Offshoring Roundtable Inaugural Series Report
Unlocking Nigeria's Potential: A Deep Dive into the Workforce Foundation’s Empower Nigeria: Offshoring Roundtable Discussion.
December 19, 2023
Content Table
Driven by a vision to empower young Africans to overcome some of Africa’s dire socio-economic challenges, Workforce Foundation, on Thursday, 28 November 2023, orchestrated a groundbreaking virtual Roundtable Discussion. This Roundtable Discussion was a momentous gathering of key stakeholders, including government, local technology and infrastructure providers, development organisations and industry leaders, who share a common goal of positioning Nigeria as a prominent offshoring destination within the next decade. Themed "Unifying Stakeholders for a Thriving Offshoring Ecosystem," the virtual event aimed to amplify discussions that will catalyze a shift in Nigeria's employment paradigm. By aligning our national talent pool with the needs of the global economy, Workforce Foundation aspires to unlock unprecedented avenues for growth, not just for Nigerians, but for Africa as a whole.
Why Offshoring Matters?
Offshoring, the practice of leveraging international markets to fulfill domestic workforce requirements, has emerged as a beacon of hope in these challenging times. It presents a twofold benefit — providing employment opportunities for Nigerians while also increasing the inflow of Foreign Direct Investment. As highlighted by Foluso Aribisala, the CEO/Managing Partner of Workforce Group, in his welcome address, Nigeria is confronted by a multitude of socio-economic issues ranging from deteriorating exchange rate, surge in inflation rates and high youth unemployment rate which currently stands at 42.6%, a situation that not only threatens economic stability but also contributes to social unrest and elevated crime rates among the younger population. Aribisala underscored the pressing need for collaborative initiatives, drawing attention to compelling statistics that underscore Nigeria's current vulnerability compared to global counterparts like India in both the abundance of tech professionals and the economic impact of offshoring on GDP. The urgency emanates from recognizing this disadvantage, urging collective action to swiftly position Nigeria as a formidable force in the global tech landscape, thereby harnessing the full potential of offshoring to drive economic growth and technological advancement.
Key Takeaways from the Offshoring Roundtable Series
A Comprehensive Overview of Market Size and Opportunities
Mark Angus, in his keynote address, provided insights into global offshoring markets and opportunities in business process outsourcing (BPO) and information technology outsourcing (ITO). Notable insights include:
Global Revenue Projection: The global revenue for IT and BPO is projected to reach $1 trillion by the end of 2023.
African Contribution: Despite the immense potential, the African continent contributes only 1.02 million of the 42.93 million global workforces.
Focus Areas: Global demand and supply predominantly concentrate on customer support, sales, IT services, HR management, and finance & accounting services.
Maturing and Emerging Markets: While South Africa, Egypt, Morocco, and Tunisia are identified as maturing offshoring markets, Nigeria, Kenya, Ethiopia, Rwanda, and Ghana represent emerging markets in Africa.
Nigeria’s BPO Landscape: Nigeria employs 41,050 BPO workers, with 83% being youth and a significant female participation rate of 54%. Impact sourcing constitutes 31% of the workforce.
Language Advantage: Nigeria boasts the largest B2-English speaking talent pool in Africa.
Cost Competitiveness: The cost for a contact center operation per person in Nigeria ranges from $459 to $613, significantly lower than in the UK, US, and Europe.
Legislative and Infrastructure Overview: Nigeria provides favorable legislative protection for labor, fair internet infrastructure, below-average transport infrastructure, and a very favorable investment environment.
These insights collectively underscore the immense potential for Nigeria to carve a niche in the global offshoring landscape, presenting opportunities for economic growth, skills development, and job creation.
