Sri Lanka Emerging as a BPO & KPO Centre for Business Support Sevices - IBM Global Location Trends Report

07th December 2010, www.lankabusinessonline.com

Sri Lanka and China are emerging as key destinations for services investments, while Phillipines has overtaken India as the top ranked outsourcing centre, a report 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

Lanka BPO Academy to Train 25,000 Professionals Annually in Sri Lanka

10th November 2010, www.dailynews.lk, By Indunil Hewage

The Business Process Outsourcing (BPO) industry is capable of contributing 15 percent of the country’s Gross Domestic Product (GDP) if the foremost requirements are adopted well, BPO Certification Institute, Executive Vice President and Global Operations Head Sanjeeva Shukla said.

Addressing the launching ceremony of the Lanka BPO Academy he said the Sri Lankan BPO industry needs to differentiate its services projecting on where it is moving and what it can successfully deliver to the world market.

The BPO industry is democratizing the world and small countries in the world have a potential to deliver services to the superpowers in the world.

The major segments in the BPO industry which are customer interaction, backup transactions, financial accounting and technical support have a huge demand from the world.

“Small countries like Sri Lanka are able of catering to this demand by using its demographic advantage,” he said.

“At the initial stage India lost billions of money making simple mistakes in the BPO industry and Sri Lanka needs to be mindful not to make any errors whilst reaching world expectations and delivering services to the world market when it comes to the BPO industry in Sri Lanka.”

He said people with lower professional qualifications should be provided orientation training to join the BPO industry while creating more well paid qualitative job opportunities.

“Sri Lanka is gaining world attention and has been recognized by the world for its ability to produce more intellectuals. Sri Lanka should aggressively look at expanding the Knowledge Process Outsourcing (KPO) industry.

The development of sub sectors specially tourism industry mostly depend on knowledge and university undergraduates need to be empowered with knowledge which is commercially demanded by companies in the world,” Shukla said. The BPO industry is heavily based on proficient investments and the capability of the BPO industry to generate more revenue to the country and employment opportunities for youth needs to be identified whilst having right numbers and trained human talents to attract new businesses in the global companies.

The IT and BPO industry is expected to reach US $ 750 million and US $ 400 million export revenue by 2015 respectively. Currently, IT and BPO industry earns US $ 290 million and US $ 97 million in exports respectively.

“Lanka needs to train around 50,000 and 25,000 personnel respectively for the Sri Lankan IT and BPO industry in five years to cater to the increasing demand from the world,” Virtusa Vice President Madu Ratnayake said.

Image: ICTA Private Sector Development Program Head Fayaz Hudah, Virtusa Vice President Madu Ratnayake, Ceylon Chamber of Commerce President Dr Anura Ekanayake, Uva Wellassa University Vice-Chancellor Chandra Embuldeniya and UNOPS Sri Lanka and the Maldives National Portfolio Development Head Rohantha Athukorala are at the panel discussion. Picture by Thushara Fernando

MphasiS Invests in IT Enabled Services in Sri Lanka. BOI Promotes Knowledge Sector in IT/BPO/KPO Operations

08th April 2010, www.dailynews.lk

The Board of Investment of Sri Lanka (BOI) granted investment approval to MphasiS Lanka (Private) Limited. Chairman/ Director General Dhammika Perera signed the agreement on behalf of the BOI and presented the BOI Certificate of Registration to the investors.

MphasiS Lanka signed an investment agreement worth US $ 3.5 million to establish a venture to provide IT enabled services.

The company will provide employment for a work force of 500 initially. MphasiS is one of the fastest growing and dynamic Indian IT BPO companies. MphasiS, a leading IT services provider will expand its global talent footprint, with the establishment of a global delivery centre in Colombo. The centre will join MphasiS' network of global delivery centres providing Applications, BPO and ITO services to clients worldwide.

MphasiS is the seventh largest IT services company in India having a presence across India, Singapore, China, Japan, Europe, North America and Australia.

Employees at the Sri Lanka centre will be part of MphasiS Global Talent Pool and groomed as a part of MphasiS Talent Development Program.

MphasiS is a leading applications services, remote infrastructure services and business process outsourcing services provider.

The company delivers real improvements in business performance for clients through a combination of technology know-how, domain and process expertise.

MphasiS will work towards developing and nurturing local talent. MphasiS is expected to work closely with the Government and academia in Sri Lanka, to focus on creating an industry ready talent pool. BOI has been actively working to promote the knowledge sector, IT/BPO/KPO to make use of Sri Lanka's high literacy rate in South Asia and to complement the growing IT BPO sector in India.

MphasiS Lanka Limited Director M. G. Raghuraman, signed the agreement on behalf of the company.

MphasiS' Head HR Leader, New Locations Learning (Technical and Domain) Usha Subramanian was present at the occasion.

Executive Director Duminda Ariyasinghe, Senior Deputy Director A.W.M. Faizal Executive Assistant Kosala Harischandra and MphasiS Sri Lanka Consultant Nishendra Manathunga were also present.

BOI Chairman/Director General Dhammika Perera (right) handing over the agreement to MphasiS Lanka Pvt Ltd Director M.G. Raghuraman.