Kenya’s outsourcing surge: How ‘Silicon Savannah’ is redefining business efficiency

This article is a submission by VIZX Global. VIZX Global short for Vision Execution, is a BPO solutions provider that was established with a clear vision: to nurture transformative ideas from conception to fruition, ultimately cultivating thriving enterprises.

As businesses adapt to new trends post-COVID-19, many are downsizing and shifting towards outsourcing to cut costs and improve efficiency. Outsourcing allows companies to subcontract tasks to external organizations, reducing labor costs and enabling a stronger focus on core business activities.

India and the Philippines have long dominated the outsourcing industry, but Kenya has recently emerged as a new player, earning the nickname “Silicon Savannah.”

What explains Kenya’s outsourcing surge?

Kenya’s growth in the outsourcing sector is no coincidence. The country’s heavy investment in education, digital infrastructure, and policy reforms to support business growth pays off. It’s now positioned as a competitive alternative for companies looking for cost-effective, skilled labor.

According to Business Daily Africa, Kenya is expected to create one million jobs through outsourcing by 2028, signaling a promising future for the country in this sector.

Key drivers of Kenya’s outsourcing surge:

Here are the main factors that are pushing Kenya’s outsourcing surge:

Educational system

Kenya’s educational institutions emphasize technical and business skills, aligning their programs to meet the needs of the BPO sector. With a highly educated workforce and fluency in English, Kenya supplies qualified professionals that effectively contribute to companies’ efficiency and productivity.

Technological advancements

Beyond the education system, Kenya is also committed to digital infrastructure. This is evident in initiatives like the Konza Technopolis, a smart city designed to support ICT innovation and entrepreneurship.

As part of the country’s Vision 2030 plan, the Konza project aims to attract tech companies and promote outsourcing by building a conducive environment for business operations. This infrastructure offers reliable internet connectivity and modern facilities, making the country a suitable outsourcing destination.

Young, tech-savvy workforce

Kenya boasts a youthful population that is highly adaptable and technology-driven. According to Statista, over 60% of Kenya’s population is under 25 years old, providing a continuous influx of digitally literate talent eager to engage in global business.

Government support and pro-business policies

The Kenyan government has proactively promoted the BPO sector. It has implemented policies and tax incentives that favor foreign investment and support local BPO companies.

This stable business environment reassures companies that Kenya is committed to fostering growth in the outsourcing sector.

Competitive cost advantages

For companies looking to optimize their budgets, Kenya’s outsourcing sector offers a compelling alternative. By outsourcing to Kenya, businesses can tap into high-quality labor at a fraction of the cost compared to other countries, without compromising quality.

Kenya’s outsourcing costs are approximately 30-40% lower than other outsourcing hubs around the globe, making it attractive for small and medium-sized enterprises (SMEs).

The unique benefits of outsourcing to Kenya

Kenya’s advantages as an outsourcing destination extend beyond cost savings. The country offers an optimal blend of skilled labor, technological infrastructure, and cultural compatibility, appealing to many global companies.

Time zone advantage

Kenya’s time zone (GMT +3) aligns well with Europe and is close enough to North America for seamless communication and collaboration. This time overlap enables round-the-clock support for many industries, particularly those that require 24/7 services like customer support and IT helpdesk.

English proficiency and communication skills

English is Kenya’s official language, providing a significant advantage in communication with English-speaking clients.

According to the EF English Proficiency Index, Kenya ranks among the top African countries in English proficiency. This skill allows companies to interact smoothly and effectively with outsourced teams.

Cultural compatibility and work ethic

Kenya’s British-influenced education system has instilled a work culture that is easily compatible with Western business practices. Kenyan professionals are known for their strong work ethic, commitment, and adaptability, which are essential for high-quality outsourcing relationships.

5 tasks to delegate to your outsourced team in Kenya

Consider the following areas when you delegate tasks to a Kenyan outsourced team:

1. Customer service and support – Kenyan professionals have a high proficiency in the English language, backed up by excellent communication skills, hence suitable for customer service and support roles. Customer service and support teams will handle live chats, inquiries, and social media interactions and ensure positive interaction with your clients.

2. Data entry tasks – Kenyan professionals are highly detail-oriented and accustomed to thriving in diverse environments. Hence, they are ideal for your back-office functions like data entry, record maintenance, and calendar management, allowing your in-house staff time to focus on higher-level projects.

3. Finance and accounting – Outsource payroll processing, financial reporting, and bookkeeping for accurate record keeping and compliance with regulatory bodies in your country.

4. Website and software development – Kenya boasts skilled programmers and developers who will build and maintain your websites and apps and offer custom software solutions.

5. Human Resource support – The hiring process can be tedious and time-consuming for your in-house team. Outsourcing these functions in Kenya will assist with candidate screening, interview scheduling, and onboarding support.

The Future of Kenya’s BPO Industry

The future of outsourcing in Kenya is promising courtesy of the consistency in digital infrastructure investments and educational reforms. Projections indicate that the country’s BPO sector could contribute significantly to GDP growth, job creation, and economic resilience.

Kenya’s commitment to building a thriving digital economy is also attracting attention from major investors, with many looking to set up investments or collaborate with the country.

Additionally, global companies are increasingly looking at diversifying their outsourcing options. Kenya’s favorable conditions make it a top consideration.

Here are the statistics indicating Kenya’s potential as an outsourcing hub:

• Economic contribution – The BPO sector is projected to contribute significantly to Kenya’s GDP, accounting for at least 10% of GDP by 2030.
• Job creation – Kenya’s BPO industry will likely create over one million jobs by 2028, reflecting the growing demand for Kenyan talent in the global market.
• Global BPO valuation – The global BPO market, currently valued at around $262 billion, is promising growth, with predictions indicating over $500 billion by 2030. As African countries like Kenya gain traction in this market, they will likely capture a growing share of this revenue.

Looking beyond Kenya’s outsourcing surge

As businesses explore new and efficient ways to meet operational needs, Kenya’s Silicon Savannah stands out as a highly promising outsourcing destination. From cost reduction to skilled, tech-savvy talent, Kenya is your ideal outsourcing destination.

Also, with its youthful, ambitious workforce and ongoing investment in digital infrastructure, Kenya is well-positioned to reshape the global outsourcing landscape.

Lastly, Kenya provides decision-makers with an outsourcing option that combines affordability with quality, an essential factor for companies looking to stay competitive.

Hence, as Kenya’s BPO industry continues to expand, businesses worldwide can tap into the innovative, dynamic potential of “Silicon Savannah”.