In response to political protests and violence following the elections in
Kenya, Kenya’s Business Process Outsourcing and Contact Centre Association held
an emergency meeting last Thurday.
The meeting discussed how the industry could lessen the blow inflicted by the
country’s recent turmoil on its outsourcing industry’s growth and success.
Kenya’s development as an outsourcing destination has largely occurred during
the last year, particularly through providing offshore call centre solutions.
Nick Nesbit, chief executive of Kenya’s first international call centre,
KenCall, attended the meeting and said “the focus was on what the local call
centre needs to do to reassure potential clients back to the state they were in
before Christmas”.
Datamonitor analyst, Peter Ryan, called Kenya “the fastest developing
outsourcing destination” because of its near shore status, the large English
speaking population and its low cost proposition, but said the instability and
violence could now put off global outsourcing players considering business
there.
Ian Marriott, Gartner analyst, said “people will step back and balance risk
against investment,” adding that “the likelihood is outsourcing providers will
start to move to other countries and look elsewhere.”
Marriott explained the importance of firms investing in a global delivery
model, which allows organisations to switch areas in the event of attacks or
disasters. “It [the events in Kenya] teaches people not to have all their eggs
in one basket when choosing unstable places,” Marriott added. Marriott also said
organisations need to consider the trade off between less cost benefit for a
more stable place.
But Nesbit argued until now, the stability of Kenya had been one its biggest
attractions to investors.
In a meeting with Google directors last December, the Kenya ICT board, which
was set up as a state corporation last February in order to make Kenya “a top
ten global ICT hub”, said the three factors that make Kenya an appealing
offshore destination were the “large number of highly educated and skilled
professionals, the stable economic and political environment for business and a
very proactive ICT sector.”
At the end of last year, there had been news of the Kenyan government
injecting millions of dollars into a telecom system for the country and
agreements for new satellite links connecting the East African region with the
world’s internet.
Nesbit said the biggest barrier to Kenya’s outsourcing industry had always
been the “perception issue”. “People are always gobsmacked because of how Kenya
compares to other African states, but the problem is that if there is no way of
talking to investors, there is no way to avoid people’s pre-judgement,” Nesbit
said.
The task of tackling the perception issue is now even more of a reality,
Nesbit explained.
Although at the start of the troubles triggered by the Kenyan elections staff
had difficulty getting to the office and attendance had decreased by 60 per
cent, now “everything is working as it was before,” Nesbit said. “There are
tribal issues being played out but these do not affect the workforce.” Nesbit
said, adding that he had noticed no political divide among his staff.
Nesbit explained that it will make little difference to his business which
party gains power because both are “pro outsourcing, pro security and pro
international funding.”
Tony Roberts, Computer Aid International director of development, said the
running of his organisation’s projects delivering computers across Kenya had
returned back to normal last Monday.
“The image problem is greater than the practical projects on the ground,”
Roberts said. “The instability is likely to have done serious damage to Kenya
abroad, even though the staff back in Nairobi are back to work as normal,” he
added.
Nesbit said the outcome of the emergency meeting held was an agreement to
reassure the local, international and trade press that Kenya’s political
environment would not affect its outsourcing industry.
Ryan warned investors, “don’t throw the baby out with the bathwater.”
“Think of the advantages and weigh this up against the disadvantages. If you
don’t feel the country meets your requirements then don’t do it, but be
vigilant,” Ryan said.
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