BPOs have potential to reshape the nation’s economic landscape

The global economic landscape is evolving rapidly. To better evaluate institutions, policies, and other factors affecting a country’s productivity, more countries are adopting national competitiveness goals to ensure that they can keep up.

That includes Kenya, which highlighted national competitiveness as a key priority in the government’s Bottom-Up Economic Transformation Agenda (Beta).

The services sector will undoubtedly play a vital role as a labour productivity driver. This can either be through locally consumed services or, better still, through exported services, which can leverage the Export Processing Zone Authority (Epza) infrastructure of countrywide offices meant to encourage business process outsourcing companies to operate in Kenya.

Indeed, Business Process Outsourcing (BPO) companies will play a significant role in accomplishing the goals of Kenya’s Vision 2030.

With only six years left in the timeline laid out by this transformative national development blueprint designed to elevate the nation into a newly industrialised, middle-income country, BPOs have the potential to reshape the nation’s economic landscape and usher in an era of unparalleled progress.

In recent years, the growth of the BPO sector has been nothing short of revolutionary. The global BPO market is currently valued at over US$262 billion, according to Statista, with African countries continuing to gain market share. Projections indicate that the sector is on track to attract revenues totalling US$2 trillion by 2030.

Recognising the immense potential of this growing industry, Kenya strategically identified BPO as a priority sector within Vision 2030’s economic pillar, which envisions creating over 200,000 jobs and contributing a substantial 10 per cent to the nation’s GDP, aiming to capitalize on the massive influx of foreign direct investments anticipated in the BPO sector.

Job creation

The impact of the BPO sector on job creation in Kenya has already been remarkable. In a nation grappling with the challenge of providing meaningful employment opportunities, BPOs have emerged as instruments of change. An example is one of our EPZ operator, Sama, which has become a significant employer, providing over 4,000 individuals with a source of income and a platform to nurture the skills and expertise necessary for the demands of a rapidly evolving global economy. Such a company has allowed Kenya to establish a place in the Artificial Intelligence (AI) value chain by exporting critical data annotation and curation services to companies worldwide.

The BPO sector has also emerged as an economic powerhouse, providing opportunities for both local and international businesses in Kenya. The government has put substantial resources and focus into creating an environment where BPOs can grow and proliferate. It has invested heavily in high-quality internet infrastructure, a necessity for BPOs, and it has paid off: Since 2016, Kenya’s ICT sector has grown by 10 per cent year-on-year. The government also started the Ajira training program targeting young people and capitalising on better communications infrastructure, aiming to help Kenyans access digital jobs and promote Kenya as a destination for online workers.

Moreover, by establishing their operations at Export Processing Zones, BPOs have a specialised environment conducive to thriving, including tax incentives, infrastructure support, and simplified administrative procedures. The government’s commitment to creating an investor-friendly atmosphere has played a pivotal role in positing Kenya as an attractive destination for BPOs.

However, infrastructure improvements, continuous investment in education and training, and addressing regulatory bottlenecks all require attention. To sustain the progress made in the BPO sector, all stakeholders must collaborate to address these challenges, including the government, businesses, and educational institutions.

Conscious of the need for regulatory adherence and ethical practice, the BPO sector is actively pursuing self-regulation and active public affairs through the Business Process Outsourcing Association of Kenya, which is a Business Membership Organisation (BMO) affiliated with the Kenya Private Sector Alliance (KEPSA).

The goal is to deliver quality inbound and outbound services for sales and other contact centres alongside support, data curation, annotation, and model validation for businesses, back office processing services related to finance, accounting, debt collection and HR administration, software development, creative services and data science among other services.

As Kenya races against time to achieve its Vision 2030 goals, the BPO sector is crucial in realising economic growth, creating employment opportunities, and positioning the nation on the global map of competitive outsourcing destinations. The transformative power of BPOs is not merely economic; it extends to shaping a skilled workforce and contributes to Kenya's overall transformation into the country described in Vision 2030.

The continued commitment to nurturing and expanding the BPO sector to accelerate service exports will be instrumental in propelling Kenya towards a future of sustainable prosperity and boosting our national competitiveness.

Mr Adan is the Acting CEO, EPZA. [email protected]; Ms Alwala is the VP, Sama. [email protected]