TLDR: Bangladesh’s Business Process Outsourcing (BPO) industry is at a critical juncture, facing significant disruption from Artificial Intelligence (AI). While AI is automating routine tasks and displacing jobs, it is also creating new avenues for value-added services. The sector, valued at $850 million and employing over 80,000 people, must rapidly adapt by retraining its workforce and focusing on higher-order functions to survive and thrive in the evolving global landscape.
The Business Process Outsourcing (BPO) industry in Bangladesh is undergoing a profound transformation as Artificial Intelligence (AI) rapidly reshapes the global outsourcing landscape. This technological wave presents both an existential threat to traditional roles and a significant opportunity for innovation and growth, compelling the sector to reinvent itself.
One stark example of AI’s immediate impact comes from SkyTech Solutions, a leading Bangladeshi outsourcing firm. In late 2023, the company experienced a dramatic shift when a major project’s core tasks were handed over to AI automation. Musnad E Ahmed, founder of SkyTech Solutions, revealed, ‘Artificial intelligence wiped out over 80 percent of the jobs in that project in a single blow. They [client] informed us that the core task would now be handled by AI automation, leaving only the quality control work for humans.’ This incident highlights AI’s capacity to displace entry-level workers in areas like customer service, transcription, and data entry, which traditionally formed the backbone of the BPO sector.
Despite not being on par with global BPO giants like India and the Philippines, Bangladesh’s BPO sector has flourished, boasting a market value of $850 million and comprising approximately 400 firms. According to the Bangladesh Association of Contact Center and Outsourcing (BACCO), the industry employs more than 80,000 people, with women constituting around 40 percent of the workforce.
However, industry experts emphasize that the future of this sector hinges on its adaptability. Rakibul, an industry expert, noted, ‘By specialising in these advanced offerings, they can attract new clients and lead in business process transformation.’ He added, ‘The firms that survive the AI wave will be those that can reinvent themselves, retrain their workforce, and redefine what outsourcing means in a world where machines increasingly do the talking.’
Indeed, many in the industry view AI not merely as a threat but as a catalyst for reinvention and the creation of value-added services. Md Riajul Islam, CEO of Bright River Bangladesh, shared his company’s experience: ‘We’ve been working with AI for 7-8 years. Earlier, image editing was 100 percent manual. Now, around 30 percent is AI-assisted, which speeds up delivery and creates more opportunities.’ Other firms are leveraging AI for predictive analytics, fraud detection, financial reconciliation (Digipro Solutions), digital marketing analytics (NR Business Solutions), and developing chatbot AI platforms for automated billing (BYTE Trek). Fardin Rahman Nihal, a Business Development Executive at MY Outsourcing, stated that AI implementation ‘reduces response time, making their operations scalable.’
The urgency for AI adoption was a central theme at the BPO Summit Bangladesh 2025. Faiz Ahmad Taiyeb, special assistant to the chief adviser, stressed that companies risk falling behind globally without embracing technologies like AI, machine learning, and large language models. He urged local firms to study how countries like China, India, Vietnam, and the Philippines are leveraging AI and to align policies accordingly, predicting that ‘legacy call centers would soon be replaced by AI-powered models.’
The shift necessitates a focus on higher-order functions that AI cannot easily automate, such as critical thinking, data analysis, and programming. New skillsets in demand include AI operations, prompt engineering, data annotation, analytics, digital marketing, e-commerce, and cybersecurity. The government’s role in providing targeted export incentives for frontier technologies and supporting startups focused on AI and software services is deemed crucial for fostering innovation and creating new economic opportunities.
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The influence of AI is not unique to Bangladesh; it is a global phenomenon affecting BPO hubs worldwide. For instance, in the Philippines, where the BPO industry contributes 8-10% of the country’s GDP and employs nearly 2 million people, 60-70% of call center jobs are highly vulnerable to AI automation. The consensus across the industry is clear: the future of BPO is not about resisting AI but about strategically embracing it to move up the value chain and transform into a more robust, innovation-driven sector.
