Africa Set to Become One of the Best Outsourcing Destinations

Insource Africa

Choosing the best outsourcing destination has become a strategic decision for businesses. In order to reduce overhead and operational costs, small to medium business owners are turning to outsourcing their tasks, and Africa is fast becoming an outsourcing destination of choice. When considering the cost of hiring full time qualified employees, the option of outsourcing is becoming more feasible for many businesses around the world.

Especially for businesses looking to scale, outsourcing tasks to qualified people is adding value and allowing them to scale faster. Businesses can leverage qualified software engineers, IT support, marketing, accounting, and administrative support at the fraction of the cost it would take to hire full-time employees.

Africa has a talent pool that has become lucrative to businesses looking for growth and savings. Even though India remains a top leading destination, Africa ranks as the 2nd best outsourcing destination and this growth is due to the advancements in technological infrastructure and an increase in the number of skilled labor.

Why Do Businesses Outsource

Cost reduction and the need for enhanced efficiency are the primary reasons why businesses outsource. As costs and competition rise, businesses are now adopting outsourcing as a strategy to reduce costs and increase efficiency, by allowing other companies with expertise to complete tasks on a project by project basis or as an on-going agreement.

 

why choose Outsourcing destination

 

According to Deloitte, 59% of business choose to outsource in order to reduce costs while 57% of business choose to outsource to allow them to focus on core business. Other reasons why businesses outsource include;

  1. To solve capacity issues
  2. To enhance service quality
  3. Because it’s critical to business needs
  4. For access to intellectual capital
  5. To manage business environment
  6. To drive transformational change.

The affordable labor and growing economy of Africa are the major factors that fuel the outsourcing of business functions to the region.

What is insourcing?

Insourcing is a business practice performed within the operational infrastructure of the organization. In definition, this is when a business practice is performed within the operational structure of the organization. Insourcing is inclusive in nature. This means that hired personnel becomes part of the organization even if they work remotely.

For example; Productive Dentist Academy has insourced individuals who work from Zimbabwe. Unlike outsourcing that treats the hired personnel as a third party, insourcing says that the employees are part of the organization no matter where they are.

Why Africa Is The Next Best Outsourcing Destination

  1. No language barrier

Some outsourcing destinations have different cultural and linguistic abilities. However, some countries in Africa are former British territories, which means their culture and English-speaking skills are good for business.

Language is key to building a strong relationship with your virtual assistant team. Destinations like Zimbabwe are official English-speaking countries with a high literacy rate. Which means that communicating is a lot simpler than what you’d anticipate.

2. Time flexibility

Time varies with regions; however, outsourced virtual team members are able to work according to your schedule, allowing them to integrate with your local team and performing tasks efficiently.

For instance, if you are in Texas U.S.A your day would start at 08.00 hrs. which is 14.00hrs. in Zimbabwe. This does not affect your normal working schedule as the virtual teams are equipped with high-speed internet and office space in a high rise building with all the necessary amenities needed to help your business function well regardless of time zone differences.

 

Outsourcing talent
African student

3. Education

Another reason to choose Africa as an outsourcing destination is that people in Africa value education and with the growth of online learning platforms, it is easier to for them to get certified in key competencies. Zimbabwe has one of the highest literacy rates within the Sub-Saharan region, with at least 86.9 % of its population educated up to college level. With over 20 universities, there is a huge pool of talent that is qualified to take your business to the next level.

The pool of educated professionals is large, allowing your business to benefit from skilled individuals who will prioritize your needs and, help your business scale.

4. Cost efficiency

Saving money is always a priority for any business. Insourcing can save your business up to 70% on payroll costs.

Statistics show that the added annual cost for a new position can be equal to, or more than 150% of the actual pay. By adding a position at an annual salary of $36,000, the “real” cost to the business could be in the $54,000 range. The option to add a Virtual Team to your business can reduce this by as much as 70%.

By outsourcing to a destination like Zimbabwe you are guaranteed a big save on your finances.

Here’s a guide on how to start outsourcing from Africa.

5. Sustained Quality

As a business, you want to maintain your standards and improve on them. Your product and your brand are the reason your business stands, finding a team that will help you add value to your product offering is important.

Insourcing ensures that your quality is not compromised. Virtual team members are trained, professional and well equipped in various areas of relevant industries. This plays a part in keeping your performance at its A-game.

6. Embracing technology

Africa by January 2018 had an urbanization rate growth of 55% and a technology penetration rate of 53%. This is evidence that as an outsourcing destination Africa is able to elevate your business and help you scale, with an understanding of technological trends.

7. Flexibility

Insourcing tasks, allows your business to maintain financial flexibility, especially when there is an uncertainty in demand. Some business process providers offer short-term service removing the stress of a lengthy contract.

As mentioned before Insourcing to places like Zimbabwe gives you a competitive edge, to focus on your core competencies.

8. Cultural adaptation

The disparity in culture is not a problem when it comes to insourcing to Africa. African people are known to blend in well with new and diverse cultures. With clear and concise command of the English language, it makes it simpler for you to understand and connect with your virtual team.

9. Frees up your time

You can insource general repetitive tasks to your outsourcing partner in Africa. This allows you to focus on the core areas of your business. Dental practices, for example, insource tasks such as insurance verification and patient scheduling, allowing the dentists and other staff to focus on other key areas.

10.Data Security

Data security is a huge element when it comes to outsourcing and the constant sharing of sensitive data. Insourcing partners have to have security protocols is put in place that is robust, to ensure that all your data is secure.

Think about it, Africa is the next big thing, and you could be missing out on making your business a success. Get in touch with us today, and get the ball rolling to scale your business.

Africa is a culturally diverse continent that has shown substantial growth in relation to technology, cultural adaptation, and education.

This growth has given businesses from other continents the opportunity to benefit from talent through virtually insourcing Africa. Outsourcing is utilized by companies to dial down and focus on the core aspects of the business, spinning off the less critical operations to outside organizations.

Choose Africa as your next outsourcing destination.

ZimWorX is a leading Texas-based insourcing company that provides virtual assistants and administrative support for businesses. Moreover, we provide both short and long term virtual insourcing services customized to suit your business process needs.

Contact us today

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