[kictanet] kictanet Digest, Vol 13, Issue 38

[aki]

Regarding the expensive bandwidth issue and subsidizing it would it not be
quicker, easier and cost effective  for the ICT Board/Min of Information to
use existing Telkom Kenya/Orange Internet Gateways and infrastructure to
deliver the subsidized bandwidth to BPOs?  Or could the tender process of
the subsidized bandwidth capacity be causing the delays ?

Anyway I hope the BPO players will make a success of this young industry and
help create more jobs.

With Rgds.



On Fri, Jun 20, 2008 at 4:55 PM, Gilda Odera <godera at skyweb.co.ke> wrote:

> Dear Carol,
>
> On behalf  of the Kenya BPO and Contact Center Society I wish to make a few
> remarks on the current status of the BPO Industry.
>
> It is indeed correct to state that most of the BPO operators who started
> operations last year and before have come to a suspension, others have
> closed shop.
> With the high cost of bandwidth, very few of the operators have been able
> to
> sustain such high cost of operation. Indeed even those who are lucky to get
> some trial contracts are unable to service them sufficiently, ending up in
> not signing up the contracts.
> Many have relied on this promise of the bandwidth subsidy. Others who
> started their operations this year are now also running out of funds.
> It is imperative that this issue be addressed urgently and the Society has
> been in constant touch with the ICT Board following up this matter.
> Unfortunately, the Industry players have become tired of our response of "
> We are waiting for  feedback from the ICT Board".
> Two weeks ago, Industry players were sent a form by the ICT Board to fill
> and send back. The form is meant to jump start the process. I would prefer
> the Board to give more information on this though as I may not be in the
> position to explain this further.
>
> One important point raised by Carol though is that  these centres need not
> suspend or shut down if they can be provided with work from Government to
> keep them busy while international marketing takes place. Bandwidth subsidy
> alone will not keep these centres operating, they need work, constant work.
> It is important to state that for Kenya to really become an active
> outsourcing destination, much needs to be done. Many centres need to be
> running. Support needs to be there for indigenous local companies given
> that
> many international companies are the ones coming in to benefit from the
> bandwidth subsidies. We need to position our domestic centers to be active
> and take on some of the work when the ICT Board manages to attract
> international contracts to Kenya or else we will be developing the business
> for International companies who are not necessarily here for too long as
> they always shop for alternative destinations. But if we develop our own,
> we
> can be sure of long term sustainability as is the case in India.
> The two go hand in hand, bandwidth and contracts. Without these two, even
> making the proposed technology park a success may become a tall order. I
> would have been happier seeing a good chunk of that money going into
> marketing Kenya and winning contracts, the rest follows. Kenyans are very
> enterprising and I have heard of so many private companies wanting to set
> up
> technology parks. Maybe if Government had left that to private sector to do
> and concentrate on marketing and human resource capacity building the
> synergies would spiral faster.
>
>
> Kind regards,
>
> Gilda Odera
> Chair, Kenya BPO and Contact Centre Society
>
>
>
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