[kictanet] BPO Industry Review (was Re: Stakeholder Queries:)

Tue Sep 2 16:10:08 EAT 2008

Hi Brian,

You have raised very pertinent questions in your email below.
Let me answer your queries.

Firstly, it is true that BPO has taken centre stage in many discussions 
surrounding Kenya's ICT development and growth and it is a good thing, 
here's why:
We are looking at a USD$310 Billion industry by next year, up for grabs for 
any destinations that get it right. India is currently taking up 45% of the 
total share and China and Phillipines are steadily growing. And what's more, 
it can only grow, with the fuel prices soaring each year,what choice is 
there for the companies out there to look for more affordable means of 
operating.
It is a fact that the western countries are looking for new alternative 
destinations to Asia so they do not put all their eggs in one basket, not 
with the terrorism threats all over. Where else but Africa. Why would Kenya 
not put its house in order to take a piece of this pie?

Now in regard to your comment on BPO taking centre stage in ICT development, 
I would say one thing we need in this country is opportunity for knowledge 
transfer done right here. We may produce more technology oriented personnel 
but as long as we operate within the Kenyan way of operating, we are not 
developing our personnel to the global standards we want them to attain.Not 
because we are not capable, but because many operations have not had the 
exposure.

I would beg to differ (and government can speak for itself) that we are 
putting all eggs in one basket. BPO is but one sub-sector in the ICT arena. 
Many other sub-sectors within the sector are quite active. Software 
development is coming up and I keep reading debates on KICTANET. There is an 
interest.
Content development is also being encouraged. The telecommunications sector 
is busy preparing for real competition and we the consumers can't wait for 
the benefits, they will have to have great value adds and affordable 
pricing.

What steps are we taking to enhance BPO? I leave the ICT Board to answer 
that although as Kenya BPO and Contact Centre Society, we have presented to 
them the need to train not less than 10,000 per year, specifically for this 
sector. Frost and Sullivan who are normally  90% accurate in their new 
destination analysis says Kenya will by 2012 have a BPO sector employing 
about 120,000 direct jobs ( you can add indirect by another 3-5) as long as 
the fibre optic infrastructure is in place on time next year and marketing 
of the country takes root.

Who are the players? Our members are on our website 
www.kenyabposociety.or.ke . There are ofcourse others quietly operating.
What are the local opportunities- Our biggest challenge is getting local 
companies to outsource though some have started. We expected the giants like 
Safaricom to play a role even if it is a CSR role to demonstrate a level of 
confidence in the local companies. This is possible, other companies work 
with those they outsource to for a given period, and leave them running 
efficiently as they require. All is not lost. Some local companies are 
outsourcing BPO work and I wish to challenge Safaricom to outsource part of 
their BPO work if they say local outsourcing is not competitive.

The international opportunities are the ones that I have mentioned are worth 
$310 Billion. The ball is in our court as Kenyans to market Kenya as a 
destination if we are to make any gains. We need to attract direct clients 
and not the current brokers who are exploiting the existing centres,much as 
their contracts are keeping some of the centres going.
I hope I have addressed your queries.

Gilda Odera
Chair, Kenya BPO and Contact Centre Society
----- Original Message ----- 
From: "Brian Munyao Longwe" <brian at caret.net>
To: "Gilda Odera" <godera at skyweb.co.ke>
Cc: "KICTAnet ICT Policy Discussions" <kictanet at lists.kictanet.or.ke>
Sent: Tuesday, September 02, 2008 11:12 AM
Subject: [kictanet] BPO Industry Review (was Re: Stakeholder Queries:)

Hi All,

It is interesting that BPO seems to have taken a centre stage in many
discussions surrounding Kenya's ICT development and growth. While I
do believe that BPO/KPO has huge potential. I am a bit skeptical
about this "silver bullet" approach which might be akin to putting
all our eggs in one basket.

What if the basket gets stepped on by some giant like Malaysia, South
Africa or others?

I would be very interested in taking a much closer look at the BPO
industry in Kenya. Who are the players? What are the opportunities?
What is the potential for growth? What steps are we taking to enhance/
develop/increase capacity in BPO/KPO? What kind(s) of investments are
required to make this industry boom? What are the local opportunities
for BPO/KPO? What are the international opportunities for BPO/KPO?

I think that answers to these and many other questions will help
other like me who are a bit unclear in their minds as to how BPO will
be our saviour have a clearer view. It might also just show that BPO
is a contributing factor and not necessarily the holy grail that at
the moment seems to be the general perception.

Regards,

Brian

On Sep 2, 2008, at 8:25 AM, David Otwoma wrote:

