[kictanet] Day 2 of 10:-BPO discussions, Legal and Regulatory Frameworks

Thu Jun 4 11:02:30 EAT 2009

Hi all,

I am convinced that we would not need the Transport Licencing Board or  the
Michuki rules if we only had a few vehicles on our roads. Before we start
thinking of BPO related regulatory frameworks we need to build an industry
first. An industry with a sizeable number of players with capacity
 and world class infrastructure that would meet the minimum standards of any
client out there.

What we have is  alot of talk and false believe that cheaper internet will
open the flood gates of work, . Its is imperative we realise that no one out
there is waiting for Kenya to be ready to give us work. Many multinationals
out there are already getting their work done by companies that have
demostrable track record (borrowing Peter's word) , human, financial and
infrastructural capacity . If our idea of competing in these markets is
fronting 50 operators with 10 seats each we might just save the clients
money on a per seat basis but we end up creating for them  a logistical
nightmare which many clients will not take. Kenya as a destination might be
cheaper but it is not always about low wage differential. Trying to merge
the BPOs to create more viable bigger entities might not be the way to go
capitalism moves in well defined circles and it will take care of that. Over
time some will be left standing and they will have gained enough traction
for clients to notice them.

 When am out there looking for work, potential clients  ask me about HIV
AIDS, Insecurity and political stability,  before we discuss my capacity or
lack off / the countries infrastructure or lack off and regulatory
frameworks.  Thinking about it I can't blame anybody who wants an assurance
that we have healthy kenyans and a workforce that can get to work without
fear of being attacked.

In a nutshell i see Kenya ending up with an over regulated none existent
BPO industry. Looking at the Kenyan BPO industry on a mirror i dont see a
Lion I see something different ... a Mouse maybe . My 2 cents.

Regards,

Richard MWANGI on Ngong Road.
2009/6/4 Peter K. Kenduiywo <pkenduiywo at jambo.co.ke>

