outsourcing has evolved from the need to enhance competitiveness (autosaved)

Introduction

Sri Lanka is well known for its Tea Rubber Coconut and Tourism but in last few years

export value survey from Export Development Board indicates that the total earnings

from the KPO (ICT) and BPO industry was the 5th largest export revenue earner This is a

positive sign for Sri Lanka which is heading towards BPO and KPO industry boom The

main factor affecting this growth was the civil war which has existed in the country for

last 30 years and with the end of this war Sri Lanka is emerging to become one of the

best BPO and KPO destination

Sri Lanka is a developing country As a developing country in the business world we

cannot depend on our own resources to interact with customers and business partners

Due to the lack of knowledge and lack of resources businesses have to outsource some of

their activities as well as services But in a country like Sri Lanka there are no such

appropriate sources to outsource those kinds of services and activities in the near past

But now there is a growing industry for outsourcing activities and services It means Sri

Lanka has a growing market for Business Process Outsourcing and Knowledge Process

Outsourcing Before moving to the business process outsourcing and knowledge process

outsourcing we should concern about the history of business and knowledge process

outsourcing

Recently Sri Lanka has identified as one of the country that BPOrsquos and KPOrsquos are

emerging rapidly Sri Lanka has been competing for outsourcing business for several

years under the shadow of a 30-year war which increased risk In 2009 a war ended and

the country is looking forward to increasing services investments in particular

Outsourcing has evolved from the need to enhance competitiveness reduce costs and

maximize profits enabling companies to concentrate only on the core competence while

at the same time reducing operational risks involved in management It provides room to

increase productivity and efficiency in management The period of 1994-1996 saw a

boom in Business Process Outsourcing (BPO) activities Some business enterprises such

1

as GM Xerox Kodak and IBM have been incorporating the outsourcing ethic in their

business strategies for more than a decade

Outsourcing comprises of mainly the following functions

Human Resources

Procurement

Finance and Accounting

Customer Care

Logistics

Facilities Operations and Management

Training

Medical billing Transcriptions

First of all it is better to get a brief introduction about what is BPO It can be described as

follows

BPO

Definition BPO stands for business process outsourcing which is simply another term

for outsourcing This is when a company contracts an outside provider for services or

business processes This might include manufacturing or back-office functions such as

accounting and human resources But BPO might also include front-end services such as

customer care and technical support

Global BPO is another term for off shoring or outsourcing outside a companys home

country or primary market

BPO Advantages

Cost reductions- Cost reduction is done through process improvements

reengineering and use of technologies that reduce and bring administrative and

other costs under control

2

Concentration on core business- With the day-to-day back office operations

taken care of the management is free to concentrate more on the core business of

the company

Outside expertise- Company is saved from the hassles of recruiting and training

personnel BPOs ensure that experts from another company provide the needed

guidance and skills

Cater to changing customer demands- It is another great advantage of

outsourcing the business processes Many BPOs provide the management with

flexible and scalable services to meet the customers changing requirements and

to support company acquisitions consolidations and joint ventures

Revenue increase- As stated above by outsourcing non-core processes

companies can concentrate on increasing their sales and market share develop

new products spread out into new markets and increase customer service and

satisfaction

If we talk about some processes of BPO we can get a condense idea about this There is a

simple process that uses BPOs

Many businesses need data entered into systems or converted from hard copies to soft

versions This could be a result of a wide range of needs and could be done in various

ways An example could be entering a customerrsquos personal details that are on a hard copy

paper into computer systems so that better analysis can be done on that data

Some more examples are as follows

Data entry from hard copies and Image files into various computer (soft)

formats

Business data entry such as sales purchases and human resources

Data entry for electronic books and websites

Receipt and bill details entry into spreadsheets andor computer systems

3

Data entry into product catalogues

Data entry into various mailing lists

Converting data from one format to other formats based on client needs

(eg From Microsoft Word to HTML format)

Insurance Processing - When clients submit insurance claims to insurance

companies in most cases the processing of those requests can be

standardized and outsourced Such processing takes place based on set

criteria therefore there shouldnrsquot be much trouble in sending it off to a

more cost effective location

Form Processing Services - Just like the Insurance claims processing

previously discussed many other types of forms processing work can be

outsourced as well It can be as simple as processing Credit Card

application forms Other aspects could be medical forms processing

medical billing services online form processing and payroll processing

etc

Some of the above work can be termed back office work (as you donrsquot have to do them in

the front office that interfaces with customers) and also administration related business

processes

Other than these tasks there are more BPO categories operating in the Sri Lankan

industry Those processes can be categorized as below

Finance and accounting

o General accounting

o Payroll

o Account receivables

o Tax and regulatory compliance

o Budgeting

o Cash management etc

Investment and asset management

o Investment researches

4

Human resources

o Employee hiring

o Payroll( varying from company to company)

o Legal

Procurement

o Requisition and approval

o Order management

o Account payable

Logistics

o Product selection

o Delivery

o Installation

o Warehouse management

Real estate management

Miscellaneous (energy service customer service mail room food processing)

KPO

Definition Knowledge process outsourcing (KPO) is the allocation of relatively high-

level tasks to an outside organization or a different group in a different geographic

location Examples of KPO include long-term jobs for intellectual analytical and

knowledgeable people within industries such as research and development financial

consultancy and services business and technical analysis and many others

In the KPO scenario it is not about standard business processes It is about things like

outsourcing the documentation of a market research report Or asking a third party to do

an analysis of your organizationrsquos financial accounts for the last 5 years Now these are

not standard things They are specialized they are not repetitive and require application

of special knowledge Hence they are knowledge based processes as opposed to standard

business processes

5

The Outsourcing Industry has been extensively researched in the past decade Business

Process Outsourcing (BPO) in particular has been the topic of many analyses

Outsourcing first appeared in the IT industry in the 1980s This was the time when

companies recognized the benefits of having IT service partners in order to develop

complex systems and enhance the way that a business process or service is managed

Since then the outsourcing industry has gone through its introduction and growth stages

with growth rates of around 50 and has reached its transformation stage Increasing

globalization and high pressure to innovate have substantially shortened the product and

service life cycles Industry life cycles have therefore become shorter and shorter -

outsourcing is no exception

Knowledge Process Outsourcing (KPO) is the next step up the outsourcing value chain

While BPO provides extensive process expertise KPO is emphasizes on business

expertise KPO indicates a major industry shift away from execution of standardized

processes to carrying out highly complex and customized processes that demand

advanced analytical and technical skills as well as decisive judgment

Knowledge process outsourcing (KPO) is a form of outsourcing in which knowledge

related and information related work is carried out by workers in a different company or

by a subsidiary of the same organization which may be in the same country or in an

offshore location to save cost Unlike the outsourcing of manufacturing this typically

involves high-value work carried out by highly skilled staff KPO firms in addition to

providing expertise in the processes themselves often make many low level business

decisions typically those that are easily undone if they conflict with higher-level business

plans This term is very new to the south Asian countries KPO typically requires people

with higher education specific skills and specialized business experience As the work

entails decision-making offshore teams would need to be more closely integrated with

the onshore teams that they support than would be the case in a typical outsourcing

engagement Outsourcing is not a trivial process It is a large scale process and most

western countries use that abundantly Therefore it causes to reduce administrative

expenses and risks Outsourcing is knowledge based process therefore that is always

6

being a vital activity in an every organization KPO is becoming more complex than

BPO The reason is knowledge is important as physical assets

The Knowledge Services sector which encompasses IT software development

Knowledge Process Outsourcing Business Process Outsourcing industry IT and IT

enabled services and IT Training sectors has tremendous potential to emerge as a key

growth sector in Sri Lanka Given the quality of students level of English and literacy

and the proximity to India Sri Lanka is in an ideal position to develop into a high value

added IT KPO services provider

It is being claimed that KPO is one step extension of Business Processing Outsourcing

