Africa Rising Fast in Business Process Outsourcing (BPO)
  • Aug 19, 2020
  • Blog

Africa in recent years has become a globally competitive BPO destination for foreign players notably in the United States, Europe and Australia.

Top CEOs of multinational organizations, in a bid to cut cost and achieve profitability in their operations, have come to accept BPOs as one of the surest approaches.

For the benefit of those who may not be familiar with the terms, Business Process Outsourcing (BPO) is simply the practice of decentralizing part(s) of an organization’s operations, to third party service providers.

Where the BPO destination is located outside the country of the client’s firm, it may be referred to as Offshoring.

The services mostly outsourced include back and front office functions. Typically, these include operations such as data capture, call centre, accounting and payroll services amongst others.

Business Process Outsourcing is found across many sectors from Agribusiness through Services to Manufacturing. In Ghana, mining, petroleum and telecommunication companies as well as financial institutions are notable for outsourcing non-core operations.

Strong government support, favourable exchange rates, time zone compatibility, lower labour costs, tax savings amongst others, are said to be the main considerations for deciding on a BPO destination by foreign players.

Hitherto to its emergence in Africa, the countries of India, Philippines and Eastern Europe are the leading destinations for global BPO businesses.

Here in Africa, South Africa, in over a decade ago has emerged as the most attractive African BPO destination.

The value propositions for the choice of South Africa as a favoured BPO destination include some of the factors already mentioned above. The country also has the advantage of a relatively stable political and business climate.

In recent years, other parts of Africa, notably, Ghana, is slowly becoming a target market for foreign multinational organizations (MNOs) as far as BPO and offshoring are concerned.

Balancing Act – Africa, a research organization that reports and promotes stories on telecoms and internet connectivity in Africa, puts Ghana’s annual gains from BPO at USD 45 Million.

This is largely due to increasing investments especially in IT infrastructure (cloud computing) by successive governments.

The major value propositions for the choice of Ghana by several English MNOs especially, are its relative peace, political stability and flawless English assent, similar to that of the United Kingdom.

This makes Ghana an unparalleled BPO destination compared to her counterparts in other Anglophone countries in Sub Saharan Africa.

Grand View Research Inc. has estimated the global market for BPO to reach USD 405.6 billion by 2027. It is therefore important that African governments take advantage of the enormous economic benefits that BPOs come with, by investing massively in relevant infrastructure especially IT infrastructure as well as building and sustaining a stable political and economic climate.

ProPartners Exchange Limited and some other companies including Noble Business Consult, New Africa Software Solutions, and Absolute Business Solutions Limited, are amongst the list of private businesses that provide various support services to small to large companies, home or abroad.

ProPartners continues to position herself to take even greater advantage of the burgeoning BPO market and opportunities.

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