Global outsourcing destinations for IT/BPO :

Sri Lanka ranked among Top 20

The consulting giant, A.T. Kearney’s Global Services Location Index (GSLI) has identified the top 50 countries for outsourcing globally. The Global Services Location Index (GSLI), first established in 2004, analyzes and ranks the top 50 countries as the best destinations for providing outsourcing services, including IT services and support, contact centres, and back-office support.

Each country’s score is composed of a weighted combination of relative scores on 43 measurements, which are grouped into three categories: financial attractiveness, people’s skills and ability and business environment.

Sri Lanka is ranked number 16 in the index in 2009 compared to the number 29 position held in 2007. This is a significant jump of 13 positions and only one or two other countries had this upgrade in ranking. The report was compiled with 2008 data prior to the war ending.

With the war situation behind Sri Lanka the actual ranking would be even higher now.

The report said that Sri Lanka has been promoted in the ranks assisted by low costs compared to the rest of the destinations. The combination of high people’s skills, favourable business environment and low cost enabled India, China and Malaysia to be in the top three slots.

The A.T. Kearney Index outlines the potential of the IT/BPO industry in Sri Lanka. As the global economy begins to bounce back, we will have a tremendous opportunity to a share of the global IT/BPO market which is estimated to be over $ 350 billion,” said Chairman of SLASSCOM Ranjit Fernando.

ICT Agency’s Chief Operating Officer, Reshan Dewapura said, “The latest A.T. Kearny Index is a clear indication that Sri Lanka is on the correct path to realizing the vision of making the IT/BPO sector the number one foreign exchange earner for the country. The great strides taken by the industry backed by the Government’s support and commitment have been major contributory factors in this achievement.”

Weakening cost advantages and enhanced labour quality are driving a dramatic shift in the geography of outsourcing according to the latest edition of global management consulting firm.

The report prepared in 2008 analyzes Sri Lanka taking off as a global outsourcing destination, steadily since 2005.

The A.T. Kearney report points out Sri Lanka as an outsourcing destination is in an advantageous position considering its proximity to India, and the increase in the number of UK qualified Accounting and Finance professionals, allowing the country to function as a backup to Indian outsourcing centres.

The geography of outsourcing is fast changing. Countries that were a safe bet a few years ago, and still attract large investments in the industry may have already peaked and are on the decline as future destinations.

Relatively unknown locations today may be important destinations tomorrow. The number of countries competing for the outsourcing business steadily expands and the different niche markets that countries serve multiply. Location decisions are not as straight forward as they used to be.