XL Outsourcing limited has called on companies operating in the country to embrace the outsourcing business model to remain competitive and improve on profitability.
This is against the backdrop that outsourcing business practice is low in Nigeria compare to some other jurisdiction.
Outsourcing is a business model that allows a transfer of work, responsibility, decision making right to an external subject matter expert.
Afam Udeagwu, CEO of XL Outsourcing limited, said outsourcing service help companies, banks, telecom companies, manufacturing firms, oil and gas companies to focus on their key activities and generally improve competitiveness and bottom line.
XL which was the first Outsourcing Company to be certified in Nigeria by International Standard Organisation (ISO) in 2006, currently has 15 companies it is outsourcing for.
“Outsourcing is a partnership. It is not a vendor supplier relationship and we see ourselves as a critical link to the development of skilled manpower and also we see ourselves as people that provide gainful employment to young Nigerians,” Udeagwu said in an exclusive interview with BusinessDay.
He said within a few years India produced more than 20 million jobs but in Nigeria only about few thousands, may be about hundred thousand or thereabout jobs that have been created by outsourcing.
“We are encouraging companies to embrace the model, use outsourcing model because it helps to increase profitability, helps you gain access to professionals that can do this for you,” he said.
Looking at the challenges of the industry, he mentioned insufficient regulation, poor professional conducts by some service providers as part of the challenges.
Other challenges according to him is inadequate funding by service users, stakeholder alignment and abuse of outsourcing by service users.
Speaking on the benefits of outsourcing business, Udeagwu said, “In a competitive environment, outsourcing helps you to remain competitive. Outsourcing helps to gain access to world class technology at cheaper rate. Outsourcing also helps you to have access to professionals, subject matter experts”.
