How Performance Indicators Have Changed in The BPO Industry in Sri Lanka over the Last Decade

Abstract

Introduction: The Business Process Outsourcing (BPO) industry in Sri Lanka has undergone significant transformations over the past decade. This study seeks to investigate these changes, particularly focusing on the performance indicators that have evolved with the integration of advanced technologies. Innovations such as Artificial Intelligence (AI) and Robotic Process Automation (RPA) have redefined the industry, enhancing operational efficiency and introducing new benchmarks for competitiveness. Additionally, regulatory frameworks like the General Data Protection Regulation (GDPR) and the adoption of International Financial Reporting Standards (IFRS) have influenced how firms measure and maintain performance standards.

Methodology: This research adopts a mixed-methods approach, utilizing both qualitative and quantitative data to explore the impact of AI and RPA on key performance indicators. A combination of interviews with industry experts and an analysis of secondary data on global and local BPO trends was conducted. Special attention was given to metrics such as cost efficiency, time management, customer retention, service quality, adaptability, accuracy, error rates, and trend detection. The study also evaluates how regulatory frameworks like GDPR and IFRS have reshaped privacy and compliance metrics.

Findings: The study highlights that the adoption of AI and RPA has substantially improved accuracy and efficiency in the Sri Lankan BPO sector. Indicators such as trend detection, error rates, and service quality have seen notable enhancements. However, challenges remain, including response bias in qualitative data and difficulties in comparing performance across different regions. Moreover, regulatory compliance has emerged as a critical factor influencing global competitiveness. These findings suggest that while technological advancements are vital for staying competitive, addressing regional disparities and improving data accuracy are equally crucial.

Conclusion: The research underscores the need for Sri Lankan BPO firms to align with emerging global performance benchmarks to remain competitive. Addressing limitations like response bias, enhancing data reliability, and understanding regional context factors can help the industry better adapt to evolving market conditions. By tackling these challenges, the Sri Lankan BPO sector can position itself as a key player on the global stage.