Sri Lanka for Business Process Management
The Sri Lankan IT and BPM industry comprises over 300 companies and 60,000 employees, and has an expected annual revenue growth rate of over 12%. The industry is set to grow up to USD five billion in 2020, creating employment for over 100,000.
What makes Sri Lanka an ideal global BPO destination?
A Winning Combo
Sri Lanka is well-known for combining world class standards & work practices with South Asian affordability. Sri Lanka is the 14th best country in the world to outsource to, according to AT Kerney’s Global Services Location Index (GLSI) 2016. This ranking considers factors such as financial attractiveness, the size and skill of the labour force and the local business environment. Over the past decade, Sri Lanka has seen tremendous growth as a BPO destination, moving up 15 GLSI rankings between 2007 and 2016, from its original ranking of 29.
Sri Lanka enjoys a high level of cost competitiveness, low level of upward pressure on wages, & a relatively low employee attrition level of approximately 20%, in comparison to competing destinations.
An Abundance of Young Local Talent
BPO companies in Sri Lanka benefit from access to highly skilled, local talent pools, over 79% of which is made up of young graduates and professionals under the age of 30. Out of the 40,000 or so CIMA and ACCA graduates produced annually, 70% are estimated to be ready to work in the BPO industry. Sri Lanka also boasts:
- A year-on-year employee growth of around 13% in the IT & BPM industry
- The largest pool of CIMA graduates outside of the UK, & rapidly increasing numbers of ACCA & Australian CPA qualified accountants
- A marginal workforce gender discrepancy in the IT & BPM sector, where only 53% of all employees are male
- The 2nd largest number of UK qualified professionals in the world
- A literacy rate of 92% according to the UNHDI, the highest in the region
Nothing’s Lost in Translation
The Sri Lankan workforce possesses a high level of English language proficiency. English is the country’s lingua franca, and has long been the main language of communication for the commercial, scientific and higher-education sectors. As a result, the island is well-positioned to cater to the global knowledge services market.
Sri Lanka has invested a significant amount of resources towards its infrastructure in terms of communication, road development and power.
- Eight telecom service providers operate on the island, and the country is linked to three international submarine cables which provide ample capacity
- Broadband and satellite connectivity are easily accessible, and Sri Lanka was an early adopter of 4G technology
- Well-developed transport networks & urban architecture, including offices built with the latest modern amenities, support the commercial sector
- Several IT and BPO parks are being developed around the country
A Climate of Stability
The island has a stable economic environment in comparison to many other low cost BPO destinations around the world. Over the last decade or so, the country has enjoyed stable economic growth of over 6%. The Sri Lankan government has committed to helping the IT and BPM industry become the country’s leading export, and often offers aid towards training and development in this sector.
In 2016, Gartner ranked Sri Lanka among the top six global destinations, for outsourcing and shared services. Sri Lanka was also awarded the Offshoring Destination of the Year Award twice-in-a-row by the UK’s National Association for Outsourcing (NOA) in 2013 and 2014. Sri Lanka also takes the lead for the South Asian region in the World Economic Forum’s, Global Competiveness Report 2014-15.