{"id":56292,"date":"2012-10-11T07:07:37","date_gmt":"2012-10-11T07:07:37","guid":{"rendered":"http:\/\/www.colombotelegraph.com\/?p=56292"},"modified":"2012-10-14T08:48:09","modified_gmt":"2012-10-14T08:48:09","slug":"sri-lankas-knowledge-export-road-map-is-it-achievable","status":"publish","type":"post","link":"https:\/\/www.colombotelegraph.com\/index.php\/sri-lankas-knowledge-export-road-map-is-it-achievable\/","title":{"rendered":"Sri Lanka’s Knowledge Export Road Map – Is It Achievable?"},"content":{"rendered":"

By\u00a0Eran Wickramaratne<\/a><\/span> –<\/strong><\/p>\n

\"\"<\/a>

Eran Wickramaratne MP<\/p><\/div>\n

Sri Lanka is known for the export of cheap labour.\u00a0 While it is the intension of government to turn it into a knowledge hub, the road to make Sri Lanka known as a exporter of knowledge requires a meaningful commitment of resources by government and all other stake holders.<\/p>\n

More than one million Sri Lankan workers remit 5 \u2013 6 billion US Dollars annually to the country.\u00a0 The trade deficit of nearly US $ 10 billion is largely funded by these worker remittances which annually grow by 15 \u2013 20 %.\u00a0 If Sri Lanka is to be known as a knowledge process out sourcing (KPO) destination we have to set our sights on increasing our IT-BPO\/KPO revenues above the worker revenues within the next decade.\u00a0 SLASSCOM\u2019s goal is reaching US$ 1 Billion in revenue with 80,000 employed in the industry by 2015. Is this achievable? Presently the IP-BPO industry employs about 40,000 and government revenues in excess of US$ 400 million.<\/p>\n

The IT-BPO industry is dependent on having a steady supply of high quality IT-BPO professionals.\u00a0 The human resource availability is the key critical success factor.<\/p>\n

The enabling environment has improved in many areas over the past decade while the availability of quality human resources and the unstable policy environment is of concern.<\/p>\n

The physical infrastructure consists of eight mobile operators, broadband, leased line and stattelite connectivity.\u00a0 Office infrastructure and road networks are improving.\u00a0 But the power supply is less reliable and too expensive.<\/p>\n

The legal infrastructure is largely in place with Sri Lanka being a signatory to international treaties on intellectual property, TRIPS, Electronic transactions, computer crimes and E-contracting.\u00a0 However, the enforcement of commercial contracts in timely manner is yet to be achieved. Tax holidays of 5 \u2013 12 years, concessionary income tax rates of 15%, and special assistance on real estate acquisition based on investment and employment generating potential has been a boon to the industry.<\/p>\n

Even though post war\u00a0 economy has grown at reasonable rates the country has still not been able to realise its potential in the ICT sector.\u00a0 SLASSCOM itself has had to revise its goals for the IT-BPO industry.\u00a0 While A.T. Kearney and Gartners have rated Sri Lanka for financial attractiveness and as a top destination in the Asia Pacific, investment has not materialized in significant amounts. The US department of State Investments climate statement of June 2012 stated \u201cwith an unpredictable policy environment, cumbersome bureaucracy, and a recent asset\u00a0 seizure bill has created business uncertainty\u201d.<\/p>\n

The slow down on the European and North American economies which are Sri Lanka\u2019s largest trading partners has major implications for the IT-BPO sector too.\u00a0 Cost and effectiveness are paramount in making outsourcing decisions.\u00a0 The outsourcing needs and the IT needs are merging.\u00a0 The job of the Chief Information Officers (CIO) is becoming more about information than technology.\u00a0 Outsourcing is no longer a standalone decision.\u00a0 There is an increasing focus on an end to end approach, business outcomes, domain expertise and\u00a0 technology as an enabler.\u00a0 BPO services out of Sri Lanka have mainly focused on financial and accounting services, investment research, engineering services and UK based legal services.\u00a0 The country has attracted some of the prestigious global brands, but generates relatively small revenues.<\/p>\n

The single critical success factor is the available human resources.\u00a0 A study in 2008 by the Export Development Board (EDB) describes expectations at policy level – \u201cshould improve the relevance of education by changing curriculums to meet the industry\u2019s skill requirements\u201d.<\/p>\n

