The United States Agency for International Affairs, or USAID, has, in a controversial move, decided to fund the development of Sri Lanka’s offshore outsourcing industry.
In a move that was heralded on the US Sri Lanka Embassy website on the 2nd of August, the US government agency USAID in conjunction with the US embassy in Sri Lanka, announced a number of initiatives to be undertaken, one of which is a joint program with different unidentified private business process outsourcing and IT outsourcing companies.
The initiative involves the training of over 3,000 under- and unemployed students on offshore business process support and English language training.
They will then be participating in on-the-job training schemes with private firms. USAID is said to be contributing about $10 million for the project.
With the establishment of Sri Lanka as an IT outsourcing destination, companies can open new centers and expand their business in neighboring country Sri Lanka, rather than in other Indian cities where the cost is higher.
The move is expected to cultivate the country’s potential in the offshore outsourcing IT and BPO space.

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