1.

0 PROJECT TITLE

wInfo bangladesh limited

2.0 SPONSORS
Mr. Kamrul Huda (BIT),
Mr. Tarikul Hasan (MBA),
Mr. Quazi Akhlaqur Rahman (MBA),
Mr. M Khalilur Rahman (LLB).

3.0 DIRECTORS PROFILE

 Mr. Kamrul Huda (Director, IT)

Educational Qualification:
Bachelor in Information Technology (Information Systems) from Australian National
University.

Areas of Expertise:
Network Setup and Administration, Internet Technologies, Database Administration, System
Analysis, Software and Web Development.

Job Experiences:
 Assistant Systems Manager and Web Development & Training Department In-Charge in
Grameen CyberNet Ltd (ISP) from December 1996 to November 1998.
 System Manager in DOT Com Ltd (ISP) from December 1998 to till date.
 Worked in the Control Room of Grameen CyberNet Ltd with the System Manager and
gained a lot of experience on Network Setup and Administration in Digital UNIX, LINUX
and Windows NT Operating System.
 Obtained a lot of experience on Client Server based System and was responsible for
maintaining consistency, integrity and security of Grameen CyberNet Client’s Data base.
 Currently In-Charge of Web Development Department and worked as Project Co-
ordinator in developing Web Sites of at least 50 local and foreign companies. Some of the
major Web projects include Dhaka Stock Exchange, Bangladesh Yellow Page, US Embassy,
Janakhantha, Square etc.
 Provides Network Solutions to Clients. Has a lot of experience on Domain Name
Registration in the Internet, IP address Registration, Virtual Server Hosting, Domain Server
Hosting, etc.
 Worked as a Consultant in Software Development Projects of CITech Communications.
 Working as Consultant on Grameen Phone’s Multi Media Presentation.
 Responsible for supervising the Trainer in providing Training on Internet utilities (Email),
Application of Programs (MS Office), Web Development, Software Development.
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 Mr. Tarikul Hasan (Director, Operations)

Educational Qualification:
MBA from Institute of Business Administration, Dhaka University

Areas of Expertise:
 In MBA, the area of concentration was Marketing
 As a Marketing major, developed the skill of Marketing Communication, familiar with the
tools of Market Analysis and Research, acquired reasonable amount of knowledge in
Strategic Management, conversant with the ins and outs of a Business plan and possess the
potentiality of the enterpreneurship abilities.
 Conversant with the basic computer programming languages.
 Possess a commendable amount of knowledge in hardware and software in both the cases
of IBM Compatible and Apple Macintosh.

Job Experiences:
Assistant Marketing Manager and In-charge of Service Department in Grameen CyberNet Ltd
from June 15,1996 to till date.

Scope of Job:
 Responsible for customer satisfaction of Grameen CyberNet Ltd which currently has a
client base of 5000 with a complain rate of 4% of total user per month.
 Responsible for maintaining In-house and Outdoor support for the above mentioned client
base, 24 hours a day, 7 days week and all through the year.
 Responsible for Managing a Customer Care team of 15 engineers.
 Responsible for creating clients Internet Account and maintaing the client base in
conjunction with Systems Manager.
 Responsible for looking after (consistency, integrity and backup) client’s Internet billing
system.

 Mr. Quazi Akhlaqur Rahman (Director, Marketing)

Educational Qualification:
 MBA in MIS (Management Information System) from IBA (Institute of Business
Administration), DU in 1995.
 B.Sc. from DU in 1991. Currently doing Computer Diploma in NIIT (National Institute
of Information and Technology), Dhaka.

Job Experiences:
 Worked as computer trainer in BEXIMCO COMPUTERS LTD. In 1995.
 Worked as Management Trainee in Apex Footwear Industry. Responsibility includes
doing International marketing for shoes by corresponding with
international buyers. Responsible for computerized production management by
computer analysis.

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  Serving as Assistant Marketing Manager in Grameen CyberNet Ltd. (Largest Internet
Service Provider in the country). Responsibility includes creating Market awareness of
Internet, research and development for new Internet based technology with a group of
highly qualified IT professionals etc.

Computer Skill:

 Programming : Expert in C++ and COBOL. Specialized in Y2K problem in

COBOL.
 Internet Software : Netscape Communicator, Internet Explorer, iPhone,
NetMeeting, etc.
 Database : MS Access.
 Spread Sheet : MS Excel, Qpro, Lotus123, etc.
 Word-Processing : MSWord, Word Perfect, etc.
 Operating System :Windows95 and DOS. Have knowledge in Novel Netware.

