Diaspora contribution to IT entrepreneurship in Sri Lanka

Abstract

One in every ten Sri Lankan lives abroad. Modern ICT and transportation facilities have increased labour mobility and the creation of transnational communities. Diaspora members could be resourceful in two ways to their home country, through discussions and transactions. Discussions include email, instant messaging, websites, forums and social media through which Diaspora maintains close relationships with those living in their home country and others living abroad. Transactions include remittances, investments and commitments in terms of time and knowledge. The key feature of Diaspora is their retained affinity to their home country and high motivation to contribute to its development. This research study is focused on Diaspora contribution to the Sri Lankan IT industry. Leaving aside the diverse composition of the Diaspora, it's influence on events in the country and the many ways they contribute to the economy, the author delves into the background of 23 individuals who went overseas for higher studies and returned back to initiate businesses, often as 'first movers' in the field. An industry that started off with a few multinational companies providing IT infrastructure and services two decades back, saw the emergence of local firms around the 90s entering the application products, software services, off-shore development markets and later the IT BPO market. Behind these developments are Diaspora members who have done pioneering work, giving their knowledge and expertise and often acting as the catalysts in the industry. They use their global networks to launch new businesses for foreign markets and to find the finances to support new ventures. In an era of globalization where skilled migration is inevitable this study looks into ways the country can benefit from its Diaspora. What attracts the Diaspora back home - especially the student population studying overseas? What can the government and the various supportive institutions do to encourage IT entrepreneurship? These are the questions answered in the pages that follow.