(BPO) because BPO Industry is shaping into Knowledge Process Outsourcing because of

its favorable advantageous and future scope But let us not treat it only a B replaced by

a K In fact Knowledge process can be defined as high added value processes chain

where the achievement of objectives is highly dependent on the skills domain knowledge

and experience of the people carrying out the activity And when this activity gets

outsourced a new business activity emerges which is generally known as Knowledge

Process Outsourcing A study on Knowledge Process Outsourcing (KPO) sector shows a

huge supply gap that threatens to cripple its growth

Many companies outsource to KPOs because KPOs have better knowledge base and

economies of scale to provide cost-effective results Therefore a KPO can perform

market research for its clients process complex data and process reports or create

solutions for its clients

Considering the complex nature of the work of KPOs they need subject experts for

content functional experts for results analysis and domain experts for different industries

A vast pool of highly educated professionals in Engineering Medicine Management and

Accountancy etc are required to serve the KPO industry KPO jobs are challenging as

they provide domain knowledge and process expertise with analytical skills for analyzing

data using resources for information research and making presentable reports from raw

data

7

Some of the skills required by KPO specialists are

Ability to acquire Domain Knowledge (in a wide range of domains)

Understanding of End-User Applications

Clear and Precise Written Communication

Financial accounting analysis and research

Online Research

Online Surveys

Online Marketing

Proposal Writing

Information Technology (IT) Consulting

As you can see just like BPO KPOs are also wide ranged There is work related to

financial accounting research ICT medicine insurance etc

As an example if we take Finance and Accounting KPOs they provide end-to-end

finance and accounting processes such as

Purchase to Pay Cycle

Order to Cash Cycle

Account to Report

Banking and Treasury Cycle

Fixed Assets Cycle

General Account Cycle and

Management Reporting Cycle

We will talk about specific areas within KPOs in future editions of this column

Some of the challenges involved in KPO will be around the requirement for high

standards investment in KPO infrastructure lack of talent pool and requirement for

higher level of control and risk management

8

Statement of the problem

Does current status of the BPO and KPO industry favorable to Sri Lanka What

are the future trends and consequences of growing amounts of BPOs and KPOs in

Sri Lanka

Current status means the current employment current revenue earnings awareness of the

people etc are they in a satisfactory level In this case the currently operating companies

number of employees in those companies current position of the Sri Lanka comparing to

the world industry and contribution to the economy are analyzed under the topic

Also under the future trends and consequences of the industry research elaborate about

the new entrants to the industry steps taken for the development of the industry and

future trend in the job market of this industry etc and also the future impact of these steps

on the industry is discussed as well

Objective of the research

The main objective of the research is to identify the current situation of the industry in Sri

Lanka and find out the weaknesses of the industry Also after identifying opportunities of

the industry suggest actions to be the best outsourcing destination in the world

Significance of the study

This study is important to identify Sri Lankan BPO and KPO industry and consider the

steps to be taken for the development of the industry Also this research is very important

to the employees in the field people who like to join with the industry and students who

are studying about the industry

Survey methodology

To conduct the survey first of all we checked the places of getting information to this and

persons Then we got some appointments from Amba research WNS global and MAS

9

holding While getting information from those companies we conducted a survey on face

book We asked some university students about the awareness on BPOs and KPOs Then

we went to Lanka BPO academy to get information There we got lot of information

about the industry While conducting the research we interviewed people by using

different methods such as face to face interviews through face book through twitter and

through MySpace

In live interviews we interviewed 43 people including university students and employees

18 people by using face book 50 people by using twitter and 10 people by using

MySpace

face to faceface booktwittermyspace

43

15

50

10

10

People interviewed

Current status of BPO amp KPO industry in Sri Lanka

The BPO sector focus on Financial amp Accounting services Investment research

Engineering services and UK based Legal services Sri Lanka is emerging as a global

BPO destination of choice in number of key focus domain areas Sri Lanka is ranked

among the Top 50 Global Outsourcing destinations by AT Kearney and ranked among

Top 20 Emerging Cities by Global Services Magazine

There are about 15000 people working in the BPO industry IT and BPO collectively is

the fifth highest foreign revenue income source for Sri Lanka and that speaks for its

vitality The financial and accounting services outsourcing sector has had a significant

growth in Sri Lanka Colombo now has the worldrsquos largest pool of UK qualified English

speaking accounting professionals outside the UK itself Many global companies have

chosen to set up their niche centers that expertise a certain area in Sri Lanka And also

BPO industry is contributing to the Gross Domestic Production by generating $400

million per year

BPOs now in Sri Lanka Currently outsourcing agencies such as Industrial amp Financial

Systems (IFS) HSBC Astron Aegis e-Collage Virtusa and Millennium Information

Technology Hello Corp Amba Research RR Donnelley Quattro and Timex BPO and

Finance Centers such as WNS Global Services exist in Sri Lanka Almost all of these are

owned by large foreign parent companies

If we take the status of the BPO and KPO industry income wise hare is a growth in the

industry year by year By reading below information we can understand where we are in

the industry

AT KERNEY ranking

In year 2011 AT Kearneyrsquos Global Services Location indexing ranked Sri Lanka among

the top 50 global outsourcing destinations and in year 2009 Sri Lanka has reached the 16 th

position But in the 2011 Sri Lanka slipped down to 21st position in ranking index There

are other rankings which rank the BPO and KPO industry as follows

11

GARTNER ranking

Worldrsquos leading research and advisory company Gartner Inc has ranked Sri Lanka

among the top 9 countries in the AsiaPacific Region for globally sourced activities in

2010-2011

Sri Lanka was among the Top 30 locations for offshore services in 2010 in Asia being

ranked by this firm and other countries in the AsiaPacific region include Bangladesh

China India Indonesia Malaysia the Philippines Sri Lanka Thailand and Vietnam

IBM ranking

In IBMrsquos Global Location Trends report for 2010 Philippines has got the top place

displacing India for the first time in terms of estimated number of workers in outsourcing

industry According to their ranking Sri Lanka is in the 12th position

The following is the order of rankings indicated in this report

Philippines India United States Poland China United Kingdom Colombia Costa Rica

Fiji Ireland South Africa Sri Lanka Hungary Australia Egypt Chile France Canada

France Singapore and Netherlands

GLOBAL SERVICES ranking

According to the global services Sri Lanka is in the top 10 emerging global destinations

in outsourcing industry in the world

These rankings are varying one to another The reason for that are the ranking criteria of

those companies In terms of financial attractiveness Sri Lanka is in the 5 th position in the

world when India and China is in the 1st and 2nd positions

In the Sri Lankan economy BPO and KPO earnings has shown a stable growing trend

during the last few years These figures are mentioned below

12

Year Exports earnings (USD Millions)

2005 107

2006 117

2007 193

2008 256

2009 271

2010 310

2011 400

2005 2006 2007 2008 2009 2010 20110

2

4

6

8

10

12

Column2

Then when we were considering the current BPO and KPO institutes that conducting the

professional courses for this industry we found that there are only handful institutes in Sri

Lanka Actually there is one authorized institute that conducts programmes for the

students That is the Lanka BPO Academy They are conducting programmes with the

BPO Training Institute of United States The current status of learning about this field is

present at a very low level As they said us the total students that qualified and get the

certificates are around 300 per year In respect to the other countries it is a very low level

In the world there are 50000 student are qualifying per year on this industry

13

Currently the government and the BPO academy is putting some effort to popular this

field among people and mainly among students who are seeking new professional ways

