Africa Rises as Global CXM Outsourcing Hub

Africa is swiftly becoming a global leader in Customer Experience Management (CXM) outsourcing, driven by advancements in digital connectivity and a growing young population. The continent’s vast and youthful talent pool, coupled with improving digital infrastructure, is attracting businesses worldwide aiming to enhance their customer service operations.

 Key Findings from the Everest Group and CCI Report

New data from a report by Everest Group and CCI highlights Africa’s untapped potential in the CXM sector. Key factors contributing to this industry growth include:

– An average age of 25, with 420 million people aged 15 to 35, forming a dynamic workforce ready to engage in the global economy.

– Investments in talent development and skill-building initiatives nurturing a highly skilled labor force.

– Active promotion of a business-friendly environment by African governments, implementing policies to encourage foreign investment and infrastructure development.

 Strategic Initiatives and Investments

Several initiatives, such as Kenya’s special economic zone for CXM businesses and Rwanda’s focus on becoming a technology and innovation hub, underscore Africa’s commitment to becoming a global leader in the CXM space. These efforts are complemented by ongoing investments in digital infrastructure, which are steadily addressing challenges such as unreliable power and internet connectivity.

 Growing Appeal and Strategic Time Zone Advantage

The report reveals that 85% of global companies now view Africa as an attractive region to outsource their global customer care operations, with 82% seeing a positive shift in their perception of Africa over the past three years. Africa’s strategic time zone positioning, aligning with major markets in Europe and North America, enables real-time collaboration and streamlines communication, enhancing operational efficiency and customer satisfaction.

 Multilingual Workforce as a Competitive Edge

Africa’s broad language proficiency is another key factor driving its popularity as an outsourcing destination. The continent is home to 250 million English speakers and a significant population proficient in French, Portuguese, Spanish, Italian, and Arabic. Consequently, about two-thirds of global companies now view Africa as a competitive option for scalable, multilingual talent.

 Recent Developments and Future Prospects

In recent weeks, Kenya’s President William Ruto announced plans to create 25,000 BPO service jobs through outsourcing firm CCI during the official opening of the country’s largest call center facility in Kiambu County. This announcement was made at the Elevate Africa Conference in Kenya, attended by both the US and UK governments, aiming to drive BPO job growth in Africa.

The bulk of new call center jobs is concentrated in South Africa, Kenya, and Egypt, identified as the established CXM outsourcing markets in Africa. Countries such as Ghana, Rwanda, and Ethiopia are emerging as upcoming CXM markets, poised to benefit from increased global outsourcing investment.

Africa’s rise as a global CXM hub is a testament to its demographic dividend and ongoing digital transformation. As the continent continues to invest in its people and infrastructure, it is set to play an increasingly pivotal role in shaping the future of customer service on a global scale.

Source: Zawya