Sri Lanka Among Top 20 Outsourcing IT/BPO Destinations - The Tholons 2012 Top 100

07th February 2012, www.island.lk

The Tholons 2012 Top 100 Outsourcing Destinations report identifies the top global cities and counties for outsourcing IT/BPO services. With the improvement in the country’s value proposition in IT/BPO, Sri Lanka is clearly emerging as a global sourcing destination in the region. The positive socio-political developments driven by the country’s improving security conditions have been highlighted as key reasons for attracting more companies focused on FAO (finance and accounting outsourcing) and Software Development, in addition to the vast pool of accountants and software engineers in Sri Lanka.


In this year’s report, fourteen cities have been cited from the South Asian region, with Colombo, Sri Lanka moving up the ranking by one position to number 19th position. The report highlights that South Asia is experiencing a continuing stream of investment from outsourced service providers with high- value solutions to across vertical specific industries.

Leveraging on the location advantages, recently the global IT/BPO company Mphasis (an HP Company), set up their delivery center in Colombo to provide high- value Finance Accounting Outsourcing services out of Sri Lanka. The leading BPO service provider, First Source entered Sri Lanka with a joint venture with Dialog. Several others have set operations during the last two years, adding to the fast growing IT/BPO exports out of Sri Lanka.

The reports goes on to state that the growth has also been accelerated by the conclusion of the 30-year civil strife in the northwestern region of the country paving the way for recovery and rehabilitation, serving to attract investments into the country. These positive developments in the country serves to move Colombo up one spot to 19th place this year, and remain as one of the top emerging cities in the report.

"Sri Lanka moving up the ranking highlights the improving strengths as an outsourcing destination. During the last two years, we witnessed steady expansion of existing players and a new interest from global companies to operate out of Sri Lanka. The IT/BPO and Knowledge Service industry is targeted to grow to become a billion dollar industry by 2015." said Madu Ratnayake, Vice President of SLASSCOM.

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Sri Lanka IT/BPO Sector Targets Niche Markets in Finance & Accounting, Telco, Travel and Aviation

24th March 2011, www.lankabusinessonline.com

Sri Lanka's information technology and business process outsourcing sector is positioning itself as a niche player targeting finance and accounting, telco, travel and aviation sectors, an official said.

"We will focus on SMEs (small and medium enterprises), more that 90 percent of us are working with SMEs in other countries," Dinesh Saparamadu, head of Sri Lanka Association of Software and Service Companies (SLASSCOM).

"We want to be known for quality and ethics, which will be the differentiator."

SLASSCOM has 120 members who account for 90 percent of the exports.

Saparamadu said IT was now the country's fifth largest export and the industry wanted to push revenues to a billion dollars by 2015.

SLASSCOM was working with universities and higher education institutes to expand capacity and was also increasing awareness is schools with students and parents about opportunities available in the sector.

Saparamadu said the association has engaged a public relations firm in the UK to build international awareness about the country.

Recently a sector report on financial and accounting services outsourcing had been released which potential investors who want to set up shop can use.

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Sri Lankan IT & BPO Industry to Grow by 26pct in 2011. SLASSCOM Launches Careers Initiative for Capacity Building

18th January 2011, www.island.lk

The Sri Lankan IT and BPO industry is projected to grow by 26% in 2011 with export earnings estimated at US$ 390 million for 2010. Sri Lanka has set a target of US$ 1 billion revenue with employment of 100,000 by 2015 in the IT/ BPO industry.

One of the key prerequisite for this growth to be realized is the acceleration of human resource capacity development in the industry. The SLASSCOM FutureCareers initiative is aimed at expanding the talent pool available to the industry as part of this Capacity building program.

SLASSCOM Future Careers initiative will focus on connecting Sri Lankan youth to the exciting job opportunities in the knowledge service industry for them to become truly global citizens.

The IT/ BPO industry offers exciting work, fun atmosphere, global exposure, fast paced career progression and even an opportunity for one to become an entrepreneur. At the EDEX expo SLASSCOM will launch a short documentary on the careers in IT-BPO industry with the endorsement of Ministry of Higher Education, Ministry of Education and ICTA.

