Moving Out

July 5, 2011 (LBO) – Sri Lanka’s information technology and business process outsourcing firms have started to expand out of the capital, to lower costs and also be closer to the residents of potential workers, officials said. Dinesh Saparamadu, head of HSenid, a software developer said his firm had set up a research and development unit gone to Kandy in central Sri Lanka where Peradeniya where, a national university was located.

“We had a lot of students boarded here (in Colombo) who go home for the weekend,” Saparamadu told an economic forum organized by the Ceylon Chamber of Commerce, Sri Lanka’s largest business association.

“We need to go and set up satellite operations.”

Saparamadu who is also chairman of Sri Lanka Association of Software and Service Companies (SLASSCOM ), an industry body, said IFS, another software developer had set up offices in Kandy.

Niranjan Tavarayen, senior vice president, WNS Global Services said his firm was planning to set up outsourcing unit about 30 kilometres away from the capital.

One of the problems of setting up offices outside Colombo was that senior officials did not want to reside in the regions due to lack of facilities such as schools for their children.