Sri Lanka and China are emerging as key destinations for services investments, while Phillipines has overtaken India as the top ranked outsourcing centre, a rep
ort by IBM, a global information technology firm has said.In IBM's Global Location Trends report for 2010 Philippines claimed top place displacing India for the first time in terms of estimated workers, and China overtook Sri Lanka.
Sri Lanka retained its position at 12 while China moved to 5, from 13 a year earlier.
"China is continuing its ascent as a services destination, and confirms it should not be considered anymore “merely” the world’s factory," the report said.
"Sri Lanka is another Asian country that has succeeded in positioning itself as an alternative to India."
Several Sri Lankan firms are engaging in the high-end of the market in the so-called 'knowledge processing outsourcing' of KPO sector.
Sri Lanka has been competing for outsourcing business for several years under the shadow of a 30-year war which increased risk. In 2009 a war ended and the country is looking forward to increasing services investments in particular.
Treasury secretary P B Jayasundera has said that helped by the 2011 budget Sri Lanka is aiming to have the best personal income taxation regime in Asia.
The budget also ended a long-running oppressive taxation regime which exempted rulers from income tax helping improve just rule of law.
Sri Lanka is also in the process of dismantling a state monopoly in degree awarding which can improve the education freedoms of the people.
At the moment Sri Lanka's accountants, trained by peoples initiatives are in global demand.
Information technology training is also supported by private entities which are affiliated to foreign institutions though state university output in the sector is also well regarded.
The IBM report said India and Phillippines offers "similarly attractive business environment for international business support functions," but Indian labour costs were rising faster.
Related Info:
IBM's Global Location Trends Report for 2010
NY Times Highlights Sri Lanka’s Contribution to Global Outsourcing - Accountants & Accounting Services BPO
Foreign Currency Accounts for Sri Lankan Overseas Service Providers and Their Employees
Sri Lanka has very good scope for BPO services. Recent BPO Academy to tech BPO professionals is a great help in this regard.
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