> Dear All,
>
> "Comments from BPO operators and of course other Stakeholders" please.
>
> Safaricom in Sh1bn customer care plan (see Daily Nation page 28)
>
> -------------------------------------------------
>
> Many companies have been turning to BPOs as the financial benefits of
> outsourcing continue to make it compelling, with cost savings and
> efficiency improvements being the dominant reasons companies use such
> services. However, companies biggest concerns on outsourcing relate to
> data security.
>
>
> -----------------------------------------------------
>
> The move, seen a precautionary measure in the face of growing
> competition, marks a complete turnaround by the mobile provider which
> in July last year had sought quotations from local Business Process
> Outsourcing (BPO) firms.
>
> "Outsourcing the customer care function proved to be too expensive for
> the kind of quality that we required. We will just have to run the
> service in-house," said Safaricom chief executive Michael Joseph.
>
>
> http://www.nation.co.ke/business/news/-/1006/466372/-/jiyt3xz/-/
> index.html
>
>
> On Mon, Sep 1, 2008 at 8:58 PM, Sean Moroney
> <seanm at aitecafrica.com> wrote:
>> Dear Liko,
>>
>>
>>
>> We would like to invite you to make a presentation at the forthcoming
>> Outsourcing & Contact Centre Conference, which we will be holding
>> over 4-5
>> November under the auspices of the Ministry of Information &
>> Communications
>> and in partnership with the ICT Board. The programme of confirmed
>> presentations so far is attached.
>>
>>
>>
>> It would be great if you would be willing to share your experience
>> with the
>> other participants.
>>
>>
>>
>> Yours sincerely,
>>
>>
>>
>> Sean Moroney
>>
>> Chairman
>>
>> AITEC Africa
>>
>> seanm at aitecafrica.com
>>
>> UK Tel: +44(0)1480-880774
>>
>> UK Fax: +44(0)1480-880765
>>
>> UK Mobile: +44(0)7973-499224
>>
>> Kenya Mobile: +254(0)721-845674
>>
>> Mozambique Mobile: +258-82-6181618
>>
>> Nigeria Mobile: +234(0)802-0571766
>>
>> SA Mobile: +27(0)724-577887
>>
>> Skype: seanmoroney
>>
>> www.aitecafrica.com
>>
>> Please visit our discussion group on The Banking Technology sector
>> in Africa
>> at: http://groups.yahoo.com/group/africanbankingtech
>>
>>
>>
>>
>>
>> AITEC Africa is the trading name of AITEC Conferences Limited
>> UK Company registration number: 4698475
>>
>>
>>
>>
>>
>>
>>
>>
>>
>> ________________________________
>>
>> From: kictanet-bounces+seanm=aitecafrica.com at lists.kictanet.or.ke
>> [mailto:kictanet-bounces
>> +seanm=aitecafrica.com at lists.kictanet.or.ke] On
>> Behalf Of Peres Were
>> Sent: 01 September 2008 12:23
>> To: seanm at aitecafrica.com
>>
>> Cc: 'KICTAnet ICT Policy Discussions'
>> Subject: Re: [kictanet] Stakeholder Queries:
>>
>>
>>
>> Liko,
>>
>>
>>
>> It would be great to hear from you and others, your insights into
>> sales and
>> marketing insights that can benefit the BPO, KPO sector. We can
>> continue the
>> discussion off the list.
>>
>>
>>
>> Kind regards
>>
>>
>>
>> Peres Were
>>
>>
>>
>> ________________________________
>>
>> From: kictanet-bounces+pwere=cascadegl.com at lists.kictanet.or.ke
>> [mailto:kictanet-bounces+pwere=cascadegl.com at lists.kictanet.or.ke]
>> On Behalf
>> Of Liko Agosta
>> Sent: 01 September 2008 10:33
>> To: pwere at cascadegl.com
>> Cc: KICTAnet ICT Policy Discussions
>> Subject: Re: [kictanet] Stakeholder Queries:
>>
>>
>>
>> About ICT Board and all these Boards …
>>
>>
>>
>> Do they ever have open sessions where stakeholders can review
>> strategy,
>> advice, brainstorm ?
>>
>>
>>
>> As CEO of verviant, I have been able to get business … I feel like
>> I have
>> insights into the sales and marketing process that can benefit other
>> software/ICT providers …
>>
>>
>>
>> Thanks
>>
>>
>>
>> Liko Agosta, CEO
>>
>> Verviant Consulting Services.
>>
>>
>>
>> www.verviant.com
>>
>>
>>
>> Phone    : 1-919-341-1820
>>
>> Fax        : 1-978-268-8403
>>
>>
>>
>> Toll Free: 1-866-551-4935
>>
>>
>>
>> Pager: 9193891551 at txt.att.net
>>
>> ---------- Forwarded message ----------
>> From: Brian Longwe <blongwe at gmail.com>
>> Date: Aug 29, 2008 9:31 AM
>> Subject: Re: [kictanet] ICT Board Strategy a Farce
>> To: wambuiwakarema at yahoo.co.uk
>>
>> Very strong language - but I think you should relax as your
>> concerns are
>> unfounded.
>>
>> I am at the Strategic retreat. Unfortunately Gilda Odera -
>> Chairperson of
>> BPO, who was supposed to be present had to cancel at the last minute.
>>
>> Brian
>>
>> On 8/29/08, Wambui Wakarema <wambuiwakarema at yahoo.co.uk> wrote:
>>
>>
>>
>> I have read with surprise the Kictanet mailout from the ICT Board
>> claiming
>> they are going for a stakeholders strategy workshop in Naivasha.
>>
>> Who are these stakeholders? Are there any representing the BPO
>> sector?? I
>> ask this because I have contacted the industry association and
>> they dont
>> seem
>>
>> to be in the know either. This is quite bizarre, especially since
>> BPO is a
>> key sector of the ICT Board's mandate.
>>
>> Who are the stakeholders from the other ICT sectors? Shouldnt the
>> Board be
>> getting input from key stakeholders at this workshop.
>>
>> They are wasting government resources going to write strategies
>> and then
>> 'presenting' to stakeholders, yet stakeholders should have been
>> involved
>> from the word go.
>>
>> The
>>
>
>
> -- 
> David Otwoma,
> Chief Science Secretary,
> National Council for Science and Technology,
> Utalii House 9th Floor,
> Mobile tel: +254 722 141771,
> Office tel: +254 (0)20 2346915,
> P. O. Box 29899 - 00100, Nairobi, Kenya
> email: otwomad at gmail.com & otwoma at ncst.go.ke
> www.ncst.go.ke
>
> _______________________________________________
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>
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