Why Dhaka, Bangladesh Is Emerging as a Smart BPO Option for U.S. Companies

As U.S. companies look beyond traditional outsourcing destinations, Bangladesh is quickly gaining attention as a viable and strategic BPO market. While still emerging, Dhaka in particular offers a compelling combination of cost efficiency, labor availability, and digital capability. Like any market, it comes with tradeoffs. Understanding both the upside and the risks is key to making an informed decision.

Why Companies Are Looking at Dhaka

Bangladesh has one of the largest labor forces in Asia, estimated at approximately 71 million people. Dhaka serves as the country’s primary talent hub, drawing graduates and skilled workers from across the country.

Several labor indicators stand out:

• Dhaka has the highest concentration of unemployed job seekers in the country, with roughly 687,000 individuals actively seeking work. 
• Graduate unemployment reached approximately 13.5 percent in 2024, creating a large pool of educated and motivated candidates. 
• The median age of the population is under 30, resulting in a steady pipeline of digitally capable talent.

For U.S. companies, this translates into the ability to scale teams more easily than in tighter labor markets like India or the Philippines.

Cost Advantages that Are Hard to Ignore

Dhaka remains one of the most cost-competitive BPO markets globally. Fully loaded hourly rates are often significantly lower than traditional offshore destinations, driven by lower wages, lower real estate costs, and a favorable cost of living.

For companies under pressure to reduce operating expenses while maintaining service levels, Bangladesh offers meaningful financial relief without sacrificing capability in back office, digital, or technical support roles.

Strengths in Digital and Back Office Work

Bangladesh has developed a strong reputation in non-voice services. Dhaka-based teams perform well in areas such as data processing, AI and machine learning, data labeling, content moderation, e-commerce support, finance and accounting back office, IT help desk, and application development.

The workforce is generally highly coachable, process-oriented, and quick to adopt Western KPIs and operating models, particularly in non-voice environments.

Government Support and Long-Term Momentum

The Bangladeshi government has made technology and outsourcing a national priority through its Digital Bangladesh initiative. Investments in IT parks, broadband expansion, skills training, and export incentives have improved the operating environment for BPO and IT services firms.

This ongoing support has helped stabilize the sector and create long-term momentum for growth.

Considerations and Risks

Bangladesh is not a plug-and-play market. Infrastructure reliability can still be inconsistent at times, even in Dhaka, requiring redundancy planning. Labor attrition can be higher than in more mature markets, making strong hiring, engagement, and management practices essential.

Voice-based customer support is improving but remains less mature than digital and back office services. Additionally, as an emerging market, Bangladesh may require more upfront diligence around governance, security standards, and operational controls.

While the risks can be managed, it is essential to acknowledge and address them.

Conclusion

Dhaka, Bangladesh, offers a high-upside, cost-effective BPO option for U.S. companies willing to look beyond traditional destinations. The combination of labor availability, competitive pricing, digital capability, and government support makes it particularly attractive for back-office and technology-enabled services.

When approached with the right partner and the right expectations, Bangladesh can deliver both operational savings and long-term strategic value.

If you are exploring new outsourcing locations or want objective insight into whether Bangladesh is a fit for your business, Site Selection Group provides no-cost advisory support, labor market benchmarking, and introductions to vetted BPO partners.