The FutureCareers documentary will highlight the work opportunities and experience from young people employed within the IT/ BPO industry across a wide spectrum of jobs to give potential new entrants to the industry an overview of the opportunities.

Students would have the opportunity to meet with many leading IT-BPO companies at the SLASSCOM Future Careers pavilion. Walk in interviews would be conducted by some of the companies. Dialog, HSBC, Providence, RRDonnelly, Innodata Isogen, MMBL Cyber Skills, Virtusa, IFS, Hsenid, Mphasis and Infomate will be some of the featured employers for students to discuss career opportunities and even have the possibility to gain employment.

At EDEX, SLASSCOM will educate both students and parents on the wide array of options available in both the IT and BPO sectors, and highlight the skills required that will empower them to enter this industry and increase their earning potential.

We invite students to visit the SLASSCOM Future Careers pavilion to meet leading IT-BPO companies and how you can become part of this exciting industry.

Students can also join online at www.FutureCareers.lk to learn about the industry. SLASSCOM invites the industry professionals to also join at www.FutureCareers.lk to encourage and offer their support and guidance to a new entrant to the industry.

"We aim to leverage the EDEX platform to primarily focus on creating awareness among youth about the benefits of selecting IT or BPO as a career path. Our aspiration is to attract large number of youth to join the fast growing IT-BPO industry in Sri Lanka" Madu Ratnayake, Vice President and Director of SLASSCOM said.

SLASSCOM entered into a strategic partnership with EDEX for the first time for the forthcoming EDEX-2011 Expo and has invited their member companies to participate within the SLASSCOM pavilion.

EDEX is the pioneering higher education and careers exhibition in Sri Lanka organized by Royal College Union attracting the largest and most diverse number of local and overseas participants held annually in Colombo and Kandy. The 8th EDEX expo will be held on January 22nd, 23rd & 24th 2011 at BMICH Colombo and on January 26th & 27th at the Kandy City Centre respectively under its theme for 2011, "Be Wise, EDEX-Wise".

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Sri Lanka IT/BPO Exports to Grow by 26pct in 2011 from $ 390mn now

27th December 2010, www.dailynews.lk, By Indunil Hewage

Sri Lankan IT and BPO export industry is currently estimated at US $ 390 million and expected to grow by 26 percent in 2011. During 2009 the industry grew 25 percent from US $ 312 million.

The direct workforce engaged in the IT and BPO industry is estimated to be 35,000. For every IT and BPO employee, there is indirect employment for at least three more people. With indirect jobs, the industry contributes to over 100,000 jobs currently to the economy.

The total workforce with IT and BPO skills is approximately 63,000 people. This includes IT professionals working in non IT industry organizations such as banking, Government and others, The Sri Lanka Association for Software and Services Companies (SLASSCOM) General Secretary Madu Ratnayake said.

The total output of the potential ICT workforce in the country comprises approximately 6000 graduates and about 83,000 diploma holders. In addition, there are about 120 IT and 30 BPO companies operating in Sri Lanka.

“On cost, Sri Lanka is 25 percent to 30 percent cheaper compared to many other sourcing destinations. This is one of the main advantages among our niche focus to build global centres of excellence in several targeted areas,” Ratnayake said. He said English is one of the primary language skills required for a successful career in IT-BPO.

There are many initiatives taken by the companies and the Government to improve IT skills and relevant authorities have to keep at this vigorously.

Internet penetration levels are also expanding rapidly in the country. According to last published World Bank Development Indicators, in 2008 Sri Lanka had over 1.1 million internet users. Ratnayake said for the last ten years, the investments in IT and BPO has largely come from Sri Lankans with international connections or living abroad. With the peace prevailing in the country, there is lot more interest by many companies to set up operations in Sri Lanka. There were several larger companies who set up operations in Sri Lanka during the last year and many are doing due diligence currently.

