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News » Nigeria’s BPO industry needs strategy to attract global investors: Outcess CEO

Nigeria’s BPO industry needs strategy to attract global investors: Outcess CEO

nigeria-bpo-strategy-to-attract-investors
Photo from Outcess NG/ Twitter

LAGOS, NIGERIA — With a population exceeding 200 million and nearly 750,000 English-fluent graduates entering the workforce annually, Nigeria is primed to become a global leader in business process outsourcing (BPO). 

Despite these advantages, the country lags behind competitors like Egypt, South Africa, and Morocco due to a lack of a cohesive national strategy. 

“We have everything needed to be a leading BPO destination; we just need to market ourselves better,” said Ikenna Odike, CEO of Outcess, a Nigerian outsourcing firm.

In an interview with BusinessDay, Odike emphasized that Nigeria’s abundant talent pool, cultural affinity with Western markets, and cost competitiveness make it an attractive outsourcing destination. 

Yet, the absence of government support has stifled growth. While other African nations enjoy year-on-year BPO expansion due to robust policies, Nigeria remains underutilized despite its superior English proficiency and tech-savvy workforce.

Strategic partnerships driving job creation in Nigeria

In the face of limited government involvement, private-sector initiatives and international collaborations are stepping in to fill the gap. Outcess recently partnered with the Dutch consulate through the Challenge Fund for Youth Employment (CFYE) program to create 2,500 jobs. This initiative is projected to benefit at least 7,500 Nigerians directly and indirectly.

“Our partnership with the Dutch consulate provides technical assistance and funding to create sustainable job opportunities,” Odike explained. He likened the BPO sector’s potential trajectory to Nollywood’s independent rise before gaining government recognition.

Addressing human capital challenges

Outcess has adopted innovative strategies to address human capital challenges in Nigeria. The company focuses on recruiting and training fresh talent with no prior experience while emphasizing livable wages for employees. Odike noted that misconceptions about the “Japa” phenomenon (emigration) have been overstated. 

“The average customer service agent can’t afford to emigrate. Our strategy focuses on building local capacity by providing foundational skills like computer literacy and English fluency,” he said.

Barriers hindering growth in Nigeria’s BPO sector

One of the biggest challenges facing Nigeria’s BPO industry is undervaluation in the domestic market. This has pushed companies like Outcess to focus on generating business from international clients. Odike stressed that government recognition of the sector’s potential for job creation is essential for long-term success. 

“Until the government recognizes the industry’s potential for job creation and provides concrete support, internal change will be limited,” he warned.

Government initiatives to boost Nigeria’s outsourcing sector

Recent efforts by the Nigerian government aim to position the country as a global outsourcing hub. The Outsource to Nigeria Initiative (OTNI), launched in 2024, seeks to attract international investors by offering tax incentives, infrastructure support, and access to skilled labor. 

Vice President Kashim Shettima emphasized that OTNI could create millions of jobs while leveraging Nigeria’s competitive labor costs and improving ICT infrastructure.

Similarly, the National Talent Export Programme (NATEP) has signed agreements to bring 50,000 BPO jobs to Nigeria over three years, injecting $1.2 billion annually into the economy through wages.

Outcess’ vision for global expansion in BPO

Outcess is positioning itself as a global player by adopting innovative technologies like AI and exploring new outsourcing areas such as logistics and manufacturing. The company also works with international clients while building local capacity through training programs focused on basic skills like computer literacy and English fluency. 

“The future is very bright,” Odike affirmed, adding that a national strategy could amplify these efforts and establish Nigeria as a top-tier outsourcing destination globally.

Read more here.

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