Government's Commitment
Kashifu Inuwa Abdullah, CEO/DG of the National Information Technology Development Agency (NITDA), outlined the government's commitment to making Nigeria a standout destination for IT and BPO globally. The Nigerian government is actively fostering collaboration with the private sector to establish Nigeria as a global offshoring hub. Research from Korn Ferry highlights a projected global talent deficit of 85.2 million by 2030, equating to a potential loss of over $8 trillion in value. Additionally, PwC recognizes Nigeria's brain export as a key pathway for economic growth, citing the nation's competitive advantage in its human capital.
In line with the present Government’s Renewed Hope Agenda, the Ministry of Communication, Innovation, and Digital Economy is charged with driving initiatives to diversify the economy through technological innovation. To achieve this the ministry is focused on five strategic pillars: Knowledge, Policy, Infrastructure, Entrepreneurship/Innovation, and access to Capital/Trade. The knowledge pillar was recently launched with an ambitious "3 Million Tech Talents" (3MTT) initiative, targeting training in 12 tech skills. The goal is to introduce 1.5 million talents to the Nigerian market and offshore an additional 1.5 million to the global market.
Concurrently, the policy pillar is actively focused on developing the National Outsourcing Strategy, which is set to be unveiled shortly. iomThis comprehensive approach aligns with ongoing efforts to showcase Nigeria's strengths, including its advantageous time zone, vibrant youth population, and proficiency in English. These initiatives underscore the government's commitment to fostering a conducive environment for offshoring and leveraging Nigeria's unique strengths on the global stage.
Panel Insights and Collaborative Strategies
A distinguished panel comprising industry and development experts engaged in insightful discussions on the theme "Charting the Course: Current Initiatives, Collaboration, and Inclusive Strategies for a Sustainable Offshoring Landscape."
In the panel discussion, Kazeem Oladepo of IHS Towers emphasized the active role corporate organizations like IHS play in enhancing digital skills acquisition. He highlighted the pivotal contribution of the private sector, showcasing their commitment through resources, expertise, and infrastructure support in the delivery of training programs like the 3MTT initiative. This underscores the significant influence of the private sector in shaping educational initiatives.
Transitioning seamlessly to the topic of inclusivity, Onyinye Onyemobi of Ford Foundation underscored the importance of eliminating drivers of inequalities in ongoing efforts to position Nigeria as a prominent offshoring destination. Her focus was on addressing discriminatory frameworks based on cultural or religious reasons and advocating for the inclusion of marginalized groups, including persons with disabilities, in the offshoring ecosystem.
The conversation then shifted to the critical aspect of job placements, with Uchechukwu Ezeamaku of Workforce Africa emphasizing strategic pillars: skills development, infrastructure, and compliance with labor laws for attracting offshoring jobs. In the context of job placements, her insights extended to supporting international organizations in ensuring compliance with local labor laws. This support streamlines the integration of these organizations into the African job market, facilitating a smoother placement process and aligning with the regulatory frameworks of both demand and supply countries. Compliance becomes a crucial factor in fostering a seamless and mutually beneficial connection between international organizations and the African workforce.
Foluso Aribisala further highlighted the collaboration between corporate and placement organizations with government agencies. This collaboration ensures an efficient supply chain of graduates, streamlining processes to connect them with available job opportunities in the offshoring sector. The panel unanimously stressed the significance of internship placements in providing practical experiences for students and recent graduates, enhancing their readiness for the offshoring industry.
The final segment focused on aligning the current curriculum with the requirements of the offshoring market. Foluso Aribisala underscored the imperative of continuous upskilling and reskilling, emphasizing the need to align educational curricula with industry needs. This fosters lifelong learning to ensure graduates possess the relevant soft skills essential for success in the evolving offshoring landscape. This cohesive flow of discussions highlighted the interconnected strategies needed to nurture a skilled and inclusive workforce, spanning education and training to job placements and curriculum alignment.
Migration Perspective on Offshoring in Nigeria
Victor Lutenco, Senior Program Coordinator at the International Organisation for Migration (IOM), presented on "Offshoring in Nigeria: A Migration Perspective." Highlighting Nigeria's diaspora impact, he shared that 17 million Nigerians abroad contribute $21 billion in remittances, yet 71 million internally displaced people underscore the need for sustainable economic opportunities.