“There is a large number IT/BPO training institutes in Sri Lanka. The country needs to improve the quality and quantity significantly in the training institutions in the country. As the apex, industry body for IT-BPO, SLASSCOM plays a cartelising role in capacity building. The north and the east areas are considered as key focus areas for SLASSCOM to develop.

As the demand picks up, we need to ensure there is enough people ready to take advantage of the opportunities that comes up. SLASSCOM endorses programs which are of value to get in to a job,” Ratnayake said.

Related Info:
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Sri Lanka to Promote Finance BPO Services with Investment Professionals Body Tying up with IT Trade Group

13th December 2010, www.lankabusinessonline.com

Sri Lanka's investment professionals body has tied up with the island's software trade group to promote finance business process outsourcing, a statement said.

The deal aims to exploit growing demand for Sri Lankan financial professionals from BPO and information technology firms in India and other outsourcing destinations.

The Chartered Institute for Securities & Investment (CISI) has signed an agreement with the Sri Lankan Association of Software and Service Companies (SLASSCOM) which aims to support capacity building for the financial services sector in Sri Lanka.

Joint initiatives supported by both the CISI and SLASSCOM in Sri Lanka will include promoting Sri Lanka as an outsourcing destination for finance business process outsourcing.

The agreement focuses on the promoting CISI’s qualifications to SLASSCOM member firms working in the Sri Lankan financial services industry.

“Our globally recognized qualifications have experienced a high uptake amongst BPO and IT companies in India and other key outsourcing areas," said Arwa Tapia, CISI Country Head – Sri Lanka and India.

"We are confident these qualifications as endorsed by SLASSCOM will contribute to the development of an adequately trained talent pool to meet the future challenges the industry holds.”

The CISI is the examining, training and membership body for those working in the securities and investment industry, with over 40,000 members globally.

“We see great potential for Sri Lankan IT-BPO companies in the financial services sector," said Dinesh Saparamadu, chairman of SLASSCOM, the trade body representing IT and BPO companies.

"We expect this partnership with CISI will help increase the number of qualified professionals available for the industry, to take advantage of global opportunities in securities and investment domains.

SLASSCOM wants to help the IT-BPO industry increase export revenues.

Sri Lanka BPO Industry - Opportunities and Challenges

12th November 2010, www.lbr.lk, By Anushika Kamburugamuwa

Kasturi, a 27 years old IT graduate has been employed at a business process outsourcing company in Colombo for the last 2 years. She's amongst the 40,000 Sri Lankan youth employed in Sri Lanka's sprouting BPO sector.

“It just that I like the atmosphere in the BPO industry,” she says of her job which is to carry out back office processors at a legal firm in London.

“They send voice tapes regarding various cases. We document them and send it back to them,” explains Kathuri.

Primarily driven by human resources business processing outsourcing is the art of transferring one company's back–end operations to another company to cut costs.

Industrialists say there is high interest among the youth to join the BPO industry, Sri Lanka's fifth largest exporter.

However the sector is yet to reap its full potential due to a dearth in qualified professionals.

“India has 100 thousand graduates, so Sri Lanka cannot compete with th numbers," says Ravi Abeysuriya vice president of Sri Lanka Association of Software and Services Companies (SLASSCOM), the governing body of the BPO sector.

SLASSCOM is trying to push a higher number of professionals into the industry and also equip them with external qualifications.

Sri Lanka has the second largest pool of UK qualified accountants which helps to compete in the financial and accounting BPO market but is challenged in areas like call centers and analysis where fluency of English is required.

“We need proper university curriculum to support the demand. There has to be a collective effect from private and public sector to generate more numbers and quality people,” added Abeysuriya.

“The number matters but mostly people need to be employable,” says Omar Fatharally, chief executive at Hellocorp, a leading BPO operator which claims 30 percent market share and employees about 200 people, mostly graduates.

“Although they are graduates but they are unable to cope up when it comes to writing and speaking in English.”

There are nearly 300 IT BPO companies currently operating in the island.