At the moment they are conducting below programmes

BPO training programme for graduates collaborating with the Ministry of Higher

Education and the University of Colombo

Programme for the school leavers (after AL) with the help of youth affairs and

skills development

Training programmes for schools for teachers etc

Then if we talk about the current investment of this industry in Sri Lanka The total

investment of the 21 surveyed companies is slightly over USD 132 million These

investments are mostly under the Board of Investment of Sri Lanka (BOI) The total

offshore investment is USD 43 million compared to the USD 78 million worth of

onshore investments

Type of BPO amp KPO investment In millions (USD)

BOI investments 118

Non ‐BOI investments 14

Total investment in the sector 132

BPO and KPO investment with BOI (Board of Investment) status

Type of BPO investment In millions (USD)

Offshore investments 43

Onshore investments 78

BPOs that are both onshore and offshore 11


Offshore onshore BPO investments

14

Reasons for locating in Sri Lanka


Sri Lankarsquos main attraction for the BPO business is low labor and low operating costs A

majority of the surveyed companies (71) cited lower labor costs as an important

deciding factor This included 73 of offshore BPOs and 63 of onshore BPOs The

finding is in line with a recent World Bank report on off shoring to Sri Lanka (henceforth

referred to as the ldquoWorld Bank reportrdquo) which suggests that Sri Lankarsquos labor costs are

among the lowest when compared to other global BPO outsourcing destinations

World Bank report cites that labor cost per hour in Sri Lanka (at less than USD 060) is

lower than in Mexico (USD 160 ‐ USD 210) Thailand (USD 110 ‐ USD 160) China

Philippines and India (USD 060 ‐ USD 110)

The second most frequently cited reason for selecting Sri Lanka to set up a BPO unit is

the lower costs of conducting operations This was mentioned by 67 of the respondents

(73 of offshore BPOs and 50 of onshore BPOs)

Tax incentives is the third most common reason for locating BPOs in Sri Lanka (48)

indicating that government incentives are successful in attracting BPO investments

particularly foreign investments Almost two thirds (64) of offshore companies cited

tax incentives as important compared to the 25 of onshore companies

15

Over one third of the companies (38) cited the timedistance advantage due to Sri

Lankarsquos geographic situation as a deciding factor This is of importance mainly to

offshore operators Over half (55) the offshore companies cited time and distance as a

deciding factor compared to only 13 of onshore companies

A little over one fourth (29) of the companies cited duty exemptions on capital goods

(another government incentive) as significant when deciding to locate a BPO operation

in Sri Lanka This included 27 of offshore companies and 25 of onshore companies

Most BPO operators (90) did not think cultural similarity is a significant factor

As well as these reasons there are some more reasons for entering of BPO and KPO

companies into Sri Lanka

The Sri Lankan economy is one of the most

o Business Friendly in South Asia

o Liberalized in South Asia

Total foreign ownership of investments permitted

Up to 12 year Tax Holidays for ITBPOKPO Industry

Foreign Exch (current ac payments)

No restrictions

Safety of foreign Investment guaranteed by constitution

Double Tax Relief

Equal treatment of foreign amp local investors

Sri Lanka is ranked 03 in the Doing Business Rankings of the World Bank

16

Then if we talk about the current employment and their benefits Sri Lanka is a very good

place for BPO and KPO employees In the current status the employment in the BPO and

KPO industry is growing rapidly It can be shown as below

YEAR EMPLOYMENT

2007 6500 +

2008 8200 +

2009 10900 +

2010 13100 +

2011 15000 +

Employment in the BPO and KPO industry in recent years

2007 2008 2009 2010 20110

2000

4000

6000

8000

10000

12000

14000

16000

Employment in BPO and KPO industry

17

Currently after every three months BPO and KPO companies recruit new employees as

there new agents But according to the current status there are no such trained people to

fulfill those vacancies

For an example three years back an Indian company came to Sri Lanka to start their

venture here They planned to recruit 1000 people each year and do it for three years

But unfortunately they could recruit 140 employees yet

Then if we take the employee salary rates in the current market it is very high We can

understand about that from the below pyramid

Top level 6 years

Middle level 4 years

Supervisory 2 years

Then if we take the ages of the current employees in the industry majority of the

employees are youngsters Most of them are between 18 years to 24 years old youngsters

Secondly there are people who are between 25years to 35 years are working in this

industry We can get a clear idea about that by looking the below pie chart

18

Head of operation head of HR

Rs200 000 -600000

Assistant manager manager

Rs50 000- 200000

Senior agentTeam leaderTrainer

Rs25 000 - 60000

Agent Executive Associate

Rs15 000 ndash 25000Entry level 4 months

18-24 years25-35 years36-45 years45 + years

5930

83

If we take the BPO and KPO employees by educational qualifications majority of them

are AL holders And there are graduates professional qualification holders diploma

holders OL holders others and post graduates respectively We can understand this by

referencing below chart

AL holdersGraduatesProfessional qual HoldersDiploma holders OL holdersOthers Post grads

15

13

19

Age distribution amongst workers

Finally when we were surveying about the obstacles to Sri Lankan BPO and KPO

industry we could identify some major obstacles as well as miner ones

Most of the employees who we interviewed said Mass transport is one of

the most frequently cited obstacles to growth and operations It means

most of the working hours are formed according to the British working

hours since most of the companies is British companies So employees

especially females cannot go back to their homes due to the transport

difficulties

Then other main obstacle of the expansion of the industry is the

telecommunication facilities in our country In Sri Lanka the

telecommunication facilities are not well established over rural areas So

industry is limited into Colombo area only

Finally when considering the awareness about the industry among age groups we could

identify below things The answers they have given us as below

I am fully aware of both

Only aware of BPO

Only aware of KPO

I have heard but not knowing about it

I am not aware of both (nothing)

The percentages of the given answers are clearly mentioned on the below pie chart Only

5 of the people are fully aware of both BPOs and KPOs And another 10 are only

aware of BPOs The percentage of the people who only aware of KPOs is 5 Also 20

of the people have heard about this but not knowing about it Finally 60 of the people

do not know anything about both BPOs and KPOs

20

fully aware of bothonly KPOonly BPOheard but not having wide ideanot aware of both

Awareness about the BPO and KPO industry

FUTURE TRENDS IN BPO AND KPO INDUSTRY

Then coming to the future trends of this industry there are so many things to be

considered than other industries As trends

We could observe that there is a great opportunity for Small and Medium

Enterprises to enter the industry

The growing BPO industry in Colombo offers a unique advantage for Small and Medium

Enterprises (SME) to enjoy premium access to a high quality talent pool which is

becoming increasingly challenging in large established destinations such as India and

China The environment is also highly favorable for establishing high-in-demand niche

competency centers out of competition for even larger global services companies

Government is giving incentives and other supports for the industry

21

The national level competency development programs focus on building Sri Lanka as a

Center of Excellence (COE) for key focus domain areas The BPO sector focus on

Financial amp Accounting services Investment research Engineering services and UK

based Legal services The BPO and KPO industry has been identified as a propel industry

by the government By recognizing the potential of the industry the government has

taken number of positive steps by providing fiscal and other incentives and support to

speed up the development of the sector

Employment opportunity

Currently over 15000 employees are working in the industry But it is not sufficient for

the demand of vacancies and the demand of the industry There are many people who like

to work in the industry But they do not have enough qualifications The future plan of

the industry is to make the 15000 employees into 50000 by the year 2015 So this is a

great opportunity for the people who are willing to enter the industry Also the

employment is growing 15 - 205 year by year

Changes in the global economic environment

In 2009 2010 there was a great economic crisis in the western countries As a result of

this many of the big companies tended to outsource their works from the outsourcing

companies But they had a problem of cost If they outsourced their works from their

country it would be taken high cost So they turn into our countries to outsource their

works That was a great opportunity for us to develop our industry Since now Sri Lanka

is in the 5th position in terms of financial attractiveness in the world

Education level required by the industry

In Sri Lanka there are no many people who have qualifications on BPO and KPO

industry And also there are no many institutes to conduct education on the industry