Discussing the grim reality of human trafficking, Lutenco noted there are over 156,000 victims and emphasized addressing root causes and offering alternatives for migrants. Strategic frameworks for migration governance in Nigeria, including the Global Compact, UN network, and the National Migration Policy, were outlined.
The IOM's 2023-2027 strategy focuses on resilience, mobility, and governance. Lutenco suggested offshoring as a tool to discourage irregular migration, creating local opportunities and aligning with broader goals of reducing human trafficking.
Diaspora engagement initiatives and the importance of offshoring in changing political narratives were highlighted. Lutenco concluded by emphasizing leveraging migrant returnees, revamping Technical and Vocational Education and Training (TVET) infrastructure, and welcoming foreign investments with effective regulations as crucial steps for Nigeria to position itself as a global offshoring hub. This approach addresses migration challenges and fosters economic growth.
Fostering Sustainable Impact
Onyinye Onyemobi, in her presentation on "Collaborating for Sustainable Impact," underscored the imperative of cultivating an enabling environment, intersectoral collaboration, and strategic partnerships to drive positive change. She delved into collaborative efforts spanning various sectors, aiming to provide essential support, resources, and opportunities for sustainable impact. The focal point of this collaboration was the inclusion of marginalized groups, including persons with disabilities, ensuring that the advantages of offshoring are accessible to all segments of the population.
Highlighting the essence of resource sharing, Onyinye Onyemobi emphasized the significance of organizations and partners pooling their resources, expertise, and networks. This collective effort aims to create a robust ecosystem capable of effectively supporting offshoring initiatives.
According to Onyinye Onyemobi, the success of collaboration hinges on commitment, teamwork, and clear communication. Stakeholders are urged to dedicate themselves to shared goals, collaborate effectively, and maintain transparent communication channels. This approach is essential for navigating challenges and capitalizing on opportunities, ultimately fostering sustainable impact in the offshoring landscape.
Looking ahead, this Roundtable Discussion marks the initiation of a comprehensive series that delves deeper into various facets of Nigeria’s journey towards becoming a global offshoring hub.
Conclusion and Way Forward
As we reflect on the insights gleaned from this transformative event, it becomes clear that Nigeria stands at the precipice of a new era in offshoring. The urgency conveyed by impassioned speakers, coupled with the steadfast commitment demonstrated by both private and public sectors, highlights the imperativeness of collaborative endeavors. These collective efforts aim to solidify Nigeria's standing as a preferred global offshoring destination.
The data-driven insights presented during this event, complemented by the unwavering government commitment to ongoing initiatives and collaborative efforts from esteemed organizations such as Ford Foundation and IOM, underscore the transformative power of offshoring in reshaping Nigeria's economic trajectory.
In moving forward, the call to action is clear and resounding. It beckons upon all stakeholders, including government bodies, corporate entities, and civil society, to unite in a collaborative effort. This collective commitment is essential to propel Nigeria into a central role in the dynamic and ever-expanding global business landscape.
As the host of this groundbreaking roundtable discussion, Workforce Foundation, a non-partisan non-profit organization with a vision to create a Nigeria that works for everyone, pledges to be at the forefront of driving positive change in the offshoring landscape. Our commitment extends beyond event hosting; we aim to bring cohesion to ongoing individual efforts, create awareness around impactful initiatives, and foster collaboration among diverse stakeholders.
Join us in this transformative journey, as we collectively shape the narrative of Nigeria as a preferred global offshoring destination. Together, let us champion the cause of offshoring, creating a sustainable and inclusive ecosystem for economic growth and empowerment. The call to action is not merely an end but a beginning — a shared commitment to unlock Nigeria's latent potential and position the nation as a key player in the global business landscape.