“Sri Lanka is, in many ways a hidden gem for outsourcing. It is uniquely positioned to offer companies highly skilled talent and a strong business environment at very competitive costs”ATKearney
Quick Facts on Sri Lankan IT and BPM Industry
- No of Companies – 300 + Companies
- No of employees – 60,000 +
- Employee Growth – 13% yoy
- Export Revenue – USD 900 mil
- Export Revenue growth – 12%
The IT/BPM industry in Sri Lanka currently boasts over 300+ Companies employing more than 60,000+ employees with a 17% year-on-year employee growth rate. The export revenue generated by the industry stands at 900 Million USD – an average revenue growth of 12% annually. ‘Vision 2022’ envisioned, created and backed by Sri Lanka’s national government has set an ambitious yet achievable export revenue target of US$ 5 billion a skilled and competent workforce of 200,000 and 1000 new startups. This also ensures that any investor hoping to set up IT or BPM operations in Sri Lanka will be provided with state-endorsed benefits.
|Export Revenue (USD)||600 Million||5 Billion|
Sri Lanka’s attractiveness as a global destination for IT/BPM services has been gaining steady ground with the Industry winning many awards and accolades from highly reputed international industry-related bodies.
Global Giants have already setup
A Vibrant Startup Ecosystem
Incubators, accelerators, meetups, hackathons and startup competitions are fueling a dynamic startup ecosystem. Spiralation is the government funded technology based startup accelerator program run by the ICT Agency of Sri Lanka. The program was started in 2011 and over 32 startups have been funded via this program over the years. MIT Global Startup Labs has been partnering with the University of Moratuwa since 2011 and have supported over 20 startups Venture Engine is a joint initiative by Blue Ocean Ventures and Indian Angel Network. The platform provides entrepreneurs and startups in many different domains, a way to accelerate their business For More information visit Startup Ecosystem in Sri Lanka
World Class Products engineered in Sri Lanka
Trading Platform running at London Stock Exchange Group (LSEG), Johannesburg Stock Exchange (JSE), HKEx developed by Millennium IT Sri Lanka Enterprise System Bus (ESB) use by eBay developed by WSO2, Sri Lankan owner and R&D center Online diagramming tool Creately being used by PayPal, Pepsico developed by Cinergix Sri Lanka Internet Booking Engine Travel box used by Virgin Holidays, Qantas Holidays developed by CodeGen Sri Lanka IFS Applications of Swedish giant IFS runs 75% of its R&D work in Colombo For More Information visit Software Products
Highly talented skill pool
“Sri Lankans are known to be strong program and relationship managers and are able to handle complex, differentiated tasks rather than just routine processes”ATKEARNEY
I found that highly technical personnel are available everywhere. The technical level is not what we really need to worry about. It’s the culture, attitudes, language and what the people are made of. Stein Inge Haaland, Chairman of the Board/Styrets Leder at embla
- Second highest population of British Computer Society members in the world
- Ranked 1st in South Asia under higher education and training category in the Global Competitiveness Report 2014
- UK-recognized management accounting qualifications than any country outside the UK
- A total workforce of 75,107 as at 2013, estimating 82,854 with YOY growth of an average of 13%
- Female participation of the workforce improved from 21% in 2009 to 29% in 2013 – Workforce Survey 2013
The country produces close to 400,000 English Speaking IT Literate individuals per year – ATKEARNEY
Our Undergraduates have excelled in many Global Competitions such as
- Google Summer of Code – Moratuwa University was ranked 1st for 9 consecutive years and then placed 2nd last year
- IEEE Xtreem – A team from Moratuwa University ranked 1st in the Asian Region, Ranked 3rd in the World against 2000+ University teams around the world. 199 teams applied from Sri Lanka.
- Imagine Cup 2013 – Team Firebird from Sri Lanka was awarded the Samsung Native Digital Award for ‘I-Chum’ – https://www.imaginecup.com/team/index/11296
Tier 1 Infrastructure at Tier 3 Cost Structure
“Average rent for top-end office space in Colombo is up to 30 percent less than in Kuala Lumpur or Cairo and at least 50 percent less than equivalent space in Guangzhou or Bangalore”ATKEARNEY
- 1st Country in the world to be selected for the implementation of the Google Loon Project which will provide comprehensive Network Coverage to the entire island enabling high speed connectivity throughout
- Fast adoption of technologies – First South Asian country to establish a 4G LTE network.
- Colombo has a well established road network including an express way from the International Airport to the heart of Colombo.
Moving within the city is much easier thani Cairo, Dhaka, Manila or Mumbai ATKEARNEY
Only South Asian country providing uninterrupted power supply 24 hours a day according to the World Economic Forum Global Competitiveness Report.
A comprehensive Regulatory Framework
- Sri Lanka’s business environment allows 100 percent Foreign Ownership
- No restrictions on repatriation of earnings, fees and capital
- Safety of foreign investment is guaranteed by the constitution.
- Treaties and conventions
- Only South Asian country who has acceded the Budapest Convention on Cybercrimes
- Only South Asian country to ratify the United Nations Convention on the Use of Electronic Communications in International Contracts
- Electronics Transactions Act
- Computer Crimes Act
- Information Security
“Sri Lanka as having the amongst the most rigorous intellectual property protection regime in the region” ATKearney
For more information visit Regulatory Framework
A Conducive Business Environment
- Ranked No.1 in South Asia under the World Bank Doing Business Index.
- According to the World Bank Sri Lanka is the The only economy in South Asia that simplified business registration in 2014
- Entry in to Sri Lanka is simplified through an Electronic Travel Authorization System which also won an award at the World Summit Award 2013 in the e-Governance and Open Data category
For more information visit Business Environment
High Level Government Support
The Sri Lankan government is one of the biggest catalysts for driving its IT-BPM industry growth and has publicly shown its commitment by setting the target for IT and BPO being one of the country’s largest export revenue earner by 2022.
Government facilitated Business Promotion
The Government facilitates business missions to many regions including Australia, Japan, Africa and Scandinavia.
The government through the ICT Agency provides substantial grants for companies in the IT-BPM space to support business development such as training, consulting expertise, marketing, quality enhancements.
Competitive on Cost
- Sri Lanka is a highly cost competitive destination and was ranked as 4th most financially attractive country in terms of financial attractiveness by ATKearney’s Global Service Location Index in 2014
- The average associate cost can be as much as 10-20% lower than other offshore destinations, especially for BPM roles.