Most of the people in the industry are learn through their experiences But there are few

skilled people who in the industry currently But now there is one institute who conduct

courses for students who are willing to get qualifications

22

Awareness of the people

As mentioned earlier most of the people donrsquot have clear awareness about the industry

When conducting the research we did some surveys on face book twitter MySpace and

talking to the people

Nearly 20 of people have the full awareness on both BPO and KPO

40 of people have heard about that but donrsquot have clear idea

18 of them know only about the BPO

22 of them donrsquot know anything about this industry

So this is a very good opportunity for newly entering people to the industry They have

good chance to grow up in the near future due to the rapid development of the industry

Since the BPO and KPO industry large but hidden industry in Sri Lanka

Entry of new BPO and KPO companies to Sri Lanka

In the next few months two or more BPO and KPO companies going to be started in Sri

Lanka So it is a very god opportunity for the employees who are working now in the

industry They can get better jobs at better salaries in these companies since newly

entering companies tend to hire employees from the current companies

CONSEQUENCES OF THE BPO AND KPO INDUSTRY

As e result of rapid growth of the industry Sri Lanka is facing to both positive and

negative consequences First it is better to talk about the positive consequences of the

industry

Investment

In last seven years more BPO and KPO companies has invested in Sri Lanka As a result

of this thousands of employment opportunities has created and they could contribute to

23

the economy by generating millions of income Also as a result of this BPO and KPO

industry have become the 5th largest income generation source in the country

Employment

As a result of emerging of outsourcing companies youngsters got an opportunity to

getting employment in those companies Not like other industries this industry does not

have an excess people to work So as a result of this they can reach to a good success in

this industry

Also there are no many matured people in this industry As a result of this young people

have more opportunity of getting employment in this field

Since the majority is youngsters they can get good opportunity to climb- up to the top

positions of the companies When they got promotions newly entered employees can get

their promotions also

Income generation

In last few years the income generated by the industry has grown up rapidly According

to the statistics BPO and KPO industry is the 5 th largest income generation source in the

Sri Lankan economy Due to the growth of this industry Sri Lanka can earn more income

in the future According to the statistics BPO and KPO industry targets to get US$ 1

billion income in 2015

Literacy

If we take the literacy side in Sri Lanka due to this industry the ability to operate

computers communication skills accounting knowledge and other skills are growing up

Most of the BPO and KPO companies are seeking the people who have above skills So

to get a job in outsourcing company employees have to develop their above skills

And also after joining to the BPO or KPO Company they provide a short term training

programme for every employee before start their works Due to that reason this is a very

24

good opportunity for the employees as well as the people who are willing to join with the

industry

Improving computer literacy

With the growth of this industry our youngsters can get a good opportunity for improve

their literacy on information and communication technology

On the other way around there are some negative consequences of the industry as well

Foreign investment

In Sri Lanka most of the BPO and KPO companies are foreign owned Further 75

percent of the BPO and KPO companies in Sri Lanka are foreign direct investments In

near future three or more foreign companies going to be established in the market

Sometimes this will influence badly on our economy

Barrier liberalization

Legal language and cultural barriers can cause serious problems Sometimes foreign

companies may ask for legal liberalizations from the government when they become

stronger in the market

25

STEPS TO BE SUCCESS

In Sri Lanka we could find main weaknesses in the BPO and KPO industry Those are

English

Telecommunications (+land)

Mass transport

Non availability of BOI permitted BPO and KPO zone

Lack of skillful employees for vacancies

Lack of awareness in rural areas

Lack of computer literacy in rural areas

English

In outsourcing industry English knowledge is very much important The main reason for

that majority of the companies are foreign companies Their language is English And

also 100 percent of our clients are from the foreign countries So we have to develop our

English literacy

Telecommunication and infrastructure

One of the major barriers to the industry is the lack of telecommunication infrastructure

in other areas in the country at the same time Colombo has developed facilities Due to

that reason the industry is limited to the Colombo area If there were substantial

infrastructure facilities in rural areas where space would not be an issue compared to

Colombo they could easily expand and also employ people from the same areas thus

providing a solution to the unemployment problem This is also one of the main reasons

why the government has to provide the necessary services infrastructure to the rural areas

as fast as possible

Mass transport

Most of the time outsourcing companies are foreign owned So they have to work

according to the clientsrsquo or mother companyrsquosrsquo time schedule In this case employees

cannot procure their transportation facilities from public transportation Then companies

have to provide transport facilities for them

26


Like in Philippines there is no such a zone for the industry In Philippines there is a

particular town only for BPO and KPO companies But in Sri Lanka there is no such

place like Philippines


In Sri Lanka there are no enough skillful people to fulfill vacancies Currently there are

many job opportunities in BPO and KPO for the people But unfortunately there is a

scarcity of skillful in the market


In Sri Lanka communication infrastructure is well developed everywhere specially IT

Due to that reason people who are living in rural areas do not have considerable

awareness about BPO and KPO industry


Due to the scarcity of information and communication infrastructure the children who are

in those areas do not have appreciable knowledge about IT So they do not know about

these kinds of industry opportunities

In addition to these problems Sri Lankan BPO and KPO companies are facing some other

difficulties as well such as

There is no proper authority to take on the woes of these companies and or

advice them and help them expand which would help reduce unemployment

considerably

high rent

One of the other major issues that they face is the high rent that has to be paid for

operating from Colombo This makes them pass on the added expenses to the client and

therefore put their next job at risk

27

These kinds of problems are always in Sri Lanka since we are a developing country So

as a government and as companies they have to encourage people to eliminate these kinds

of problems To do this they have to take some steps by negotiating with everyone in the

field with general agreement Also they have to do this in aright manner

Recommendations for the growth of the industry

To make popular the BPO and KPO industry Sri Lankan government and the industrial

companies are taking some actions currently In the government side the actions that they

are taking and they can take are mentioned below They are

Start to develop the computer literacy

This is a good thing that can happen to our rural people and the whole country The

government and the ICTA(Information and Communication Technology Agency of Sri Lanka)

has come up with various programs such as initiating Nenasala centers in rural sectors

ranging from Trincomalee to Anuradhapura and Polonnaruwa and also the upcountry By

doing this their target is to open up 1000 Nenasala centers across the island

Also the English knowledge of the people especially youngsters like after AL should be

improved So the government is conducting by English training programmes to improve

the knowledge of English of those people If not people from rural areas cannot move

with foreign clients

Develop telecommunication infrastructure

In Sri Lanka telecommunication infrastructure is very poor in rural areas like

Hambantota Monaragala and areas which assaulted by the war like Vavuniya

Mullaithivu etc due to the 30 years war infrastructure of some areas has destroyed

completely So in order to develop the industry (rural BPO and KPO) we have to re-build

28

the infrastructure of those areas Mostly it is really useful to expand the industry to the

rural areas in the country

Mass transport

In Sri Lanka one of the major issues facing by the employees is transportation Most of

the companies are working according to the foreign working hours since most of the

companies are foreign owned So in some cases employees have to work till late night

according to the foreign hours Due to that reason mostly female employees and some of

the male employees who are coming from out station are facing some difficulties in going

back to the houses or shelters

To overcome this problem both government and companies can take actions in their

sides In the side of the government they can execute a transportation plan for the

employees who work in nights But sometimes it is difficult to send many buses to all the

areas But it should be done in proper way Government can put buses to the roads which

many employees are coming to work such as high level road etc

From the side of BPO and KPO companies they also can execute transportation services

for those employees For an example in the garment factories provide transportation for

their employees Like that BPO and KPO companies can provide transport service to the

employees it is better to encourage them to work well But it is not easy to provide

transport for all the employees To do it they have to follow a systematic way If they can

hire employees from same areas such as some from one particular area another group

from that area likewise they can implement it very wellP


In Sri Lanka there are no highly skilled employees in the BPO and KPO industry since

the industry is not very much famous in the country In our country people are not aware

about the job opportunities and path to go in the industry And also there are no such

approved institutes in Sri Lanka to give a proper education to the people who like to join

with this industry

29

In Sri Lanka there is only one institute to give knowledge to people about the industry

