Present and future of the ICT/BPM Industry Sri Lanka
Over the past few years, Sri Lanka has rapidly gained repute as an emerging hub for Information and Communications Technology (ICT) and Business Process Management (BPM). The information and communication technology (ICT) industry became the secondlargest contributor to Sri Lanka’s export, owing to the world’s rising dependence on modern technology.
Sri Lanka established itself as an emerging destination for technology in the world by capturing the outsourcing advantages offered by the global corporations for them to achieve economies of scale. Despite of being one of the freshest, export industries, the Sri Lankan ICT/BPM sector leading its way to become the number one export revenue earner of the country.
The supporting factors such as English language skills of Sri Lankan youth population, high literacy rate, cultural adaptability, comparative low prices of properties in Capital Colombo, and international collaborations were made the prime wave of rapid development within a shorter time period. The industry witnessed a steady growth which is around 10% annually, thanks to the private sector initiatives and the Government backing. Nevertheless, Colombo is the first South Asian city to deploy 3G, 4G and 5G network, which is a pride to our small island. The sector witnessed a 300% growth in a past decade.
In the late 1990s and early 2000s, however the country’s offerings were limited to call centers and IT support services due to a lack of accessible skills and resources. The current industry encompasses Internet of Things, Virtual Reality (AR), Augmented Reality (AR), Blockchain, financial technologies (Fintech), Robotics and other high end It-enabled engineering services. Therefore, an increasing number of corporations are investing in Sri Lanka for diversified services as above high end technologies and high end business process solutions such as financial and accounting services, investment research, legal services, which are delivered to overseas clients via cutting-edge IT infrastructure.
In Sri Lanka, English is widely speaking besides our native languages, which enables our IT service providers to quickly capitalize on the opportunity. Despite its small size, Sri Lanka seized this emerging opportunity and provided services on a smaller scale than its regional counterparts.
Many large multinational brands like Virtusa, IFS, WSO2, Sysco, Pearson, HCL, HSBC, Google, JP Morgan, WNS, Wiley and RR Donnelly expanded their operations to Sri Lanka. Currently there are over 500 companies operating in this small island in various scales and disciplines. The IT professionals have reached to over 150,000 thanks to the robust education system of the country. More than 12,000 tech graduates are passing out per year by state universities, private universities and other private institutions, enabling the industry to absorb tech savvy young talent.
The telecommunications sector is one of the solid foundations which boost the growth of ICT/ BPM industry. The telecom sector generated USD 32 million revenue in 2021, largely driven by increased use of internet-based communication facilities, which is backed by broadband data services. The combined fixed-line and mobile phone density has risen to 149 per 100 people, owing to an increase in mobile subscriptions. According to GSMA Intelligence there were 32.29 million cellular mobile connections in Sri Lanka at the start of 2022. The deployment of the 5G network and other expanding telecom infrastructure in the country, the segment is expected to grow even further with the opening of the Colombo International Financial City or the Port city development project.
The ICT and BPM sector has proven to remain robust. Following the global health crisis, the sector’s remains positive, with new opportunities expected to emerge across the globe. Support services are available for the young tech entrepreneurs who have accelerated the growth of an entrepreneurial ecosystem in Colombo. In 2020, Startup Genome ranked the country first in South Asia and second globally in the Global Ecosystem for Affordable Talent index.
Some of the key achievements by Sri Lanka
■ Ranked as the 2nd best country for Digital Nomads in Club Med’s analysis
■ Ranked among the top 25 countries in the digital-centric scenario on AT Kearney Global Services Location Index in 2021
■ Ranked among the top 10 emerging global destinations by Global Services Magazine
■ Sri Lanka was awarded the Delivery Destination Award by the Global Sourcing Association (GSA) of the UK in 2019
■ SAARC Season 2020 - Ecosystem Hero of the Year award for Sri Lanka
■ Ranked 2nd in South Asia in the Global Innovation Index 2019 by the World Intellectual Property Organization
■ Sri Lanka is the only country in South Asia to achieve a balanced development in the e-government development index 2020
■ Sri Lanka ranked 2nd in South Asia for global competitiveness on the World Economic Forum’s Global Competitiveness Index 2019
■ Sri Lanka ranked 1st in South Asia for Human Capital skills
Sri Lanka Export Development Board as the apex organization for the promotion and development of exports of Sri Lanka has taken the following initiatives to promote ICT/ BPM sector; ■ Drive export growth through innovation and entrepreneurship. - Provide business development support to firms and enhance innovation to increase the capacities and outreach of IT-BPM start-ups and SMES in national and international markets.