> It is quite encouraging to hear from the PS that one Department of
> Government is prepared to outsource some of its processes. This is good news
> because it is the sort of event that might create the spark that will cause
> the big bang of outsourcing activity (onshore followed by offshore) that
> everyone is waiting for. Why? From the available data, there is no evidence
> that Kenya’s policy, legal and regulatory frameworks or lack of them are a
> hindrance to the growth of the sector.  Indeed we have made milestones …
> BPO specific policy and regulation is necessary but not sufficient.
>
> First I think what lacks is widespread and demonstrable EVIDENCE of what
> Kenya is capable of offering.
>
> A speaker of international repute in BPO while visiting Kenya recently
> presented that few big brand names want to be the first person to
> outsource to a company or country. As a result, of this ‘First to be
> Second Phenomenon’, clients end up looking to the more established
> destinations.   Companies in the client countries are much more focused on
> demonstrable quality of work, and want to ensure that it fits seamlessly
> into their overall organization and with their corporate mandates.
>
> In a 2008 survey conducted by Yankee Group dubbed “Can Middle Eastern
> Countries fulfil the "Eastern" Promise?” found at
> http://www.yankeegroup.com/ResearchDocument.do?id=17120 , Open/Competitive
> ICT Environment (policy, regulation…) was ranked 5th after quality, labour
> costs, linguistic skills,  and infrastructure as a Selection Criterion  for
> Outsourcing Location.
>
> Start with local outsourcing and demonstrate to Safaricom et al, capacity
> then move out.
>
>
>
> Secondly, never underestimate perception. Picture the mind of a first time
> western visitor:
>
> •       Immigration Agents?  Pray it goes well!
>
> •       Luggage – Pray it shows up!
>
> •       Exit the Airport and mobbed by people trying to take your bags and
> get you in a Taxi
>
> •       Drive from Airport to Hotel – What does it look like?  Chaos or
> clean?
>
> •       Where are Starbucks and McDonalds?  (Familiarity brings relief)
>
> No amount of marketing globetrotting will erase perceptions if we do not
> invest on bringing the people in for first hand encounters right here.
> Thereafter you can depend on their word of mouth.
>
>
>
> Good regulations and policies are just the icing on the cake.
>
>
> 2009/6/4 Catherine Adeya <elizaslider at yahoo.com>
>
>>    Bwana PS,
>>
>> Much appreciated contribution but I am struggling with one issue. I have
>> been toying with how to put it down and lacked the words so I will put it
>> down anyway (apologies if misunderstood). Here goes....does the cabinet
>> really understand that some of their delays in decision making can make the
>> country lose out in a big way. I know for a fact that there are many
>> countries who have positioned themselves ready to 'grab' the outsourcing
>> jobs while we still await decisions. Is there any way around this? Is there
>> anyway that they can understand that a decision which impinges on the
>> legal/regulatory framework of the ICT industry must be timely unlike, for
>> example, a decision on  new equipment/trucks for the army (important but not
>> urgent)...or matters to do with paternity leave (important but not
>> urgent)........
>>
>> Best,
>>
>> Nyaki
>>
>>  ------------------------------
>> *From:* "bitange at jambo.co.ke" <bitange at jambo.co.ke>
>> *To:* elizaslider at yahoo.com
>> *Cc:* KICTAnet ICT Policy Discussions <kictanet at lists.kictanet.or.ke>
>> *Sent:* Wednesday, June 3, 2009 7:50:53 PM
>> *Subject:* Re: [kictanet] Day 2 of 10:-BPO discussions, Legal and
>> Regulatory Frameworks
>>
>> Walubengo,
>> In the next few weeks, Judiciary is to outsource its transcriptions of
>> court process.  We need to put in place the infrastructure first.  some
>> decisions take longer because they require cabinet approval.  The good
>> news is that there is sufficient goodwill to bring such reforms.
>>
>>
>> Ndemo.
>>
>>
>> >
>> > Morning all,
>> >
>> > Yesterday was like my 1st day in school - what a rich learning
>> experience!
>> > Thanx to Waema, Nyaki, Barrack, Otuoma, and MM whose contributions were
>> > quite enlightening. Of the two questions asked, it appears that we need
>> > both comprehensive ICT and BPO Policies and Strategies.  With regard to
>> > National BPO strategies and targets we learnt that there was quite some
>> > detail at the Ministry of Planning and the BPO Society which could
>> benefit
>> > members if made widely accessible.
>> >
>> > Today we move from the Policy to the Legal, Regulatory Frameworks. The
>> > Research study found very comprehensive Legal and Regulatory environment
>> > in S.Africa, India and Mauritius that supported their BPO industry.
>> > Specifically, laws that took care of eTransactions, eCrime, Copyrights
>> and
>> > Data Protection were well established. Furthermore their BPO Industries
>> > had adopted stringent Quality Assurance Frameworks for BPO and Contact
>> > Center Operations.
>> >
>> > The Researchers found that the case for Kenya was relatively comparable
>> -
>> > with the recently enacted KCA Act (2009) that deals with eCrime &
>> > eTransactions leading the way, others like the Copyright Act (2001) as
>> > well as the Freedom of Information Bill cuurently at an advanced stage
>> > providing an encouraging Legal/Regulatory environment.
>> >
>> > Which brings us to the following two questions:
>> >
>> > Q3: With submarine cables landing next week and given the above
>> > legal/regulatory frameworks, how comes Kenya is NOT experiencing the
>> > anticipated boom in the BPO sector? What should we do to get local and
>> > foreign investors to show more confidence in the BPO industry?
>> >
>> > Q4: Could there be gaps in our Legal, Regulatory and Institutional
>> > frameworks that need to be addresssed?
>> >
>> > Put in black and white- Why hasn't Safaricom, Orange, Zain and several
>> > local Banks who have all opened their own very large Call-Centers NOT
>> > shown confidence in the BPO sector by outsourcing their operations to
>> > local BPO operators?  What of the Government itself? Why cant it
>> outsource
>> > non-core functions to the local BPO operators before trying attract
>> > foreign investors to do the same?
>> >
>> > The floor is open, we have only today to get comments/answers to these
>> > issues.
>> >
>> > walu.
>> >
>> >
>> >
>> >
>> >
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