But it is not sufficient and to make aware the people government should inspirit the

institute to expand their service island wide But also there should be a better way or

approach to do it If the government let them to expand their service there should be

effective quality guidance for it

On the other hand if a BPO or KPO company need to recruit new employees for their

company they have to give a minimum of two weeks training for those new employees

about their tasks But in well established BPO and KPO companies in other countries

those employees do not have any training normally So in our country we have to give a

better training for newly recruiting employees So we have to establish effective system

to train new employees in the industry


Since the industry is still growing in Sri Lanka most of the people do not aware about

what it is What is happening in the industry What are the activities Like that Due to

that reason the percentage of new entrants to the industry is low in our country Also due

to poor facilities such as telecommunication and other things the industry has not being

disseminated to the rural areas In Sri Lanka most of the people in rural areas never heard

about this industry Mostly people who are after 30 years of age do not know anything

about that Also some youngsters even do not know about the real meaning of BPO and

KPO

So to make aware the people of rural areas we have to take some actions as the

government as well as the industrial stakeholders To make them aware they have to

conduct awareness programmes in those areas

Currently the Lanka BPO Academy is conducting awareness programs with the support

of the government for the school students But it does not cover majority of rural areas

Those programmes are limited to particular area So if the government can help to expand

it by supplying facilities they need the people of the rural areas can get to know about the

30

industry well By doing awareness programs in rural areas some benefits can be aroused

as below

o Youngsters will aware about the industry

If government and the companies can conduct programs to the school students (AL) they

will tend to search about the industry and then try to learn about the industry If school

leavers get to know about the industry it will be a benefit for the industry

o Develop skills of the people

If the government tries to make aware school leavers and other youngsters with the help

of institutes they tend to learn courses related to the industry Then it is easy to recruit

new employees to the industry Since they have knowledge about the industry companies

can recruit skilled employees

o Can extend the industry to the rural areas

If the people of rural areas know about the industry and if they have better technology

like internet telecommunication and other infrastructures companies can easily extend

the services and their operational areas to those areas It means they can establish their

companies in those areas But not in very rural areas they can establish companies in

areas like Hambantota Kandy Then employment opportunities can be created in those

areas easily

But there are some BPO operations in Mahavilachchiya Galle and Kandy as well as in

areas such as Gampala and Piliyandala However itrsquos still only a handful of operations

So by supporting to expand the industry they can easily operate in these areas than

earlier Also the employment opportunities can be created as well

31


In Sri Lanka the computer literacy of school students in outside the Colombo is not much

developed comparing with the Colombo students due to lack of facilities So companies

are facing some difficulties when finding people for the industrial vacanciesSo

government has to take actions to improve the computer literacy of school leavers and students

in those areas This is a good thing that can happen to our rural people and the whole country

The government and the ICTA has come up with various programs such as initiating Nenasala

centers in rural sectors ranging from Trincomalee to Anuradhapura and Polonnaruwa and also

the upcountry

Their target was to open up 1000 Nenasala centers across the island by 2007 But still

they could open 665 Nenasala centers island wide So this is not sufficient for the

country They have to get actions effectively and efficiently than earlier to achieve that

target of 1000 Nenasala

By taking these actions only Sri Lanka can be the Center Of Excellence in the future In

the near future some more BPO and KPO companies are trying to enter in to the Sri

Lankan industry So we have to get ready for these situations And also other countries

who are doing their operations in the industry better than us such as India Philippines are

taking actions to develop their industry as well So to give a good competition for those

countries Sri Lanka has to build up the standards of the service as well as the facilities

References

o Yasas Vishuddhi Abeywickrama (2011) Emerging trends in the BPO industry

httpwwwislandlk[2012 Feb 21]

o Yasas Vishuddhi Abeywickrama (2011) Outsourcing Lanka in 12th place on

IBMrsquos Global Location Trends httpwwwislandlk[2012 Feb 22]

o Nandun Fernando (2012 Mar) What is BPO EDEX magazine 26 -29

o Madu Rathnayake ( 2010) daily news wwwdailynewslk20110613bus04asp

o wwwlankabusinessonlinecomfullstory(7 Dec 2010)[2012 Feb 23]

32

o lanka BPO academy wwwlanka bpoacademy lk[ 2012 Feb 18]

33

Yasas Vishuddhi Abeywickrama (2011) Emerging trends in the BPO industry httpwwwislandlk[2012 Feb 21]

Yasas Vishuddhi Abeywickrama (2011) Outsourcing Lanka in 12th place on IBMrsquos Global Location Trends httpwwwislandlk[2012 Feb 22]

Nandun Fernando (2012 Mar) What is BPO EDEX magazine 26 -29

Madu Rathnayake ( 2010) daily news wwwdailynewslk20110613bus04asp

wwwlankabusinessonlinecomfullstory(7 Dec 2010)[2012 Feb 23]

lanka BPO academy wwwlankabpoacademylk[2012 Feb 18]

as GM Xerox Kodak and IBM have been incorporating the outsourcing ethic in their

business strategies for more than a decade

Outsourcing comprises of mainly the following functions

Human Resources

Procurement

Finance and Accounting

Customer Care

Logistics

Facilities Operations and Management

Training

Medical billing Transcriptions

First of all it is better to get a brief introduction about what is BPO It can be described as

follows

BPO

Definition BPO stands for business process outsourcing which is simply another term

for outsourcing This is when a company contracts an outside provider for services or

business processes This might include manufacturing or back-office functions such as

accounting and human resources But BPO might also include front-end services such as

customer care and technical support

Global BPO is another term for off shoring or outsourcing outside a companys home

