Iris Corp teams up with Sri Lanka’s Aitken Spence
COLOMBO, SRI LANKA — Malaysian tech firm Iris Corp recently formed a joint venture with Sri Lankan conglomerate Aitken Spence to establish an offshore business process outsourcing (BPO) company in the Colombo Port City Special Economic Zone.
50-50 deal between Iris Corp, Aitken Spence
The 50-50 partnership will see an initial investment of $500,000 to set up the new entity that will provide BPO services, tapping into Sri Lanka’s growing prominence as a global outsourcing destination.
For Iris Corp, the joint venture marks its entry into Sri Lanka’s burgeoning BPO market and aligns with its strategy of forging strategic alliances internationally.
The Malaysian company expects the new offshore operations to contribute positively to its earnings going forward.
“The joint venture is expected to pave the way for business collaboration between the parties which is consistent with the objectives of Iris in seeking strategic alliances from time to time for mutual benefits,” Iris Corp stated.
For the nine-month financial period ended December 31, 2023, Iris reported a net profit of RM27.93 million (US$5.8 million), a 75.3% growth from RM15.93 million (US$3.3 million) a year earlier.
Its revenue rose by 23.7% to RM324.97 million (US$68.08 million) from RM262.68 million (US$55.03 million), due to higher delivery of eID cards and e-passports for overseas projects.
Sri Lanka as an outsourcing hotspot
Sri Lanka has emerged as an attractive BPO hub in recent years, leveraging its large English-speaking workforce, competitive labor costs, and government incentives for the industry.
Global Services Magazine ranked the island nation among the top 10 emerging BPO locations and the UK’s National Outsourcing Association named it Outsourcing Destination of the Year in 2013 and 2014.
Sri Lanka’s BPO industry has seen rapid growth, with over 300 IT and BPO firms now operating in the country, employing over 80,000 people.
Major global players like HSBC, Accenture, and WNS have already established a presence, attracted by the skilled workforce and supportive policies.
