Gauteng Business News

Send  Share  RSS  Twitter  10 Nov 2011

OUTSORCING: ICT Outsourcing in Africa Roaring Back


Recent Gauteng Business News

Outsourcing in Africa - Knowledge sharing vital as bad practices emerging in good times.

As outsourcing in the information and communication technology (ICT) sector continues to boom in Africa, the industry leader in the country has raised a flag of caution. There is no doubt that outsourcing deals are abounding, from Old Mutual’s R2.49bn outsourcing contract with Dimension Data, to the African telecoms operations of Bharti Airtel being subcontracted to IBM for an estimated $1.5bn. But while these large-scale ICT deals are becoming more common in South Africa and other parts of the continent, it is vital that service providers involved in these deals are up-to-speed on the latest issues and best practices in outsourcing.

Outsourcing in Africa and the Concerns

For example, insights from the latest World Outsourcing Summit in California and feedback from representatives of leading banks and retailers in South Africa reveal increasing concerns about risks associated with cloud services and ensuring that information remains secure, particularly as outsourcers serve clients in multiple countries.

“Bigger deals mean bigger problems and as more outsourcing subcontractors are involved, issues are exacerbated dramatically,” warns Daniel Nel, CEO of Nebula, an independent professional services and outsourcing firm specialising in enterprise telecoms. “Some bad practices are creeping into the local industry and now that outsourcing is a globally respected profession, it is essential that best practices and learning continue to be shared in South Africa so that the highest service standards are maintained.”

Outsourcing in Africa Master Classes

“Enterprise clients are increasingly dependent on outsource partners; heightening their expectations of service providers from a technical, business enablement and risk management perspective. Being a valued partner involves more responsibility and responsiveness to client demands, and without the knowledge to meet their expectations, service providers will lose out on expanding their relationships,” adds Nel.

As part of advancing the development of the ICT outsourcing industry in South Africa, as well as addressing some of the confusion and challenges being experienced by both suppliers and buyers in the ICT sector, Nebula recently launched a series of complimentary Master Classes. Following a successful session in Cape Town earlier this year, the next Outsourcing in Africa Master Class – focused on contracting and governance for service providers – will be held in 26 October 2011 at the Michaelangelo Hotel in Sandown.


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