Posts Tagged ‘Kenya’

BPOs seek level playing field with foreigners in procurement process

November 24th, 2011

Kenyan Business Processing Outsourcing (BPOs) and IT service firms want the current procurement rules changed to boost competitiveness citing dominance by international counterparts.

They want the government to make it mandatory for international firms to partner with local companies when bidding for IT project tenders, a move expected to encourage skills transfer and boost chances of getting a piece of the multi-million shilling ICT funds.

Mr Nik Nesbitt, the chief executive of Kencall, says lack of financial and technical capability has made it difficult for Kenyan firms to clinch the tenders on their own.

“Local BPOs lack the experience being enjoyed by our competitors from countries like India and this is why we are asking the government to change the procurement rules and make it a must for the foreign firms to partner with the locals,” said Mr Nesbitt.

“We require a radical surgery on government policies in order to grow the BPO/IT sector, otherwise growth will be very slow,” he said.

The only Kenyan BPO firm that has managed to secure a government tender to digitise States law and the Judiciary documents is Digital Space, but only after partnering with DPH of India.

The push by the local BPO firms is mainly targeting tenders in the Ministry of Registration and Immigration of persons, department of births and deaths and that of Land. Already the Lands ministry has started its tendering process.

It comes just when a survey released by the Kenya ICT Board , dubbed Julisha notes that the country has been unable to develop an adequate pool of skilled IT personnel due to lack of big IT projects. “The common view was that there may not be enough big IT projects that can churn out a pool of skilled personnel— consequently there are not enough projects that allows professionals to exhibit or develop their skills,” read part of the Survey.

Mr Nesbitt’s position to compel the foreign firms to partner with the locals is supported by Mr Henry Njoroge, chief executive officer of Xtranet and Techno Brain BPO.

Mr Njoroge told the Business Daily that while the government may be encouraging partnerships, making it a requirement through changing the procurement rules will ensure that local firms are included in the large ongoing projects.

“What the government should do is come up with new procurement guidelines that stipulate that since technology is at the heart of Vision 2030, any company that is doing a government project that has never been done before must partner with a local company. All tenders should demand a partnership document with a local company,” said Mr Njoroge.

In the current situation, major outsourcing contracts from multinationals, similarly, are unlikely to land in the hands of local companies, primarily because the clients are extending their business to firms they have worked with in other markets, analysts say.

This year, foreign firms Accenture, IBM, Payment Solutions, SPANCO, and Tech Mahindra have won outsourcing contracts worth millions of shillings from the public sector and multinationals.

Payment Solutions Ltd, a South African firm, recently won a government tender to manage the public sector payroll in a bid to ensure civil servants do not commit more than two-thirds of their salary to paying debt.

IBM Corp, a US-based firm, and two Indian outsourcing firms — Tech Mahindra and SPANCO — have signed a Sh40 billion deal with telecoms giant Airtel to set up a five-year call centre service in Kenya and 15 other countries in Africa where Airtel operates.

Source:http://www.businessdailyafrica.com/BPOs+seek+level+playing+field+with+foreigners/-/1248928/1278168/-/d8yo5dz/-/

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Kenya expands outsourcing package to meet Vision 2030 goals

June 23rd, 2011

The government is incorporating high skilled IT services including software development, animation and gaming to market Kenya as an outsourcing powerhouse to raise the sector to international standards.

The Kenya ICT Board, a government arm charged with marketing the country as a business process outsourcing (BPO) hub, has been concentrating on voice segment for services like customer care and telemarketing.

These are less lucrative and has seen Kenya lose many BPO opportunities despite having a bubbly techie community that has won major awards in software development.

In the voice segment, focus is on linking the 25 registered BPO and call centre operators while leaving out other 637 information technology service (ITES) providers.

Telecoms infrastructure

A customer care clerk at a BPO centre takes home a monthly salary of between Sh24,000 ($300) and Sh32,000 ($400) while the high skilled sectors pay up to Sh80,000 ($ 1,000) per month.

Eunice Kariuki, the deputy chief executive at the Kenya ICT Board, says lack of telecommunications infrastructure restricted the country to voice services, meaning Kenya could only handle work possible through the Voice Over Internet Protocol via the satellite.

