 With the world market for business process outsourcing (BPO) expected to climb to $16.6 billion by 2007, a growing number of developing economies are eagerly positioning themselves as attractive BPO destinations. One country that stands out from the hopefuls and wishful thinkers is Botswana.
The country recently emerged from a comprehensive diagnostics study as a viable potential contender on the global BPO scene. "The study confirmed that, with some improvements, Botswana can become a key international player in this industry," says Alan Boshwaen, chief executive officer of the Botswana International Financial Services Centre (BIFSC), which commissioned Accenture to conduct the study. The BIFSC is an important part of the government's strategy to diversify the Botswana economy which, until recently, has focused almost exclusively on diamond mining and cattle farming. Although both are still potent engines of growth, diversification is crucial to sustain economic prosperity in the long run. By the same token, government is well aware of the risks of moving into a market that would demand significant resources to develop and pit Botswana against the likes of China, India and Singapore, all dominant forces on the global BPO and call centre hosting scene. "It is important for us to have a deep understanding of the critical success factors in the global market and a clear view of where we stand in relation to key BPO countries," Boshwaen says. "A diagnostic study was the logical point of departure. We chose Accenture for its track record and because we needed a company with international resources that could be leveraged." The three-month diagnostics study saw Accenture working with a local company to assess the potential economic gains for Botswana, benchmark the country against eight established BPO centres, analyse its main strengths as a market entrant, and identify improvements needed to realise its BPO potential. Imperatives for Success
Accenture's overall verdict was that Botswana stands to gain significantly by moving into the global BPO market, particularly if it targets high-value niche activities such as transaction and insurance processing, credit underwriting and advanced accounting. Projected benefits include a potential increase in GDP of between $500 million and $600 million within five years, the creation of 15,000 to 17,000 jobs, and an additional $70 million to $90 million earned in taxation revenue. The study highlighted a number of natural competitive advantages that will smooth Botswana's way into the BPO market. "Our biggest asset is our people skills," Boshwaen says. "Over the years, government has invested substantially in education up to tertiary level, yielding a significant pool of people with high-level business skills suitable for the BPO environment. Labour costs are relatively low and fluency in English is high, which is important since the United States and United Kingdom account for 70 percent of the global BPO market." Competitive Considerations
He says Botswana also ranks favourably on macro political and economic stability, and its established, well-run legal and economic framework. In terms of technology, Accenture singled out the country's modern telecommunications infrastructure as a competitive asset, but pinpointed telecommunications costs as a possible bottleneck. "Botswana will have to focus intensely on cost-competitiveness as we enter the market," Boshwaen says, "especially as we do not yet have a reputation on which to rely." Apart from identifying Botswana's strengths and shortcomings, the Accenture study has resulted in concrete recommendations on actions to be taken, mainly in the telecommunications arena, so that Botswana can reach its BPO potential. "These include voice over Internet protocol (VoIP) as a potential solution to telecommunications data and call costs, which are a major challenge," Boshwaen says. The final findings and recommendations have been included in a special position paper to the Botswana Cabinet, which is expected to make several major announcements that will have positive implications for the country's competitiveness in the global BPO market. By building the economy of the future while managing the challenges of the present, Botswana is displaying one of the key attributes of the high-performance mindset: the ability to manage for tomorrow as well as today. To Top |