$ 500 m anticipated from IT BPO sector:

ICT will boost economic development

by Lalin Fernandopulle

The Government has recognised the potential of the IT BPO sector which is a $ 400 m industry providing employment to around 65,000 people, Sri Lanka Association of Software and Service Companies (SLASSCOM) Director and Vice Chairman Jayantha de Silva said.

He said that today the Government's vision is aligned with the vision of the IT BPO industry which aims at becoming the leading foreign exchange earner by 2020.

"The Government has accepted that the ICT sector as an industry which could boost economic development as a leading destination for outsourcing in the region.

The IT BPO industry comprises around 300 companies of which around 85 percent are into the export sector.

"We anticipate a revenue of around $ 500 m from the IT BPO industry this year. The 2013 Budget envisages a revenue of $ 1 b by 2015 from the IT BPO industry providing employment to around 150,000 people," de Silva said.

"Sri Lanka is in many ways a hidden gem for outsourcing. It is uniquely positioned to offer companies highly skilled talent and a strong business environment at very competitive costs," stated a report on Competitive Benchmarking: Sri Lanka Knowledge Services by A.T Kearney, a global management consulting firm.

To achieve this objective the country should build innovative products which will be more attractive than the products of its competitors, he said.

Rs. 300 m has been allocated in the 2013 Budget for the ICT sector, which includes increasing the number of Nenasalas in the country.

"The IT-BPO industry is a mid to long term industry with diverse sectors. A single Budget cannot look into all aspects of the industry", de Silva said.

SLASSCOM hailed the reduction of personal income tax for those in the ICT sector from 25 percent to 16 percent.

The Association also hails the decision to reduce the internet tariff from 20 percent to 10 percent which will reduce the cost of broadband.

De Silva said that there is 100 percent value addition in the IT BPO industry, a green industry that has grown many-fold globally. Sri Lanka's ICT sector which is a around 30 years has achieved 25 percent growth.

SLASSCOM has launched a major plan for 2013 which comprises educational programs for private and public sector employees, working with heads of government institutions such as ICTA and the Ministry of Finance.

The Association plans to educate the diaspora and hold meetings with potential buyers and university academics.

SLASSCOM acts as the catalyst of growth for the IT and BPO industry by facilitating trade and business, propagation of education and employment, encouragement of research and innovation.

Managing Director, IFS Sri Lanka, de Silva who is also the Vice President for South Asia said that IFS will be a $ 1 b company earning the largest amount of foreign exchange in the country by 2020.

He said the company will be a leading player in the IT BPO sector providing a large number of jobs within the next few years. IFS is the number one ERP (Enterprise Resource Planning) company in Sri Lanka for the past six years.