Opportunities unlocked: Webinar on Business Process Outsourcing

Kenya

A recent webinar highlighted the untapped potential for German companies to outsource digital services to Kenya, a rising star in Africa's tech industry. Supported by real-world success stories, industry experts shed light on Kenya's growing prominence as a hub for Business Process Outsourcing (BPO). On October 16, the German-African Business Association hosted over 70 participants from Kenyan and German governments, alongside tech industry leaders, to explore the opportunities the Kenyan market offers for outsourcing IT and business processes.

© Yuichiro Chino (Getty Images)

Outsourcing typically involves delegating entire business support operations, specific processes, or IT-enabled services to third-party vendors. Africa’s BPO market is valued at USD 2.85 billion and is projected to grow at an average annual rate of 4% through 2030. Kenya stands out as a leader in this sector, attracting growing investments from foreign firms — particularly from the United States — alongside a burgeoning domestic IT and BPO industry. Yet, German companies have been slow to capitalize on this young market's potential.

During the webinar, Stefan Schott, head of the Global Partnership Hub at Friedrich Naumann Stiftung, presented findings from the foundation’s recent research, confirming Kenya’s suitability as a market for German IT firms. This was echoed by Roselyn Maundu, Chair of the BPO Association Kenya, who highlighted the extensive capabilities of Kenyan BPO providers. She emphasised the availability of a skilled workforce — a key advantage given Germany's ongoing labour shortages.

Fostering networks and dialogue to unlock the potential of the Kenyan market

Speakers from the private sector reinforced these perspectives, while also acknowledging the challenges of entering a relatively unfamiliar market. Key barriers include differences in legislation and cultural practices. However, advisory services and legal counsel are available to navigate these complexities and ensure compliance with critical regulations, such as the EU’s General Data Protection Regulation (GDPR) and Kenyan domestic laws.

The webinar concluded with a call to action: fostering closer networks and maintaining dialogue are essential for positioning Kenya as a go-to market for German businesses. For now, many German firms remain reliant on other outsourcing destinations, missing out on Kenya's promising opportunities.

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