■ Support exports and investment in the IT-BPM sector through a business-enabling, predictable and transparent policy and regulatory framework. - Create an enabling business environment, implement a formal framework and improve sector institutional coordination to direct the industry in the first step towards improved industry growth.
■ Improve the supply of skilled highly qualified professionals to satisfy the growing IT-BPM market. - Raise awareness about career opportunities, bring more students to the industry during their studies and encourage international experts to share knowledge with youth to sustain IT-BPM industry growth.
Sri Lanka Export Development Board along with the industry stakeholders, unveiled the national logo for Sri Lankan ICT/ BPM sector with a tagline, “Island of Ingenuity – Sri Lanka Knowledge Solutions”. Sri Lanka Export Development Board acts as the brand custodian of this national brand and taking continuous efforts to promote the ICT/BPM brand internationally. It stresses that Sri Lankan IT companies can deliver top quality solutions on a global scale. Sri Lanka’s IT industry has emerged and become globally competitive due to the unique talents of the workforce, the focus on high quality and reliability, but above all - ingenuity and creativity. Talented Sri Lankan tech entrepreneurs from around the world are returning from overseas to start innovative companies, and they are bringing with them global networks and global best practices. The sector has been supported by an advanced telecoms sector, which now boasts world-class digital infrastructure and competitive mobile and internet tariffs in the region.
Along with the brand launch, EDB developed a web portal www. islandofingenuity.com which portrays the success stories of ingenuity and creativity. It contains in-depth insights into how Sysco’s technology is disrupting the farm to folk supply chain in the food industry, the way Fishtech from 99X provides traceability of freshness in seafood from Norway to China, the fastest trading platform developed for London Stock Exchange, how Amba Research an offshore provider of data analytics to global investment banks got acquired by Moody’s Analytics. Further, a social media campaign was conducted in 2020 creating awareness on the ICT/BPM brand internationally. An article on the Sri Lanka ICT/BPM sector was published in Channel News Asia (CNA) which created a huge awareness on the sector in Singapore and other markets.
With the national brand Sri Lanka, gifted with highly skilled professionals and a progressive culture, the country is undeniably brimming with untapped potential. By pushing the boundaries of the unique resources possess and investing in training and development, the country can undoubtedly achieve exponential growth in the IT sector, in the years to come.
Many large multinational brands like Virtusa, IFS, WSO2, Sysco, Pearson, HCL, HSBC, Google, JP Morgan, WNS, Wiley and RR Donnelly expanded their operations to
Sri Lanka. Currently there are over 500 companies operating in this small island in various scales and disciplines. The IT professionals have reached to over 150,000 thanks to the robust education system of the country. More than 12,000 tech graduates are passing out per year by state universities, private universities and other private institutions, enabling the industry to absorb tech savvy young talent.
Key programmes by EDB to promote ICT/BPM sector Brand Promotion: Launch of National Brand – ISLAND OF INGENUITY (IOI)
With the national brand Sri Lanka, gifted with highly skilled professionals and a progressive culture, the country is undeniably brimming with untapped potential. By pushing the boundaries of the unique resources possess and investing in training and development, the country can undoubtedly achieve exponential growth in the IT sector, in the years to come.
Outreach programmes
■ Sri Lanka Pavilion at Japan IT Week Osaka and B2B meetings with leading ICT export companies to explore openings in Central and western Japan.
■ Nordic mission to link Sri Lankan tech industry along with awareness creation and business matchmaking meetings. ■ Exploring opportunities in EU for niche technologies through ICT Spring mission to Luxembourg
■ Canada and Africa market development programmes with business meetings
■ German collaborations to develop the capacity of Sri Lankan Start-ups