How to Start a BPO Business in Sri Lanka: Unlocking Opportunities in a Promising Destination

How to Start a BPO Business in Sri Lanka: Unlocking Opportunities in a Promising Destination

How to Start a BPO Business in Sri Lanka: Unlocking Opportunities in a Promising Destination

In today’s globalized economy, many businesses rely on Business Process Outsourcing (BPO) to optimize their operations and increase their efficacy. Sri Lanka has become one of the leading destinations for BPO services because of its educated workforce, favourable business environment,  strategic location in favour of timing, and supportive government policies. In this article, we will walk you through setting up a Business Process Outsourcing (BPO) company in Sri Lanka and explain why it is one of the finest outsourcing locations.

Why Select Sri Lanka for BPO Services?

Sri Lanka offers many benefits for establishing a BPO company. Here are some of the most important reasons it is an optimal destination.

Educated Workforce

Sri Lanka’s labour force is highly educated and proficient. The country’s education system emphasizes English proficiency, making it simpler to find proficient English writers and speakers for customer support, IT services, data input, and other BPO functions. The availability of competent personnel guarantees the delivery of high-quality services and customer satisfaction. Sri Lanka has the second largest community of CIMA members and CGMA candidates after the UK.

Strategic Geographical Positioning

Sri Lanka offers competitive cost advantages compared to prominent BPO destinations, such as India and the Philippines. With a reduced cost of living and labour, the country is an attractive option for businesses seeking cost-effective solutions without sacrificing quality.

Favourable Time Zone

Sri Lanka’s location in the centre of the Indian Ocean affords it a geographically advantageous position. It provides time zone compatibility with key commercial centres, including Europe, the United States, and Australia. This facilitates communication and collaboration across time zones, thereby reducing operational challenges for customers.


Sri Lanka has a well-developed infrastructure, including modern office spaces, reliable internet connectivity, and robust telecommunications networks. This infrastructure supports efficient BPO operations and facilitates seamless communication with clients worldwide.

Stable Business Environment

Sri Lanka provides a stable business environment, supported by a robust legal framework and a dependable telecommunications infrastructure. The government has taken proactive measures to encourage foreign investment and foster an environment conducive to investors. This includes providing tax incentives, creating free trade zones, and streamlining administrative procedures.

Government Policies

The Sri Lankan government actively promotes foreign investment and has enacted policies to facilitate the expansion of the BPO industry. The Board of Investment (BOI) offers various incentives for BPO-related initiatives, including tax exemptions, duty-free imports, and expedited approval procedures. These policies foster an environment conducive to business growth and long-term viability.

An established BPO destination

Currently, thousands of international companies use Sri Lanka for their BPO operations, ensuring an abundance of trained and experienced staff in delivering quality services for international standards. Popular BPO sectors in the country include..

  • Customer service
  • Technical support
  • Data entry
  • Back office operations
  • Content creation
  • Research and development
  • Finance and Accounting 
  • Legal services
  • Medical transcription

Establishing a BPO Enterprise in Sri Lanka

The following is a step-by-step guide to launching a BPO in Sri Lanka:

  1. Market Research

Conduct exhaustive market research to identify prospective niches and target customers. Determine the demand for BPO services, then adapt your offerings accordingly.

  1. Business Plan and Financing

Create a detailed business plan delineating your goals, target market, services, and financial projections. Get adequate funding for your venture through equity, loans, or venture capital.

  1. Registration of Companies

Register your company with the Department of Registrar of Companies in Sri Lanka. Ensure compliance with all legal requirements and gain any licenses or permits required.

  1. Infrastructure and Technology

Outfit the office with the infrastructure, including computers, software, and communications systems. Reliable Internet connectivity is essential for operations to run smoothly.

  1. Recruitment and Training

Recruit and train qualified professionals based on your organization’s needs. Provide them with exhaustive training programs to empower them with the skills and knowledge required to provide quality BPO services.

  1. Client Acquisition

Develop an effective marketing strategy to attract potential customers. Develop relationships with local and international businesses that are interested in BPO services. Use online platforms, industry events, and professional networks to increase your customer base.

  1. Consider Turnkey BPO Solutions

To expedite the establishment process, consider partnering with companies in Sri Lanka that provide turnkey BPO installations. These businesses provide completely furnished office space, IT infrastructure, and administrative support, allowing you to concentrate on your primary business operations. LankaPropertyWeb’s Invest section can direct those who are interested in this aspect.

  1. Connectivity and Data Security

Establish secure and reliable connectivity for your BPO operations. Implement data security measures, including encryption, firewalls, and access controls, to protect sensitive client information. Compliance with international data protection regulations, such as GDPR, may also be necessary if handling data from clients in those regions.

  1. Risk Management

Identify potential risks and develop a risk management plan for your BPO enterprise. This may include contingency plans for disruptions in operations, cybersecurity threats, data breaches, and other unforeseen events.

  1. Quality Assurance

Implement robust quality assurance processes to ensure the delivery of high-quality services to your clients. Establish service level agreements that clearly define performance metrics, turnaround times, and customer satisfaction targets.

Due to its, educated personnel, cost-effectiveness, strategic location, and business-friendly environment, Sri Lanka offers a compelling opportunity for launching a BPO business. By leveraging the advantages offered by this island nation, entrepreneurs can establish successful BPO businesses that appeal to global clients while guaranteeing cost-effectiveness and the deliverance of high-quality services. Your BPO business in Sri Lanka can flourish in this prospering industry with meticulous planning, execution, and the right partnerships.

The post How to Start a BPO Business in Sri Lanka: Unlocking Opportunities in a Promising Destination appeared first on News & Blog.


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