Sri Lanka, a small island with a population of more than 21 million people is located in the southern coast of India had a tumultuous past and was marred by civil war till very recently. Now the country is undergoing a massive reconstruction, is on an upsurge and fast emerging as a major destination for BPO and KPO. The GDP of Sri Lanka is USD 48 billion and is growing at a rate of 7%. The BPO industry of Sri Lanka is the 5th largest foreign exchange earning industry and generates an annual export revenue of 300 to 400 million USD.
The first IT and BPO companies were established in 1980’s but there was very little growth in this sector as the country was embroiled in internal trouble. The situation today is very different from what it was in the past. There are more than 300 IT and BPO companies in Sri Lanka and this sector employs 60,000 people. Some of the international companies which have set up their R&D, BPO & IT Centres here include:
- RR Donnelley
- Mphasis &
- Microsoft etc
The Sri Lankan outsourcing industry has been offering services to companies ranging from large multinationals to start ups. They have been offering services in areas like:
- Automated application testing
- Infrastructure outsourcing
- High end R & D
- Enterprise Resource Planning
- Cloud and Open Source Application etc.
Since Sri Lanka is a very small country compared to other outsourcing destinations like India, China & Philippines, the population of the country is comparatively less than these countries. The country does not have a size advantage and they are focussing on higher-value niche products and services. Sri Lanka has created a niche in the outsourcing market by offering finance and accounting outsourcing services. Sri Lanka is house to second largest pool of UK based certifications, CIMA and ACCA qualification holders in the world and this works to their advantage. The other specialised services offered by BPO and KPO companies of Sri Lanka include legal services, providing architectural drawings, medical diagnostics etc.
According to the latest global outsourcing report by AT Kearney, Sri Lanka is presently ranked 21 in the world in the global services location index and Sri Lanka in its pursuit for growth is aiming to achieve 75% growth in literacy levels by 2015. The IT –BPO industry is going to witness a robust growth in the coming years and the industry expects to grow to a 1 billon USD industry by 2015.