Can Nigeria benefit from any global business outsourcing?

India is blossoming these days from numerous IT support outsourced to that Country. With that, India is fastly developing its IT industry, offering the bedrock of services remotely to many corporations in Americas and Europe. The huge population, good infrastructure and education, low income are key catalyst to these western attraction.

While India is doing great with IT outsourcing, China is doing the same with many companies outsourcing their manufacturing to China. Think of it, anything from Clothing to Cars to heavy duty engineering...everything is now outsourced to China. The catalysts are the same as for india.

The same for Brazil, also one of the fastest growing economies.

As Nigeria struggles daily with income identity with oil, is there a chance that Nigeria may benefit from any form of outsourcing? Do we have what it takes if we compare our level of infrastructure, education (good?) with China/India/Brazil? Yes, population and low income are there. What is the potential of Nigeria catapulting itself to another bedrock of manufacturing or services industry?[/b]

Yeah Nigeria too can benefit from outsourcing.

Foreign countries can bring in their citizens for training on[b] how to avoid 419ers and credit card fraud[/b]. That way after the trainings am sure no country will be claiming that they have been defrauded by Nigerians since the "yahoo boys" themselves would have taught them all the tricks with which they are swindling them.

Outsourcing is defined as the management and/or day-to-day execution of an entire business function by a third party service provider.

Outsourcing and out-tasking involve transferring a significant amount of management control to the supplier. Buying products from another entity is not outsourcing or out-tasking, but merely a vendor relationship. Likewise, buying services from a provider is not necessarily outsourcing or out-tasking.  Outsourcing always involves a considerable degree of two-way information exchange, co-ordination, and trust.

[url=http://Wikipedia on Outsourcing]Wikipedia on Outsourcing[/url] (for the uninitiated)

For outsourcing to work, we need to have:
- A sufficiently well educated workforce.
- Low-cost telecommunications and other forms of infrastructure.

Right now, Internet access is too expensive in most cities, and we don't even have broadband yet. Most of our graduates are said to be half-baked, and the good ones are either engaged in plum jobs in oil companies and multinationals, or desperate to travel out. Don't even get me started about our erratic power supply (thanks to almighty NEPA - sorry, PHCN).

So we're not going to be another India anytime soon.

(You know what? I'm not bothered. I want Nigeria to focus on leadership in innovation and entrepreneurship. Instead of doing lower-level jobs for other countries, let's create practical technology for ourselves and let's export that technology to the outside world. The world is at a point where there's a lot of knowledge out there that hasn't been applied; let's be the ones scrambling to use the available technology in the world to achieve practical aims while the world powers are busy sending human beings to space and developing more advanced weapons to destroy each other)

But to answer your question, I don't believe that Nigeria will be benefitting from outsourcing on a large scale anytime soon.

Seun, your post is the best i've ever read on this site. While outsourcing can be a good thing, iit won't take you to that next level. You need to create and export new technology. Nigeria can do it with enough stability.

South africa is going to be africa's outsourcing region because of the good infrastructure. same with maritius. Nigeria could do it but it needs about 5 million more land lines and good electricity. plus a better reputation with how it handles credit cards.

But ultimately we need a model of develoment that looks ot new technology as the way out. even if we have to steal it. Like you mentioned, there's a lot sitting in peope's vaults, unused

Bibi, the simple fact is that Nigeria currently lacks the infrastructure to support global business outsourcing. What we thus should really concentrate on is how to develop our infrastructural backbone - telecommunications, electricity, ICT etc. Cheap labour, which is an essential element of outsourcing already exists in abundance in Nigeria. If we are able to raise the level of our infrastructural development, it is only a matter of time before global companies start considering Nigeria as a potential  outsourcing target.

Thanks to all that have contributed so far.

However, i disagree that the level of our infrastructural development is a catalyst for outsourcing. How did outsourcing start to become a global phenomenom? It was simply due to opportunistic shift in production and services by major companies over the last few decades. The intent is for those companies to be more competitive in the developed market.

Some of the opportunistic approach could be linked to AGOA (http://www.agoa.gov/). AGOA is the forum sponsored by the US whereby the developing countries in scope are given free tax incentives to ship their commodities for sale in the US. The commodities include - Raw and processed agricultural products, clothing, decorations (carvings, paintings, etc) etc.

So far, reports indicate Nigeria and Nigerians have not taken any giant stride to take up this opportunity. We dont need heavy infrastructure to do this.