country or primary market

BPO Advantages

Cost reductions- Cost reduction is done through process improvements

reengineering and use of technologies that reduce and bring administrative and

other costs under control

2



the company



guidance and skills








satisfaction









formats




3















etc



processes





o Payroll



o Budgeting




4

Human resources

o Employee hiring


o Legal

Procurement


o Order management

o Account payable

Logistics

o Product selection

o Delivery

o Installation




KPO











business processes

5






























6




























data

7






Online Research

Online Surveys

Online Marketing

Proposal Writing







Order to Cash Cycle

Account to Report


Fixed Assets Cycle







8




Sri Lanka


















Survey methodology



9






through MySpace



MySpace


43

15

50

10

10

People interviewed














million per year








the industry

AT KERNEY ranking





11

GARTNER ranking



2010-2011




IBM ranking
















12


2005 107

2006 117

2007 193

2008 256

2009 271

2010 310

2011 400

2005 2006 2007 2008 2009 2010 20110

2

4

6

8

10

12

Column2









13







skills development






onshore investments


BOI investments 118










14



















15

















No restrictions


Double Tax Relief



16




YEAR EMPLOYMENT

2007 6500 +

2008 8200 +

2009 10900 +

2010 13100 +

2011 15000 +


2007 2008 2009 2010 20110

2000

4000

6000

8000

10000

12000

14000

16000


17









Top level 6 years


Supervisory 2 years





18


Rs200 000 -600000


Rs50 000- 200000


Rs25 000 - 60000




5930

83






15

13

19









difficulties








Only aware of BPO

Only aware of KPO








20














21




























22




















industry

Investment



23



Employment




this industry






Income generation






Literacy







24


industry





Foreign investment









25

STEPS TO BE SUCCESS


English


Mass transport





English




English literacy









as fast as possible

Mass transport





26





















considerably

high rent




27
























28



Mass transport
























with this industry

29




















KPO








30


as below
















areas easily





31









the upcountry











References








32


33









the company



guidance and skills








satisfaction









formats




3















etc



processes





o Payroll



o Budgeting




4

Human resources

o Employee hiring


o Legal

Procurement


o Order management

o Account payable

Logistics

o Product selection

o Delivery

o Installation




KPO











business processes

5






























6




























data

7






Online Research

Online Surveys

Online Marketing

Proposal Writing







Order to Cash Cycle

Account to Report


Fixed Assets Cycle







8




Sri Lanka


















Survey methodology



9






through MySpace



MySpace


43

15

50

10

10

People interviewed














million per year








the industry

AT KERNEY ranking





11

GARTNER ranking



2010-2011




IBM ranking
















12


2005 107

2006 117

2007 193

2008 256

2009 271

2010 310

2011 400

2005 2006 2007 2008 2009 2010 20110

2

4

6

8

10

12

Column2









13







skills development






onshore investments


BOI investments 118










14



















15

















No restrictions


Double Tax Relief



16




YEAR EMPLOYMENT

2007 6500 +

2008 8200 +

2009 10900 +

2010 13100 +

2011 15000 +


2007 2008 2009 2010 20110

2000

4000

6000

8000

10000

12000

14000

16000


17









Top level 6 years


Supervisory 2 years





18


Rs200 000 -600000


Rs50 000- 200000


Rs25 000 - 60000




5930

83






15

13

19









difficulties








Only aware of BPO

Only aware of KPO








20














21




























22




















industry

Investment



23



Employment




this industry






Income generation






Literacy







24


industry





Foreign investment









25

STEPS TO BE SUCCESS


English


Mass transport





English




English literacy









as fast as possible

Mass transport





26





















considerably

high rent




27
























28



Mass transport
























with this industry

29




















KPO








30


as below
















areas easily





31









the upcountry











References








32


33





















etc



processes





o Payroll



o Budgeting




4

Human resources

o Employee hiring


o Legal

Procurement


o Order management

o Account payable

Logistics

o Product selection

o Delivery

o Installation




KPO











business processes

5






























6




























data

7






Online Research

Online Surveys

Online Marketing

Proposal Writing







Order to Cash Cycle

Account to Report


Fixed Assets Cycle







8




Sri Lanka


















Survey methodology



9






through MySpace



MySpace


43

15

50

10

10

People interviewed














million per year








the industry

AT KERNEY ranking





11

GARTNER ranking



2010-2011




IBM ranking
















12


2005 107

2006 117

2007 193

2008 256

2009 271

2010 310

2011 400

2005 2006 2007 2008 2009 2010 20110

2

4

6

8

10

12

Column2









13







skills development






onshore investments


BOI investments 118










14



















15

















No restrictions


Double Tax Relief



16




YEAR EMPLOYMENT

2007 6500 +

2008 8200 +

2009 10900 +

2010 13100 +

2011 15000 +


2007 2008 2009 2010 20110

2000

4000

6000

8000

10000

12000

14000

16000


17









Top level 6 years


Supervisory 2 years





18


Rs200 000 -600000


Rs50 000- 200000


Rs25 000 - 60000




5930

83






15

13

19









difficulties








Only aware of BPO

Only aware of KPO








20














21




























22




















industry

Investment



23



Employment




this industry






Income generation






Literacy







24


industry





Foreign investment









25

STEPS TO BE SUCCESS


English


Mass transport





English




English literacy









as fast as possible

Mass transport





26





















considerably

high rent




27
























28



Mass transport
























with this industry

29




















KPO








30


as below
















areas easily





31









the upcountry











References








32


33







Human resources

o Employee hiring


o Legal

Procurement


o Order management

o Account payable

Logistics

o Product selection

o Delivery

o Installation




KPO











business processes

5






























6




























data

7






Online Research

Online Surveys

Online Marketing

Proposal Writing







Order to Cash Cycle

Account to Report


Fixed Assets Cycle







8




Sri Lanka


















Survey methodology



9






through MySpace



MySpace


43

15

50

10

10

People interviewed














million per year








the industry

AT KERNEY ranking





11

GARTNER ranking



2010-2011




IBM ranking
















12


2005 107

2006 117

2007 193

2008 256

2009 271

2010 310

2011 400

2005 2006 2007 2008 2009 2010 20110

2

4

6

8

10

12

Column2









13







skills development






onshore investments


BOI investments 118










14



















15

















No restrictions


Double Tax Relief



16




YEAR EMPLOYMENT

2007 6500 +

2008 8200 +

2009 10900 +

2010 13100 +

2011 15000 +


2007 2008 2009 2010 20110

2000

4000

6000

8000

10000

12000

14000

16000


17









Top level 6 years


Supervisory 2 years





18


Rs200 000 -600000


Rs50 000- 200000


Rs25 000 - 60000




5930

83






15

13

19









difficulties








Only aware of BPO

Only aware of KPO








20














21




























22




















industry

Investment



23



Employment




this industry






Income generation






Literacy







24


industry





Foreign investment









25

STEPS TO BE SUCCESS


English


Mass transport





English




English literacy









as fast as possible

Mass transport





26





















considerably

high rent




27
























28



Mass transport
























with this industry

29




















KPO








30


as below
















areas easily





31









the upcountry











References








32


33




































6




























data

7






Online Research

Online Surveys

Online Marketing

Proposal Writing







Order to Cash Cycle

Account to Report


Fixed Assets Cycle







8




Sri Lanka


















Survey methodology



9






through MySpace



MySpace


43

15

50

10

10

People interviewed














million per year








the industry

AT KERNEY ranking





11

GARTNER ranking



2010-2011




IBM ranking
















12


2005 107

2006 117

2007 193

2008 256

2009 271

2010 310

2011 400

2005 2006 2007 2008 2009 2010 20110

2

4

6

8

10

12

Column2









13







skills development






onshore investments


BOI investments 118










14



















15

















No restrictions


Double Tax Relief



16




YEAR EMPLOYMENT

2007 6500 +

2008 8200 +

2009 10900 +

2010 13100 +

2011 15000 +


2007 2008 2009 2010 20110

2000

4000

6000

8000

10000

12000

14000

16000


17









Top level 6 years


Supervisory 2 years





18


Rs200 000 -600000


Rs50 000- 200000


Rs25 000 - 60000




5930

83






15

13

19









difficulties








Only aware of BPO

Only aware of KPO








20














21




























22




















industry

Investment



23



Employment




this industry






Income generation






Literacy







24


industry





Foreign investment









25

STEPS TO BE SUCCESS


English


Mass transport





English




English literacy









as fast as possible

Mass transport





26





















considerably

high rent




27
























28



Mass transport
























with this industry

29




















KPO








30


as below
















areas easily





31









the upcountry











References








32


33


































data

7






Online Research

Online Surveys

Online Marketing

Proposal Writing







Order to Cash Cycle

Account to Report


Fixed Assets Cycle







8




Sri Lanka


















Survey methodology



9






through MySpace



MySpace


43

15

50

10

10

People interviewed














million per year








the industry

