Topic: Curtain Raiser: Offshoring to Africa

The global sourcing location landscape is evolving rapidly, with over 150 cities that are potential location options for companies. Africa is a relatively recent entrant to this list. While some companies have been present for almost a decade in Africa (e.g., ACS in Ghana, CSC in South Africa), the region has witnessed a significant uptick in global sourcing activity in the past two to three years. Further, recent investments by leading global companies (e.g., Genpact in South Africa and Morocco, Aegis in South Africa, IBM and Vodafone in Egypt) are likely to favorably influence interest in the region.

Among the African destinations, Egypt, Morocco, South Africa, and Mauritius are the leading countries in terms of scale of direct employment in IT and BPO. Each of these countries has more than 10,000 offshore jobs in the IT-BPO sector. Further, these countries host delivery centers for a number of marquee global suppliers and captives.

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