Africa to benefit from IDRC outsourcing study

Africa is set to benefit from a comparative study on the BPO (business process outsourcing) industry.

Research for the study, commissioned by the International Development Research Council (IDRC), will begin next month with the aim of bridging the gap of insufficient data and statistics on BPO in many African countries.

The research will examine the BPO sector in developed and developing countries, said Edith Adera, IDRC program officer. The study is expected to provide empirical evidence and a deeper understanding of the success factors to better inform policy decisions and investment choices in the BPO industry.

The study will engage BPO clients in the U.S. and U.K., African BPO pioneers such as Kenya and Ghana, emerging BPO service countries such as South Africa and Egypt and mature BPO services in India and Mauritius. The Regional Asian BPO Association will also be interviewed.

The study will involve key stakeholders drawn from academia, industry and society, according to Tim Waema, a professor at the University of Nairobi and a member of the research team.

"It is unfortunate that there was no study to guide the BPO industry in Kenya. That is the case in many African countries and we are hoping to bridge the gap," Waema said.

By conducting the research in pioneering, emerging and mature markets, the study will provide deeper understanding and inform Africa's policy decisions and investment choices, Waema said. Many African countries lack legislation to guide the BPO industry.

The study will identify the critical success factors in BPO industries in developing countries, he said. Policy and institutional environment, legal and regulatory considerations, incentives and infrastructure and bandwidth requirements will be examined.

For Kenya, the effects of a bandwidth subsidy will be of special importance because the government promised to subsidize bandwidth costs up to 90 percent through a World Bank grant.

While examining the capacity needs and training requirements, the study will also look at the criteria for choice of a BPO destination, trends in BPO demand and types of BPO operations.

It is expected that the study will also lead to deeper understanding of youth employment and gender issues.

The findings will be published in a book called "The BPO Sector in Mature, Emerging and Pioneer Markets: Lessons and Opportunities for National Development." A publication date has not been set, Waema said, and will depend on the progress of the research and response from interested parties.