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

[godera at skyweb.co.ke]

Bill,

Your comments make great sense. There is however another school of thought that
as the crunch gets worse, even those companies who saw no need to outsource are
looking for more affordable means to survive. It is kind of a chicken and egg
scenario. Then there are the big boys whose sales are down so they are scaling
down across the board.

Gilda 
Quoting Bill Kagai <billkagai at gmail.com>:

> 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
> >
> >
> >
> >
> >
> > _______________________________________________
> > kictanet mailing list
> > kictanet at lists.kictanet.or.ke
> > http://lists.kictanet.or.ke/mailman/listinfo/kictanet
> >
> > This message was sent to: billkagai at gmail.com
> > Unsubscribe or change your options at
> http://lists.kictanet.or.ke/mailman/options/kictanet/billkagai%40gmail.com
> >
> 
> _______________________________________________
> kictanet mailing list
> kictanet at lists.kictanet.or.ke
> http://lists.kictanet.or.ke/mailman/listinfo/kictanet
> 
> This message was sent to: godera at skyweb.co.ke
> Unsubscribe or change your options at
> http://lists.kictanet.or.ke/mailman/options/kictanet/godera%40skyweb.co.ke
> 




-------------------------------------------------
This mail sent through IMP: http://horde.org/imp/