Why the BPO industry attracts tremendous global growth (2024)

Uganda’s Business Process Outsourcing (BPO) sector is registering increasing demand from offshore companies making it the fastest growing IT sector. The growth is largely driven by the increasing need for companies to outsource most parts of their process in a bid to cut costs, yet operate efficiently.

If the term is new to you, BPO involves the contracting of the operations and responsibilities of a specific business process to a third-party service provider.

The government is setting up the environment to start marketing Uganda as the major BPO destination because the industry must operate at the most basic accepted global standards. This supports the targeting of upcountry operators to fight digital marginalization of the rural areas.

The government intends to establish district business information centres as e-government facilities and resource centres where citizens can access services like e-tax, market information, weather information, among others.

All this is evident with the recent inauguration and commissioning of a Business Processing Outsourcing (BPO) and Innovation Council. The new - and first of its kind - council is tasked with formulating strategies for creating jobs for the youth through ICT outsourcing.

It is not only Uganda seeking to build on the wave.

BPO is an emerging form of employment in Europe and America resulting from the expensive labour charges per hour. This pushes businesses to contract professionals from offshore countries to carry out activities on their behalf at cheaper costs.

Most of such activities do not form the core businesses of the company’s operations but they are necessary for daily operations. They include research, back office operations, human resources, back office, customer service and managing call centres.

It is for this reason the BPO industry attracts tremendous global growth.