Rural Outsourcing

Oct 02, 2009 (LBO) – Sri Lanka’s rural economy can take a slice of India’s 12 billion dollar Business Process Outsourcing (BPO) industry by catering to the bottom of the pyramid customers who look at costs over optimum service, a foreign investor said.

“India does about 12 billion dollars of knowledge base process work; 10 percent of that is a big amount for us,” Raj Amirthanayagam, managing director of Revanalytics Solutions Inc., a Canadian technology company, said.

“They can make 2,000 rupees an hour; that’s what’s paid in other countries for quality processed work.”

India is one of the largest BPO operators in the world, but the boom in the Indian economy has increased operating costs in cities due to higher rent expenses. The ICT penetration rate in rural India remains poor.

Now Indian BPOs are looking at specialized back office services such as accounts, legal, insurance and technology-related work, which generates higher income.

Sri Lanka has great potential in the BPO sector as the government has invested substantially setting up ‘Nenasela’ information technology training centre’s, Amirthanayagam said.

“There is a big demand for jobs in the lower end of the ICT industry.”

Sri Lankan-born Amirthanayag