Africa as the next Business Process Outsourcing/Offshoring destination
Some of the numerous factors, which played a vital role in instituting India as an outsourcing destination, are already present in Africa, especially in countries like Nigeria, Kenya, and South Africa. A population fluent in spoken English (over 300 million), cultural similarity and a significant talent tossed from quality universities, supported by time zone parallels, are making Africa the next outsourcing destination.
Outsourcing to Africa by several European countries affords them with significant cost savings, to the tune of 40-50%. Offshoring services delivered from Africa are positioned as a suitable substitute to onshore delivery hubs, while also delivering revenue-generating facilities to clients.
The presence of big outsourcing players such as Accenture, WIPRO, IBM, Genpact, Aegis and Deloitte places countries like South Africa as the next outsourcing hub for growing global multinationals. While the growth opportunities for such companies in Africa are enormous, the recognition that Africa is not one country with standardized regulatory and reporting policies has dissuaded many prospective investments. The opportunity for Business Process Outsourcing in Africa is beyond transporting large volume transactions from Africa to India, to facilitating the successful growth of multinationals within Africa; enabling compliance and consistent reporting at an international level.
Proximity to European economies and foreign-language-speaking talent furthermore work in favor of the country prospecting to provide the workforce.
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