AT KERNEY ranking





11

GARTNER ranking



2010-2011




IBM ranking
















12


2005 107

2006 117

2007 193

2008 256

2009 271

2010 310

2011 400

2005 2006 2007 2008 2009 2010 20110

2

4

6

8

10

12

Column2









13







skills development






onshore investments


BOI investments 118










14



















15

















No restrictions


Double Tax Relief



16




YEAR EMPLOYMENT

2007 6500 +

2008 8200 +

2009 10900 +

2010 13100 +

2011 15000 +


2007 2008 2009 2010 20110

2000

4000

6000

8000

10000

12000

14000

16000


17









Top level 6 years


Supervisory 2 years





18


Rs200 000 -600000


Rs50 000- 200000


Rs25 000 - 60000




5930

83






15

13

19









difficulties








Only aware of BPO

Only aware of KPO








20














21




























22




















industry

Investment



23



Employment




this industry






Income generation






Literacy







24


industry





Foreign investment









25

STEPS TO BE SUCCESS


English


Mass transport





English




English literacy









as fast as possible

Mass transport





26





















considerably

high rent




27
























28



Mass transport
























with this industry

29




















KPO








30


as below
















areas easily





31









the upcountry











References








32


33












Online Research

Online Surveys

Online Marketing

Proposal Writing







Order to Cash Cycle

Account to Report


Fixed Assets Cycle







8




Sri Lanka


















Survey methodology



9






through MySpace



MySpace


43

15

50

10

10

People interviewed














million per year








the industry

AT KERNEY ranking





11

GARTNER ranking



2010-2011




IBM ranking
















12


2005 107

2006 117

2007 193

2008 256

2009 271

2010 310

2011 400

2005 2006 2007 2008 2009 2010 20110

2

4

6

8

10

12

Column2









13







skills development






onshore investments


BOI investments 118










14



















15

















No restrictions


Double Tax Relief



16




YEAR EMPLOYMENT

2007 6500 +

2008 8200 +

2009 10900 +

2010 13100 +

2011 15000 +


2007 2008 2009 2010 20110

2000

4000

6000

8000

10000

12000

14000

16000


17









Top level 6 years


Supervisory 2 years





18


Rs200 000 -600000


Rs50 000- 200000


Rs25 000 - 60000




5930

83






15

13

19









difficulties








Only aware of BPO

Only aware of KPO








20














21




























22




















industry

Investment



23



Employment




this industry






Income generation






Literacy







24


industry





Foreign investment









25

STEPS TO BE SUCCESS


English


Mass transport





English




English literacy









as fast as possible

Mass transport





26





















considerably

high rent




27
























28



Mass transport
























with this industry

29




















KPO








30


as below
















areas easily





31









the upcountry











References








32


33










Sri Lanka


















Survey methodology



9






through MySpace



MySpace


43

15

50

10

10

People interviewed














million per year








the industry

AT KERNEY ranking





11

GARTNER ranking



2010-2011




IBM ranking
















12


2005 107

2006 117

2007 193

2008 256

2009 271

2010 310

2011 400

2005 2006 2007 2008 2009 2010 20110

2

4

6

8

10

12

Column2









13







skills development






onshore investments


BOI investments 118










14



















15

















No restrictions


Double Tax Relief



16




YEAR EMPLOYMENT

2007 6500 +

2008 8200 +

2009 10900 +

2010 13100 +

2011 15000 +


2007 2008 2009 2010 20110

2000

4000

6000

8000

10000

12000

14000

16000


17









Top level 6 years


Supervisory 2 years





18


Rs200 000 -600000


Rs50 000- 200000


Rs25 000 - 60000




5930

83






15

13

19









difficulties








Only aware of BPO

Only aware of KPO








20














21




























22




















industry

Investment



23



Employment




this industry






Income generation






Literacy







24


industry





Foreign investment









25

STEPS TO BE SUCCESS


English


Mass transport





English




English literacy









as fast as possible

Mass transport





26





















considerably

high rent




27
























28



Mass transport
























with this industry

29




















KPO








30


as below
















areas easily





31









the upcountry











References








32


33












through MySpace



MySpace


43

15

50

10

10

People interviewed














million per year








the industry

AT KERNEY ranking





11

GARTNER ranking



2010-2011




IBM ranking
















12


2005 107

2006 117

2007 193

2008 256

2009 271

2010 310

2011 400

2005 2006 2007 2008 2009 2010 20110

2

4

6

8

10

12

Column2









13







skills development






onshore investments


BOI investments 118










14



















15

















No restrictions


Double Tax Relief



16




YEAR EMPLOYMENT

2007 6500 +

2008 8200 +

2009 10900 +

2010 13100 +

2011 15000 +


2007 2008 2009 2010 20110

2000

4000

6000

8000

10000

12000

14000

16000


17









Top level 6 years


Supervisory 2 years





18


Rs200 000 -600000


Rs50 000- 200000


Rs25 000 - 60000




5930

83






15

13

19









difficulties








Only aware of BPO

Only aware of KPO








20














21




























22




















industry

Investment



23



Employment




this industry






Income generation






Literacy







24


industry





Foreign investment









25

STEPS TO BE SUCCESS


English


Mass transport





English




English literacy









as fast as possible

Mass transport





26





















considerably

high rent




27
























28



Mass transport
























with this industry

29




















KPO








30


as below
















areas easily





31









the upcountry











References








32


33




















million per year








the industry

AT KERNEY ranking





11

GARTNER ranking



2010-2011




IBM ranking
















12


2005 107

2006 117

2007 193

2008 256

2009 271

2010 310

2011 400

2005 2006 2007 2008 2009 2010 20110

2

4

6

8

10

12

Column2









13







skills development






onshore investments


BOI investments 118










14



















15

















No restrictions


Double Tax Relief



16




YEAR EMPLOYMENT

2007 6500 +

2008 8200 +

2009 10900 +

2010 13100 +

2011 15000 +


2007 2008 2009 2010 20110

2000

4000

6000

8000

10000

12000

14000

16000


17









Top level 6 years


Supervisory 2 years





18


Rs200 000 -600000


Rs50 000- 200000


Rs25 000 - 60000




5930

83






15

13

19









difficulties








Only aware of BPO

Only aware of KPO








20














21




























22




















industry

Investment



23



Employment




this industry






Income generation






Literacy







24


industry





Foreign investment









25

STEPS TO BE SUCCESS


English


Mass transport





English




English literacy









as fast as possible

Mass transport





26





















considerably

high rent




27
























28



Mass transport
























with this industry

29




















KPO








30


as below
















areas easily





31









the upcountry











References








32


33







GARTNER ranking



2010-2011




IBM ranking
















12


2005 107

2006 117

2007 193

2008 256

2009 271

2010 310

2011 400

2005 2006 2007 2008 2009 2010 20110

2

4

6

8

10

12

Column2









13







skills development






onshore investments


BOI investments 118










14



















15

















No restrictions


Double Tax Relief



16




YEAR EMPLOYMENT

2007 6500 +

2008 8200 +

2009 10900 +

2010 13100 +

2011 15000 +


2007 2008 2009 2010 20110

2000

4000

6000

8000

10000

12000

14000

16000


17









Top level 6 years


Supervisory 2 years





18


Rs200 000 -600000


Rs50 000- 200000


Rs25 000 - 60000




5930

83






15

13

19









difficulties








Only aware of BPO

Only aware of KPO








20














21




























22




















industry

Investment



23



Employment




this industry






Income generation






Literacy







24


industry





Foreign investment









25

STEPS TO BE SUCCESS


English


Mass transport





English




English literacy









as fast as possible

Mass transport





26





















considerably

high rent




27
























28



Mass transport
























with this industry

29




















KPO








30


as below
















areas easily





31









the upcountry











References








32


33








2005 107

2006 117

2007 193

2008 256

2009 271

2010 310

2011 400

2005 2006 2007 2008 2009 2010 20110

2

4

6

8

10

12

Column2









13







skills development






onshore investments


BOI investments 118










14



















15

















No restrictions


Double Tax Relief



16




YEAR EMPLOYMENT

2007 6500 +

2008 8200 +

2009 10900 +

2010 13100 +

2011 15000 +


2007 2008 2009 2010 20110

2000

4000

6000

8000

10000

12000

14000

16000


17









Top level 6 years


Supervisory 2 years





18


Rs200 000 -600000


Rs50 000- 200000


Rs25 000 - 60000




5930

83






15

13

19









difficulties








Only aware of BPO

Only aware of KPO








20














21




























22




















industry

Investment



23



Employment




this industry






Income generation






Literacy







24


industry





Foreign investment









25

STEPS TO BE SUCCESS


English


Mass transport





English




English literacy









as fast as possible

Mass transport





26





















considerably

high rent




27
























28



Mass transport
























with this industry

29




















KPO








30


as below
















areas easily





31









the upcountry











References








32


33













skills development






onshore investments


BOI investments 118










14



















15

















No restrictions


Double Tax Relief



16




YEAR EMPLOYMENT

2007 6500 +

2008 8200 +

2009 10900 +

2010 13100 +

2011 15000 +


