A newly formed consortium of Ethiopian tech companies is tapping the global business processes outsourcing market, a sector fast becoming one of Africa’s success stories.
By Bonface Orucho
Almost a dozen Ethiopian tech companies have joined forces to establish the Ethiopian Outsourcing Association in what is expected to be a game-changing initiative to position the country as a dynamic outsourcing hub.
Spanning freelancing, business capital solutions, ICT consulting, digital security, and logistics tech startups, the association brings together a diverse range of experts, fueling a vibrant ecosystem of innovation and growth. The association will also advocate for policy changes and shines a spotlight on the immense potential of Ethiopia’s rapidly expanding tech sector.
“Our passionate members foresee a wave of job creation and an exponential surge in technological know-how, empowering our employees with a globalized identity,” said Wondwesen Zewdie, the association’s president.
Africa’s burgeoning youthful population, increasing investments, and improving infrastructure have elevated the capacity and potential of countries across the continent as attractive outsourcing destinations and Business Process Outsourcing (BPO) also known as Global Business Services (GBS) are seen as key drivers for Africa’s current economic growth.
Industry expert Nick Jiwa highlights a significant shift towards Africa by outsourcers focusing on content moderation, customer service, data annotation, data entry, and back-office functions.
“One of Africa’s greatest assets is a skilled, yet underutilized talent pool…also, brands such as Amazon, Daimler, Google, and Microsoft have established service delivery centres in Africa and are investing in tech-enabled job growth,” he explained.
The 2022 BPO Confidence Index by Ryan Strategic Advisory highlights South Africa and Egypt as the top outsourcing destinations in Africa, with high ratings on the local labour market, infrastructure, commercial property, BPO ecosystem, political stability, public security, and economic stability.
The 2021 Africa Global Business Services (GBS) Benchmarking and Market Report, conducted by Knowledge Executive placed the value of South Africa’s domestic and international outsourcing market at US$4.7 billion, just ahead of Egypt, at US$4 billion.
The report shows Africa’s total GBS offshoring market will reach US$9.6 billion in 2023, from US$7.8 billion in 2021 while collectively, the domestic and international GBS markets across the continent generate about US$15.1 billion in revenue, rising to US$19.8 billion in 2023.
Business Process Enabling South Africa trade association reported that the GBS sector added over 6,000 new international jobs in the last quarter of 2022, contributing US$323 million to the economy.
According to Empower Africa, Kenya, Ghana, Nigeria, Mauritius, and Madagascar have also emerged as prominent outsourcing hubs on the continent.
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