Other Skill:
Expert in Internet presentation with Microsoft power point. Key speaker in IT seminar in Hotel
Purbani in 1996. Key speaker in seminars in ICDDR,B, Army Head Quarter, DCCI (Dhaka
Chamber of Commerce and Industry), Dhaka University Computer Department, BUET
(Bangladesh University of Engineering and technology) etc. Typing speed 40 WPM.

 Mr. M Khalilur Rahman (Director)

Educational Qualification: BA, LLB

4.0 PROJECT OUTLINE

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 Following actions have already been taken to initiate the project :
 Formed a company with the registration of Memorandum of Articles and Association, named wInfo
bangladesh limited.
 Applied for VSAT (Very Small Aperture Terminal) of 64 kbps link speed to the BTTB.
 Already acquired 10 local Telephone lines at Dhanmondi.
 Applied for 28 local Telephone lines at Dhanmondi (Nilkhet Exchange) for dial up Internet access.
 Applied for another 36 local Telephone lines for Company’s Branch office at Gulshan.
 Registered domain name - dhakaonline.net (unique address space in Internet) from Internic
(www.internic.com).
 Acquired server space in USA under dhakaonline.net for Data entry and Web development.
 Training obtained on Server Setup, Network Management and Software Development.
 Attended seminars on Software marketing, Global Software problems and possible solutions.
 Correspondence made with Integrated Software Inc (USA), NASSCOM (Network Alternative Sourcing
Solutions Company, Inc.) (India), BASIS (Bangladesh Association of Software and Information Services)
for Software Development, Data Entry and Training aspects.
 Correspondence made with Signet, Singtel, and Hongkong Telecom for possible VSAT connectivity.
 Correspondence made with APNIC (Asia Pacific Network Information Center) for IP (Internet
Protocol) address registration.
 Correspondence made with Training Houses, Brand Hardware and Software vendors in Singapore and
India for company’s system setup and services.

Following jobs to be done to complete the project:

 Capitalize the company appropriately.
 The office has to be rented at Dhanmondi area.
 Deposit Taka 12,30,000 to BTTB for demand note of VSAT.
 Procure the computer and accessories, hardwares, software, electrical equipment, furniture fixture and
fittings and setup the office.
 Setup the system to connect to the Internet.
 Appoint the required personnel and provide necessary training especially for system setup and services,
Software Development, Data Entry.
 Start the marketing campaign locally and internationally for Software Development, Web Development,
Internet, Training, Network setup and Data entry.

5.0 NATURE OF SERVICES

wInfo bangladesh limited will be offering the following services :

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 Software Development: Develop world class Accounting, Database, Internet and general utility,
Software packages for local and international market. Provide software solution to Globally effected
problem, like Y2K and Euro Money.

 Internet Service: Provide cost effective Internet access, Email, file & Data Transfer, Web Development
and other Network Communications services matching the International Standard.

 Off Shore Data Entry: Acquire subcontract/full contract of the Data Entry, Data Conversion, Data
Manipulation jobs and Date Processing from USA, Europe, Singapore, Australia and India effectively
use the Internet for this purpose.

 Web Development & Hosting: Develop and Host Web sites for companies in Bangladesh and
Overseas. Also Lease server space to other companies in Software and Data Entry business in
Bangladesh.

 Training on Web and Software: The company will run a training house where unemployed youth of
the country will be provided with training on Software Development, Web Development, Data Entry
and Internet Technology at a competitive price. Large portion of the trained youth will be employed in
the company ever increasing work force.

 IntraNet and Network Solution: The company will provide network solution to local companies for
their system automation and efficient use of computer resources. Associated training will be provided
for their network and automated computer systems.

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6.0 MARKET ANALYSIS

6.1 Current Market Status of Software in Bangladesh

Currently the software development and data entry projects have not flourished satisfactorily mainly because
of lack of government initiatives and non-availability of skilled manpower. But fortunately the current
government has taken some pragmatic steps which will have positive impact on software, data-entry, and
overall IT industry. Very few companies are doing software development and data-entry businesses in piece
mill basis mainly to USA and European markets. The volume of work is not at all satisfactory in comparison
with vast market potential. India, as a close neighboring country, is dominating the world software market.
Bangladesh having similar economic background and geographical location can also be one of the leading
software exporter of the world. Due to zero tariff on software and low tariff on hardware Bangladesh has
the opportunity to develop computer literate all over the country. If these skilled manpowers can be properly
utilized in IT fields then they can earn huge foreign currency for the country. A strong domestic software
market will ensure a steady flow of IT professionals who will engage themselves in full time jobs.

