Investment Opportunities Business Process Outsourcing

The global need for Business Process Outsourcing (BPO) services is growing at an annual rate of nine percent, and is expected to reach $25 !illion in 2 " according to the Information Technology Enabled Services website# A Leader in BPO $hana%s BPO industr& scored the highest, followed closel& b& 'ndia, out of 5 countries in the 2 ( A.T. Kearney Global Services Location Index# $hana was ran)ed the "5th !ost favored destination overall# The industr& is being !odeled around the success of 'ndia%s BPO industr&, and has been identified as one of the govern!ent%s focus areas for develop!ent# 'n 2 5 and 2 *, The AT Kearney Global Services Location Index ran)ed $hana and +outh ,frica as the onl& two ,frican countries considered to be co!petitive in the industr&# 'n 2 (, $hana was ran)ed nu!ber one as the preferred outsourcing destination in +ub-+aharan ,frica# A Government Emphasis The BPO industr& has shown signs of being an enabler of econo!ic growth in other ,frican countries such as .g&pt, /auritius, +outh ,frica and 0en&a# 1hile $hana%s own BPO industr& is fairl& &oung and upco!ing, it has a lot of potential to create 2obs for $hanaians and increase inco!e levels a!ong wor)ers# The industr& ca!e into the li!e light several &ears ago when the govern!ent of $hana, through the /inistr& of 3o!!unications, began placing e!phasis on BPO as an econo!ic driver# The govern!ent%s interest in developing and shaping the industr& has led to a lot of !edia attention# 'n October 2 (, the /inistr& of 3o!!unications hired a 4+-based BPO advisor& co!pan&, ,vasant, to re-brand and !ar)et $hana as a preferred BPO destination# /r# ,lhassan 4!ar, 5irector of the Information Technology Enabled Services (ITES)+ecretariat under the /inistr& of 3o!!unication, disclosed this to the $hana 6ews ,genc& ($6,) in ,ccra# 7e said, 8,vasant is on a two-&ear contract to gather data on the BPO !ar)et in the countr& and design pro!otional tools to !ar)et $hana9s BPO potential both here and abroad#: Advantages 'n the 4+, and 40, there are strong needs for ;ualit& .nglish-spea)ing agents who are willing to wor) in shifts thereb& providing their foreign clients the possibilit& of expanded hours# 3lients are loo)ing for better and !ore productive staff at a lower price to ensure lower operating costs and higher return on invest!ent# 'n the event of a disaster, clients see) to ensure continuit& b& diversif&ing outsourced activities globall&# <ortune " co!panies are !igrating custo!er service out of 'ndia to new e!erging low-cost !ar)ets# $hana is seen as a preferred BPO destination due to its large pool of .nglish-spea)ing labor, co!petitive labor costs and geo-political stabilit&# The fact that $hana has a reasonabl& large portion of the population also capable of spea)ing <rench puts $hana in a position to offer valuable !ultilingual outsourcing services to its clients# 'ndustr& experts also consider $hana to have the following strengths=

Growth

7igh-energ&, friendl& and co!puter-literate talent .ducational institutions with capacit& +trong financial support fro! BPO industr&, govern!ent, and 1orld Ban) 5e!onstrated investor willingness Peaceful, stable political environ!ent with a high level of securit& >ocated within $/T ti!e ?one +table, robust business environ!ent#

