The Tholons 2012 Top 100 Outsourcing Destinations report identifies the top global cities and counties for outsourcing IT/BPO services. With the improvement in the country’s value proposition in IT/BPO, Sri Lanka is clearly emerging as a global sourcing destination in the region.  The positive socio-political developments driven by the country’s improving security conditions have been highlighted as key reasons for attracting more companies focused on FAO (finance and accounting outsourcing) and Software Development, in addition to the vast pool of accountants and software engineers in Sri Lanka.
 
In this year’s report,fourteen cities have been cited from the South Asian region, with Colombo, Sri Lanka moving up the ranking by one position to number 19th position. The report highlights that South Asia is experiencing a continuing stream of investment from outsourced service providers with high- value solutions to across vertical specific industries.
 
Leveraging on the location advantages, recently the global IT/BPO company Mphasis (an HP Company), set up their delivery center in Colombo to provide high- value Finance Accounting Outsourcing services out of Sri Lanka. The leading BPO service provider, First Source entered Sri Lanka with a joint venture with Dialog. Several others have set operations during the last two years, adding to the fast growing IT/BPO exports out of Sri Lanka.
 
The reports goes on to state that the growth has also been accelerated by the conclusion of the 30-year civil strife in the northwestern region of the country paving the way for recovery and rehabilitation, serving to attract investments into the country. These positive developments in the country serves to move Colombo up one spot to 19th place this year, and remain as one of the top emerging cities in the report.
 
“Sri Lanka moving up the ranking highlights the improving strengths as an outsourcing destination. During the last two years, we witnessed steady expansion of existing players and a new interest from global companies to operate out of Sri Lanka. The IT/BPO and Knowledge Service industry is targeted to grow to become a billion dollar industry by 2015.” said Madu Ratnayake, Vice President of SLASSCOM.