Does Kenya have a competitive advantage in outsourcing, as the government implies?
Do other African countries? Competitive advantage as it relates to costs is an excellent argument that most developing and emerging nations have. They are newer democracies with lower cost structures, irrespective of government debt burdens or the lack of any other job-creating industries within. Is that sufficient? I would emphatically say no. A positive case for outsourcing is not just a difference between labour costs one can achieve and therefore reduce corporate overheads. It hinges upon a nation’s ability to provide, and sustain, a host of catalysts: appropriate infrastructure, capacity and capability of a trained labour pool, a macro-economic environment that is conducive to do business, tax structures, cost of living, immigration and employment laws and so on. Governments will need to view the outsourcing industry as not just one that could be created quickly, but one that needs to be sustained in the context of a dynamic demand where choices are many, and moving in or out is f