6.2 Potential Market of Software

“Software export cannot be possible without creating strong domestic demand of software” --- Dewang Mehta,
Executive Director, NASSCOM (National Association of Software and Service Companies), India. The
statement is enough to explain the need for having domestic demand of software market. This is only possible
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if government, semi-government, NGO’s, autonomous bodies, and private sector organizations have done
computerization within their organizations. Total computerization and central database management system
will create the demand for diversified custom-made software and data-entry opportunities. In turn this will
generate skilled programmers, which is the prime need for software export market. So domestic software
market can be a potential market and this will create congenial atmosphere for software export in abroad.

6.3 World Market of Software

Market demand for software is highly promising and the demand is increasing day by day. As the world is
embracing satellite-based communication in every sphere of life, central database management system has
become global with the help of internet. Through Internet technology the market of software has widen and,
despite having geographical differences software development can be done from thousands of miles apart.
World software market is dominating my USA (United States of America). About 80% of world software
market are USA based, which has given Bangladesh a golden opportunity to flourish into the market.
Bangladesh is located exactly at the opposite side of USA in the globe, which opens the scope of 24 hours
software and data-entry development cycle. When there is night in USA, the office hour just starts in
Bangladesh and vice-versa. So all the data-entry jobs from thousands of hospitals, banks, insurance
companies, broker houses, government offices etc. can be easily sent to Bangladesh via internet network
where these data can be entered and resent to USA before the start of their next working day. This will
ensure 24 hours work cycle and no lag in communication due to geographical distances. India is taking full
advantage of this time-gap and already proved them as one of the leading software exporter of the world.
From year 1985-86 to year 1997-98 Indian software growth has risen to almost 18 times and projection of
software export is about USD 10 billion which is about 100 times than 1985-86 export.

INDIAN SOFTWARE INDUSTRY GROWTH…

 1985-86 < USD 10 million

 1991 = USD 50 million
 1997-98 = USD 1.8 billion
 2002 ~ USD 10 billion

USA is the number one software importer of the world. Due to central computerization system USA needs
billions of dollars worth of software every year. But sharp rise in software professionals in USA caused US
companies to look for outsource and offshore development. In 1988 US companies have made offshore
software development which was 10% of their total software development but the figure has risen to 40%
in the year 1996-97.

India has proved itself as suitable for offshore software development country. India has large IT professionals
who work for about ¼ of the salary than that of US software developers. This attracts not only US based
companies but also European and Asian emerging tigers.

INDIA’S SOFTWARE EXPORT DESTINATIONS…

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  In 1996-97 :

 USA - 58%
 Europe - 21%

Emerging markets are : Japan, South-Korea, South Africa

6.4 Global Opportunity

Global opportunities for software and data entry are very promising and the demand is growing day by day.
This is because there is a shortage in skilled IT professionals in western world. The number of skilled IT
professionals are not enough to meet the large demand for software development and data entry jobs. The
potential employment of 12.2 million IT professionals in Europe alone by the year 2002.

EMPLOYMENT

 IT is the number one employment generator in Taiwan – 115,000 people in IT manufacturing

 Largest employer in USA – 8 million
 1,80,000 in Indian Software Industry. 5,00,000 in IT & Telecom (both locally). Many times more
employed overseas.

The above table clearly indicates that there is a huge demand for IT professionals in the world.

6.5 The Euro Opportunity

European countries are converging their currencies and making one currency called Euro Money by the year
2002. This conversion has opened the door for multifarious jobs for software developers. All the banks,
insurance companies, multinational companies, railway systems, air-traffic controls, hospitals, manufacturing
units will have to change their existing software. They have to make their software compatible for Euro-
economy. The budget for doing this massive work is estimated about USD 3,600 billion, which is six times
bigger than Y2K budget. Banking sector alone will spend USD 100 billion and a typical multinational
organization will spend USD 100 million for this conversion. A mammoth number of skilled IT professionals
are needed to do these jobs. Bangladesh can step-up to take the opportunity if only it can concentrate in
generating computer professional in large numbers every year.

6.6 Importance of VSAT for Communication

Software and software related businesses are fully dependent on Internet communication now a day. Without
Internet based communication it is impossible to compete in software business with other countries. Quality,
strict adherence of timely delivery, and cost are the three key factors in software and data entry business.
VSAT (Very Small Aperture Terminal) is the only method available in Bangladesh to have connections with
outside world for IT growth.

