- SourceOne is a leading BPO company in Sri Lanka that presents a promising investment opportunity.
- One of the top 10 companies to invest in Sri Lanka
- An approved business venture by EDB Sri Lanka, indicating its credibility and potential for growth.
- Investing in a BPO company like SourceOne offers venture capital opportunities for investors looking to capitalize on the growing demand for outsourcing services
Why is Sri Lanka for BPO investments?
In recent years, Sri Lanka has emerged as a top outsourcing destination among other countries in the world, due to its large pool of highly skilled workforce, beneficial government policies, and optimal location. With a dedicated focus on education and technology, Sri Lanka has become a hub for IT and BPO services, providing high-quality and cost-effective solutions to companies around the world.
After the recent IMF bailout, the country is taking steps towards implementing radical labor reforms to attract more Foreign Direct Investments (FDIs) into the country. Thus, the government has committed to exporters that a new labor act will be presented to parliament within the year, which would positively impact the country’s economy and labor market, making investing in Sri Lanka a good option for all investors around the world.
Taking advantage of the opportunity, Source One aims to become a BOI (Board of Investment) company in Sri Lanka, with plans to attract potential Foreign Direct Investment (FDI) in the near future.
USD/LKR exchange rate and how it benefits BPO investors?
The USD/LKR exchange rate plays a significant role in the BPO industry in Sri Lanka. Currently, the USD/LKR exchange rate remains favorable for BPO investors as it provides a cost-effective option for their outsourcing processes. The reason is the cost of hiring employees in Sri Lanka is relatively low compared to other countries with similar labor markets.
Sri Lanka also offers an entry-level resource for various domains such as Accounting, Marketing, and Customer Service for a monthly fee of just 450 USD, which is inclusive of all costs. This provides significant cost savings for BPO investors as they can hire qualified professionals for a much lower price compared to other countries.
Further, by the end of the year 2023, remaining at a single-digit inflation rate is expected in Sri Lanka, which results in a stable economic environment- giving more ground for the growth of businesses. In return, this will make it a more attractive location for BPO investors to invest in Sri Lanka who can take advantage of the favorable exchange rate to further reduce costs while still accessing a pool of talented professionals.
How BIG MAC Index and Inflation Rate affects the BPO industry in Sri Lanka
Sri Lanka’s inflation rate was reported to be lower year-on-year (YoY) and month-on-month (MoM) compared to the previous year. Having a lower YoY and MoM inflation rate positively impacts the country’s economy, which signals a stable economy leading to increased investor confidence for BPO investments in Sri Lanka and other investments in the country.( source: https://tradingeconomics.com/sri-lanka/inflation-rate-mom)
It is also expected to have a low inflation rate in upcoming years in Sri Lanka remaining at a one-digit inflation rate. (Source: https://www.statista.com/statistics/728516/inflation-rate-in-sri-lanka/)