THE BUSINESS PROCESS OUTSOURCING (BPO) CONFERENCE AND EXHIBITION IN KAMPALA, UGANDA

Business Processing Outsourcing (BPO) and shared services have the potential of reducing costs and increasing efficiency among organizations. The BPO conference and exhibition for NGOs and development partners forum was organised in Kampala, Uganda by the Ministry of Information and Communications Technology on 25th and 26th June 2009 . The event brought together representatives of NGOs and development agencies, as well as BPO service providers in the country .

BPO is a form of outsourcing that involves the contracting of the operations and responsibilities of a specific business functions (or processes) to a third-party service provider. BPO that is contracted outside a company's country is called offshore outsourcing. BPO that is contracted to a company's neighboring (or nearby) country is called nearshore outsourcing. Given the proximity of BPO to the information technology industry, it is also categorized as an information technology enabled service or ITES.

Speaking at the opening ceremony of the conference Honorable Minister of Information and communications technology Aggrey Siryoyi Awori said that the Ugandan government does recognize the potential ICT as a catalyst for social-economic development and has taken steps to strengthen its ICT industry and develop a digitally enabled economy. These steps will generate economic growth and prosperity, and propel Uganda into the knowledge economy.

Over the years, ICTs have evolved and enabled faster, more reliable and efficient communications throughout the world. As a result, companies in Uganda and globally have business models such as outsourcing that capitalize on these global communication networks. These business models cut costs and improve efficiency by outsourcing non-core services to other more specialized businesses either from within the country itself, or from other countries a cross the global geographical spread.
Business Process Outsourcing is a modern cost effective way of operating in most companies and Government Institutions in United States of America and Europe.

One of the key factors that facilitate effective BPO operations is availability of the required infrastructure. In this regard, government is constructing a National Backbone Infrastructure that will enhance effective data, video and voice communication. BPO initiatives fit well into the National Fibre Optic Backbone, which is being built by the Government and is expected to be completed by 2010. Its roll-out is divided into three phases;

• First phase -linking Kampala, Bombo, Entebbe and Jinja is complete
• Second phase - linking to the border with Kenya and extending up to Kabale in the south west is about to roll-out
• Third phase - linking the North, North West and Masindi will complete all the loops of the backbone.

Other key factors highlighted in the BPO Strategy and Model for Uganda are, Policy Development, Human Resource capacity building, Financing, Entrepreneurship Development and Marketing.

One of the biggest challenges for the BPO industry globally today, the conference was told, is attrition where new employees come with a lot of enthusiasm but their motivation gets depleted as job realities unfold with the passage of time. The main cause is 'Low Perceived Value' that drives the employees to quit which further lowers the perceived value.

Attrition rates %

US 42%
Australia 29%
Europe 24%
India 18%
Global Average 24%

(Source-Times News New York (2003))

To arrest this trend, participants were told that companies can look into various options like good rewards, bonding programme, flexible working hours and stronger career path. Pay cheques alone are not enough to retain employees. Management also needs to consider other aspects like secure career, benefits, perks and communication. The attrition battle can be won by focusing on retention, making work a fun place, having education and ongoing learning for the workforce and treating applicants and employees in the same way as one treats customers.

Other government officials that attended the conference were Hon. Alintuma Nsambu, Minister of state for ICT, Dr. Jimmy Pat Saamanya, Permanent Secretary, Ministry of ICT and Dr. David Turahi Kyomuhendo, the Ag. Director Information Technology and Information Management Services. Among the sperkers were Mr. Mfanu Mfayela (CEO Business Process Enabling Association, South Africa), Sailesh sampat (Director, New M Technologies ltd, India) and Ms Makwena Seshoka (CEO The Contact Center School, BPO skills Training & Event management, South Africa).

Exhibitors were drawn both from the governement and private sectors. They generally involved companies that deal in technology solutions, ICT human recoures outsourcing, ICT training solutions, infrastructure and Hardware/ software solutions, Entreprise solutions, support and Business management solutions.

Click to see event pictures