While the ICTA has been proactive in spending over US$ 5 million for capacity building as a part of the e-Sri Lanka initiative the human resources problem is more complex to fix.\u00a0 Pre-vocational skills of English, IT literacy and familiarity are a prerequisite.\u00a0 The industry also requires the workers to have the attitudes that support a global 24 x 7 work environment where men and women have equal access.<\/p>\n

India produces more than 3 million graduates a year, while Sri Lanka graduates 22,000 from its state universities.\u00a0 I hazard a guess that the total graduates from both state and private institutions are about 35,000.\u00a0 Sri Lanka\u2019s under investment in education over several decades has blunted a comparative advantage with competitors overtaking us even in smaller countries.\u00a0 A Knowledge Process Outsourcing industry requires quality and reasonable supply of people.<\/p>\n

Sri Lanka\u2019s investment in the education sector<\/a><\/span> :<\/p>\n

Educational Expenditure as % of GDP<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 University Expenditure as a % of GDP<\/span><\/p>\n

1990\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3.3\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a00.37<\/p>\n

1995\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3.4\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a00.48<\/p>\n

2000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2.8\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a00.45<\/p>\n

2005\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2.8\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a00.50<\/p>\n

2010\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1.9\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a00.28<\/p>\n

Sri Lanka\u2019s low investment in education has been rapidly declining in recent years. It must be noted that Bhutan, Nepal, Pakistan, Cambodia, Indonesia & Singapore have educational expenditures at 2.4 \u2013 4.7 % while China 3.6%, New Zealand 7% UK 5.6%, USA 5.4% and South Africa 6% are continuing to invest in creating knowledge.\u00a0 When budgetary educational expenditures are compared as % of total expenditure, or \u00a0the investment per university student, or the research expenditure as a % of university expenditures are compared across countries both in Asia and Europe, Sri Lanka\u2019s under investment in education becomes apparent.<\/p>\n

Global comparison of Annual cost per student ;<\/p>\n

US$<\/span><\/p>\n

University of California\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 66,667<\/p>\n

Singapore NUS\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a041,025<\/p>\n

University of Oregon\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 25,547<\/p>\n

Cape Town\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 14,745<\/p>\n

Sri Lanka Universities\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,761<\/p>\n

Source : FUTA<\/a><\/span> Presentation<\/p>\n

We must truly be amazed at the quality of our graduates for such \u00a0a meagre investments we make.\u00a0 It must also be pointed out that in creating a knowledge Economy the quality of the graduate has to be internationally competitive.\u00a0 We cannot export the required quality without much more investment in the university system to increase\u00a0 both quality and quantity to support KPO, cutting edge research and increase patents with the present low levels of investment.<\/p>\n

I have always believed that Sri Lanka\u2019s greatest asset is its human resources.\u00a0 We have the potential to become\u00a0\u00a0 South Asia\u2019s hub of excellence for IT- BPO.\u00a0 We need a government that not only professes but will put its resources where it\u00a0 will give returns that are commensurate to the investment.\u00a0 \u201cThe people who are crazy enough to think they can change the world are the ones who do\u201d was Apple\u2019s\u00a0 \u2018Think different commercial\u2019, 1997.\u00a0 Ladies and Gentlemen You can do it \u2013 provided the government understands the priority of investment in human resources.<\/p>\n

*Extracts of the key note address made by Eran Wickramaratne, Member of Parliament and founder Chairman of the Information Communication Technology Agency (ICTA).<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

[…]<\/p>\n","protected":false},"author":22,"featured_media":54132,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,8,2938],"tags":[5427,5428,5424,5431,5432,5426,5423,5425,5429,5422,5430],"class_list":["post-56292","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-colombotelegraph","category-editorial","category-popular","tag-export-development-board-edb-sri-lanka","tag-icta-sri-lanka","tag-it-bpo-professionals-in-sri-lanka","tag-key-note-address-made-by-eran-wickramaratne","tag-member-of-parliament-and-founder-chairman-of-the-information-communication-technology-agency-icta","tag-north-american-economies","tag-one-million-sri-lankan-workers-remit-5-6-billion-us-dollars-annually-to-the-country","tag-post-war-economy-sri-lanka","tag-sri-lanka-graduates-from-state-universities","tag-sri-lankas-knowledge-export-road-map","tag-sri-lankas-investment-in-the-education-sector"],"yoast_head":"\nSri Lanka's Knowledge Export Road Map - Is It Achievable? 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