A strategic alliance is a partnership between firms whereby resources, capabilities, and core competences are combined to pursue mutual interests. A strategic alliance is formed when two or more businesses join together for a set period of time. Teaming up with others adds complementary resources and capabilities, enabling partakers to grow and expand more quickly and efficiently. Alliances have become an important instrument of business strategy in the dynamic and diverse software industry due to increased globalization of the world economy. Bangladesh has taken lots of initiatives over the last two decades, both in public and private sector, to stimulate growth in this sector. Bangladeshi software industry has reached a take off stage and poised for high market growth, total estimated to be approximately BDT 1,100 crore (excluding the telecom sector). Despite the recent efforts of the government and the private entrepreneurs which made the country ranked by European Union (EU) among top 20 outsourcing destinations in the world, more attentions are needed at the national and international level to get the maximum benefit of its true potential.