Nigeria needs a national strategy on business process outsourcing to attract global investment – Odike

Africa’s most populous black nation, Nigeria has a population of over 200 million with nearly 750,000 English-fluent graduates annually, sadly, this seemingly advantage position has not been properly utilised to become a leading Business Process Outsourcing (BPO) destination globally. Ikenna Odike, chief executive officer of Outcess, an integrated customer engagement and business process outsourcing company in this interview, shares that creating a national strategy can position Nigeria as a prime choice in Business outsourcing. He also talked about how Outcess as a brand plans to deliver innovative digital solutions that empower and optimise the performance of people, teams and organisations in Nigeria and globally. Kenneth Athekame brings the excerpts:

What is your assessment of the Business Process Outsourcing (BPO) industry in Africa in 2024, and what are your expectations for 2025?

2024 was a good year for the Business Process Outsourcing (BPO) industry globally, except for Nigeria. We haven’t realised our potential as a global outsourcing destination. Beyond individual organisations’ efforts, there’s no concerted national strategy to position Nigeria as a prime choice, despite our advantages.

We have at least seven submarine cables connecting us globally, excellent connectivity, and reliable power solutions for those who can afford them. Our population of over 200 million includes nearly 750,000 English-fluent graduates annually, many of whom have studied English since primary school. We have a cultural affinity with the West, are globally aware, tech-savvy, and have produced at least three unicorns. We have everything needed to be a leading BPO destination; we just need to market ourselves better. This national-level effort is lacking, which is the biggest issue. While countries like Egypt and South Africa are seeing year-on-year growth due to strong government support, Nigeria is lagging. Even Morocco and Ghana are gaining traction. From a cost perspective, Nigeria remains the most competitive due to our abundant talent pool and superior English proficiency.

I don’t expect much from any government, based on past experiences. We have engaged with the presidency before with no tangible results. We need to remain resilient and focus on strategic partnerships, like our current ones with the Challenge Fund for Youth Employment and the Dutch consulate. Like Nollywood, which thrived independently before government recognition, we will continue working hard and leveraging partnerships to drive outsourcing to Nigeria.

Human capital is crucial for your business. What strategies are you using to address human capacity?

There is a misconception about the “Japa” phenomenon (emigration). Leaving Nigeria requires financial resources. The average customer service agent can’t afford it. Those emigrating are primarily from the middle and lower-middle classes. Someone earning 150,000 Naira a month can’t easily afford to relocate.

Our strategy focuses on recruiting and training fresh talent with no prior experience. This is what makes us unique. We provide the skills they need to thrive. Japa doesn’t significantly affect us. The key is paying livable wages. We are working with existing and potential customers to establish benchmarks and transparently communicate agent earnings, emphasising the importance of a living wage.

We are not overly concerned about talent drain, except perhaps in software development. We prioritise basic skills like computer literacy and English fluency, which provide a strong foundation for our training programmes.

Kindly tell us about yourself and your career trajectory before setting up Outcess.

I worked for Saft Marine, a subsidiary of Mask. I was in sales for a global shipping company for about six and a half years. Because it was an international company, the training was very intense, with travel to different countries.

I consistently prioritised training, often learning new skills and then training my colleagues. I also participated in a two-year management programme in South Africa, completing about a year and a half before being promoted to manager. This experience gave me a strong understanding of how a global shipping company operates.

What does the future hold for Nigeria with your partnership with the Dutch consulate to create 2,500 jobs?

The Dutch consulate had a request for proposals. We applied, highlighting our existing CFYE programme (which has been running for six years in Africa) and our capacity to create jobs. It was a perfect fit. We were seeking opportunities to improve job prospects for Nigerians, and they were looking for organisations to create those opportunities.

We weren’t successful with our first application, but we succeeded the second time. They now understand our business and its potential impact. The partnership is strong, and they are providing technical assistance and a grant to help us create these 2,500 jobs.

The multiplier effect is significant. We estimate that each job will impact at least three people, meaning a minimum of 7,500 Nigerians will benefit. Given youth unemployment rates above 30 percent, this impact is huge. The programme is structured to ensure sustainability beyond the two-year engagement, empowering us to create jobs independently. If we surpass the job targets, the partnership is likely to continue.

What have been your greatest challenges doing BPO business in Nigeria and Africa, and what are the possible solutions?

Our biggest challenge is that our services are undervalued. It is currently a buyer’s market in Nigeria, and this needs to change. There aren’t many BPOs in Nigeria. We are focusing on generating business from outside Nigeria, as we see greater growth potential there.

Until the government recognises the industry’s potential for job creation and provides concrete support, internal change will be limited. Thriving BPOs in Nigeria currently work almost exclusively with international companies, and this is our focus for 2025 and beyond. We will continue partnering with international organisations like the Dutch consulate and CFYE. Through marketing and partnerships, we aim to become the first name in African BPO.

What other plans is Outcess putting in place to create more opportunities in Nigeria and West Africa?

Outcess is positioning itself to attract more international business. We have ISO certification from the Nigeria Data Protection Regulation (NDPR) and are currently working with an American company on back-office work.

While we continue to service local companies to build capacity and a skilled talent pipeline, the margins from local contracts aren’t as strong.

The future is very bright. We are exploring AI applications in areas like debt collection, upselling, cross-selling, and customer lifecycle management. In five years, we aim to be delivering services across all continents, establishing offices globally and leveraging them to bring work to Nigeria.

We are modelling our services on the successful Indian BPO model, exploring knowledge process outsourcing and expanding beyond traditional BPO into areas like logistics and manufacturing outsourcing, potentially acting as regional warehouses for retail giants.