Written By Syed Md. Rakeen, Team MBR

The concept of freelancing as a full-time profession has gained traction in Bangladesh in the last decade owing to rapid digitalisation coupled with a growing demand for outsourcing work in recent years. Various news outlets have already covered how freelancers have been earning more than an average-salaried individual while also bringing in massive remittances. Major enhancements in the freelancing sector have led the leading MFS provider, bKash, to create a payment gateway in collaboration with Payoneer, a global payment platform that facilitates cross-border transactions and online payments, for freelancers to receive their proceeds. The crucial role of freelancers in bringing in remittances has raised eyebrows in Bangladesh, as evidenced by their yearly revenue of USD 500 million from over 60,000 freelancers, as reported by the Financial Express in 2022.

The market’s expansion is attributable to established businesses’ increased use of freelancing platforms and providing freelancers with stable employment and compensation. Even when the advent of lockdown during COVID-19 spelt disaster as people lost jobs left and right, the freelancing industry received a significant boost, with many companies opting to hire freelancers for cost-cutting measures. Most freelancers looked towards popular online freelancing platforms such as Upwork and Fiverr to boost their chances of connecting with clients. The industry’s firmness during challenging times is a testament to its growth potential and is expected to flourish as the world progresses towards digitalisation.

Global Freelancing Overview

Freelancing is considered a sought-after profession, and many developed countries prefer outsourcing work due to their strong currencies coupled with access to global talents at a fraction of the cost compared to hiring native individuals. According to Growth Market Reports, a globally renowned market research company based in India, the market for freelancing platforms was worth USD 5.1 billion in 2022 and is projected to grow at a CAGR of 15.1% from 2023 to 2031 to reach USD 18.3 billion.

A global survey in 2023 by Payoneer showed that the demand for freelance work has exhibited a high level of resilience despite concerns about an economic slowdown. A significant proportion of the respondents, approximately 46%, have reported an increase in demand, while 29% have indicated that there has been no change. 38% of the participants reported a surge in their hourly rates in the previous year, whereas only 15% observed a decline in their rates. Freelancers who utilise a combination of hourly and project-based fees tend to have a higher average rate compared to those who exclusively rely on one of these methods. In light of the escalating cost of living, a majority of freelancers, specifically 55%, have opted to increase their workload. Additionally, 41% of freelancers have raised their rates, while 32% have broadened their client base to include new countries.

State of Freelancing in Bangladesh

The Global Gig-Economy Index 2019 places Bangladesh ninth in the fastest-growing freelancing market category, yet the pay for freelancers is only around USD 10 per hour—less than that of India and Pakistan. The government has established a goal to increase this income to USD 5.0 billion annually over the following four years. Currently, around 30% of all software and IT-related service exports can be attributed to freelancing, according to the Bangladesh Association of Software and Information Services (BASIS). Among the freelancing platforms shown in Figure 1, Upwork and Fiverr are two of the most commonly used platforms globally, with both of them offering many freelancers possessing specific skills the opportunity to exhibit their work. Prospective buyers or employers may then avail themselves of the services provided by these individuals. In addition to these platforms, a considerable number of individuals exhibit their work on autonomous websites or social media platforms, through which diverse clients initiate contact.

A recent study by the Oxford Internet Institute (OII), a multidisciplinary research and teaching department of the University of Oxford, revealed that Bangladesh is ranked second in the list of countries with the highest numbers of freelancers engaged in freelancing platforms globally, with a share of 16% of the total freelance workers, second only to India, which takes up 24% of the total freelancers globally. Figure 2 displays the vast array of platforms available to freelancers to find gigs all over the world.

AI Disruption of the Freelancing Industry

The field of artificial intelligence (AI) is currently experiencing rapid advancements and is expected to have a notable influence on the global job market. As technologies go through seismic shifts, an increasing number of freelancing gigs humans previously performed are expected to be replaced by automated systems and computer programmes globally. The artificial intelligence tool known as ChatGPT has already exercised its capabilities in generating scripts, content, and code for software development. Additionally, image-generating tools like DALL-E and Mid Journey have enabled individuals to create art from the comfort of their homes.

