Lack of policy framework stalls huge outsourcing prospects

The lack of regulatory framework and expensive bureaucratic procedures are key factors stalling the harnessing of outsourcing prospects in the country, BusinessDay findings have revealed.

Nigeria’s outsourcing industry which is still in its infancy when compared to countries like India and US in the estimation of Association of Outsourcing Professionals of Nigeria (AOPN), currently provides employment for 50,000 Nigerians. This number excludes those employed through other sister associations in the outsourcing sector.

With current unemployment rate in Nigeria at 24 percent and youth unemployment rate over 50 percent, the lack of this policy document poses danger to the growth of this industry.

“In Nigeria there is no proper legal framework for outsourcing by way of legislation or regulation, says Soji Oyawoye, managing director/chief executive officer of Resource Intermediaries Limited.

“While there is huge potential for professionally run outsourcing practice in Nigeria, failure to respond to the need for operational standards could spell doom for all practitioners as users may eventually begin to take back outsourced services,” he said.

BusinessDay finding reveals that human resource outsourcing is the fastest growing segment of the business process outsourcing industry, with plenty room for further growth, a prospect that has failed to be harnessed fully as a result of the delay by the national assembly to pass into law the policy document presented to it by ministry of Labour and productivity for years now.

Oyawoye observe that the lack of legal framework in Nigeria has hampered outsourcing practice which is further strained by government’s weak or decaying infrastructure, poor data protection, few teachable applicants with the right work attitude and ethics, low broadband, high cost of connectivity, poor intellectual property protection, slow judicial system and general lawlessness.

Austin Nweze, president, Association of Outsourcing Practitioners Nigeria, in a chat with BusinessDay revealed that outsourcing is one avenue that the government can look into to create the jobs they have been longing for. “We are saying that government should look towards outsourcing to solve her unemployment need. If government can outsource just 10 percent of its functions, the huge unemployed population will have jobs. If some of government duties are outsourced, government will be more efficient, more effective and jobs will be created.”

“Outsourcing some of government function will trigger a whole lot of efficiency in government,” he said.

Nweze stressed that outsourcing helps in growing the Gross Domestic Product through foreign exchange importation which is good for the economy. it contributes to the economy by bringing about foreign direct investment as some of the jobs are outsourced to Nigerian firms from the US, India and Philippines.

“It also brings knowledge. We cannot transfer knowledge, but through outsourcing, you can share knowledge.”

“Outsourcing enables you to focus on your core areas so that you can leave other things in the hands of professionals who can also better handle it than you can so that you can apply your resources and energy in the area you have core competence. So that is the thing that we are looking at, and have been discussing with government,” he said.

The absence of legal framework is encouraging quacks in the view of Nireti Adebayo, an industry expert in the field of outsourcing.

Adebayo, however, observed that with the drive by the regulatory bodies to formulate laws that will define minimum entry levels into the outsourcing industry, such portfolio-carrying agencies and quacks will soon be a thing of the past and sanity will return to the industry.

“Here in Nigeria, we are just a few years old. Considering that the spread of time is not long, I believe we are doing great despite the low barrier to entry but I believe with the awareness the Association of Outsourcing Practitioners is championing,.

we are optimistic that in the near future the efforts of the AOPN and other stakeholders will lead outsourcing in Nigeria to the level we would all be proud of,” she said.

Kelechi Ewuzie