
While the government has initiated the restoration of internet access in certain areas, industry leaders believe that the damage inflicted may already be irreparable.