Superior assignments requiring heavy bandwidth were out of reach.

However, she says the connection to three undersea fibre optic cables — TEAMs , Seacom and EASSy — has made it possibe to scale up.

Kenya has more than 3,000 software developers working individually and as companies. However, a bigger number is in data centre or project management.

“We have reviewed our marketing strategy and will now include high skilled IT services to the voice-oriented services and also focus our marketing both locally and regionally” said Ms Kariuki.

She added that the strategy “we had initially was dictated by infrastructure but it cannot propel us to realise what we are targeting in the Vision 2030.”

Under the new focus, marketing has been upgraded and the government has embarked on showcasing BPO companies at regional and international trade fairs to link up with potential clients and venture capitalists.

Vision 2030 is a government blue print that spells targets aimed at making Kenya as a middle income country within the next 20 years.

BPO and ICT have been identified as some of the pillars to achieve this Vision. Others include infrastructure and financial services.

Mike Macharia, the chief executive officer Seven Seas Technologies, one of the companies that does high-end IT services, hailed the change of tack but asked the government to grow entrepreneurship and support innovation to map marketing to ability of the country as an outsourcing hub.

Mr Macharia says it is such steps that will package Kenya as a technology hub to the international business community.

Sympathy will not work, he said, adding that when operators grab big contacts they create a network to bigger deals, forming a link to high-end firms.

“When pitching to foreign firms one needs references, and if one has not handled a single contract for companies within its home country how does one expect a foreign firm to trust them with their work?” asked Mr Macharia.

“We need to start developing the outsourcing business from within and this is what is currently lacking.”

Source:http://www.businessdailyafrica.com/Kenya+expands+outsourcing+package+to+meet+Vision+2030+goals/-/539444/1187334/-/y1jvqbz/-/

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BPO firm pumps Sh75m into Kenya

April 8th, 2011

The local Business Process Outsourcing (BPO) industry has received a shot in the arm with the injection of Sh75.6million ($900,000) by an international IT firm that has set up shop in Nairobi.

Digital Divide Data (DDD) Kenya will offer services such as data entry, electronic publishing, and back-office administrative tasks to customers in East Africa as well as international markets.

“DDD is a social enterprise in the BPO sector. We have ambitious goals of developing local, regional and international markets in this sector. This is a dynamic market with leading companies modernising their businesses. We believe this is the right time for DDD to bring strong BPO service offerings to clients in East Africa,” said the Chief Executive Officer Amolo Ng’weno.

The outsourcing firm has been operating in South East Asia for the last 10 years where they are mostly involved in services such as digitising newspapers, journals, data entry, as well as digitising records in the financial sector there.

“We expect that the market in Kenya will be as large and potentially larger and more interesting,” Ms Ng’weno said ahead of the official launch on Tuesday evening.

The $900,000 fund was received from the Rockefeller Foundation in addition to some grants received from Microsoft and Cisco in support of the firm’s desire to innovate and also its social mission which involves hiring young people from disadvantaged backgrounds.

Ms Ng’weno said they have already hired 50 local youth and looking to expand this number to 300 in the next two years.

“We will employ young people who have graduated from high school and who are in the 18 to 24 age bracket and we are particularly those from Nairobi’s slum areas and those with disabilities,” she said adding that they are liaising with non governmental organisations working in those communities to identify such needy and qualified youth.

Besides the high literacy levels and relatively good English that is spoken in the country, Mrs Ng’weno said they chose Kenya for its vibrant private sector which they hope will be one of their major clients.

In Laos and Cambodia, only 20 percent of their work comes from the local and regional market. However, the firm expects the proportion to be reverse in East Africa with 70 to 80 percent of the business coming from the domestic or local economy.

“DDD Kenya will offer a set of high-quality services to help publishers, financial services firms, telecommunications operators, government agencies, libraries and other organisations resolve paperwork backlogs and streamline customer records management,” the CEO who was the founder of Internet Service Provider, Africa Online, said.

The firm’s global CEO Jeremy Hockenstein said by bringing their 10 years expertise into Kenya and providing back office services for the local market, he hoped that they would bring in efficiency into these companies and in the economy.