AGOA presents opportunity to develop these base industries. Nigerian clothing firms are shutting down, laying off many people. Yet i dont see them taking this opportunity with the US. Same goes for our so called "fashion designers". I watched CNN the other day to see a whole town of more than 50,000 people in China solely producing bras.

Most clothing in the West is now produced in Asia. Europe has lower taxes for African agricultural products than from other regions, US is free.

This to me is basic outsourcing and we are not doing it. Why? are we too inward looking to see these external opportunities? Are we so engrossed with get rich quick that we shy away from these type of investments?

Nigeria can unquestionably benefit from outsourcing; I think Nigerians possess the some of the skills and knowledge required. I work for a big IT company in the UK that currently ‘outsources’ her software development to India and South Africa, and anytime I ask why Nigeria isn’t taken into account - the question of trust always comes up. We have a global image that reeks.

Yes EzehM....thats Nigeria's biggest problem--TRUST. 419 has completely basterdized the country abroad. It is unfortunate the goverment has being paying lip service to the issue of corruption.

Outsourcing cannot be worked in isolation, it takes a huge trust from the Outsourcer to give the business completely to a foreign firm. Where the issue of payment for service upfront is required, you can be sure Nigeria cannot make a dime. However, if our services are commoditized for sale (we recieve based on what we deliver), im sure it will fly. But the basis is still international trust which is at our disfavour for the moment.

How can we get out of this trust problem?

Bibi,

Someone once suggested we change the name of the country. It's a huge problem.  Any ideas anyone?

I am very pleased to see that there are prople looking beyong the oil and banking industries to see where else nigeria could make commercial gains. I believe that nigeria has the human capital to play in the outsource market however we are currently lacking in the infrstructure to support this. I must say though that I feel that this is years away and not decades as the privatisation of nepa and the influx of telecoms companies will soon drag us into the 21st century. If you research the history of outsourincing in India they had exactly the same problems and look at where they are now.

The other factor of course is trust. This I see as a bigger hurdle than the infrastructure. I feel it will be some time before any westerner is going to be willing to pass their credit card details to a nigerian based on the current 419 image of the country. How we overcome this in the short term is going to be the biggest task we face as a nation if we really want to compete with the Indians and Chinese on outourcing.

Your views welcome.

It's not necesirly a must that Nigerians must be selling things. They can outsource assembling of products like electronics, cars, cloth, shoes sewing etc like they used to do in countries like Mexico, China etc

the cost of doing business is nigeria right now is high due to lack of basic infrastructure so we should forget outsourcing.

Nigeria can benefit from outsourcing, but are the cooperate world trying to take the risk involved in choosing Nigeria. the capital is there for them to get a back up power plant generator or other means of electricity. If Ghana can have a contract with HP call center, why cant Nigeria.

India was not great some years back, and from what i hear , things have not changed much.what the Indian entrepreneurs did with the help of their government was to carry out a purposeful and selective development of their infrastructure necessary to their intended outsourcing practices. there fore you will see that in a place like Bangalore, their outsourcing companies have their own private telecom infrastructure, high band width, powerful computers/ generators etc. All these are not made available to the general public.

I think Nigeria should take a Que from this and remember that the first and most important step to take at this point is to build trust that has long been lost due to 419ners.

I think the government is trying to put together a technology village to support outsourcing and other technology applications

I have finally arrived at a topic that could allow me to challenge the people of Nigeria and it governance.  I know this topic is about couple of months old but I particularly hope that readers are still able to read comments added or the system has a way to send added comments to their members that participate on this topic.

First of all let be candid and courageous.  Is Nigeria ever going to change for better?  The best post I read was from Seun, I must admit he enumerated the tasks Nigeria and Nigerian perhaps have to undergo.  The first one was “let concentrate on leadership”, well he said it all.  What is leadership? And who make leaders? And what constitutes a leadership.  Well if you ask me a lot and Nigerians is not taking that emphasis very seriously.  We put any person in that post and we expect better of them.  If you apply for a managerial position the requirements for that post must be meet with relevant experience, but in Nigeria  any cowboy comes and rule us.  People that is not even fit to be your friends and yet we allow them to rule us.  

Let look at great world i.e Europe America china and the rest, they have all fought and die for their country and massive upraise from unsatisfied citizens.  Nigeria CANNOT kill and imprison everybody if we stand up and fight for our good Nigeria.  South African has done it and Britain has done it “The Battle of Banswick” etc.  

