Location Advantage

KaleidoSource delivery centre is based in Colombo, the commercial capital of Sri Lanka, which is listed in the Top 20 Emerging Cities by Global Services Magazine. The latest study done by A.T. Kearney Management Consultants for their Global Services Location Index (GSLI) has confirmed Sri Lanka to be in the top 20 most attractive off shoring destinations. This was the best improvement in the list from its last edition back in 2007, where the country has moved up a remarkable 15 positions. The consultants have credited improved labor quality and cost advantages to be the driving factors for this dramatic shift.

Sri Lanka, an island off the South-Eastern cost of India, has enjoyed the fruits of international trade since ancient times when it was called "Taprobane" and "Ceylon" (pre 1972). Initially this was due to its strategic location in the path of major sea routes connecting Europe, Western Asia and the Far East. The enormous pool of natural resources available in the country has also encouraged and attracted investors in all different forms and faces throughout the history. This was quite evident during the 19th and early 20th century when it was a colony under the British Empire where tea, coffee, rubber and coconut plantations were developed to global enterprises. "Ceylon Tea" still remains a trademark national export and one of the most sought after commodities in many regions across the globe. Also the stretches of sandy beaches around the island, vast mountainous landscapes and tropical rainforests along with rich cultural heritage collected over two millennia makes it one of the best tourist destinations in the world.

Being an agriculture based economy until the end of 1970's the country moved more towards the global trade since 1980's when free trade and open economy was introduced. Since then the country has moved more towards an export oriented economy mainly focusing in industry and service with agriculture remaining the third element of the equation. Service sector today is the single largest component of Sri Lanka's GDP at 57.5% with an estimated 7.1% positive growth for this year.

The education sector in Sri Lanka has always been in the prime focus of all ruling governments since the declaration of "free education" in 1938. With over 92% literacy rate it boasts the best amongst the developing nations.

Sri Lanka has shown enormous growth potential in the three main categories of evaluating an outsourcing destination: financial attractiveness, people and skills availability and business environment.


Skilled Manpower

  • Currently with over 50,000 employees in the IT/BPO sector the workforce growth is projected at 20% year-on-year.
  • Sri Lanka offers a competitive and a surplus of unemployed English speaking graduates.
  • Sri Lanka has its educational & professional qualification mirroring that of the UK & US. Outside Great Britain, the largest pool of UK-certified accountants live in Sri Lanka.

Robust Telecom Infrastructure

  • Solid and reliable power and telecommunications infrastructure.
  • Sri Lanka is connected to the SEA-ME-WE III and IV fiber optic communication backbone with over 11 communication satellites orbiting above the south of the country.
  • Sri Lanka is among the first South Asian countries to establish a 3G network.

Growing Offshore Industry

  • A specific alternative to India due to historical, cultural and low cost factors.
  • Rapidly gaining a reputation as a favoured location for IT, Finance & Accounting and Knowledge Process Outsourcing destination (A.T.Kearney - GSLI).
  • Within the last decade many of the world's largest IT/BPO companies have set up operations in Sri Lanka such as HSBC, WNS Global Services, AVIVA, Microsoft, Motorola, Industrial & Financial Systems (IFS), Amba Research, Quattro, RR Donnelley, and Virtusa.

Low Cost and Highly Scalable

  • Manpower costs are almost 30% less than similar destinations
  • Attrition rates are lower in comparison to other locations in the region (10 - 15%)
  • Very competitive total cost of doing business in Sri Lanka
  • Number of government incentives introduced to export services
  • Available capacity to scale facilities quickly
  • Disaster Recovery Sites available (up to level 3)

Favorable Government Policies

  • At the conclusion of a 30 year old civil war the government is looking to position Sri Lanka as the next hot spot in the BPO industry. Accordingly, large number of initiatives designed to attract BPO opportunities have been made available

Strategic Location

  • Ability to support round the clock coverage (24 x 7)
  • Strong air connectivity with easy flight access from the UK, US, Europe, and Australia
  • No visa lead time required - entry visas issued upon arrival in Sri Lanka for transient visitors from the UK, Australia, US and Europe

Country Fact Sheet

Location: An island off the South-Eastern coast of India, 880 km north of the equator, in the Indian Ocean

Land Area: 65,525 km2

Population: 21 million

Literacy Rate: 92%

Annual Graduates: 14,346

Time Zone: UTC+5:30

Government: Sri Lanka is a free, independent and a sovereign nation with legislative powers executed by the parliament, selected on a proportional representation basis

Language: Sinhala, Tamil and English are widely spoken throughout Sri Lanka

Industries: Tea, coconut, processing of rubber, textile & garments, cement and tobacco

Climatic Features: Low Lands - Tropical, averaging 27° Celsius
Central Hills - Cooler, with temperatures dropping to 14° Celsius

Economy: An open market economy with recorded growth of 6% in 2008