By: Staff Writer
December 18, Colombo (LNW): As global competition for technology talent intensifies, Sri Lanka’s IT and BPM industry is undergoing a strategic rethink of how it attracts, retains, and motivates skilled professionals, according to SLASSCOM’s 2025 Compensation and Benefits Survey.
The high response rate 72% of companies returning from last year’s survey signals a strong level of industry trust in the findings, while also providing a reliable snapshot of how organisations are responding to post-crisis realities. Rather than continuing aggressive salary-driven strategies, companies are now pursuing more balanced and targeted approaches.
A key shift identified in the survey is the movement away from blanket salary increases. Following extraordinary pay adjustments during the economic crisis, organisations are now focusing on differentiated rewards. IT firms, in particular, are planning to reward high performers more aggressively from 2026, while BPM firms expect relatively higher overall increments as competition for operational talent grows.
This evolution reflects a broader trend toward performance-based and skill-driven reward systems. Companies are increasingly aligning compensation with scarce and high-impact capabilities, signalling a departure from traditional, role-based structures. This change is also influencing workforce planning, with reskilling becoming essential as demand for certain legacy roles declines.
The survey highlights rising demand for specialised IT roles aligned with global technology trends, while traditional design and publishing functions are losing relevance unless supported by strong digital skill sets. This underscores the urgency for continuous learning and adaptability within the workforce.
Although organisations are introducing flexible work arrangements and personalised benefits, cash compensation remains the dominant priority for employees. Still, companies are investing more heavily in holistic employee experiences, including career growth pathways, learning opportunities, and well-being initiatives, recognising that long-term retention depends on more than pay alone.
Another notable development is the relative easing of employee migration pressures. While talent mobility remains visible especially among professionals seeking overseas education—it is no longer the industry’s most immediate concern. This suggests improved local opportunities and stabilising economic conditions are beginning to influence workforce decisions.
From an international standpoint, the report highlights growing competition among Global Business Services destinations. The emergence of two new outsourcing-friendly countries in 2025 has intensified the race to attract GCC investments. For Sri Lanka, this means maintaining a careful balance between cost efficiency and high-quality talent delivery.
The expanding presence of Global Capability Centres offers a strong foundation. With more than half of survey participants operating as GCCs, the sector continues to play a vital role in foreign exchange earnings and employment generation. SLASSCOM emphasised that strategic, data-driven reward decisions will be critical in ensuring Sri Lanka remains a compelling destination in an increasingly crowded global market.
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