How to Choose the Best IT Outsourcing Company in Sri Lanka in 12 Steps

In an entrepreneurial society that is rapidly growing more global while the economy remains volatile, outsourcing is not just an alternative; it is a critical requirement especially for cost reduction. As nations try to position themselves as major competitors in this field, Sri Lanka is developing into a formidable rival. However, because the number of providers keeps rising, the question of how to find and choose the best IT outsourcing company in Sri Lanka becomes more vital. Era Biz Solutions has condensed the best ways to find reliable IT Outsourcing companies into just 12 steps.

Understanding IT Outsourcing in Sri Lanka

Sri Lanka used to be known for its fragrant tea and vivid textiles. However, in recent years, particularly with the COVID pandemic, there has been a discreet evolution. A technological shift as the country started growing rapidly in the software development market.

The Sri Lanka Export Development Board confirmed that the IT and BPO sector’s export revenue hit an unprecedented USD 1.2 billion in 2021. This number continued to grow in the following years, though accurate statistics are currently unavailable.

In the meantime, the government has been diligently striving to achieve “Vision 2025,” a strategy that aims to make Sri Lanka an internationally recognized hub for digital innovation. A country attractive for offshore outsourcing – even for Fortune 500 companies.

The initiative calls for the ICT industry to be the country’s largest source of foreign exchange by 2025, with US$5 billion in revenue, over 200,000 additional employment opportunities, and 1,000 fresh startups.

Such a rate of growth cannot be ignored, particularly as it originates from the nation’s youth, a majority of whom are college-educated, tech-savvy, and fluent in English.

How to Determine the Best Outsourcing Company

While it is undoubted that Sri Lanka provides a comfortable environment to outsource in, the rapid growth also makes it difficult to make the final decision on the right partner to outsource your project. What most people won’t tell you are the right steps to follow so as to identify the best outsourcing company in Sri Lanka for your project.  Therefore, we at Era Biz decided to give you the lowdown with a clear guideline to walk you through the process.

Step 1: Make a list of your requirements

• Why do you want to outsource your project? Whether you want to improve momentum, find talent from all over the world, or optimize expenses; defining the primary objective of your project will help you target your search. You could be looking to outsource your entire IT project, hire a few dedicated developers, or add skilled IT staff to your team for a short period of time.

• Your Scope of Work: Without your scope being defined properly, you will not know when the project does not meet its objectives or goes beyond the scope. Outline tasks, processes, and objectives. What do you expect your Sri Lankan collaborator to deliver? You can decide on a range of IT solutions.

Step 2: Do Your Due Diligence

• Digital reconnaissance: In this era online reputation is a sign of reliability. It is important to do proper research regarding reviews, ratings, and customer testimonials. Look at lists and articles such as this one on the best companies for outsourced services to gain a competitive advantage.

• Business Networks: Engage with your peers and leaders in your field. Their experiences with outsourcing can give you the treasure trove of information you’re looking for. Recommendations from business partners can also give you information that has not yet been controlled and filtered by businesses wanting to appear ‘perfect’. This is why “81% of companies view customer experience as a competitive differentiator”, says Forbes.

Step 3: Evaluate knowledge and experience

• Track record: Top IT outsourcing Companies in Sri Lanka like IFS, Virtusa, and Era Biz have set industry standards over and over again. Their past work creates a track record to show their skills and competence.

• Expertise in your domain: Does the company know the ins and outs of your company’s industry? Are they an expert in project management? Generic solutions that work for everyone rarely meet specific goals. Custom IT outsourcing companies like Era Biz that have knowledge of a wide range of industries are better able to meet your needs.

Step 4: Check Quality Standards

Certifications like ISO are more than just badges. They show how committed a company is to quality. Additionally, in Sri Lanka, state groups like SLASSCOM try to raise the quality standards of member companies.