This he said would eventually translate to a big growth for the BPO sector in the next few years just like the flourishing IT sector in Cambodia.

Mr Hockenstein appreciated that just like any other start up; they would face challenges such as in the area of training and bringing the international technology experience into the country.

However, these challenges he said are not insurmountable and going by the number of international clients that they already have, he believed that they would be able to deal with any challenge as they embark on establishing their operations.

Source:http://www.capitalfm.co.ke/business/Kenyabusiness/BPO-firm-pumps-Sh75m-into-Kenya-5841.html

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Digital divide data launches business process Outsourcing company in Kenya

April 6th, 2011

Digital Divide Data (DDD) announced today the launch of business operations in Nairobi, Kenya. The new company will offer business process outsourcing (BPO) services, including data entry, electronic publishing, and back-office administrative tasks to customers in East Africa as well as international markets. The social enterprise, which aims to create jobs for Kenyan youth, is the first investment in a Kenyan BPO company to combine U.S. technology and market expertise with operating experience in Asia. The new venture is led by veteran Kenyan entrepreneur, Amolo Ng’weno, co-founder of Africa Online. DDD’s expansion to Kenya is funded in part by a grant from the Rockefeller Foundation. DDD has also received technology support from Cisco Systems and Microsoft to start the new venture.

”We see enormous opportunities in Kenya’s strong talent pool—and in bringing DDD’s world-class service to local clients in East Africa,” said DDD CEO Jeremy Hockenstein. Building on nearly a decade of operational experience in Southeast Asia, DDD Kenya will offer a set of high-quality services to help publishers, financial services firms, telecommunications operators, government agencies, libraries and other organizations resolve paperwork backlogs and streamline customer records management.

“I am excited to be back in Kenya,” says Ms Ng’weno, who most recently served as Deputy Director at the Bill & Melinda Gates Foundation. “It has a dynamic market, leading companies are finally modernizing their businesses. We believe this is the right time for DDD to bring strong BPO service offerings to clients in East Africa.” The Kenyan government has made the promotion of business process outsourcing a major priority for the economic development of the country.

Digital Divide Data’s model of impact sourcing empowers its staff with the skills and experience they need to improve their lives — while simultaneously providing value to the clients served by its sourcing business. “DDD has become known for our commitment to customers, quality, value and innovation. Because of our social mission, we are a more responsible, responsive partner to our clients.” explained Michael Chertok, Vice President, Global Impact, who led DDD’s planning to expand to Kenya.

Since 2001, DDD has powered the data entry, XML conversion and digital preservation needs of publishers, libraries, content hosts, academic researchers and businesses globally. DDD’s clients include Reader’s Digest, Harvard University and the National Library of the Netherlands. In Asia, DDD serves domestic clients such as the leading mobile telecommunications provider, Mobitel and ANZ Bank.
Digital Divide Data, a US-based non-profit organization, has invested in DDD Kenya to further its mission to create sustainable jobs for disadvantaged youth. DDD Kenya, a for-profit company, plans to train and employ at least 300 talented high school graduates from the slum areas in Nairobi over the next two years. The staff will receive support for their post-secondary education as well as on-the-job training, which will empower them to move on to better paying, high-skilled jobs after four years.

Digital Divide Data (DDD) is an innovative, internationally acclaimed social enterprise. We create jobs for talented youth in developing countries by delivering high-quality content business process outsourcing services to clients globally. This business empowers our staff with the skills and experience they need to lift themselves out of poverty. When our business grows, so does our impact.

Source:http://www.prweb.com/releases/2011/04/prweb5221634.htm

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Kenya seeks slice of the lucrative BPO industry

February 8th, 2011

The landing of the fibre optic cable boosted Kenya’s thrust to get a slice of the lucrative outsourcing business. Several months later, Financial Journal’s James Ratemo caught up with Information PS BITANGE NDEMO on the developments in the sector so far

QUESTION: How far is Kenya as regards fibre optic cable connectivity?

A: With the arrival of the undersea optic cables, bandwidth costs are no more a hindrance in doing business. We are currently building on the last mile connectivity, which will be an open access platform. The constraint is to get to people’s homes. Fortunately, we already have many investors working on this front.

