Unlocking the Potential of Sri Lanka’s IT Industry
Sri Lanka has emerged as a powerhouse in the global IT outsourcing market, consistently ranking among the top 50 countries for its service excellence. With a rich history in the field dating back to 1976 when the Computer Society of Sri Lanka was formed, the country witnessed a significant boost in the Business Process Outsourcing (BPO) industry around the year 2000. Since then, Sri Lanka has flourished as a preferred destination for outsourcing services, attracting renowned companies like J.P. Morgan & Co, Qatar Airways, Microsoft, and Google, as well as businesses from Japan, Sweden, Norway, North America, Australia, and the UK. In fact, outsourcing services to Sri Lanka can cost as little as 70% of the price it would require in other countries.
Why Choose Sri Lankan IT Companies?
Unbeatable Affordability and Top-notch Expertise
Sri Lanka offers a remarkable cost advantage when it comes to outsourcing services, with expenses estimated to be 30% lower than in other countries. Moreover, the country boasts a highly educated workforce, particularly in the IT sector. Given the industry’s prominence, Sri Lanka nurtures a pool of exceptionally skilled graduates. In addition to this, Sri Lanka’s legal system, which adheres to the principles of British commercial law, provides a secure environment for businesses. The country has also entered into international treaties on intellectual property rights, electronic transactions, and computer crimes, making it one of the most reliable IT destinations in its region.
English Proficiency and Friendliness
Sri Lanka stands out with its superior command of the English language, especially in urban areas. Moreover, the people of Sri Lanka are naturally warm and welcoming, ensuring a smooth and pleasant business experience.
Considerations when Collaborating with Sri Lankan IT Companies
Understanding the Landscape
While partnering with IT companies in Sri Lanka holds immense potential, it is crucial to be mindful of the country’s geopolitical situation and its implications for the sector. Sri Lanka faced a civil war that spanned 26 years, from 1983 to 2009, resulting in occasional security instability. Additionally, the country’s conservative and religious background, particularly pertaining to women (with Buddhism being embraced by 70% of the population), may require some cultural adaptation.
To assess the reliability of Sri Lankan IT companies, it is essential to consider various factors. A study conducted by the University of Moratuwa in 2008 titled “Reliability of effort estimates in offshore software companies in Sri Lanka” sheds light on the subject. While this study provides some valuable insights, it is important to exercise caution and consider other relevant factors as well. Fraudulent activities can occur in any region, but it is advisable to collaborate with established companies that adhere to international quality standards to mitigate potential risks.
Contextualizing Sri Lanka’s IT Industry
Sri Lanka’s IT industry is positioned amidst neighboring regions and countries. One critical aspect is internet accessibility, which can impact industry growth. Although Sri Lanka has made strides in this area, with the implementation of 4.5G LTE technology by telecoms operator Mobitel, the average connection speed of 7.3 Mbps still falls behind other countries such as Indonesia, India, Malaysia, and Vietnam.
Additionally, high rental prices in Colombo, the most populous city in Sri Lanka, can pose a challenge for businesses seeking cost-effective solutions. It is worth noting that neighboring countries have a more developed industry infrastructure, giving them a competitive advantage. India, in particular, remains the leading global destination for BPO services, consistently maintaining the number one position according to the 2016 A.T Kearney Global Services Location Index, while Sri Lanka holds the impressive 14th spot.
DHPL Travels: Your Gateway to Sri Lanka’s IT Excellence
In conclusion, Sri Lanka ranks among the top 20 Business Process Outsource destinations globally. The country’s primary industry focus lies in outsourcing services, leveraging its competitive advantages, including lower costs, an educated workforce, and a reliable legal framework. However, it is important to be aware of the geopolitical context, level of industry reliability, quality of IT education, and pricing structure. By collaborating with reputable companies adhering to international standards, you can take full advantage of the cost-effective opportunities Sri Lanka offers while mitigating potential risks.
DHPL Travels is your trusted partner in exploring Sri Lanka’s vibrant IT industry. Join us to embark on a journey of excellence, affordability, and reliability.