Search

 

Cablegate: Sri Lanka: Due Diligence for the Secretary of State's 2008

VZCZCXYZ0001
RR RUEHWEB

DE RUEHLM #0783 2350554
ZNR UUUUU ZZH
R 220554Z AUG 08
FM AMEMBASSY COLOMBO
TO SECSTATE WASHDC 8576

UNCLAS COLOMBO 000783

SENSITIVE

SIPDIS

STATE FOR EEB/EPPD NANCY SMITH-NISSLEY AND SCA/INS

E.O. 12958: N/A
TAGS: BEXP ECON AMGT ELAB ETRD SENV AFIN KSEP CE
SUBJECT: SRI LANKA: DUE DILIGENCE FOR THE SECRETARY OF STATE'S 2008
AWARD FOR CORPORATE EXCELLENCE

REFS: A) STATE 84836, B) STATE 54208, C) STATE 34994

1. We appreciate the continued consideration of Virtusa as a
candidate for the Secretary's Awards for Corporate Excellence. We
continue to support fully this company for the ACE.

2. Our response to ref A is keyed to the questions in para 4:

A) The Embassy knows of no downside to Virtusa becoming a recipient
of this award. However, some critics may point out that companies
like Virtusa allow US businesses to outsource some of their
processes overseas.

B) We do not have specific information concerning job creation in
the United States as a result of Virtusa's operations in Sri Lanka.
Virtusa's IT centers in Sri Lanka employ over 1,500 engineers and
other IT experts. Virtusa has its headquarters in Boston and
offices in New York City, Sunnyvale (California), London, and India.


C) Virtusa's ability to utilize the best sources of talent worldwide
allows its clients, many of them U.S. companies, to be more
efficient and competitive in the global marketplace. Further,
Virtusa's offices in Asia give it direct access to -- and knowledge
of -- Asian markets, which are becoming increasingly important to
American companies. Virtusa's products and services from Sri Lanka
have little "U.S. content" in the conventional sense, because these
services are largely the intellectual products of Virtusa's Sri
Lankan employees. However, given that the tools these employees
use, including operating systems, software, and servers, do have
significant U.S. content, the success of companies like Virtusa
helps stimulate demand for these types of U.S. products (and the
follow-on services required to care for them).

D) There are no trade unions at Virtusa's offices in Colombo.
Positions there are highly sought after by engineers and graduates
of IT schools. Janitorial and other support services are contracted
through outside suppliers. Virtusa was ranked among the Top 10
companies at the Sri Lanka National Human Resources Management
Awards in 2007, an event organized by the Association of Human
Resource Professionals of Sri Lanka.

E) We are not aware of any pending court cases involving the
company.

F) Neither the Ambassador nor others involved in the nominating
process hold stock or other financial interests in Virtusa.

BLAKE

© Scoop Media

 
 
 
World Headlines

 

APEC : Leaders Issue Kuala Lumpur Declaration

The leaders of the 21 APEC member economies issued the Kuala Lumpur Declaration following the first-ever virtual 27th APEC Economic Leaders’ Meeting chaired by Malaysian Prime Minister Muhyiddin Yassin. Convening for the first time since the ... More>>

UN: Refugee Resettlement Numbers Fall To Lowest In Two Decades

Refugee resettlement numbers will be at a “record low” this year, the UN refugee agency (UNHCR) said on Wednesday, with only 15,425 people resettled in the first nine months of 2020, compared to more than 50,000 in 2019. In 2016, resettlement ... More>>

G20: Global Co-Operation And Strong Policy Action Needed For A Sustainable Recovery

The COVID-19 crisis has exposed major weaknesses in our economies that can only be fixed through greater global co-operation and strong, targeted policy action, according to a new OECD report presented to the Leaders of the G20 countries at their ... More>>

OECD: GDP Rebounded By 9.0% In The Third Quarter Of 2020 But Remains Below Pre-Pandemic High

Following the unprecedented falls in real gross domestic product (GDP) in the first half of the year in the wake of COVID-19 containment measures, GDP in the OECD area rebounded by 9.0% in the third quarter of 2020 but it remains 4.3% below its pre-crisis ... More>>