Last Updated- Jun 28, 2009 14:27 - - 0 Comments


Africa could rival India as alternative for call centres – US lawmakers

computersAfrica, it is believed, can be a much cheaper alternative to call centres in India.

A report carried by the Central Chronicle says US lawmakers and think tanks believe that the continent could be a cheaper destination for call centres as against India.

According to the report, the issue came up briefly fro discussions during a Congressional hearing on US-Africa Trade relations.

“Is there any possibility of having call centers in Africa, in your opinion?” Congressman Donald Payne, was quoted as asking at the joint hearing convened by the Subcommittee on Africa and Global Health of the House Foreign Affairs Committee and the Subcommittee on Commerce, Trade and Consumer Protection of the House Committee on Energy and Commerce.

In response, Karen Tandy, senior vice president, public affairs and communications, Motorola said, “I don’t know whether that has been explored, however, it makes sense that it is certainly possible in Africa.”

“There are a tremendous number of entrepreneurs springing up throughout the continent that we are also investing and giving grant money to and technology, so there is no reason why a call center couldn’t be part of the future in Africa,” she added.

“I would echo that,” observed Greg Lebedev, adviser to the president of the US Chamber of Commerce and Chairman, Center for International Private Enterprise. Africa has a wonder resource of English language speakers, he added, the report said.

Lebedev also believes with some market maturation in India it could be argued that there might be cost-competitive advantages in Africa which should be looked into.

Ms. Tandy and Mr. Lebedev were responding to a question posed by Congressman Payne. “Are there any possibilities for that kind of — even, why not have a call center in Ghana, where they speak English, or Kenya?” he asked.

A recent survey report on Business Process Outsourcing (BPO) published by AT Kearney ranked Ghana top in sub-Sahara Africa.

Ghana, the report said, had the top overall ranking in sub-Saharan Africa, though in terms of actual BPO revenue, South Africa is still the continent’s leader. Ghana’s rank was boosted by financial issues. Meanwhile, India led the rankings globally.

“Ghana scored the highest (followed closely by India) out of the 50 countries ranked on financial attractiveness, which measures compensation cost, infrastructure cost, tax and regulatory cost. Ghana (3.26) scored considerably higher than South Africa (2.28),” Mr. Yaw Owusu, managing director of Gateway Innovations, part of a venture to promote BPO in Ghana was quoted as saying.

Ghana achieved this after seven years of incubating IT projects, reforming the higher education sector and implementing tax breaks for the BPO industry, the report titled “The 2009 AT Kearney Global Services Location Index” has said.

By Emmanuel K. Dogbevi

While India led the rankings globally
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