There are many areas in which African countries, eager to move into this space, can carve out a niche for themselves. The lucrative call center sector is one such area. Creating an environment that makes offshore outsourcing in Africa attractive can have many positive spin-offs for the continent as a whole, not just in terms of increased employment, additional revenue and new skills, but also in terms of changing the perception the developed world has about Africa.

With the rising cost of local production and labor in developed countries like the United States, many companies, especially in the IT arena are looking to the developed world for answers — and finding them. Countries like India have successfully positioned themselves as niche providers of outsourced labor in IT and are reaping the benefits. And, as analysts continue to predict a growth in this type of outsourcing, the opportunity is ripe for other developing countries to tap into this lucrative market. The question is: Can Africa capture a share of the offshore IT market?

US research firm Gartner Ine is predicting that the outsourcing segment will continue to outperform the western European IT services market overall, growing by 3.1 percent in 2004, then rising steadily during the next three years to an annual increase of 8 percent in 2007. Moreover, as a result of global outsourcing trends, Gartner predicts that up to 25 percent of traditional IT jobs in many developed countries today will be situated in emerging markets by 2010.

The move to offshore outsourcing is spurred on by increasing pressure on companies in the developed world to generate profits and reduce costs. Anton Groom of MBS Outsourcing says there is also a drive to follow the sun, to allow them to offer services 24/7 (24 hours, seven days a week). “It therefore makes sense to have offices located in the three primary time zones,” says Groom.
He adds that with a client base expanding globally, it also makes sense to provide clients with a global delivery model. As the developing world gains momentum in creating pools of qualified, skilled talent, outsourcing to these regions becomes more attractive.

Following India’s Lead
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