Kenya: The next destination for IT outsourcing

Kenya, widely known for its wildlife and hospitality now hopes to join the list of destination countries where back end services are outsourced to by companies operating in Africa, Europe and America.

The advent of business outsourcing has seen countries like India spring up as destination countries due to the low cost of hiring manpower in these countries. Another key factor for countries vying for outsourcing jobs is the state of technological infrastructure in the country.

In 2009, Kenya installed its first of three undersea internet cables and has been on the campaign to promote Kenya as an outsourcing destination to international companies.

KenCall, Kenya’s largest and most successful call centre was founded in 2005 and has grown from being just a telemarketing company within Kenya to doing customer service and call centre operations for companies in the US, UK and countries in East Africa. According to Nick Nesbitt (CEO of KenCall), 60% of their business comes from the US, 20% from the UK and remaining 20% from East Africa states that. The company looks forward to better times ahead as the installation of the undersea internet cables has seen the company’s monthly expense on broadband drop by 90% from 6000USD per MB to 600USD per MB.

More companies are now springing up in Kenya, hoping to tap into the emerging business outsourcing industry. Although the competition from well established outsourcing destination countries seems stiff, Kenya hopes to bite into the global outsourcing business by riding on the heels of its historical ties with the UK, the fact that it has well educated graduates and its “neutral accent”.

Source – CP-Africa

2 COMMENTS

  1. India’s BPO industry has evolved and matured to present higher-end services that require judgment-based analysis and domain expertise, rather than function-specific, rules-based performance parameters alone. As service providers strive to offer end-to-end services, we see BPO falling into different segments. At one end of the spectrum is the traditional rules-based transactional outsourcing; while at the other end is judgment-based transaction processing and full-service business process outsourcing.

    India has won its spurs as the world’s outsourcing destination of choice. Currently the country has a commanding share of the global outsourcing market.

    India is undoubtedly the most favored IT/BPO destination of the world. This raises the question why most of the big MNCs are interested in outsourcing their operations to BPOs in India. The answer is very simple- India is home to large and skilled human resources. India has inherent strengths, which have made it a major success as an outsourcing destination. India produces the largest number of graduates in the world. The name of India has become synonymous with that of BPOs and IT industry hence the name BPO India.

    Besides being technically sound, the work force is proficient in English and work at lower wages in comparison to other developed countries of the world. India also has a distinct advantage of being in a different time zone that gives it flexibility in working hours. All these factors make the Indian BPOs more efficient and cost effective. In order to meet the growing international demand for lucrative, customer-interaction centers, many organizations worldwide are looking to BPO India.

    A subset of outsourcing, Business Process Outsourcing (BPO) involves contracting the operations and responsibilities through a third party service provider. From the last couple of years, the BPO industry has evolved as the most substantial sector in the Indian market. India has emerged as the most favored location for all Bpo services across the globe. This has accelerated the Indian economy to the heights, progressively boosting the statistics depicting the growth in the years to come and it has been however forecasted that by 2020, more than 80% of the world of business process outsourcing services will be served by the Indian companies. Marked as the best place to attain superior quality services globally, the BPO industry is strengthening its foundation in India.

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  2. Kenya is a very biggest network of BPO. The country is democratic and has a relatively stable government.Kenyan government itself is high on technology adoption Half of the population has mobile handsets. Internet Penetration is good. Kenyan government is open to foreign investments.

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