We lack management and leadership, after the G7 submit 2005 in the UK, we were directed to a www.bbc.co.uk/ to leave feedback on the decision to cancel third world debt and Nigeria was jubilating and an unknown source said that Nigeria should be ashamed of herself that she should be the one cancelling debts for other countries.  I came to realise that America owes $3.2 Trillion and is not complaining, don’t misunderstand me, I know it is all politics but the truth is that we lack the professional entity to guide us but we are prepare to elect criminals to lead us and tomorrow we start to morn.

Now let digress to social and economic, Nigeria do not represent its diverse culture in the house of Assembly, Rep and Senate.  This is another important issue.  As Nigerian we need to represent all states if we are really practising democracy.  The entire National infrastructure is either at Lagos or Abuja, why?  If any one knows about strategic planning in term of conflict, which will come when we decide to wake up from sleep.  Other countries will like to challenge our ways of life.  If at that time we have our entire infrastructure at on place, to disable us will be easy pee zeey.  Why do a particular tribe dominates the federal post.

If we can amend and plan our country well in terms of infrastructure and political tertiary, then global business opportunity will become a necessity.  Like one of my white friend said, that Africa is a sleeping giant particularly Nigeria and South Africa.  I did not take his words because I know I will be dead by then.  

The major fad a government has to do is to make everybody in its constituents accountable for their actions, even the office of the presidency.  We need to know how much they earn, businesses they have before joining the office and we SHOULD have a public enquiry in all aspect of our daily life, particularly in public post.  And for gods sake we should site down (top lawyers) and rewrite or amend the laws.  We do not need Colonial laws it does not help us we need to make our laws and we need a very solid ways to create punishment for offenders and rehabilitation i.e. look at China program and strategic plan.  I remember very well the world condemned China and called them barbaric, now they are the envy of the whole world.  If a policy work why not use it and discard it if it does not.

Finally, if Nigerian becomes a better place to live and work and a good government policy and favourable conditions, believe me technology is second to Nigerian.  I remember when we were growing up, my dad usually buys news paper on his way to pick us up try school at 1:30pm, which is around how his brake time.  The newspaper is left behind whilst he return to work.  I read a man (Ibo) built a helicopter what did Nigeria government did for him?  I also learn that an Ibo man again actually a PhD lecturer have developed a full complete Africa car prototype and Nigerian is not helping him with funds and South Africa president is keen on acquiring the prototype.  An Ibo man in America was the first guy to research and introduce what is know today as super computer.  He is a Mathematician and a brilliant mind.  I know there are other Nigerians like all these people.  But there are all scattered around the world for economic migration and have produce tow to three generations in their respective settlements.  But we can change that and we can challenge the world economy.

Mind you fraud stars to me are brilliant minds in a wrong profession.  If these minds are put into proper use the reword is enormous, and this is what we need to focus.  I will say this.  Technology only comes from a stable mind and one should be thankful to have come from a stable country.

I have finally arrived at a topic that could allow me to challenge the people of Nigeria and it governance. I know this topic is about couple of months old but I particularly hope that readers are still able to read comments added or the system has a way to send added comments to their members that participate on this topic.

First of all let be candid and courageous. Is Nigeria ever going to change for better? The best post I read was from Seun, I must admit he enumerated the tasks Nigeria and Nigerian perhaps have to undergo. The first one was “let concentrate on leadership”, well he said it all. What is leadership? And who make leaders? And what constitutes a leadership. Well if you ask me a lot and Nigerians is not taking that emphasis very seriously. We put any person in that post and we expect better of them. If you apply for a managerial position the requirements for that post must be meet with relevant experience, but in Nigeria any cowboy comes and rule us. People that is not even fit to be your friends and yet we allow them to rule us.

Let look at great world i.e Europe America china and the rest, they have all fought and die for their country and massive upraise from unsatisfied citizens. Nigeria CANNOT kill and imprison everybody if we stand up and fight for our good Nigeria. South African has done it and Britain has done it “The Battle of Banswick” etc.

We lack management and leadership, after the G7 submit 2005 in the UK, we were directed to a www.bbc.co.uk/ to leave feedback on the decision to cancel third world debt and Nigeria was jubilating and an unknown source said that Nigeria should be ashamed of herself that she should be the one cancelling debts for other countries. I came to realise that America owes $3.2 Trillion and is not complaining, don’t misunderstand me, I know it is all politics but the truth is that we lack the professional entity to guide us but we are prepare to elect criminals to lead us and tomorrow we start to morn.

