Ethiopian tech firms form outsourcing association
ADDIS ABABA, ETHIOPIA — A newly-formed consortium of Ethiopian tech firms has entered the global Business Process Outsourcing (BPO) market to position the nation as a dynamic outsourcing hub and contribute to Africa’s growing success in the sector.
Almost a dozen companies specializing in various sectors — including freelancing, digital security, and ICT consulting— have established the Ethiopian Outsourcing Association (EOA).
The association aims to advocate for policy changes, foster a vibrant innovation and growth ecosystem, and spotlight Ethiopia’s burgeoning tech sector.
“Our passionate members foresee a wave of job creation and an exponential surge in technological know-how, empowering our employees with a globalized identity,” said Wondwesen Zewdie, the association’s president.
Africa’s youthful demographic, rising investments, and enhanced infrastructure have increased the continent’s allure as an outsourcing destination.
Industry expert Nick Jiwa noted a significant shift towards Africa for outsourcing services like content moderation, data entry, and back-office functions. Tech giants Amazon, Google, and Microsoft have recently established service delivery centers in Africa, boosting tech-enabled job growth.
The 2022 BPO Confidence Index by Ryan Strategic Advisory also rated South Africa and Egypt as the top African outsourcing destinations. Meanwhile, the 2021 Africa GBS Benchmarking and Market Report indicated Africa’s total GBS offshoring market could reach $9.6 billion in 2023, up from $7.8 billion in 2021.
Other prominent African outsourcing hubs include Kenya, Ghana, Nigeria, Mauritius, and Madagascar.
