Sorry, this is long but there is a lot of exciting stuff happening in this space. I’ll start by saying, I believe 2009 and beyond should be coined ‘The ICT Era’ in Kenya. Especially since the government and citizens alike are hoping that the ushering in of a new competitive BPO sector will help to significantly reduce the over 40% unemployment rate. Success in this sector could create a ripple effect, benefiting other sectors as disposable income increases.
I sat down with Gilda Odera, who is the Kenya BPO and Contact Center Society Chairman as well as one of the pioneers of the industry in Kenya. I shared my observation that European businessmen and women were more optimistic about Kenya’s ability to really capitalize on the BPO sector, than Kenyans themselves. She wasn’t surprised. Her feeling was that these business folks from other countries have seen and been involved in very successful ventures in markets that have less going for them than Kenya will have when the Fibre Optic Network goes live in a few months. In fact, she told me that several companies from India had already set up shop in Kenya, anticipating real market opportunities once the Fibre Optic Network goes live.
The Fibre Optic Network being financed by the Kenyan Government is an underwater link to a Middle Eastern Broadband outlet. This is supposed to significantly lower bandwidth costs, improve speeds and allow for an increased number of Kenyans with easy and reliable access to the internet. One of the large players in this operation is Kenya Data Networks(KDN). The company is laying cable throughout Kenya, which will in all likelihood be leased to distributers……who in turn will be able to make internet access a reality for all Kenyans….Several capacity building initiatives are also underway to educate Kenyans in rural areas and prepare them for ‘the ICT Era.’ KDN is already offering free access to primary and secondary schools in rural areas as well as internet cafes that meet certain requirements
I was surprised to hear that most call center operators have suspended operations due to extremely high operating costs and limited access to global contracts. The World Bank was supposed to fund a program that would subsidize BPO operato rs, Universities and the government until the undersea fibre optic cable comes online, but the red tape surrounding the deal is holding it up. Meanwhile, small operators can’t sustain operations with costs that amount to about $4500.00 per MB of data network access compared to $200 in India.
Mrs. Odera said that several things need to happen in order for this BPO boom to become a reality in Kenya. First, the subsidy needs to be released quickly. Secondly, the country has to intensify its marketing efforts to sell Kenya as a real player in the game. Finally, the country has to build its capacity through intense and effective training as well as the improvement of its corporate infrastructure to suit large international companies only interested in dealing with call centers that seat a minimum of 1000 or more. She recommends that the private sector come together and develop the training framework in addition to improving their current standards and ethics guidelines.
I have to say it was refreshing to talk to Mrs. Odera, who was very open to discussing the real issues in the industry and offer advice to anyone interested in doing business in the sector. Her leadership will be instrumental as the country looks to this sector for increased growth and opportunity. I’m confident that she is the right person to help steer Kenya and most importantly, Kenyan Entrepreneurs that are new to BPO and ready to compete with the multi-nationals that enter Kenya in an effort to tap its highly educated and language proficient labor force. I’ve coined it, at least I think I'm the first, “TheICT Era.” It’s going to be a revolution.
I’m going to share some of the news from the local Kenyan telecommunications industry here in Kenya. The competition is hot and understandably so. I’ve spent way too much money on scratch cards and I don’t know a single Kenyan that does not have a cell phone……
Also, don’t forget to log in to http://www.jamati.com/ for the best in African Entertainment and keep your eyes on African Scholar. We’re about to do some big things in that space.
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