Q: On last mile connectivity, what is the progress?

A: The Government has installed more than 5,000Km of fibre countrywide, from Isebania to

Moyale, from Lamu to Lokichoggio, from Garissa to Busia and traversing all the other towns in-between.

Combined with what private investors have done, we have over 20,000km terrestrial cable, criss-crossing the country.

In general, Kenya has several fibre cables forming a formidable network. They include East African Marine System, Teams, Seacom, Eassy, Telkom’s Lion and satellite network.

Q: How far is the rollout of digital villages in the country?

A: Kenya ICT Board is facilitating the establishment of digital access centres, to be known as Pasha (Swahili for information) Centres across the country.

Private investors like Safaricom are also rolling out digital villages across the country to complement Government efforts.

Through Family Bank, the Government grants a loan of up to Sh3 million to an entrepreneur to set up set up a digital centre or expand an existing one.

The Kenya ICT Board is liaising with the public sector and content providers who may want to access the public through the Pasha network.

Information PS says Kenya is on track to transiting into a completely ICT economy. Photo: File/Standard

The board will also provide a consultant to support the technical set up and management. The Board will also offer branding and communication support in order to manage the Pasha Brand and drive consumer interest and usage.

Q: What makes Kenya a preferred destination of

Business Processing and Outsourcing (BPO)?

A. Outsourcing business is the next ‘big thing’ and as a country, we have staged an aggressive marketing campaign as a suitable BPO destination.

Kenya’s highly educated, largely English-speaking population is also a plus for the country.

Kenyans have the right education and the right accent, which is pre-requisite for success in the sector.

The sector has all the opportunities to grow as envisioned in Vision 2030, which identifies ICT as a key pillar for growth with BPO taken as a flagship project.

Q: How have we utilised ICT to cut down the number of licences involved to start a business?

A: So far, digitisation of company registry has made registering a business much faster. Cases of corruption due to manual systems in the company registry, Lands registry and the Judiciary will be a thing of the past as digitisation of all records enters final stages.

Q. Is e-government a reality yet or it is still a pipe dream?

A: E-Government is a reality and has been a reality for more than five years now. There are human resources, systems and structure that support the e-government functions. The website www.e-government.go.ke for instance reveals some of the services on offer and what the Government envisages to achieve by going digital.

The Government of Kenya Shared Services Project is the first step in building a platform to enable the Government to deliver improved services to citizens.

The IT Shared Services Centre will be implemented over a number of years according to the Shared Services Roadmap.

Q: What will the Government achieve by going digital in her services?

A: An IT Shared Services Centre will allow Government to focus on core responsibilities and enable them to operate more efficiently with IT services being provided by a dedicated organisation.

Q. How far is the country from completely shifting from analogue to digital broadcasting?

A. We are on track. By 2012, the country plans to completely switch over to the digital platform ahead of the global deadline of June 2015 spearheaded by the International Telecommunication union.

Kenya is one of the few countries in Africa to embark on migration, having set 2012 as the deadline for the analogue television switch-off.

Source:http://www.standardmedia.co.ke/sports/InsidePage.php?id=2000028497&cid=14

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South African firm joins race for big IT tenders in Kenya

November 21st, 2010

Business Connexion, a South African computer firm, has joined the scramble for Kenya’s IT tenders worth billions of shillings, taking competition a notch higher.

The firm which is listed at the Johannesburg Stock Exchange says it will spend Sh2 billion in the coming year rolling out services in construction of electronic storage facilities (data centre), payroll, traffic management and motor registration.

The move promises to create jobs as the firm builds electronic data centres, rolls out tele-presence systems that will link the Court of Appeal and other courts countrywide.

Business Connexion is also expected to supply a case management system that will enable users to track court cases from trials to sentencing on-line.

The firm’s arrival in Kenya comes days after the government announced that it has outsourced its payroll management service to Payment Solutions Ltd to help enforce the one third of salary rule on loans.

Business Connexion’s head of innovation Isaac Mophatlane says the company will start its operations in the second week of January after recruiting staff. The South African firm has operations in five other Africa countries — Nigeria, Namibia, Mozambique, Zambia and Tanzania and plans to make Kenya its regional hub citing the country’s strategic location, high quality IT infrastructure, good regulatory policies and readily available skills.

