Outsourcing firms, business enhancer for big, small companies

To smoothen operations and prevent a heavy overhead, many big companies choose to outsource certain aspects of their businesses. Some entrepreneurs or business managers of small and medium sized firms have also been able to grow their companies and save money by outsourcing services.

Though a national outsourcing policy was launched in 2007, by the Obasanjo administration, outsourcing businesses have usually been silent in the discharge of their services within the country. But these firms whose main business activity is to handle the outsourced services or functions of other companies are on the increase in Nigeria, and they now have alliances to ensure the outsourcing industry become more stabilised. One of the most prominent is the Association of Outsourcing Practitioners of Nigeria (AOPN).

Austin Nweze, president of AOPN, says during a stakeholders forum organised recently by the association that users of outsourcing services need to understand outsourcing, know what is required, what aspect of their company activities should be outsourced before calling in the service providers. He says therefore private companies and government officials need to send their staff for training to gather knowledge on what outsourcing entails.

The forum by AOPN, which held in Lagos, was aimed at increasing partnership and thereby boosting outsourcing businesses by interacting with some government agencies. These organisations include the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), the Nigerian Investment Promotion Council (NIPC), the National Information Technology Development Agency(NITDA), and so on.

During the forum, participants urged careful handling of junior staff such as the security guards, cleaners and drivers. This brought to the fore that organisations, particularly the big ones, need to get professionals to handle the training and management of the conducts of these members of staff.

Nweze urges SMEDAN to see outsourcing companies as small and medium enterprises and be treated as such, even though many of them employ very large number of people who are then seconded to organisations that the firm is providing outsourcing services for.

“Begin to see outsourcing companies as small and medium companies; one of them has 20,000, another 10,000, another 14,000 to 16,00, the jobs that you are trying to create can be created through them. Unemployment problems can be

solved through outsourcing companies,” he says.

NIPC representatives unveiled the fact there is now a one-stop shop under NIPC where all agencies that must give approval to foreign businesses before they start operations are available. So, after 24 hours, foreign businesses can get an interim approval to start operations in Nigeria.

Many of these foreign companies coming into Nigeria to start businesses usually need reputable outsourcing organisations that can provide services such as human resource services and several other services. AOPN was urged to compile a list of its members, detailing the services they provide and ensure this is available at the NIPC office.

NITDA urged the use of information technology in the discharge of outsourcing services. NITDA is championing the creation of awareness in outsourcing, though the campaign is more IT centred. But virtually every outsourcing business now utilise IT products to enhance their operations.

By: OLUYINKA ALAWODE