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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).

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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

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