These days outsourcing services is becoming a common trend among organizations; and companies tend to outsource services for various reasons including to save time and energy, reduce operational cost, address skill gaps, to focus and run the core task they are authorized to in due attention.
Nowadays, Ethiopia is gaining popularity as an outsourcing destination in Africa, for its low labor wages and reliable power supply among others.
According to the Ethiopian Outsourcing Association General-Manager Tadios Tefera, though outsourcing has the potential in yielding big benefits in terms of creating jobs and ensuring conducive business environment, it is limited to a company’s noncore activities which are confined to services including recruitment, security and janitorial services.
He further noted that, Business Process Outsourcing (BPO) is foundational to international corporations in terms of reducing operational cost and quality promotion among others.
According to him the Association was founded by industrial leaders in the outsourcing sector, and is working closely with ministries and stakeholders to assist with policy designs, creating jobs with the aim to make the country the leading outsourcing destination.
So far, the association has been involved in business-to-business engagements with various countries. “Forex generation is expected to be 50 million USD and the sector is anticipated to create 500,000 dignified and well-paying jobs,” he revealed.
Mentioning the efforts put forth to create a favorable environment for business process, he said outsourcing should be further strengthened in supplying the sector with skilled human capital and building infrastructure that could improve the implementation of outsourcing.
It is high time to practice outsourcing in a more productive way than before through developing a working policy of human development starting from lower grades to higher learning institutions.
“We had a productive discussion with the Ministry of Labor and Skills and confirmed our support for the sector; we are grateful for the provision of services to increase the impact of the outsourcing industry in a more organized fashion.”
Countries are promoting outsourcing through putting incentives packages and devising policies and strategies, and India and China among others are benefitting because they are able to attract more companies in the manufacturing and software sectors to invest in their respective nations and create jobs, he added.
Emphasizing the importance of building Special Economic Zones (SEZs) that could nurture outsourcing activities, Tadios said that Ethiopia should also further strengthen the establishment of the SEZs operation and keep on supporting outsourcing to creating fertile ground, nurture the sector in more practical and productive fashion and create jobs for the new generation.
He noted that, since the Special Economic Zones are privileged to be treated with occupational and trade laws that are different from the rest of investment activities, outsourcing practice will be spread nationwide.
He further noted that, there is fertile ground for instance the growing IT infrastructure and increasing skill level of workers are luring multinationals and big companies to join the outsourcing industry. Moreover, tech giants such as Microsoft and Google are offering programming courses and mentorship programs that will further expand the tech talent pool in Ethiopia.
He also called on respective institutions to act promptly and backing the development of the industry so as to help more fellow citizens get jobs and thereby lead improved lifestyles.
In an exclusive interview with The Ethiopian Herald STEM Synergy Ethiopia Country Director Asegedech Shawl for her part said that exercising outsourcing lessens the challenges of scarce resources.
According to her, outsourcing could be materialized if higher learning institutions are determined in producing competitive students in line with the international standard competency and ready to penetrate the international labor market.
Ethiopia has the potential to deliver skilled human power to the international labor market and achieve better results from its business processes.
“I have first-hand information that the government is working on shaping a new curriculum that could help higher education learning institutions produce skilled human power with international skill standards.”
She called on stakeholders to heighten efforts in providing fellow citizens service of certification with a number of competencies and arrange the platform to join the international labor market through legal approaches.
The certification helps citizens to acquire equal wages and exercise rights while working in the foreign land.
Lately, the Ministry of Labor and Skills (MoLS) held a consultative forum on digital industry outsourcing in the presence of stakeholders and entrepreneurs who are engaged in the digital outsourcing industry.
Speaking at the forum, MoLS Minister Muferihat Kamil said that following the Digital Ethiopia 2025 strategy, outsourcing activities in the digital industry has a potential to create massive job opportunities for citizens and enables to earn foreign currency. For this reason, over the last couple of years, the government has been working in creating a favorable environment including legal frameworks and tax incentives to support the sector.
Since the sector has become operational, it was enabled to create jobs for over 15 thousand peoples in a short period of time. As the sector has not yet been utilized in terms of its vast potential, it has brought enormous opportunities to our country.
Having said labor costs rise in traditional outsourcing destinations and companies looking for new locations, the Minister remarked that the country is well positioned to benefit from its young, skilled talent pool and improving digital infrastructure.
“Our business environment needs further reforms for easy startup, operations and quality infrastructure in urban and rural centers. Universities and TVET institutions need to design curricula to produce more advanced technical and industry-relevant skills to help play their great role in the industry,” she noted.
As to her, the sector is projected to gain about 50 million USD per annum.
For example, the ICT Park is highly connected with the private and public data centers to create easy access to information on human resources especially with the Ethiopian Labor Market Information System operational with several micro services.
Concerted governance efforts and supportive policies are a springboard in unlocking the immense potential of Ethiopia’s outsourcing industry for transformative skills and job-led economic growth, she stated.
She also called on various stakeholders’ collaboration to address several challenges that currently inhibit the growth of this industry.
Ministry Information Technology Park Corporation CEO Henok Ahmed, for his part noted that making the outsourcing industry productive is the main focus area of the government.
According to him, the Ministry has signed MoU with leading outsourcing companies; and five top outsourcing companies will commence operation in the ICT Park soon. Ethiopia ICT Park is built with state of art technology and ready for companies which are interested to commence operation.
The Ministry acknowledges the challenges like power, internet connectivity infrastructure and working space, and the facilities in the ICT Park are equipped with all necessary inputs. “We are ready to work in collaboration along with sector’s stakeholders to undo the challenges these industries are facing in more organized fashion.
The sector has high potential in creating jobs and serves as a venue of technology transfer and calls on higher education learning institutions to produce competent human power, he remarked.
BY MENGISTEAB TESHOME
THE ETHIOPIAN HERALD THURSDAY 28 DECEMBER 2023
