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BPO Insights/Trends

Africa As An Emerging Outsourcing Hub

By
Ayomide Arowolo
June 27, 2024
4
min read
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When you think of outsourcing, what parts of the world come to mind? I’m guessing, not Africa. Countries in Asia, primarily India, China, and The Philippines have typically been the go-to for global outsourcing services, with countries in Latin America, Eastern Europe, and the Middle East also playing a significant role in meeting this demand. 

In this article, we will discuss Africa in a new light - as an emerging hub for outsourcing excellence. 

The motherland, as it is fondly called, has been attracting several leading global brands and you're probably wondering why. Companies like Microsoft, Amazon, Google, and IBM have all tapped into Africa as a new global hotspot for quality outsourcing and here’s why you should consider outsourcing to Africa too.

1. A young and educated talent pool

With the youngest population in the world, 70% of sub-Saharan Africa is under the age of 30 and young Africans are expected to make up 42% of global youth, by 2030. Coupled with the impressive growth the African Education system has experienced in the last decade, the continent is teeming with youthful enthusiasm. The World Economic Forum has also listed 38 African nations among the 140 countries recognized for their strong education systems focused on skills development.

This situation offers a distinctive chance for expansion, with a substantial portion of this adept young population entering the job market, transforming Africa into a competitive labor market.

Take a key market like Kenya for example. Kenya is home to more than 1.9 million digital workers and ranks #2 in Africa and #18 globally for its English Proficiency. Outsourcing to Africa presents an opportunity to access a pool of excellent talent. 

2. Reduced Operational Costs

Businesses typically outsource operations to countries with lower cost of operation which has proven to bring operational efficiency to a lot of organizations around the world. Africa’s affordability gives you access to economically sustainable staff for any outsourcing service across all its countries. 

The cost of running critical business operations in-house can seem steep but outsourcing to Africa can provide relief. 

3. Technological Advancements

In recent years, improved telecommunication infrastructure and the rising mobile device adoption have boosted internet access in Africa. It is expected that unique mobile subscribers in Africa will reach 615 million, and smartphone adoption will likely be over 64% by 2025.

Many African countries like Madagascar enjoy fast internet speed. In fact, Kenya has 6 fiber optic cables and the government has begun rolling out an extra 100,000 Km of fiber optic cable, to be completed by 2027. The infrastructure in the African continent is growing rapidly and this only serves to boost its importance as a leading outsourcing destination.

4. Multilingual workforce

The diverse and culturally- rich African continent has several languages being spoken as a primary or secondary language. English, for one, is the official language of several countries including Kenya, Nigeria, Ghana, and Botswana among others. Over 130 million African people speak the language.

However, millions of Africans also speak French, Portuguese and even Spanish. Here’s a breakdown: 

French: Over 115 million Africans speak French as their native or secondary language. 

Spanish: One of three official languages in Equatorial Guinea, where nearly 68 percent of the population speaks it.

Portuguese: Official language of six African countries. Angola is home to around 18 million speakers, and Mozambique has roughly 13 million. 

Source: Timedoctor.com

5. Time Zone compatibility

There are six different time zones in Africa which sets the continent up to be a wonderful outsourcing destination for businesses. Having different time zones means that 24/7 business operations like live chat, email and even call centers can be operated with little to no hassle. 

For reference:

Pacific (PST) — Greenwich (GMT)

Mountain (MST) — Western (WST)

Central (CST) — Central (CAT)

Eastern (EST) — Eastern (EAT)

In conclusion, outsourcing in general is not without its challenges but with a skilled workforce, technological advancement and continued government support, the future of outsourcing on the African continent is poised for growth. 

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SnappyCX is committed to providing the highest level of service to our customers. Our talents are trained to deliver prompt, courteous, and knowledgeable support, ensuring that every interaction leaves a positive impression while meeting all KPIs. Book a free consultation todayhttps://calendly.com/snappycx/

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Ayomide Arowolo

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