hSenid's blog on Outsourcing

An Industry body said in a statement that Sri Lanka is ranked among the top 20 global outsourcing destinations for information ttechnology and business process outsourcing (IT/BPO) is due to the low costs. The Sri Lanka Association of Software and Service Companies (SLASSCOM) said that the A T Kearney’s Global Services Location Index (GSLI) stated that Sri Lanka has been promoted in the ranks supported by low costs compared to the rest of the destinations. The A T Kearney index states the potential of the IT/BPO industry in Sri Lanka.

Chairman of SLASSCOM Mr. Ranjit Fernando said that Sri Lanka will have a tremendous opportunity to a share of the global IT/BPO market as the global economy bounce back. A T Kearney’s Global Services Location Index reflects on a country’s financial attractiveness, people skills and ability and business environment. The statement said that according to the latest edition of the global management consulting firm, weakening cost advantages and enhanced labor quality are driving a dramatic shift in the geography of outsourcing.

A.T. Kearney’s Global Services Location Index (GSLI) evaluates and ranks the top 50 countries that are the best in providing the outsourcing services including IT services and support, contact centres, and back-office support.

Global Services Location Index (GSLI) has ranked Sri Lanka at number 16 in 2009 compared to the number 29 position held in 2007. This is a considerable jump of 13 positions and only one or two countries have had this promotion in the rating. As this report was prepared preceding to the war ending the genuine ranking would be even higher with the war coming to an end. The report states that Sri Lanka has been promoted in the ratings due to the low costs compared to the rest of the best outsourcing destinations.

Global Services Location Index (GSLI) shows the potential of the IT/BPO industry in Sri Lanka. The 2008 report analyzes Sri Lanka as a solid global outsourcing destination since 2005. A.T. Kearney’s report outlines Sri Lanka as an outsourcing destination situated in a favorable location considering its closeness to India. The layout of outsourcing changes rapidly. A number of countries that were safe few years back, still attract huge funds in the industry might be at their peak and but are on the rejection as prospective destinations.

Comparatively unidentified locations today may be significant destinations a day after. Many countries that compete for the outsourcing industry develops gradually and they multiply serve for different niche markets.

Sri Lanka has become new Philliphines after mopping out the terrorists out of the country and re-establishing the economy. Top Indian BPO companies like Genpact already have their presence in Sri Lanka and they are about to launch their operations. Colombo possesses the largest pool of UK certified accountants outside Great Britain waiting to be tapped by the BPO industry.

At the turn of the century lot of industrialists point out that today’s Lanka looks a lot like the Philliphines. Genpact CEO Pramod Bhasin stated “Sri Lanka could be a good destination. Other countries are offering attractive sops for BPOs, hence the sector is expanding geographically”. President of Indian IT industry body Nasscom, Som Mittal says “Sri Lanka is attractive because of its large base of finance specialists”. When Philliphines came to the BPO industry not many gave them much chance. But at present, it has over 400,000 BPO employees against India’s 700,000, with the rise up happening mostly in the last three years.

Sri Lanka could follow this procedure for finance and accounts back office work. Indian BPO industrialists states that Sri Lanka has talent, scale and language skills to attract work in such niche areas. In the last few years WNS Global Services, Quatrro BPO Solutions, RR Donnelley, HSBC and Aviva have set up operations in Sri Lanka. Quatrro which has a 300-people centre in Colombo are now all set to expand.