Now let digress to social and economic, Nigeria do not represent its diverse culture in the house of Assembly, Rep and Senate. This is another important issue. As Nigerian we need to represent all states if we are really practising democracy. The entire National infrastructure is either at Lagos or Abuja, why? If any one knows about strategic planning in term of conflict, which will come when we decide to wake up from sleep. Other countries will like to challenge our ways of life. If at that time we have our entire infrastructure at on place, to disable us will be easy pee zeey. Why do a particular tribe dominates the federal post.

If we can amend and plan our country well in terms of infrastructure and political tertiary, then global business opportunity will become a necessity. Like one of my white friend said, that Africa is a sleeping giant particularly Nigeria and South Africa. I did not take his words because I know I will be dead by then.

The major fad a government has to do is to make everybody in its constituents accountable for their actions, even the office of the presidency. We need to know how much they earn, businesses they have before joining the office and we SHOULD have a public enquiry in all aspect of our daily life, particularly in public post. And for gods sake we should site down (top lawyers) and rewrite or amend the laws. We do not need Colonial laws it does not help us we need to make our laws and we need a very solid ways to create punishment for offenders and rehabilitation i.e. look at China program and strategic plan. I remember very well the world condemned China and called them barbaric, now they are the envy of the whole world. If a policy work why not use it and discard it if it does not.

Finally, if Nigerian becomes a better place to live and work and a good government policy and favourable conditions, believe me technology is second to Nigerian. I remember when we were growing up, my dad usually buys news paper on his way to pick us up try school at 1:30pm, which is around how his brake time. The newspaper is left behind whilst he return to work. I read a man (Ibo) built a helicopter what did Nigeria government did for him? I also learn that an Ibo man again actually a PhD lecturer have developed a full complete Africa car prototype and Nigerian is not helping him with funds and South Africa president is keen on acquiring the prototype. An Ibo man in America was the first guy to research and introduce what is know today as super computer. He is a Mathematician and a brilliant mind. I know there are other Nigerians like all these people. But there are all scattered around the world for economic migration and have produce tow to three generations in their respective settlements. But we can change that and we can challenge the world economy.

Mind you fraud stars to me are brilliant minds in a wrong profession. If these minds are put into proper use the reword is enormous, and this is what we need to focus. I will say this. Technology only comes from a stable mind and one should be thankful to have come from a stable country.

There are some outsourcing companies in Nigeria but they have a challenge.And what is the challenge,that most people that own those companies are not coming from the "so called" known families.

Hence these companies (outsourcing) cannot get jobs from the big companies.
there are a lot of things that can be outsourced for banks
1.Cash management
2.IT Infrasture
3.security
4.Human Resources.

These can also apply to schools,telecoms,oil and gas industry.
Take SHELL for instance they once outsourced their recuritment to PHILLPS CONSULTING.
Do you want to tell me that phillps consulting is the best recuriting firm or is it that they know the brand FOLUSO PHILLPS who is the CEO of PHILLPS CONSULTING.

We get there only when they main cabal in NIgeria Corporate world enter outsourcing like the TRANSCORP.
OTHER than that others are at the mercy and grace of GOD.who can only do MIRACLES.
have a nice day and lets pray for Nigeria.


Kannyenikes

EzehM:

Bibi,

Someone once suggested we change the name of the country. It's a huge problem. Any ideas anyone?

complete nonsense ,maybe germany should have changed its name cos of the atrocities of the nazi or italy cos of the mafia crimes

sbucareer:

I have finally arrived at a topic that could allow me to challenge the people of Nigeria and it governance. I know this topic is about couple of months old but I particularly hope that readers are still able to read comments added or the system has a way to send added comments to their members that participate on this topic.

First of all let be candid and courageous. Is Nigeria ever going to change for better? The best post I read was from Seun, I must admit he enumerated the tasks Nigeria and Nigerian perhaps have to undergo. The first one was “let concentrate on leadership”, well he said it all. What is leadership? And who make leaders? And what constitutes a leadership. Well if you ask me a lot and Nigerians is not taking that emphasis very seriously. We put any person in that post and we expect better of them. If you apply for a managerial position the requirements for that post must be meet with relevant experience, but in Nigeria any cowboy comes and rule us. People that is not even fit to be your friends and yet we allow them to rule us.

Let look at great world i.e Europe America china and the rest, they have all fought and die for their country and massive upraise from unsatisfied citizens. Nigeria CANNOT kill and imprison everybody if we stand up and fight for our good Nigeria. South African has done it and Britain has done it “The Battle of Banswick” etc.