2007 2008 2009 2010 20110

2000

4000

6000

8000

10000

12000

14000

16000


17









Top level 6 years


Supervisory 2 years





18


Rs200 000 -600000


Rs50 000- 200000


Rs25 000 - 60000




5930

83






15

13

19









difficulties








Only aware of BPO

Only aware of KPO








20














21




























22




















industry

Investment



23



Employment




this industry






Income generation






Literacy







24


industry





Foreign investment









25

STEPS TO BE SUCCESS


English


Mass transport





English




English literacy









as fast as possible

Mass transport





26





















considerably

high rent




27
























28



Mass transport
























with this industry

29




















KPO








30


as below
















areas easily





31









the upcountry











References








32


33

























15

















No restrictions


Double Tax Relief



16




YEAR EMPLOYMENT

2007 6500 +

2008 8200 +

2009 10900 +

2010 13100 +

2011 15000 +


2007 2008 2009 2010 20110

2000

4000

6000

8000

10000

12000

14000

16000


17









Top level 6 years


Supervisory 2 years





18


Rs200 000 -600000


Rs50 000- 200000


Rs25 000 - 60000




5930

83






15

13

19









difficulties








Only aware of BPO

Only aware of KPO








20














21




























22




















industry

Investment



23



Employment




this industry






Income generation






Literacy







24


industry





Foreign investment









25

STEPS TO BE SUCCESS


English


Mass transport





English




English literacy









as fast as possible

Mass transport





26





















considerably

high rent




27
























28



Mass transport
























with this industry

29




















KPO








30


as below
















areas easily





31









the upcountry











References








32


33























No restrictions


Double Tax Relief



16




YEAR EMPLOYMENT

2007 6500 +

2008 8200 +

2009 10900 +

2010 13100 +

2011 15000 +


2007 2008 2009 2010 20110

2000

4000

6000

8000

10000

12000

14000

16000


17









Top level 6 years


Supervisory 2 years





18


Rs200 000 -600000


Rs50 000- 200000


Rs25 000 - 60000




5930

83






15

13

19









difficulties








Only aware of BPO

Only aware of KPO








20














21




























22




















industry

Investment



23



Employment




this industry






Income generation






Literacy







24


industry





Foreign investment









25

STEPS TO BE SUCCESS


English


Mass transport





English




English literacy









as fast as possible

Mass transport





26





















considerably

high rent




27
























28



Mass transport
























with this industry

29




















KPO








30


as below
















areas easily





31









the upcountry











References








32


33










YEAR EMPLOYMENT

2007 6500 +

2008 8200 +

2009 10900 +

2010 13100 +

2011 15000 +


2007 2008 2009 2010 20110

2000

4000

6000

8000

10000

12000

14000

16000


17









Top level 6 years


Supervisory 2 years





18


Rs200 000 -600000


Rs50 000- 200000


Rs25 000 - 60000




5930

83






15

13

19









difficulties








Only aware of BPO

Only aware of KPO








20














21




























22




















industry

Investment



23



Employment




this industry






Income generation






Literacy







24


industry





Foreign investment









25

STEPS TO BE SUCCESS


English


Mass transport





English




English literacy









as fast as possible

Mass transport





26





















considerably

high rent




27
























28



Mass transport
























with this industry

29




















KPO








30


as below
















areas easily





31









the upcountry











References








32


33















Top level 6 years


Supervisory 2 years





18


Rs200 000 -600000


Rs50 000- 200000


Rs25 000 - 60000




5930

83






15

13

19









difficulties








Only aware of BPO

Only aware of KPO








20














21




























22




















industry

Investment



23



Employment




this industry






Income generation






Literacy







24


industry





Foreign investment









25

STEPS TO BE SUCCESS


English


Mass transport





English




English literacy









as fast as possible

Mass transport





26





















considerably

high rent




27
























28



Mass transport
























with this industry

29




















KPO








30


as below
















areas easily





31









the upcountry











References








32


33








5930

83






15

13

19









difficulties








Only aware of BPO

Only aware of KPO








20














21




























22




















industry

Investment



23



Employment




this industry






Income generation






Literacy







24


industry





Foreign investment









25

STEPS TO BE SUCCESS


English


Mass transport





English




English literacy









as fast as possible

Mass transport





26





















considerably

high rent




27
























28



Mass transport
























with this industry

29




















KPO








30


as below
















areas easily





31









the upcountry











References








32


33














difficulties








Only aware of BPO

Only aware of KPO








20














21




























22




















industry

Investment



23



Employment




this industry






Income generation






Literacy







24


industry





Foreign investment









25

STEPS TO BE SUCCESS


English


Mass transport





English




English literacy









as fast as possible

Mass transport





26





















considerably

high rent




27
























28



Mass transport
























with this industry

29




















KPO








30


as below
















areas easily





31









the upcountry











References








32


33




















21




























22




















industry

Investment



23



Employment




this industry






Income generation






Literacy







24


industry





Foreign investment









25

STEPS TO BE SUCCESS


English


Mass transport





English




English literacy









as fast as possible

Mass transport





26





















considerably

high rent




27
























28



Mass transport
























with this industry

29




















KPO








30


as below
















areas easily





31









the upcountry











References








32


33


































22




















industry

Investment



23



Employment




this industry






Income generation






Literacy







24


industry





Foreign investment









25

STEPS TO BE SUCCESS


English


Mass transport





English




English literacy









as fast as possible

Mass transport





26





















considerably

high rent




27
























28



Mass transport
























with this industry

29




















KPO








30


as below
















areas easily





31









the upcountry











References








32


33


























industry

Investment



23



Employment




this industry






Income generation






Literacy







24


industry





Foreign investment









25

STEPS TO BE SUCCESS


English


Mass transport





English




English literacy









as fast as possible

Mass transport





26





















considerably

high rent




27
























28



Mass transport
























with this industry

29




















KPO








30


as below
















areas easily





31









the upcountry











References








32


33









Employment




this industry






Income generation






Literacy







24


industry





Foreign investment









25

STEPS TO BE SUCCESS


English


Mass transport





English




English literacy









as fast as possible

Mass transport





26





















considerably

high rent




27
























28



Mass transport
























with this industry

29




















KPO








30


as below
















areas easily





31









the upcountry











References








32


33








industry





Foreign investment









25

STEPS TO BE SUCCESS


English


Mass transport





English




English literacy









as fast as possible

Mass transport





26





















considerably

high rent




27
























28



Mass transport
























with this industry

29




















KPO








30


as below
















areas easily





31









the upcountry











References








32


33







STEPS TO BE SUCCESS


English


Mass transport





English




English literacy









as fast as possible

Mass transport





26





















considerably

high rent




27
























28



Mass transport
























with this industry

29




















KPO








30


as below
















areas easily





31









the upcountry











References








32


33



























considerably

high rent




27
























28



Mass transport
























with this industry

29




















KPO








30


as below
















areas easily





31









the upcountry











References








32


33






























28



Mass transport
























with this industry

29




















KPO








30


as below
















areas easily





31









the upcountry











References








32


33









Mass transport
























with this industry

29




















KPO








30


as below
















areas easily





31









the upcountry











References








32


33


























KPO








30


as below
















areas easily





31









the upcountry











References








32


33








as below
















areas easily





31









the upcountry











References








32


33















the upcountry











References








32


33








33





