[kictanet] Day 4 of 10- BPO Discussions, Govt Subsidies

[Bill Kagai]

Listers/Listeners,

I am just wondering aloud (virtually), if the stimulus packages we saw
go in to GM, AIG, Fannie and Freddie... in one way or another form
part of Govt incentive (during crisis)?? I ask this because I do not
know if BPOs in Kenya are making money presently. I also wonder if
they are employing significantly. Secondly, specifically in the matter
of BPO, can the 'experts' afford to look at this sector holding the
world economy constant?? I think we have not been hit by the global
financial crisis yet but I can tell you for free, its on its
way...full steam ahead. It will crush the property market and also
crush new businesses like BPO before they take off. Europeans and
Americans are broke...currently...and they cannot even afford visiting
Maasai Mara. Why should we rely on them giving us business in their
current state??

OK...Look at it this other way, since Safaricom launched M-Pesa and
started 'in-sourcing' money transfer services mid 2007, we can
hypothesize that there are at least 5,000 M-pesa agents with maybe 20
outlets on average each manned by at least 1 man or woman. In other
words, at least 100,000 jobs have been created indirectly by this one
act which is not even the core business of Safaricom. If all Banks in
Kenya had out-sourced money transfer services, would they have
employed such a humongous number???
This in my opinion is solid. Does not rely on opinion in Europe and
has branded itself without any Government incentives. If this was our
benchmark, then to hell with incentives and maybe embrace Business
Process In-sourcing..



On Fri, Jun 5, 2009 at 2:37 PM, Luvisia Bakuli<luvisia.bakuli at gmail.com> wrote:
> <<Qtn6:  What incentives / subsidies should the government provide to
> BPO operators?  What of the clause requiring 20% Local shareholding in
> foreign companies - is it prohibitive or helpful?>>
>
> There is need for incentives to match the positive externalities the
> firms bring to the country and in the communities they are located. For
> example, incentives may be designed to attract certain technologies, job
> skills, or development of specific capabilities. For these areas, in
> addition to tax incentives, one may consider provision of resources such
> as land, buildings, water, energy, even bandwidth at a concession to
> attract businesses in economically distressed areas -- i.e. away from
> Nairobi.
>
> But there needs to be a clear stipulation of when a firm is deemed to
> graduate to the next level and start paying full fees. That should also
> signal for removal of non-compete clauses, i.e. allow competition in the
> sub-sector if any were imposed as an incentive.
>
> Bakuli
>
>
>
>
>
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