[kictanet] Develop the LOCAL outsourcing market

[Paul Kukubo]

Marcel

Thanks for this email and I am glad that you have flagged two important
issues.

1. Outsourcing creats jobs

2. Local outsourcing is critical.

One would have to agree that the biggest potential source of outsource jobs
in Kenya is the Corporate Sector and the Government. Both are not really big
outsourcers at the moment. None of them is doing large outsourcing of
customer service (through call centres) or data processing.

The Kenya ICT Board believes that local outsourcing is what will give this
industry momentum. I will therefore follow on the local opportunities you
mention specifically in your email in order to establish what we can do as a
board to support the industry. Here we need KIF's partnership to establish
where this actual opportunities lie and to speak to the decision makers in
the context of a private public partnership.

Incidentally, I have spoken to the CEO at KEPSA to agree a date in March
when the board will to meet with the larger corporations to understand their
outsourcing strategies if any and to help encourage them to look at local
companies favourably. We need to know whether decision makers feel there are
challenges to this participation by local firms. The campaign to outsource
work locally has our support. It is part of our strategy.

One would have to agree that there are many reasons for the Kenya
Governement to consider developing outsourcing. By unbundling service
delivery, Government can deliver services better to citizens. As part of our
strategy, the board is building a case for a formal governnment approach to
outsourcing. This is one of the ways to create self sufficiency and jobs in
the economy.When we present our strategic plan to the industry in March, we
shall detail this.

My challenge to the IT enabled services sector, (which includes Outsourcing,
software development, systems support etc ) is that we also have to build
strong businesses and partner with world class firms where it helps.

My experience in the sector is that there is lots of work out there, but
alot if it is actually outsourced offshore. We dont want a situation where
the Board goes out building the case for outsourcing and we get in what is
relatively low value work, only for the higher value work locally to be
offshored.  They way to mitigate this is to build strong local business
lobbies (as we are doing through KIF etc), to be aggressive in partnering to
deliver to contracts and to develop local skills.

As the board, we have a mandate to ensure outsourcing is developed and
people are employed in the process.

As the outsourcing sector is also suffering due to Kenya's reputation
currently, one of the mitigating actions is to build local outsourcing.

On 2/11/08, Marcel Werner <marcelcwerner at gmail.com> wrote:
>
> We are encouraged by the developments in the BPO Sector. The recent
> meeting between Kenya BPO & Contact Center Society and the ICT Board
> revealed steps in the right direction as regards engagement by local
> entities and more specifically, Government, in taking the lead in
> outsourcing. The positive engagement between the BPO Society and The
> Ministry of Special Projects in establishing a call/contact center facility
> for the easy access by the displaced and other dis-enfranchised Kenyans
> following the recent sad events is a commendable effort.
>
> I am informed that the Kenya Police was severely constrained and could
> hardly cope with the numerous distress calls that it received because of
> inadequate technological systems. They may also similarly be looking to
> enhance their capability.
>
> Business Process Outsourcing (BPO) is a healthy practice and common
> business sense that helps improve efficiency. Farming out
> non-mission-critical tasks to specialised service providers creates jobs.
> Not only if the client is off-shore, but also if the client is local and now
> more focused on its core business, thereby becoming more competitive and
> cost-effective. We have not seen much evidence that we are scouting around
> at home for BPO opportunities, more urgent now that the country's
> international image has taken a beating during the past few weeks. Those
> locally based companies that have capabilities to offer BPO services should
> be given more support, also from locally based clients. This is good for the
> economy, and good for the BPO industry.
>
> Positive steps being taken by the Kenya ICT Board in promoting Kenya as an
> Outsource destination should be fully supported. More should also be done by
> the local business that should equally be encouraged to outsource. Some,
> like Safaricom, had made some indications towards outsourcing and nobody
> knows where this process ended. The Kenya ICT Board, The Ministry of ICT and
> other ICT Sector Associations should be urged to lobby for such
> opportunities to be given to local BPO Operators, not only because it
> enables job creation in these hard times, but also because it helps
> establish a local competence and capability that we need before we embark on
> the international leg of selling Kenya as an outsource destination.
>
> What are the industry players doing in encouraging this? Over to you….
>
> Marcel Werner, chairman Kenya ICT Federation - www.kif.or.ke
>
> please send any office correspondence to:
> marcelwerner at innovation-africa.net
>
>
>
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-- 
Paul Kukubo
Chief Executive Officer, Kenya ICT Board
PO Box 27150 - 00100
Nairobi, Kenya

Teleposta Towers 10th Floor

Tel direct: +254 20 2089062/251152
Fax: +254 20 315147
Cell: + 254 733 739488

website: www.ict.go.ke
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