The current situation provides foresight that it is indeed possible that the incorporation of AI could change the dynamics of the freelancing sector in Bangladesh. As of now, freelancers provide various services, including content development, graphic design, software development, and digital marketing. However, the potential applications of AI can automate tasks such as data entry, basic analysis, customer service, and other similar functions, which make up some of the lowestearning yet majority of gigs. Artificial intelligence- based systems possess the potential to identify and mitigate fraudulent activities, conduct risk evaluations, and facilitate investment choices. The implementation of automation technology in financial institutions has the potential to enhance operational efficiency and reduce costs. This rapid development has the ability to threaten the freelancing market, including financial analysts and customer service representatives, as they may be replaced by artificial intelligence.

Upskilling and Reskilling Amidst AI Revolution

The rapidly developing world of AI has prompted a revolution, with many predicting that AI tools may replace freelancing gigs. As artificial intelligence technology progresses, specific skills will gain greater prominence, making certain existing jobs obsolete. The need for human labour in the freelancing industry is predicted to decline in the coming years as AI and automation technologies advance and replace work. Skills such as data analysis, programming, and digital literacy are expected to be highly sought-after in the coming years, as shown in Figure 3.

Below are some steps through which Bangladesh can prepare its freelancers for the impending wave of AI:

As of now, allocating resources towards education and training initiatives could prove to be the first step in equipping freelancers with the necessary skill sets to excel in the forthcoming freelancing market. As the global demand for labour is set for a paradigm shift, Bangladesh will need to equip its remittance earners with adequate training to align their skills with the changing demands of their clients.

Reducing Skill Gaps in the Future

The challenges of pursuing a career as a freelancer are evident from the outset and persist throughout one's professional journey. A prevalent misconception exists within Bangladeshi society that engaging in computerbased work and deriving income from it is unjustified. The societal preference for traditional 9-to-5 employment has long posed a challenge for freelancers. Bangladesh's information technology sector has shown promise for growth in freelancing. However, there is still room for further development and the realisation of its full potential. The identified constraints include but are not limited to the complex procedures for accessing government-provided facilities, slow internet speed, and the high cost of broadband.

The role of the government in preparing for the future freelancing market is crucial to sustaining the growth of the industry. The implementation of policies that facilitate freelancers' keeping pace with the changing online freelance platforms can enhance the potential of maximising earnings from the freelancing industry. Besides, investing in training platforms specialising in tomorrow's most in-demand skills could reduce unemployment while increasing foreign earnings for Bangladesh. This, in turn, can maximise Bangladesh’s remittance earnings and the freelancing industry tremendously and propel Bangladesh towards achieving its vision of Smart Bangladesh by 2041.

Artificial intelligence has undoubtedly made its presence felt worldwide, prompting Bangladesh to react swiftly to changing times. As the demand for skills continues to change globally, freelancers in Bangladesh will have to upskill their existing skill sets to stay relevant. An important fact to consider is that AI in itself is not expected to replace humans; rather, humans with knowledge concerning AI applications are expected to significantly decrease the number of jobs available worldwide. Utilising AI platforms to facilitate human activities and enhance efficiency is more aligned with the purpose of global digitalisation. Additionally, AI systems require maintenance and oversight to ensure optimal functionality and minimise inaccuracies and biases. The perpetuity of AI implementation necessitates the presence of proficient human professionals who possess expertise in the field and are capable of effectively managing its utilisation. AI tools can be treated as co-pilots by freelancers to present better work to their clients while being efficient in their deliverables. Undoubtedly, freelancers should view the emergence of AI as a reason to upgrade their already vast array of skills to continue their upward trend in earnings.