SPREAD OF IT WELCOME
Niranjan De Silva outlines the strengths, weaknesses and
prospects for Sri Lanka’s proliferating IT and communications
sectors. Darshana Abayasingha reports.


 

Q: How are the IT and communications sectors faring at present?

A: The industry is doing pretty well. Overall, we have seen significant growth – especially in IT. So at the moment, we are very happy.

Q: While all may seem well, do you agree that the sector has not reached its full potential and that there is scope to achieve more?

A: I agree – and then disagree… we have achieved our objectives in certain areas. Where we have failed to make any real progress – and where others like India have done – is in Business Process Outsourcing (BPO). India is earning billions of US Dollars in BPO through the call-centre business. We have only slowly begun getting there, with a few players coming in. The reason we lag behind is that we don’t have sufficient numbers of people who speak good English; it has nothing to do with the lack of IT skills.

However, with English now being taken more seriously, the situation may improve. In contrast, the hardware industry in Sri Lanka is up to date with the rest of the world. We even have the latest software, but its potential hasn’t been explored to the fullest yet.

Q: Apart from the lack of English-language skills, are there any other concerns?

A: Sometime ago, the problem was our communications infrastructure. But that has now been sorted out. Even the number of students graduating with IT degrees has increased. Most schools are equipped with IT labs, which are now being made good use of. Although there are some problems in rural areas due to the lack of trained teachers, these are being addressed. These issues take long to fix, and it is important that we get started. The problem in Sri Lanka is with policy. Policies shouldn’t change with governments; they must remain constant over the years.

Q: What about the software aspect? What focus and growth have we achieved?

A: The quality of our programmers is very good. But no big projects come over here because of the numbers. Whereas Sri Lanka produces 2,500 IT graduates in a year, India produces 450,000. Any big company will go to a country where there is a vast pool of resource people. Sometimes, overflows might make it here… but we cannot capture the market in a big way.

Q: What about the IT training centres that are mushrooming around the island? Has any action been taken to control them?

A: I think they are good for the country. You might call it mushrooming, but the fact is that these facilities are now available closer to your home. That way, people become familiar with the services offered. But we must be careful and ensure that these operators don’t take people for a ride. Some institutions are offering diploma programmes and charging a lot of money for them. Thankfully, the Tertiary And Vocational Council has put forward certain guidelines that prevent them from doing so, unless they meet the required standards.

I think the mushrooming of IT organisations is good, as it will help people overcome any fears. If these institutes were present only in cities, then the digital divide would become wider. We might be able to narrow it this way.

Q: In the medium term, what is the future of the industry?

A: It should perform pretty well. Right now, there is an ambitious programme to promote ‘e-governance’ – and if that goes through, it will make IT available to all segments of the population. Also, with more students using computers at school, IT literacy among future generations should improve. So I feel confident that the industry will achieve significant growth in time.

Q: Are the present levels of investment in the industry sufficient to attain its targets?

A: There is sufficient investment – but if we are to attract more BPO business, we need to invest more in buildings. In India, there are tailor-made buildings for BPOs – whereas in Sri Lanka, there is only one.

Q: There is something of a stigma associated with call-centre operations in Sri Lanka. How can we overcome this in an effort to move forward?

A: There should not be any stigma. It’s a pretty good job – to be employed in a BPO. The role of BPOs is also changing. Initially, it started with call centres, but now it has evolved into the processing of information. It even entails back-office finance. Most US-based legal-services firms have outsourced their operations in India.

Also, it’s very difficult to generate thousands of jobs in the hardware and software industries. They are specialised crafts. But a BPO can employ 2,000 to 3,000 people. If we can get 10 such operations to invest here, that’s 20,000 jobs.

The interviewee is the Director/CEO of Metropolitan Computers.

 
     

 
 

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