Nigeria has talent edge but must fix infrastructure, trust to compete in global outsourcing

Nigeria has the cost and talent advantages to scale its outsourcing industry globally, but must address infrastructure gaps and build client trust to compete in the global outsourcing market.

This was the position of experts who spoke at the 13th edition of the Association of Outsourcing Professionals of Nigeria (AOPN) outsourcing expo held in Lagos.

Foluso Phillips, founder and executive chairman of Phillips Consulting, in his keynote address, said Nigeria currently accounts for about 1 per cent of the global business process outsourcing market despite having a young, English-speaking population, high-tech and startup energy, and a time zone advantage.

Phillips, who was represented by Olawanle Moronkeji, chief operating officer, ranked Nigeria “number two in Africa” behind South Africa, and said the sector could employ up to 600,000 people by year-end if the right investments are made.

The evolution of outsourcing in Nigeria has moved from cost reduction to digital transformation and now to AI and data services, Phillips said.

To win more global market share, he said Nigeria must strengthen six pillars: organisation, digital infrastructure, talent and skills, security and trust, export support, and collaboration.

He cited Nigeria’s advantages, including a one-hour time difference with GMT that enables “work around the clock,” high literacy, and proximity to Africa and Europe. But he flagged weaknesses in power, broadband visibility, data sovereignty and regulation as key risks.

“We must enhance our digital infrastructure,” he said.

“AI automation is a threat, but with caretaking, with sharing of ideas, I think we can moderate the threat, and take advantage of the opportunities we’ve got.”

He added that ESG, customer experience, and reliability of standards will determine if clients “come back today, tomorrow.”

In her closing remarks, Mope Abudu, president of AOPN, said this year’s Expo was “a realization of the realities of where we see our sourcing going” and was designed to bring together oil and gas, financial services, energy and manufacturing to address tough issues.

“We didn’t shy away from tough realities, but more importantly, we came away with solutions that we’re going to be working on,” she said. “The opportunities are no longer under the ground like oil and gas. It’s now in our workforce, our young workforce.”

“Technology, AI being a massive tool to make sure that we become extremely competitive.” Abudu said a key takeaway was a charge to build more standards and structures, with ESG highlighted as critical to competitiveness.

“When you’re talking about competitiveness, you need to make sure that you provide trust. And for trust to be there, there needs to be standards. So, AOPN is really going to be pushing in that area with its members,” she said.

Looking ahead five years, she said the goal is for Nigeria to lead, not follow: “Who made the software? It would be Nigerian. Where was it made? It would be Nigerian…”

“It’s about shaping how our sourcing should be, leveraging all the advantages that we have and deciding that we’re going to be the architect of how our sourcing should be.”