Abstract Organizations such as KLM, Philips and Baan in The Netherlands have been collaborating with IT‐suppliers in developing countries. Dutch software projects are now being executed in many nations, and especially in Asia. India is the most popular country, but some Dutch companies have chosen to outsource work to lesser‐known IT‐destinations, such as Bangladesh. This country has more than 200 software houses and data‐entry centres and numerous computer shops. At present, there are around 20 – 30 Bangladeshi software developers with foreign clients, some of which are 100% export orientated. Several years ago, software was identified by the government of Bangladesh as having important export potential. The total amount of software and IT‐services exports is currently estimated at a maximum of $ 30 million per year. Dijkoraad‐hawar, a medium sized IT company and Metatude, a start‐up company are presented as Dutch case studies in this paper. Each organization has set up a software development centre in Dhaka, and has been satisfied with the results. One of the main advantages perceived by these users is the potential for significant reduction in project costs. Also, qualified candidates can be found in Bangladesh and cultural differences had no major impact.