Step 5: Ensure flexibility and scalability

• Adaptability: The contracting partner should be flexible enough to handle changes in tools, techniques, or the scope of the project.

• Scalability: Does your IT partner have the agility to handle changes in the scale of the project whenever business peaks occur? Your partner’s limits should never slow down your business.

Step 6: Prioritize the security and privacy of your data

• Cybersecurity Protocols: Data hacks are happening more and more often. You should look into how your partnering IT company safeguards client data during work. Organizations like Era Biz have been in the lead when it comes to having stringent requirements for data security.

• Compliance: Make sure that the company you choose follows global data protection regulations and keeps customer and client information safe.

Looking for a reliable IT Outsourcing Company? Contact Era Biz Solutions for a free consultation

Step 7: Make sure communication works

• Knowledge of languages: Even though a lot of people in Sri Lanka speak English well, it’s just as important to know business language and industry-specific terms. Many of the best IT companies in Sri Lanka, like Era Biz, hire developers after going through an extensive procedure to check how well they communicate in business English.

• Tools and methods for communication: For a partnership to work well, there must be regular updates, open routes for feedback, and transparency in how things are done.

Step 8: Conduct a cost-benefit analysis

• Straightforward billing: Ensure that your IT partner gives you a clear breakdown of the costs with no hidden costs. The main goal should be to get the most for your money. You have an advantage here as Sri Lanka is a country that offers some of the best value for money work in the Asian region and even around the world, with quality being of the utmost priority.

• Hidden Costs: While most Sri Lankan companies are very transparent, there are a few black sheep. Companies with a lot of “fine print” should be avoided. Every cost, from getting started to final implementation, should be discussed upfront.

Step 9: Visit the company (if possible).

• Infrastructure Audit: A company’s actual infrastructure often reflects how well it runs as a whole. Visiting the company can help obtain a first-hand look at the data center and house team. The travel may seem costly and time-consuming. However, it will only cost you a mere fraction of what you would pay when outsourcing in a first-world country. Especially if you check not one, but a diverse number of candidates in the same area.

• Insight into the company’s culture: Proactively interacting with the staff and taking part in the company’s culture is good. It can give you a deep understanding of their values, work ethic, and dedication.

Step 10: Understand the Cultural Fit

• Business Etiquette: Sri Lankan companies combine the Eastern values of openness and integrity with the professionalism of the West. This mix can make your project highly successful.

• Ease of Integration: Organizations that share the same values as your company can be incorporated into your operations with ease.

Step 11: Deal with the Law and Contracts

• Contractual Clarity: Every detail should be recorded in writing, from the details of task assignments to the procedure to solve a conflict.

• Local Laws: Knowing Sri Lankan business laws helps ensure that everything proceeds seamlessly from a legal standpoint.

Step 12: Consider a trial period.

• Reducing risks: Before making a long-term commitment, a pilot project can be used to assess compatibility, competence, and reliability.

• Feedback Cycle: Use the trial period to set up strategies to obtain feedback that will be crucial in the long run.

Possible challenges and how to solve them

No matter how good a partnership is, conflicts are bound to occur. Whether it’s differences in the ways of doing work or challenges in working with different time zones, the key is to be prepared and plan ahead. These challenges can be turned into growth opportunities by employing technology, fostering open communication, and following up regularly.

Finding the perfect outsourcing company in Sri Lanka is not just a matter of delegating tasks. It’s about forming a partnership. A mutually beneficial relationship where both sides evolve, develop and reach new heights. Sri Lanka is a leader in the IT and BPO industries. So, working together with an outsourcing company in Sri Lanka has an immense likelihood of ensuring project success. In Sri Lanka, you’re not just outsourcing projects; you’re also embracing a rich ethnic tapestry, advanced technology, and a level of commitment that is truly unmatched.

For further information on the advantages of outsourcing in Sri Lanka, see:

1. Sri Lanka: Asia’s Emerging IT/ITES destination
2. The Sri Lanka Advantage