They include global firms like HSBC, WNS Global Services, Aviva, Microsoft, Motorola, Industrial & Financial Systems (IFS), Amba Research, RR Donnelley, Quattro, Virtusa, eCollge, Valista, Millennium Information Technology and Innodata Isogen.

The industry generates 300 to 400 million dollars of export revenue annually to the country. The workforce is growing over 20 percent year-on-year.

The industry is now looking at attracting small and medium BPO firms in to Sri Lanka to counter the capacity issue .

Small Solutions

The industry has set a target to generate a revenue of two billion dollars by 2015 and create another 100,000 direct and indirect jobs within the next 5 years.

Accounting, Banking, Financial Services, Insurance, Software and Services, telecommunication and Travel & Aviation are expected to lead growth.

“Previously it was the larger multinational companies that were looking at out sourcing,” says Abeysuriya.

“Next year the SME sector will be looking at out sourcing in Sri Lanka to reduce cost . Sri Lanka is ideal for firms of that range.”

He said that SLASSCOM has already approached UK to attract small and medium British companies.

Sri Lanka's IT-BPO industry alone grew 23 percent in 2006 and 2007 prior to the global recession, despite the ongoing conflict.

Now the industry is pitching for a 25 percent annual growth, targeting niches like legal, accounting and financial services.

Abeysuriya says the sector is looking at attracting investors from the Sri Lankan diaspora.

“They can identify opportunities for our local companies and bring business,” said Abeysuriya.

He says 95 percent of investments in the existing companies have come through diaspora connections.

“Diaspora can influence the decision makers a lot,” agrees Fatharally.

“It may be industry analysis, industry brokers or consultants. We go and pitch to them what is happening in the BPO industry Sri Lanka and it has worked well because clients will trust them,” Fatharally expressed.

Rathnayake said that Sri Lanka needs create global awareness and build a brand for the country to attract investors.

“People don’t know about Sri Lanka as a place they can do business in BPO and IT,” Rathnayake said.

"We need to have a strong focus branding programme to help us to be known.”

The industry is calling for government support to encourage investments in the sector.

“Building a brand for Sri Lanka cannot be done by one company or two. It really needs a national level focus," Rathnayake said.

UK Small Businesses Outsource BPO to Sri Lanka. SLASSCOM to Bring in more Business

04th May 2010, www.dailynews.lk, By Harshini Perera

Many people have moved into the mobile computing and knowledge management approaches now. The new waves in the IT technology will need high end skilled personnel. It is where the Sri Lankan niche market stands.

Sri Lanka has earned a name for back office operations in the IT BPO industry and Sri Lankan’s IT BPO industry has been recognized in the UK market, SLASSCOM Chairman Dinesh Saparamadu told Daily News Business.

“There is fierce market competition in the IT BPO industry among countries like Egypt, India, Mauritius, South Africa and countries from the Eastern European bloc and Latin America. Sri Lanka is well prepared to compete with these countries with its specialty to cater to the small and medium companies,” he said.

Saparamadu said companies with 50 to 250 employees in the UK are attracted to establish services it needs in Sri Lanka with 100 to 150 employees. Sri Lanka caters to these companies with focused and concentrated public relations activities in the UK and it has been able to attract favourable responses from those companies. Saparamadu expressed these ideas after attending the International Outsourcing Forum (IOF) in London.

He said the forum paved way to match-making with possible customers for IT BPOs in Sri Lanka.

The process of developing relationships has been successful and 50 percent of these meetings were productive. The relationship built with customers in those countries will progress in the future,” he said. Saparamadu said the industry has been increasing after the war and it is expected to grow with double digits in the future.

There has been a spotlight on Sri Lanka as a destination for the IT BPO industry. Sri Lanka could gain a keen interest from the UK and other European countries. “We have also briefed the Sri Lankan Diaspora in UK to promote IT BPO industry as ambassadors. The response we received from the participants has been very good and the Forum ended with result-oriented activities,” he said.

Saparamadu said SLASSCOM is in the process of promoting and making a platform for IT BPO industry in Sri Lanka. SLASSCOM conducts awareness creation activities in other countries.