Business Process Outsourcing is an industry that is worth over a $100 billion. The 2011 Outsourcing Alert report estimated that over 94 percent of Fortune 500 companies were outsourcing at least one major business function.
Nigeria climbed aboard the BPO train in 2007, with the creation of the National Outsourcing Policy. The Nigerian government created this policy to ensure that Nigeria was not left out of the multi-billion dollar outsourcing industry, which included other African countries such as South Africa, Kenya and Ghana.
An analysis carried out on the cost of outsourcing in some key destinations estimated the cost in Nigeria to be within $2 – $4, compared to $5 – $12 in Pakistan and the Philippines, and $7 – $15 in India. Nigeria was also assessed to have low staff attrition, as a result of the high unemployment rate.
BPO in Nigeria
In January of 2007, the Federal Government launched the National Outsourcing Policy. The aim of this was to ensure that Nigeria – as the largest economy in Africa – was not left behind in the outsourcing boom.
The key thrusts of the policy are:
Actualization of the goals of the NEEDS policy of Government in the area of Information Technology Development;
INVESTMENT OPPORTUNITIES
The outsourcing market is large and diverse, and includes elements such as:
International Opportunities:
Large companies in Europe and North America, across multiple sectors, are constantly seeking lower cost alternative solutions for their business needs. This is estimated to be a $500 billion market.
Local Opportunities:
A number of companies – in the public sector, financial sector, hospitality and travel, healthcare, telecommunications, oil and gas, retail – in Nigeria have also began to invest Business Process Outsourcing alternatives. Also, with the recent economic downturn, more firms in Nigeria especially in the oil sector are trying to cut operating costs by outsourcing some non-core business activities.
Leading BPO Companies in Nigeria
There are a number of successful BPO companies operating in Nigeria:
Competitive Advantage
Competitive Labor Costs and Abundant Human Capital
Nigeria’s labor cost is one of the most competitive in the world, with an average monthly wage of US$213 (according to the National Bureau of Statistics). Nigeria has a young and dynamic population of over 70 million persons within the ages of 15 to 35.
Incentives
Some of the incentives granted by government in the Business Process Outsourcing (BPO) sector include:
Testimonials
iSON
ISON BPO
ISON Group is one of the leading Customer Experience Management providers in the Africa, Middle East and ASEAN region offering systems integration, managed services, BPO and strategic outsourcing solutions using end-to-end IT services. ISON Group has over 13,500 employees across 29 countries which enables it to provide true ‘localized support’ to its customer base spanning products, managed services, systems integration and BPO services across these regions. The ISON Group offers BPO services through ISON BPO.
In Nigeria, ISON BPO has committed to setting up four state-of-the-art facilities in Ibadan, Abeokuta, Ilorin, and Kano.
For more information, please visit:
http://www.isonbpo.com/
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