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 6.6.1 Software Development, Data Entry and Internet

 Access to the Internet reduces communication gap by a large extent. So Internet connectivity to a
software development company should be ensured easier and faster Net based communications for
software dealings.
 24 hours factories exploiting geographical disadvantages.
 The Internet is the largest marketing media source of software development in the world. So
software developers can make the best use of this media to reach this potential market. Beta version
of developed software can be put in the Internet for its user evaluation. The Internet can also be
used as a selling media of software in the vast world market.
 One of the prime requirements of Offshore Data Entry business is Internet connectivity. This is
because, in Data Entry business Internet works as a communication media between Data Entry
importer in abroad and local exporters and subcontractors.
 New model of selling software over the Internet - no time delays.
So the Software Development and Data Entry are implicitly related with Internet connectivity.

6.7 Government IT Friendly Policy

The present Government is very keen to make Bangladesh a Software/Data Entry export oriented country.
Initiatives taken by the Government, include, Zero tax on computer accessories, VSAT connectivity for
private companies to provide Internet and Data Entry services, Software and Data Entry “Village” to be
established for local and foreign investments, Government Bank loan without collateral for Software & Data
Entry companies, National Computer Policy, etc.

6.8 National Contribution of this Project

 Better connectivity with rest of the world at much lesser price

 Reduce communication gap between local companies and their overseas business counterpart
 Technological development of the country
 Software, Data Entry and Web technology export and foreign currency earnings
 Develop IT skilled manpower in order to export and recycle in local IT sector
 Develop Network and system automation and increase production/efficiency and quality level of
local companies
 Portrait countries image as a potential IT market with skilled but cheap manpower and thus bring a
lot of overseas investment and foreign currency earnings
 Generate employment.

7.0 FINANCIAL PROJECTIONS

In the following pages we have projected a very conservatively estimated Income, Capital and Revenue
Expenditure which shows positive financial viability of the project. The company is expected to generate
profit from the first full Eight months of operations. The assumptions that have been made to prepare the
financial projections are given below:

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7.1 Assumptions for Capital and Revenue Expenses are:

 Equity ratio has been set equal for every Shareholder

 Debt equity ratio has been set at 75:25
 Office will be located at Dhanmondi and branch office in Banani, Dhaka
 Initially 40 telephone lines will be installed at Dhanmondi office, 34 lines to support incoming subscriber
calls and 1 for fax and 5 for office uses.
 64 kbps VSAT will be setup for 24 hours connectivity and per month charge will be Taka 3,45000
 A set of upgraded servers will be set up for efficient Internet Service, Software Development and Data
Entry
 Procure the computer and accessories, hardwares, software, electrical equipment, furniture fixture and
fittings
 Interest on Bank Loan has been assumed @ 14%
 Expenses will be incurred for Research and Development for Software and Data Entry
 Depreciation has been calculated at a flat rate of 15% per year
 Dividend will be paid @ 10% at the end of 2nd year under this projection.

7.2 Assumptions of Income:

I. Income is expected to be generated from Software Development, Data entry, WEB, Training, and
other consultancy services relating to various areas of Information Technology business.

II. Initially a large portion of income is expected to be generated from Internet Service for ease of
calculation it has been assumed that Companies, Individuals, Students and Resellers will be charged
for 9.00am – 4.00pm @ Taka 2.00 and for 4.00pm – 10.00pm @ Taka 1.50 and for 10.00pm –
9.00am @ Taka 1.00 . Registration Fee of Taka 1,000 for Companies, Individuals and Students and
Taka 2,000 (10 lines @ Taka 200) for Resellers.

7.3 Project Cost

Fixed (Capital) Investment: 8000000
Working Capital : 2000000
Total : 10000000

7.4 Investment Plan:

Equity : 2500000 (50:50)
Loan : 7500000

7.5 Debt-Equity Ratio : 75 : 25

7.6 Profitability:

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 Description Year-1 Year-2
Total Revenue 9,821,500 19,415,775
Total Cost of Services 6,875,050 7,766,310
Gross Profit 2,946,450 11,649,465
General & Administrative 6,082,922 7,096,471
Expenses
Net Profit before Tax (3,136,472) 4,552,994
Company Tax @ 40% 0 1,821,198
Net Profit after Tax (3,136,472) 2,731,796

7.7 Ratios

Ratios Year-1 Year-2

Gross Profit Margin (%) 30 60
Net Profit Margin (%) -32 23
Assets Turnover Ratio -0.39 0.47

