Norway Univ Sci Tech Africa Bpo


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Africa's capabilities in regards to outsourcing and ICT.

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Norway Univ Sci Tech Africa Bpo

  1. 1. <ul><ul><li>Outsourcing in Africa, and it's impact on ICT development </li></ul></ul><ul><ul><li>Nii Simmonds </li></ul></ul><ul><ul><li>Chairman N A F R I C O M </li></ul></ul><ul><ul><li>Nations of African Computer and Technology Companies </li></ul></ul><ul><ul><li> </li></ul></ul><ul><ul><li>[email_address] </li></ul></ul>
  2. 2. What is N A F R I C O M ? <ul><li>Nafricom is aiming to be the apex body and umbrella organization for IT Software and Technology Services industry in Africa. Nafricom will aim to list research papers on technology developed by African developers and Researchers on Nafricom’s website. The member companies of Nafricom are in the business of Software, IT Services, Internet, E-commerce and IT Enabled Services. Thus Nafricom is not only a Chamber of Commerce, but also a single point-reference on any information on IT and Services and Industry in Africa. </li></ul>
  3. 3. Why I decided to start NAFRICOM? <ul><li>To establish a portal for Africans to read and learn about African developed IT capabilities and outsourcing. </li></ul><ul><li>The Indians have NASSCOM </li></ul>
  4. 4. Why corporations are outsourcing <ul><li>Cost Savings!!! </li></ul><ul><ul><li>Some realize they also want to solve a problem in their supply chains </li></ul></ul><ul><ul><li>Most of the savings can be attributed to Labor Arbitrage </li></ul></ul><ul><li>Corporations want to hedge against risks </li></ul><ul><ul><ul><li>i.e. Geopolitical </li></ul></ul></ul><ul><li>Others outsource to be nimble with the changing global climate (GLOBALIZATION!)‏ </li></ul>
  5. 5. What is being Outsourced to Africa <ul><li>BPO - Transcription & Translation (Data Entry)‏ </li></ul><ul><li>IT - Product Design & Architecture Services (Software Design)‏ </li></ul><ul><li>BPO - Outbound and Inbound sales support (Call Centers)‏ </li></ul>
  6. 6. Why Africa ? <ul><li>Time Zone and Distance </li></ul><ul><li>Ex-European Colonization (Western Influences)‏ </li></ul><ul><ul><li>British, French </li></ul></ul><ul><li>930 Million citizens, about half speak English </li></ul><ul><li>Cultural Compatibility </li></ul><ul><li>Relative Political Stability </li></ul>
  7. 7. Major Country Players <ul><li>South Africa, Ghana, Mauritius, Senegal, Morocco, Kenya, Cameroon, Algeria </li></ul>
  8. 8. Corporations Outsourcing to Africa <ul><li>Unisys, Hewlett Packard, IBM, ACS, DMI, CSC, Global Response, Unilever, Avaya, IBM, AQ Solutions, Global Response, Rising Data, Wipro Spectramind , Infosys, Tata </li></ul>
  9. 9. Lessons Learned - Challenges <ul><li>Challenges African Nations must start to address </li></ul><ul><li>to be considered a viable offshore BPO </li></ul><ul><li>destination: </li></ul><ul><li>Infrastructure Challenges </li></ul><ul><ul><li>Countries are starting to realize they need to develop more ICT capacity </li></ul></ul><ul><ul><ul><ul><li>Build more education supported IT and Engineering institutions </li></ul></ul></ul></ul><ul><li>Government Support Challenges </li></ul><ul><ul><li>Establishing eSupport, Tax holidays, and IT parks </li></ul></ul>
  10. 10. Lessons Learned Infrastructure Challenges in Africa <ul><li>Infrastructure Challenges because there is … </li></ul><ul><li>A lack of a reliable bandwidth provider (ISP) using </li></ul><ul><li>SAT-3 </li></ul><ul><ul><ul><li>Must have redundancies (like Eassy cable in East Africa)‏ </li></ul></ul></ul><ul><ul><ul><ul><li>The project is driven by 15 telecommunications entities from 13 countries of Eastern Africa region. </li></ul></ul></ul></ul><ul><ul><ul><li>Africa is getting wired with Fiber and wireless bandwidth like WiMax and other new technologies </li></ul></ul></ul><ul><li>A Non-competitive bandwidth market with high costs </li></ul><ul><ul><ul><li>- Governments need to De-license 2.4 and 5 GHz </li></ul></ul></ul><ul><li>A lack of telecommunications competition </li></ul>
