In a controversial move, the United States Agency for International Affairs or USAID has decided to fund the development of Sri Lanka’s as well as Armenia’s offshore outsourcing industry. In a move that was heralded of the Sri Lanka Embassy websites, the US government agency USAID in conjunction with the US embassy in Sri Lanka, it announced a number of initiatives to be undertaken, one of which is a joint program with the different unidentified private business process outsourcing and IT outsourcing companies. The initiative involves the training of over 3,000 under and unemployed students on offshore business process support and English language training. In on the job training schemes with the private firms, they will then be participating. The USAID is said to be contributing about $10 million for the project.
The news broke out that USAID will also be implementing a similar program in Armenia with one of the participating companies being Oracles Sun Microsystems unit. As an Information Technology hub, it was not disclosed as to how much exactly would the agency contribute to the program but the global of the project was to establish Armenia. The USAID’s moves to help bolster the outsourcing industry in Asia and Europe have sparked the ire of many Americans. The political front, critics of the Obama administration has been quick to point out that it was the US president wished to diminish offshore outsourcing of US jobs.
With the establishment of Sri Lanka as an Information Technology outsourcing destination, the companies can open a new center and expand their business in neighboring country Sri Lanka rather than in other Indian cities where the cost is higher. The outsourcing industry meanwhile specifically Indian outsourcing companies including Infosys and Wipro may find the new initiative advantageous. In the offshore outsourcing Information Technology and BPO space, the move is expected to cultivate the two countries potential in the offshore outsourcing Information Technology. By the everest research Institute, there has been an increased activity in outsourcing with the continued recovery from the recession. The Indian still remains as the dominant offshore location with the Philippines and China coming in second and third respectively.
The companies want to spread their risks and may be looking to outsource to the other destinations which may very well place Armenia and Sri Lanka at the forefront with the US backed initiative. Comparable to other controversial outsourcing maneuvers undertaken by the US, Impediments are to be expected from the US public and the political arenas. The initiative will go ahead as planned still remains to be seen whether the initiative will prove successful or even whether the initiative will go ahead as planned.
REFERENCE:
http://www.blog.infinit-o.com/usaid-cultivate-outsourcing-industry-sri-lanka-armenia/
