Sri Lanka’s IT, BPO industry targets 5 bln USD revenue by 2022
Sri Lanka’s IT and BPO industry is eyeing a 5-billion U.S.-dollar export revenue and 200,000 employee base by 2022, reflecting a massive five-fold increase, an official said on Friday.
Sri Lanka Association of Software and Service Companies (SLASSCOM) estimates that Sri Lanka with its high IT literate workforce can push forward to the target and promote the government’s aim to boost growth to beyond 8 percent.
Total employment grew from 33,700 in 2007 to an estimated 75,000 employees in 2013 and the number of companies in the industry grew from 170 in 2007 to over 220 in 2013.
“The vision in 2022 is to reach 5 billion U.S. dollars in revenue, create 200,000 direct jobs and 1,000 startups by 2022,” Ratnayake said.
Proservartner Point of View
Whilst Sri Lanka is a viable cost effective location for offshoring and outsourcing, many companies still prefer India and the Philippines for their offshore capability. There is certainly a lag time between the achievement of political stability and the perceived long term stability from leading organisations. This is illustrated by Sri Lankas drop of 12 places in the Corruption Index (although still perceived to be less corrupt than India and the Philippines).
That said, the perception is changing and the Tier 1 cities in Sri Lanka are very cost competitive with the Tier 1 and 2 cities in India. Increasingly, we expect an increase of confidence in Sri Lanka as a destination. The target of 200,000 employees serving IT and BPO is not an unreasonable one.
To achieve this, there would need to be more brand names setting up in Sri Lanka to increase the level of confidence in the capability and stability. This is a key priority for the Sri Lanka government and SLASSCOM.