World of HR: Companies eye outsourcing opportunities in Africa

As US and European companies increasingly outsource jobs, workers in some African countries could stand to benefit from the emerging opportunities, according to multiple reports.

Where in the world? The outsourcing market is worth at least $300 billion and is expected to reach $525 billion by 2030, according to Grand View Research. While outsourcing is not new, more employers in countries like the UK and US are expected to increasingly lean on lower-income countries to help reduce overhead costs and fill accounting and IT skills gaps, the BBC reported.

South Africa, for instance, which has a 32% unemployment rate, has a skilled workforce and is located in a time zone convenient for employers in Europe. Business Process Outsourcing (BPO) firms have made South Africa one of the fastest-growing countries in the outsourcing market; they’ve contributed millions of US dollars to South Africa’s economy, according to Outsource Accelerator.

“There’s just such a great work ethic in South Africa, and an energy about South Africans,” Simon Wheeler, an accountant based in South Africa, told the BBC, adding that the jobs can give workers the opportunity to advance their careers in ways they wouldn’t otherwise be able to in the country.

Ghana is trying to break into the market as well. “The most important thing now is cost. Every company has to grow its digital components,” Matthew Darkwa, director of operations at AmaliTech, a Ghanaian IT services company, told African Business, noting that Ghana’s workforce could be the answer to Europe’s aging population.

Satellite view. US-based tech and consulting firms have quickly expanded abroad over the last seven years, according to data from Revelio Labs. This cost-saving measure has been criticized by some, who believe these jobs should go to workers in the US.

In early November, Ohio Senator Bernie Moreno introduced the Halting International Relocation of Employment (HIRE) Act to deter US employers from sending jobs overseas. The bill, however, “faces long odds,” Newsweek reported.