7.8 Total Investment:

Sl No Descriptions Qty Budget

(Taka)

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 Computer Hardware

1 Access Server 1 180000

2 Mail Server 1 140000
3 Back up Server 1 140000
4 Proxy Server 1 140000
5 Billing Server 1 155000
6 WEB Server/FTP 1 110000
7 DNS 2 320000
8 Computer for Service 4 240000
9 Computer for Accounts 3 170000
10 Computer (Mgt) 1 40000
11 Computer for WEB 2 160000
12 Computer for Software, Data Entry & Train 5 200000
13 Printer for Accounts 1 70000
14 Printer (common) 1 50000
A Total 2115000

Sl No Descriptions Qty Budget

Network Equipment: (Taka)

1 Modem Rack 1 40000

2 32 Modem (2 rack) 32 450000
3 Internet Access Router 2 180000
4 Software and Cabling and others 327000
5 UPS 6 410000
6 Stabilizer 12 160000
7 Generator 1 400000
8 Telephone Lines 40 1200000
B Total 3167000

Sl No Descriptions Qty Budget

Office Set up & Network: (Taka)

1 Deposit to BTTB 1230000

2 Office Rent (advance) 400000
3 Furniture 150000
4 Photocopier 1 110000
5 Fax Machine 1 18000
6 Air-condition 4 160000
7 Vehicles 3 650000
8 Working Capital for 3 months 2000000
C Total 4718000
A+B+C Total Investments 10000000
7.9 Estimate of Working Capital for first 3 months

Sl No Descriptions Month Budget

/ (Taka)

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 1 Rent for VSAT 345000 1035000
2 House Rent 25000 75000
3 Salary and Benefit:
Managing Director 50000
Director (Accounts and Admin) 30000
 Accounts Executive (2) 14000
 Credit Assistant(2) 10000
 Admin Assistant 6000
2500
 Peon
9000
 Driver (3)
Director (Operations) 30000
 Technical Executive (4) 28000
Director (IT) 30000
 Assistant System Manager 20000
 Graphics Designer 10000
 Programmer 8000
Director (Marketing) 30000
 Marketing Executive (2) 14000
4 Total 291500 874500
5 Advertisement and Promotion 60000 180000
6 R&D Exp for Software & Data Entry 20000 60000
7 Utilities 30000 90000
8 Consumable and Stationery 7000 21000
9 Conveyance and Entertainment 7000 21000
10 Printing 10000 30000
11 Modem Purchase 50000 150000
12 Misc. Expenses 10000 30000
A Total Expenditures 855500 2566500
B Less: Fund inflow from Revenue 566500
A-B Total Working Capital Needed 2000000

8.0 CONCLUSION
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Internet technology has revolutionized the whole concept of information technology. With the advent of
internet the barrier of time and space have mitigated. Software technology and data-entry businesses have
flourished in manifolds and the scope has opened for us to compete with other countries that have taken
full advantage of this technology and earned lots of valuable foreign currencies for their countries.

Fortunately Bangladesh government has taken some timely steps which were essential for establishing a
strong foothold to go forward with this technology. Government has already declared IT sectors as a thrust
sector. Most importantly a national committee has been formed with eminent scholars of the country and
headed by top government officials who can play a pivotal role in meeting the challenge of next millenium.
Government has already allocated an IT village in “Ashulia” near Dhaka where government will give 2 Mega
bits transmission link speed for data-entry and software houses. Tariffs on software have already been
withdrawn and government will give incentives to entrepreneurs who are willing to set up software and data-
entry businesses. These are all indicative of a promising IT growth in Bangladesh.

If we want to develop our nation there is no other way but to embrace the IT technology. This single most
technology can bring about prosperity and alleviate the existing unemployment problem of the country.
Government alone cannot do everything with its limited resources to develop this sector. Banks, insurance
companies, NGO’s should come forward to extend their hands to help to develop this sector by encourage
young IT professionals who are willing to start their businesses in this field. Once get started it can bring
revolution in the country like many other countries have done in the past. It is time for us to wake up and
lead the nation towards a promising future.

The aim of our project is to achieve the above objectives. As per the Market Analysis conducted by us (Ref.
Section : Potential Market of Software), it is clearly visible that there is a vast market and potential market
both locally and internationally to be captured for Internet service, software development, training, and data
entry export. Our detailed Financial Projection with Cost-benefit Analysis clearly shows the financial viability
of our project.

From all these information and analysis we can confidently conclude that the project will be a success.
Cooperation from your side is all we ask for.

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