From the vast number of opportunities, Business Connexion is targeting, Mr Mophatlane says the firm will initially offer data centre solutions such as cloud computing.

The company plans to offer the services by either buying into a company that is already doing the business or through service partnerships.

Part of the company’s Sh2billion war-chest will go buying equity in such company.

“We want to work with the locals to achieve our goals and we are not going to use data centres outside Kenya but instead set up our base right here,” said Mr Mophatlane.

The firms is eying the Business Process Outsourcing (BPO) segment of the telecoms business an area Kenya is seen to have strengths given the country’s strong human capital base .

Finance minister Uhuru Kenyatta said Business Connexion’s entry into Kenya is timely coming at a time when the government has completed most IT infrastructure rollout and is in the process automating its services.

“By June next year, the government will release funds for the second data centre and embark on cloud computing,” said Mr Kenyatta.
“ Automating public services not only increases efficiency of delivery but also reduces corruption,” he said.

The battle for IT government tenders including the supply of computer related hardware and software involves Oracle, NetApp, SevenSeas , Safaricom , Mfi , IBM, Cisco, Jamii telecoms Ltd and BPO operators among others.

Key State departments holding the big contract cheques are Treasury, the Judiciary, police, prisons, Ministry of Lands, Immigration and Kenya Revenue Authority.Cisco, Safaricom and Jamii telecoms have secured part of the contract to rollout a pilot tele-presence facility that links the Nairobi and Mombasa courts.Plans are underway to rollout the project countrywide.

Use of the tele-presences is expected to speed up delivery of justice, cut travel boarding and security expenses that the government incurs every time the judges travel to hear cases out of Nairobi.

Mr James Munene, the chief executive officer NetApp in a previous interview with Business Daily said aggressive drive by the government to automate it’s processes and digitize it documents offers new business opportunities for the private sector.

“Digitized data will need to be managed and stored which for us, provides an opportunity since we offer data management and storage facilities,” said Mr Munene.

Source:http://www.businessdailyafrica.com/Corporate%20News/-/539550/1057826/-/11nc1dhz/-/

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Kenya in drive to claim regional IT hub status

July 1st, 2010

There seem to be a quiet but strong movement positioning Kenya as a regional IT powerhouse.

This is the message that I picked up from the Kenya Private Sector Alliance (KEPSA) breakfast meeting with leaders of the Ministry of Information and Communication last week.

The meeting was organised by KEPSA to debrief the non-IT private sector players on the ministry’s programmes and plans.

And listening to Bitange Ndemo, the permanent secretary in the ministry, one could not help but be pleased by the enthusiasm, commitment and focus that seems to be taking shape.

It all starts with Vision 2030, which identifies information technology as a strategic pillar together with agriculture, tourism, manufacturing, and financial services.

Now, note the difference here, its no longer business process outsourcing as it was originally.

It’s Information and Communication Technologies.

Now, according to Dr Ndemo, a lot of work has already gone in and the Ministry is on its way to achieving its Vision 2030 targets and in some cases already ahead of schedule.

I cannot confirm or deny this. What I know though, is that the ministry has steered quite a number of projects that could fall into the Vision 2030 scheme of things.

First, infrastructure. There has been tremendous improvement in the development of ICT infrastructure in the country and we are already seeing the difference.

Connectivity has ceased to be an issue, especially in urban centres.

Connectivity prices have gone down considerably, and these will continue to fall as more people start using the abundant bandwidth that ISPs are holding.

Mobile Internet has grown to some unbelievable levels in the past one year, exciting the mobile operators to invest heavily in their data products.

Dr Ndemo said his ministry has changed strategy on the digital villages project and has partnered with private sector entities including Safaricom and Cisco to roll these out.

Already more than 500 digital villages have been rolled out, according to the PS, and the target is to have a digital village in each village.

Source:http://www.businessdailyafrica.com/Kenya%20in%20drive%20to%20claim%20regional%20IT%20hub%20status/-/539444/949732/-/gdmrko/-/

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