We lack management and leadership, after the G7 submit 2005 in the UK, we were directed to a www.bbc.co.uk/ to leave feedback on the decision to cancel third world debt and Nigeria was jubilating and an unknown source said that Nigeria should be ashamed of herself that she should be the one cancelling debts for other countries. I came to realise that America owes $3.2 Trillion and is not complaining, don’t misunderstand me, I know it is all politics but the truth is that we lack the professional entity to guide us but we are prepare to elect criminals to lead us and tomorrow we start to morn.

Now let digress to social and economic, Nigeria do not represent its diverse culture in the house of Assembly, Rep and Senate. This is another important issue. As Nigerian we need to represent all states if we are really practising democracy. The entire National infrastructure is either at Lagos or Abuja, why? If any one knows about strategic planning in term of conflict, which will come when we decide to wake up from sleep. Other countries will like to challenge our ways of life. If at that time we have our entire infrastructure at on place, to disable us will be easy pee zeey. Why do a particular tribe dominates the federal post.

If we can amend and plan our country well in terms of infrastructure and political tertiary, then global business opportunity will become a necessity. Like one of my white friend said, that Africa is a sleeping giant particularly Nigeria and South Africa. I did not take his words because I know I will be dead by then.

The major fad a government has to do is to make everybody in its constituents accountable for their actions, even the office of the presidency. We need to know how much they earn, businesses they have before joining the office and we SHOULD have a public enquiry in all aspect of our daily life, particularly in public post. And for gods sake we should site down (top lawyers) and rewrite or amend the laws. We do not need Colonial laws it does not help us we need to make our laws and we need a very solid ways to create punishment for offenders and rehabilitation i.e. look at China program and strategic plan. I remember very well the world condemned China and called them barbaric, now they are the envy of the whole world. If a policy work why not use it and discard it if it does not.

Finally, if Nigerian becomes a better place to live and work and a good government policy and favourable conditions, believe me technology is second to Nigerian. I remember when we were growing up, my dad usually buys news paper on his way to pick us up try school at 1:30pm, which is around how his brake time. The newspaper is left behind whilst he return to work. I read a man (Ibo) built a helicopter what did Nigeria government did for him? I also learn that an Ibo man again actually a PhD lecturer have developed a full complete Africa car prototype and Nigerian is not helping him with funds and South Africa president is keen on acquiring the prototype. An Ibo man in America was the first guy to research and introduce what is know today as super computer. He is a Mathematician and a brilliant mind. I know there are other Nigerians like all these people. But there are all scattered around the world for economic migration and have produce tow to three generations in their respective settlements. But we can change that and we can challenge the world economy.

Mind you fraud stars to me are brilliant minds in a wrong profession. If these minds are put into proper use the reword is enormous, and this is what we need to focus. I will say this. Technology only comes from a stable mind and one should be thankful to have come from a stable country.

lots of points in ur post my friend

Many Africans never really studied business. Africans people as a whole are still seduced by Western culture products. Many do not know how to properly market Africans product world wide without the backing of Western influences. Africans can never be independent if they are still in need of Western goods and services. Africans must work collectively together in order to free themselves of the whole of Western culture totally.
ALL MUST STOP WANTING THEIR STUFF AND MAKE OUR OWN STUFF!!!!
All must take there time to wean themselves from the need of Western influences, at the same time reproduce the things we need ourselves. Africa is the only place where we could do this with great success. It is so simple!!!!!! .What must an African have to make things work that so many of us lack is, Discipline Consistency Organization Skills Planning. Without these key ingredients within ones personality starting any business is pointless!

basically, just being honest and straight forward will simplify the process

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Seun:

[url=http://Wikipedia on Outsourcing]Wikipedia on Outsourcing[/url] (for the uninitiated)

For outsourcing to work, we need to have:
- A sufficiently well educated workforce.
- Low-cost telecommunications and other forms of infrastructure.

i'm trying to understand your meaning of "well educated workforce"

All you need to provide business support service is to acquire a desired skill needed by your target market, then find ways to market your skill at even lower cost than the pay for an inhouse employee. so what education do you need to get that skill? Sorry brother, it is not the university any more. Even the internet is enough.

Seun:

[url=http://Wikipedia on Outsourcing]Wikipedia on Outsourcing[/url] (for the uninitiated)

But to answer your question, I don't believe that Nigeria will be benefitting from outsourcing on a large scale anytime soon.

5 yrs on, what do you think?