Based on a stud& underta)en b& 7ewitt ,ssociates in 2 @, the potential hu!an resource production rate for the BPO industr& has increased b& 5 A each &ear since 2 @# 't is esti!ated that a total wor)force of (B,*2* or !ore will be absorbed b& the industr& b& 2 "2 if the trend continues# This growth is based on the nu!ber of infor!ation technolog& students produced in the countr& each &ear and the nu!ber of s)illed wor)ers alread& in the s&ste!# >isted below are the six leading BPO fir!s in $hana, four of which are $hanaian owned= Persol +&ste!s .-+ervices Cancard +olutions Persol +&ste!s ,ffiliated 3o!puter +&ste!s (,3+) 'P/3# The 'T.+ secretariat is co!!itted to transfor!ing the service sector of the econo!& to beco!e the largest source of e!plo&!ent and inco!e reali?ation b& the govern!ent# ,ctivities toward this end are !ostl& being run b& the secretariat# +o!e of the current activities are= 5evelop!ent - 3oncentrated efforts have been !ade to ac;uire invest!ents fro! around the world through the $hana ,ssociation of +oftware and 'T +ervices 3o!panies ($,++3O/)# The association is under the secretariat and !e!bers have been given support to participate in international events to build partnerships and learn best practices# Pro!otion - Pro!otions b& the 'T.+ secretariat resulted in five !ultinational co!panies co!ing to $hana to do business# This has further boosted $hana%s reputation as the business hub for BPO outsourcing in ,frica# Challenges

3ost of Ceal .state D costs are high due to the lac) of grade 8,: real estate suitable for the industr&# Teleco! 'nfrastructure D <iber optic loops are li!ited# 3ost of Broadband D 3ost of broadband is extre!el& high, although that !a& i!prove as $hana receives considerable increases in bandwidth# .lectricit& D Power outages occur fre;uentl&, and electrical services are even !ore unreliable in rural areas# <acilities !ust use bac)up generators# /anage!ent 5epth D $hana%s BPO industr& is relativel& &oung and lac)s !anage!ent depth#

Solutions 'n solving the infrastructure proble!, the govern!ent is providing vacant buildings in the central district of ,ccra# These facilities are to be refurbished into plug-and-pla& infrastructure and the biggest BPO centre in $hana# ,lso, a contract for the engineering and construction of the !ain '3T par) to be located in Te!a (a free ?one area) is underwa&# This infrastructure is a plus in $hana9s effort to reach the forefront when it co!es to 'T providing services# The connectivit& issue is being addressed b& the /ain One and $lo" sub!arine cables, which should be operational in the fall of 2 " and will increase bandwidth !ore than 2 fold# The 1,3+ cable is due in 2 "2 and should increase bandwidth to !ore than 5 ti!es its current levels# ,rrival of these additional cables will solve the redundanc& and cost issues# /a2or fiber optic loops should be co!pleted in 2 " for the central and northern areas of the countr&# Power outages are usuall& controlled b& the use of bac)up generators# 3urriculu! has been developed for training s)illed people in this sector# The '3T is also pro!oting three '3T business incubators for the develop!ent of start up businesses in the countr&# 't is anticipated that each of the three incubators can house up to 25 startups for a period of about three &ears# There are plans underwa& for the establish!ent of another '3T par) in 3ape 3oast and other regions in the countr&# (This is a long ter! plan#) 'T.+ is negotiating with the $hana 'nvest!ent Pro!otion 3ouncil ($'P3) to establish special BPO incentives targeted at the 'T.+ co!panies in $hana# +everal )e& invest!ent opportunities related to the BPO industr& are listed below#

,dding a BPO presence D 3o!parative cost advantages !a)e now a great ti!e to establish a BPO presence in $hana that can expand dra!aticall&# 'nvest!ent in BPO infrastructure D now is a great opportunit& to connect end users to the sub!arine and fiber optic cables# 'nvest!ent in educational institutions that will train the BPO wor)force of the future# 3onstruction of BPO <acilities D prebuilt office space capable of housing !a2or BPO fir!s is currentl& in great de!and# The 1orld Ban) is investing !illions of dollars to aid in this process, but it is anticipated that the de!and will rapidl& outstrip the suppl& of satisfactor& office buildings#

Helpful Resources

$hana ,ssociation of +oftware and 'T +ervices 3o!panies ($,++3O/) 'nfor!ation Technolog& .nabled +ervies ('T.+) $hana 'nternational +ervice Providers ,ssociation ($'+P,) ,T 0earne& 2 ( Ceport 1orld Ban) 1orld Ban) Ceport 'T.+ 1orld Ban) Ceport