PROMOTING BUSINESS PROCESS OUTSOURCING IN GHANA

|Ghana is situated in West Africa and shares boundaries with Burkina Faso in the North, Cote d’Ivoire on the West, Togo in the East and Atlantic Ocean in the South. Ghana has a population of 20 million plus. Ghana was predominantly an agricultural country with a high percentage of foreign revenue being derived from the proceeds of cocoa and gold. However, the country has undergone its tremendous change towards industrialization. As a nation it has moved from a command style economy to that of a laissez-faire economy and has deepened its democratic process. It is the only country in West Africa that has successfully managed change in government for twelve (12) years. The Ghanaian economy is a free market system with enabling legislation and institutional framework to accelerate private sector led economic development and attract private foreign direct investment.

The Government, and the Ghana Free Zones Board (GFZB) in particular, has identified Information and Communication Technology (ICT) as one of the key sectors through which the country can develop. Moreover, due to high labour costs in the advanced countries such as the UK, most back office jobs such as data processing and call centers, are being outsourced to less developed countries with competitive labour costs and adequate ICT infrastructure such as Ghana. Ghana being an English speaking country, with competitive labour costs and fairly developed infrastructure is attracting some outsourcing jobs from the USA and UK especially.

Ghana’s ICT-led development policy and plans strategically focus on the development of the local ICT industry targeted at the export market as well as using ICT as an enabler of Ghana’s broad development goals. However, the local ICT sector needs to attract more capital and other resources through domestic and foreign direct investment to speed up the development of a globally competitive local ICT industry and a value-added services sector.

Interest in ICT and Information Technology Enabled Services (ITES) like Data Entry & Processing, Contact/Call Centre operations and software development has peaked in Ghana in recent times due in part to the demonstration effect of a few joint-venture operations as well as current Government Policy. This has led to a large number of Ghanaian companies mainly involved in retailing and distribution of computer products and services wishing to diversify/expand into these value-added services sectors and the manufacture/assembly of export-oriented ICT products.

The GFZB has identified most of these companies, who will benefit from access through EU partners to enhanced technology, managerial expertise, and additional sources of investment capital. By introducing suitable Ghanaian firms to prospective investors and to EU firms already using more advanced technology and expertise, it should provide them with the opportunity to negotiate Investment & Inter-enterprise Cooperation Agreements (I&ICAs) or Memorandum of Understanding (MOUs).

Ghana has the potential for the development of ICT. Currently there are various institutions offering training in different aspects of ICT. Thus Ghana offers a steady stream of young professionals with marketable skills in ICT. ICT enabling infrastructure is being developed which will in turn lead to the creation of more Information Technology Enabling Services (ITES) in the country.

The low cost of living in Ghana, coupled with stable democratic government and literate English-speaking population make it well-suited as a new outsourcing location. Combined with a talented, low cost labour pool, Ghana’s rapidly developing ICT infrastructure makes it an emerging viable alternative in the global outsourcing market. For UK companies, the fact that Ghana is on the same time zone and that English is the official language are both attractive features.

The GFZB, in collaboration with MIGA and West Africa Business Association (WABA) UK, with funding from Pro€invest, is embarking on this mission with selected ICT companies, to promote the Free Zones Programme, and Ghana as a whole, as an alternative location for back office outsourcing. Also, the mission will;

• Expose UK firms to the benefits of outsourcing their customer support functions to Ghana.
• Provide existing call centres in the UK with details of an alternative and cheaper location for their present or future operations.
• Widen customer base for UK suppliers, including opportunities for joint ventures
• Expose UK firms to the opportunities in an under-exploited regional market.

For the UK companies involved in BPO and ICT outsourcing, as well as those providing technology transfer and investment to developing nations, this mission provides the excellent opportunity to learn more about Ghana as a business location, to explore the investment potential and to establish relations with some of the country’s developing ICT and BPO providers represented on the delegation.

This event will be of particular interest to:
• Firms in the financial services sector and other companies with large customer bases to support, learn more about a potential new location for their support functions

• Existing call centres and background office processing operators: explore Ghana as an alternative and cheaper location for their present or future operations.

• UK technology suppliers of ICT equipment, software and training: find out about Ghana’s investment potential, including opportunities for joint ventures.

Ghana has untapped potential in the ICT sector, and as already indicated, the language and labour costs provide added advantages for UK firms. Good governance, prudent economic management and the potential to become the Gateway to West Africa are the primary reasons why Ghana is fast becoming the premier destination for Foreign Direct Investment in West Africa.

If you are therefore searching for an outsourcing destination,…… think Ghana.