  11. 11. SAT-2, SAT-3/WASC/SAFE, SEA-ME-WE, ATLANTIS 2, FLAG Current African Submarine Fibre Connectivity: Mostly “Perimeter” Source: CTiA Report 2002/03
  12. 12. Eastern Africa Submarine System Toliary Durban
  13. 13. Backhaul links to EASSy Cable Zanzibar Malaba
  14. 15. SEA-ME-WE-4 (35Countries )‏ SAFE (5 Countries)‏ ATLANTIS-2 (6 Countries)‏ SAT-3 / WASC (11 Countries )‏ 56 Countries EASSy (15 Countries)‏ Strategic Global Coverage Germany Portugal Brazil Senegal South Africa Egypt Malaysia Australia Japan India
  15. 16. Global Connectivity EASSy SAT-3/WASC SAFE SEA ME WE 3 20
  16. 17. General Consensus <ul><li>Routing local traffic internationally costing the continent about $400 million a year </li></ul><ul><li>In the case of one of the poorest countries in Africa, its incumbent telco spends US$3.2 million on satellite transmission, of which US$2.4 million is spent on routing calls within the country and the balance is spent on international calls. </li></ul><ul><li>Global bandwidth average is between 10 and 12% but a recent report by Balancing Act Africa predicts a 24% growth for the next 3 years to 2008 </li></ul><ul><li>Exponential growth of voice traffic on the mobile networks in Africa in another factor that cannot be ignore </li></ul><ul><li>Differentiate Infrastructure from Services and treat telecom infrastructure as other infrastructure like road, water etc. </li></ul>
  17. 18. Lessons Learned Government Support Challenge <ul><li>Government Policy Challenges because there is … </li></ul><ul><li>Strong VOIP ambiguity causing tremendous confusion – adds to perception of risk </li></ul><ul><li>No independent study of Africa as BPO destination </li></ul><ul><ul><li>McKinsey has done some analysis </li></ul></ul><ul><li>Inconsistency between various government ministries regarding official stance on ICT issues </li></ul><ul><li>No central organization for BPO-related initiatives </li></ul><ul><ul><li>Not Yet, but here comes N A F R I C O M and others NGO’S </li></ul></ul>
  18. 19. What is needed <ul><li>Create and fund a private BPO development organization and find your Dewang Mehta to run it </li></ul><ul><li>Strengthen capital markets </li></ul><ul><li>Leverage diaspora communities </li></ul><ul><li>(In 2000 972 firms in Silicon Valley had an Indian at the helm accounting for $5 billion sales)‏ </li></ul><ul><li>More Foreign Direct investment </li></ul><ul><ul><li>China is funding Infrastructure development!!! </li></ul></ul><ul><li>More Outsourcing vendors and corporations in Africa </li></ul>
  19. 20. Some Great Outsourcing Resources <ul><li>Outsourcing/Offshoring Knowledge </li></ul><ul><ul><li>neoIT: & </li></ul></ul><ul><ul><li>TPI: </li></ul></ul><ul><ul><li>Outsourcing Institute: </li></ul></ul><ul><ul><li>Outsourcing Center </li></ul></ul><ul><ul><li>NASSCOM: </li></ul></ul><ul><ul><li>Nafricom: </li></ul></ul><ul><ul><li>Outsource Philippines: </li></ul></ul><ul><ul><li>Global (WITSA) </li></ul></ul><ul><li>Africa Telephony and ICT resource </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul>
  20. 21. <ul><ul><li>Outsourcing in Africa, and it's impact on ICT development </li></ul></ul><ul><ul><li>Thanks for your time! </li></ul></ul><ul><ul><li>Nii Simmonds </li></ul></ul><ul><ul><li>Chairman N A F R I C O M </li></ul></ul><ul><ul><li>Nations of African Computer and Technology Companies </li></ul></ul><ul><ul><li> </li></ul></ul><ul><ul><li>[email_address] </li></ul></ul>