Business Process Outsourcing (BPO) has become an increasingly important industry for many countries, and Sri Lanka is no exception. BPO refers to the practice of outsourcing business processes to third-party companies, typically in order to cut costs and improve efficiency. In recent years, the BPO industry in Sri Lanka has grown rapidly, and it is expected to continue growing in the future. In this article, we will take a look at the current state of BPO in Sri Lanka, the factors driving its growth, the challenges faced by the industry, and the future prospects of BPO in Sri Lanka.
According to the Board of Investment of Sri Lanka, the BPO industry in the country has grown at a compound annual growth rate of 20% over the last decade. The industry currently employs over 100,000 people, and it is expected to create an additional 50,000 jobs by 2022. The main services offered by BPO companies in Sri Lanka include customer service, data entry, and back-office support. The key players in the BPO industry in Sri Lanka include Xpress BPO, Firstsource Solutions, WNS Global Services, Virtusa, and Quatrro.
The BPO industry in Sri Lanka is being driven by a number of factors. One of the main drivers is the country’s strong English proficiency. Sri Lanka has a high percentage of English speakers, with a literacy rate of 96.3%. This makes it an attractive destination for BPO services, as clear and effective communication is a vital aspect of the industry. Additionally, Sri Lanka has a well-developed IT infrastructure, with a total of 27,746 km of fiber-optic cable. This makes it easier for companies to set up BPO operations in the country, as they can easily access the necessary technology and resources.
The government of Sri Lanka has also played a key role in supporting the growth of the BPO industry. The government has introduced various initiatives and policies to attract foreign investment and promote the growth of the BPO industry. For example, the government has set up special economic zones (SEZs) specifically for BPO companies, which offer tax holidays and other incentives to companies that set up operations there. Additionally, the government has invested in the development of infrastructure and other resources, such as training centers, to support the growth of the BPO industry.
Despite the growth of the BPO industry in Sri Lanka, there are still a number of challenges that need to be overcome. One of the main challenges is the need for skilled talent. According to a study by the National Human Resource Development Council, there is a shortage of skilled professionals in the BPO industry, which makes it difficult for companies to find the talent they need. Additionally, there is a lack of infrastructure in certain parts of the country, which makes it difficult for companies to set up operations in those areas. Finally, access to funding is also a challenge for the BPO industry in Sri Lanka.
The future of BPO in Sri Lanka is bright. The industry is expected to continue growing at a rapid pace, and it is likely that new and emerging services will be added to the list of services offered by BPO companies in Sri Lanka. These new services include Artificial Intelligence (AI), Robotics, Automation and Digital Services. Additionally, the government is expected to introduce new initiatives and policies to further boost the growth of the BPO industry in Sri Lanka. According to a study by the National Human Resource Development Council, the BPO industry in Sri Lanka is expected to reach a revenue of $5 billion by 2025 and create 200,000 new jobs.
Furthermore, the government’s efforts to establish Sri Lanka as a hub for BPO services in the region are expected to attract more foreign investment and companies to the country. This is further supported by the country’s strategic location, as it is in close proximity to major markets such as India and China. As a result, more companies are expected to consider Sri Lanka as a destination for BPO services, which will further drive the growth of the industry.
It is also expected that the BPO industry will play a vital role in the country’s economic development, by creating jobs and contributing to the country’s GDP. According to a study by the National Human Resource Development Council, the BPO industry in Sri Lanka contributed to 2.5% of the country’s GDP in 2019.
In conclusion, the BPO industry in Sri Lanka has a bright future, with the government and industry players working together to overcome the challenges and capitalize on the opportunities. With the right partner, foreign companies can take advantage of the many benefits of BPO in Sri Lanka and achieve their business goals. Choosing the right BPO partner in Sri Lanka, such as Xpress BPO, can be a game-changer for your business. As the industry continues to grow and evolve, it is important for companies to stay informed and adapt to the changing landscape in order to be successful in the long-term.