BusinessWeek’s recent article on rising outsourcing destinations highlights what many African entrepreneurs have proposed for years. Outsourcing to parts of Africa can be a win-win situation. The BusineesWeek article refers to consultancy A.T. Kearney’s 2007 list of the 50 most desirable outsourcing destinations worldwide. For the list countries were ranked by a) financial attractiveness, based on such measures as compensation and infrastructure costs; b) a so-called people score, measuring a nation’s people skills, availability of language and educational skills, and the size and quality of the IT industry; and c) their economic/political environment, infrastructure quality, cultural exposure, and IP security. While India remains the top outsourcing destination many African countries are learning from their example. (Note: Scores are in parentheses.)
Rank - Country (overall - financial - people - environment)
#13 - Egypt (5.6 - 3.2 - 1.1 - 1.3)
#25 - Mauritius (5.4 - 2.8 - 1.0 - 1.6)
#26 - Tunisia (5.4 - 3.0 - 0.9 - 1.5)
#27 - Ghana (5.5 - 3.3 - 0.9 - 1.3)
#31 - South Africa (5.3 - 2.5 - 1.2 - 1.6)
#36 - Morocco (5.1 - 2.9 - 0.9 - 1.3)
#39 - Senegal (5.1 - 3.2 - 0.8 - 1.1)
Other factors which add to a countries’ attractiveness are language and education skills and the reliability of a nation’s telecommunications infrastructure. But the the key underlying factor for many African countries’ successful bid for new business is the lack of infrastructure. While the African digerati are continuously ramping up their skills and making themselves available for business they continuously run into infrastructural limitations. But who is to blame? Is it the governments who are overrun with bureaucracy? or the people themselves, who often do not hold their leaders accountable?
"Offshoring upstarts are making so many inroads, in fact, that by 2012, they’ll significantly dilute India’s dominance, says consultancy Gartner (IT). The consulting firm says that by 2010 about 30% of Fortune 500 enterprises will outsource to three or more countries, from less than 10% today. “So many governments have realized what an opportunity this is and there’s a lot of effort being spent in promoting their countries to the market,” says Johan Gott, manager of A.T. Kearney’s Global Services Location Index.
…Kenya, for instance, is trying to become a destination for business process and IT outsourcing. The Kenyan government has worked in recent years to liberalize its telecom sector, which has lured more operators and helped drive telecom services prices down by 70% in a short time, according to the World Bank. Yet the country relies on satellite connections to link to the rest of the world. That makes it costly for outsourcers to do business."
About the Author:
For more information about G. Kofi Annan, to read his blog, or to see the projects he is a part of visit his website, Annansi Chronicles. To see his clothing line, visit Annansi Clothing.
To learn more about this author, visit G Kofi Annan's Website.
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G Kofi Annan
(Visit G Kofi's Website)
G. Kofi Annan is a Ghanaian creative
director and strategist (cultural trends,
marketing, branding) who specializes in
the emerging African market. He is the
principal of Annansi
LLC, a boutique consultancy which
bridges the gap between the African market
and the global community. Annansi LLC
produces both Annansi Chronicles and Ann
ansi Clothing Co., a premium
streetwear apparel line.
Kofi is an active board member of the
African Film Commission, and has appeared
and been quoted in influential media
outlets including Reuters,
FastCompany.com, Inc. Magazine, PSFK.com,
i-D Magazine, The Source Magazine,
Complex.com, VH1, and BET. He is currently
researching a book on the relationship
between Africa’s brand image and foreign
investments.
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