Traditional BPO firms provide managed services directly to their clients, hire employees and contract workers, and require workers to be centralized in the same physical location. On the other hand freelancers continuously growing in numbers providing ITO/BPO/KPO services, and can deliver faster and more flexible access to a broader pool of workers than traditional approaches, often at lower cost. As online freelancing grows, it is anticipated that it will increasingly cannibalize work currently conducted by traditional outsourcing firms. According to “The Global opportunity in online outsourcing” report published by World Bank group highlights, on optimistic scenario there will be major cannibalization of the BPO industry and it is assumed that 25% of the current BPO demand will be served through freelancers by 2025. Growing momentum of freelancing globally would have an impact on Sri Lanka’s traditional BPO industry as well, which we need to be mindful of assessing the impact.