Assessing Supply of and Demand for Quality Management Services in Bangladesh, Katalyst, 2004
| Implementing agency(ies) | GIZ (formerly GTZ), Swisscontact (SC) | |
|---|---|---|
| Funding agency(ies) | Department for International Development (DFID), SDC, Sida | |
| Date completed | August 2004 | |
| Geographic setting(s) | Urban | |
| Issues/challenges | cross-sector services | |
| Country(ies) | Bangladesh |
- Description
KATALYST became involved in quality management services market for several reasons: good management helps businesses become more competitive and efficient; increasing globalization puts pressure on enterprises to have proper management systems in place; and, though large enterprises are currently the primary users of QMS services, SMEs can also benefit.
While QMS may cover any activity that helps improve the quality of a business, it most often means International, or ISO 9000, Standards. The study focused on both suppliers and consumers of certificate-oriented QMS services and began with a rapid market appraisal of the QMS market followed by in-depth interviews with QMS consultants (firms and individuals), certifying bodies, training organizations and testing agencies and, finally, a focus group discussion with the same individuals. The demand study also began with a rapid market appraisal followed by a series of FGDs in twelve sub-sectors.
KATALYST then conducted a quantitative survey of 585 licenced companies that had been in operation for at least 2 years and had fewer than 100 employees.
Note that this is a working document that is updated regularly.
Methods for info gathering
Rapid market appraisal, In-depth interviews, Focus Group Discussions, Provider and SE surveys (quantitative)
Summary of results
The study found the QMS industry in Bangladesh to be very young and limited to a narrow range of mostly large companies seeking primarily ISO 9000 certification.
As of June 2004 there were 521 companies certified ( and 81 in the process)in Bangladesh. There are 7 certifying bodies, 15 consulting firms and 75-100 individual consultants. Bangladesh does not have an accreditation body though discussions are underway with stakeholder groups to promote Bangladesh Standard Testing and Inspection (BSTI), a national Standards & Testing body, for accreditation. The market is estimated to be valued at around US$2 million last year.
The major sectors purchasing QMS services are apparel/ garments (40-45%), pharmaceutical (10-12%), food & beverage (9%) and ICT (5-8%) with 19 other sectors using some QMS. Many firms see ISO certification as a way to market their products and a demonstration of high quality.
Regarding client satisfaction with services, many expressed concern about the performance of the certifying body and their standards, stating that some companies with low quality management systems had been certified. Though the certifying body is supposed to cancel certification if required standards are not maintained during surveillance, respondents expressed doubt about whether or not this happens.
Quality Management Services-Market Brief, Katalyst, 2004 (404 KB)