Nigeria loses $1 billion annually to BPO
Nigeria loses about $1 billion to Business Processing Outsourcing services by both foreign and local companies annually, according to The Nigeria Association of Information Technology Enabled Outsourcing Companies (NAITEOC)
Mr. David Onu, chairman of the association, disclosed this at the Nigeria International Outsourcing Conference in Abuja. Of the amount spent annually by public and private sectors, Onu said less than 2 per cent go to local IT market, which is mostly support service.
The Chairman, who described the Indian example as best model in the world for BPO adoption, challenged Nigeria to adopt BPO as a game changer capable of reversing the present economic down turn with a huge contribution and major turnaround in the economy. With the right synergy between public and private operators in the economy, he said that Nigeria has the potential to compete with any country in the world in outsourcing of IT services.
“We estimated that Nigeria’s local BPO ICT market is over $1 billion. Of that amount, being spent by both the public and private sector annually, less than 2 per cent go to local entities, which are mostly support services.
“We are strong and fit for local content. We are asking that we should be given the opportunity to compete. If we can get 20 per cent of that $1 billion being spent on both sides, that is about $300 million, it will translate into huge leap in the economy, recite locally, and more companies will come in and more people employed.
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