Africa is turning into a new global outsourcing center
Today, the main centers of outsourcing are Asia and Eastern Europe. Millions of programmers and support staff are working in these regions, without which it is no longer possible to imagine the western economy. However, even in these countries the resources are not unlimited. The same India with a billion people is now experiencing a shortage of programmers to carry out an endless stream of Western orders. Not surprisingly, prices are rising and the quality of work suffers. In Eastern Europe, wages are growing even faster, so for outsourcing you have to look for other performers.
The most far-sighted experts are already speculating who can compete in the business process outsourcing (BPO) market. According to them, Africa has a very big potential . Currently, the Black Continent is the most technologically backward on Earth, but here is the cheapest labor and the biggest unemployment in the world. For Western companies, this means tremendous cost savings and unique business opportunities.
In the ranking of the AT Kearney Global Services Location Index 2007 ( PDF ) index of outsourcing services, African countries are showing steady growth and are gradually ahead of representatives from Eastern Europe and South America. Since wages in Belarus, Ukraine and Russia are growing rapidly, these countries are losing their competitive advantages over Mauritania, Tunisia and Ghana. And in terms of education, it is difficult to compete with Africa: for example, in the same Mauritania almost the entire population speaks fluent English.
The rankings are still headed by India and China. Although other places among the leaders also belong to the Asians, but some of them took a few steps back. For example, Singapore dropped to 11th place, and the Philippines - to 8th place. Russia and Ukraine are located at 37 and 47 lines, respectively. In contrast to Asia and Europe, African countries only increase from year to year. Here is a comparative description of Russia, Ukraine and African countries (FI - financial attractiveness index; CR - human resources accessibility index, taking into account their education; CP - business environment; RR - total result).
')
13. Egypt. OP = 3.22; CR = 1.14; DS = 1.25; RR = 5.61.
25. Mauritania. OP = 2.84; CR = 1.04; DS = 1.56; RR = 5.44.
26. Tunisia. OP = 3.03; CR = 0,90; DS = 1.50; RR = 5.43.
27. Ghana. OP = 3.27; CR = 0,90; DS = 1.25; RR = 5.42.
31. South Africa. OP = 2,52; CR = 1.18; DS = 1.60; RR = 5.30.
36. Morocco. OP = 2.92; CR = 0,90; DS = 1.33; RR = 5.14.
37. Russia. OP = 2.61; CR = 1.38; DS = 1.16; RR = 5.14.
39. Senegal. OP = 3.19; CR = 0.82; DS = 1.05; RR = 5.06.
47. Ukraine. OP = 2.76; CR = 0,98; DS = 1.09; RR = 4.83.
Experts believe that Africa has great potential. The population of this vast continent is 933 million people (estimate 2007), with every second younger than 20 years. Salaries are very low. Thanks to the colonial past, a high level of knowledge of foreign languages: English, French, German, Portuguese, Dutch (Afrikaans), Spanish, Italian. Africa is in the same time zone as Europe, which facilitates the provision of outsourcing services. Even for American customers, you don’t have to work the night shift, as Asians do.
There are no particular obstacles to the development of outsourcing in Africa. Most of the difficulties are exactly the same as those of Asia a few years ago: infrastructure (we need broadband Internet everywhere), training of personnel in the field of IT, government support for IT outsourcing, improvement of legislation, etc.
Small “points of growth”, such as Mauritania and South Africa, can play the role of hub-catalysts for the entire African continent, as Taiwan and Hong Kong have done for China.
via Computerworld
The most far-sighted experts are already speculating who can compete in the business process outsourcing (BPO) market. According to them, Africa has a very big potential . Currently, the Black Continent is the most technologically backward on Earth, but here is the cheapest labor and the biggest unemployment in the world. For Western companies, this means tremendous cost savings and unique business opportunities.
In the ranking of the AT Kearney Global Services Location Index 2007 ( PDF ) index of outsourcing services, African countries are showing steady growth and are gradually ahead of representatives from Eastern Europe and South America. Since wages in Belarus, Ukraine and Russia are growing rapidly, these countries are losing their competitive advantages over Mauritania, Tunisia and Ghana. And in terms of education, it is difficult to compete with Africa: for example, in the same Mauritania almost the entire population speaks fluent English.
The rankings are still headed by India and China. Although other places among the leaders also belong to the Asians, but some of them took a few steps back. For example, Singapore dropped to 11th place, and the Philippines - to 8th place. Russia and Ukraine are located at 37 and 47 lines, respectively. In contrast to Asia and Europe, African countries only increase from year to year. Here is a comparative description of Russia, Ukraine and African countries (FI - financial attractiveness index; CR - human resources accessibility index, taking into account their education; CP - business environment; RR - total result).
')
13. Egypt. OP = 3.22; CR = 1.14; DS = 1.25; RR = 5.61.
25. Mauritania. OP = 2.84; CR = 1.04; DS = 1.56; RR = 5.44.
26. Tunisia. OP = 3.03; CR = 0,90; DS = 1.50; RR = 5.43.
27. Ghana. OP = 3.27; CR = 0,90; DS = 1.25; RR = 5.42.
31. South Africa. OP = 2,52; CR = 1.18; DS = 1.60; RR = 5.30.
36. Morocco. OP = 2.92; CR = 0,90; DS = 1.33; RR = 5.14.
37. Russia. OP = 2.61; CR = 1.38; DS = 1.16; RR = 5.14.
39. Senegal. OP = 3.19; CR = 0.82; DS = 1.05; RR = 5.06.
47. Ukraine. OP = 2.76; CR = 0,98; DS = 1.09; RR = 4.83.
Experts believe that Africa has great potential. The population of this vast continent is 933 million people (estimate 2007), with every second younger than 20 years. Salaries are very low. Thanks to the colonial past, a high level of knowledge of foreign languages: English, French, German, Portuguese, Dutch (Afrikaans), Spanish, Italian. Africa is in the same time zone as Europe, which facilitates the provision of outsourcing services. Even for American customers, you don’t have to work the night shift, as Asians do.
There are no particular obstacles to the development of outsourcing in Africa. Most of the difficulties are exactly the same as those of Asia a few years ago: infrastructure (we need broadband Internet everywhere), training of personnel in the field of IT, government support for IT outsourcing, improvement of legislation, etc.
Small “points of growth”, such as Mauritania and South Africa, can play the role of hub-catalysts for the entire African continent, as Taiwan and Hong Kong have done for China.
via Computerworld
Source: https://habr.com/ru/post/15867/
All Articles