Setting up a call center in Kenya
By kenyanentrepreneur Sunday, July 15th, 2007
It looks like this is becoming a big topic as talk of the fiber optic cable looms. There’s a short article in the Nation about this and it looks like the Indians are already looking at Kenya (why? why? why? can’t they just stay put in India?) — it would really depress me if outsourcing in Kenya was taken over by Indians! Do you think Indians would ever let a Kenyan owned company do business in their country? I know it’s a global economy, but you have to give first dips to your countrymen.
Besides, doesn’t India have a law that all foreign owned conglomerates must have minority Indian ownership if they hope to do business in that country? (I think the requirement is that there has to be 50% Indian ownership!) I hope the government doesn’t allow these Indian companies to just control the outsourcing industry in Kenya.
Anyway, that’s not what I want to talk about. I want to talk about the costs of setting up a call center in Kenya as outlined by the above article in the Nation. This is what the article says it will cost:
Investors will need a minimum of $10,000 (Sh650, 000 under the current exchange rate) to set up a call centre using the technology (the new, cheaper technology being provided by the Indians)
Currently, Skyweb, Precis and Kencall are involved in call centres. The minimum, that a firm could use to establish a call centre is Sh2 million, but the three firms have made investments of over Sh8 million each.
It had not been possible in the past to set up call centres with less than 15 seats, with each headset costing $25,000.
Call Magic {the new technology} will only require use of ordinary headsets that cost $2000.
Call Magic {the new technology} will only require use of ordinary headsets that cost $2000.
It had not been possible in the past to set up call centres with less than 15 seats, with each headset costing $25,000.
Call Magic {the new technology} will only require use of ordinary headsets that cost $2000.
Call Magic {the new technology} will only require use of ordinary headsets that cost $2000.
Currently, Skyweb, Precis and Kencall are involved in call centres. The minimum, that a firm could use to establish a call centre is Sh2 million, but the three firms have made investments of over Sh8 million each.
It had not been possible in the past to set up call centres with less than 15 seats, with each headset costing $25,000.
Call Magic {the new technology} will only require use of ordinary headsets that cost $2000.
Call Magic {the new technology} will only require use of ordinary headsets that cost $2000.
It had not been possible in the past to set up call centres with less than 15 seats, with each headset costing $25,000.
Call Magic {the new technology} will only require use of ordinary headsets that cost $2000.
Call Magic {the new technology} will only require use of ordinary headsets that cost $2000.
Currently, Skyweb, Precis and Kencall are involved in call centres. The minimum, that a firm could use to establish a call centre is Sh2 million, but the three firms have made investments of over Sh8 million each.
It had not been possible in the past to set up call centres with less than 15 seats, with each headset costing $25,000.
Call Magic {the new technology} will only require use of ordinary headsets that cost $2000.
Call Magic {the new technology} will only require use of ordinary headsets that cost $2000.
It had not been possible in the past to set up call centres with less than 15 seats, with each headset costing $25,000.
Call Magic {the new technology} will only require use of ordinary headsets that cost $2000.
Call Magic {the new technology} will only require use of ordinary headsets that cost $2000.
Currently, Skyweb, Precis and Kencall are involved in call centres. The minimum, that a firm could use to establish a call centre is Sh2 million, but the three firms have made investments of over Sh8 million each.
It had not been possible in the past to set up call centres with less than 15 seats, with each headset costing $25,000.
Call Magic {the new technology} will only require use of ordinary headsets that cost $2000.
Call Magic {the new technology} will only require use of ordinary headsets that cost $2000.
It had not been possible in the past to set up call centres with less than 15 seats, with each headset costing $25,000.
Call Magic {the new technology} will only require use of ordinary headsets that cost $2000.
Call Magic {the new technology} will only require use of ordinary headsets that cost $2000.
So, I’m assuming that the $10,000 dollars is the total cost for 5 seats @ $2,000 dollars a piece. Then, all you’d have to pay for after that would be the monthly internet charges {with high speed connections, I’d assume} (how much would that run you today?)
Now, I want someone with experience in this industry to tell me what they think about this (because I’m curious and I wanna know and I want you to tell us what you know, so that we can all know whether this will put more ugali on our plates in the future….)
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BPO is going to take off very soon. Traditional outsourcing countries locations like India are now moving up the food chain by getting involved value creating tasks such as IT infrastructure development and R&D. wage pressures, soaring business costs and constant backlash by consumers fed up with the language barrier are some of the factors causing multinationals to seek alternative locations with an English speaking workforce that is educated.
Kenyans twang and shamelessly don “I love NY” T-shirts even though they’ve never set foot outside Eastlands. We are already very well exposed to western culture so companies won’t have to spend additional resources in the form of extra training bombarding our minds with re-runs of Friends and Seinfield in a bid to polishing our speech and get us in the groove of things.
I totally agree with you, the government should rein foreign ownership of these centres to ensure local entrepreneurs get the largest of this cake by mandating local partnerships for those sly Indians bidding to control and dominate this industry.
Look for companies that offer generic commodity services to set up camp first. The high-tech stuff is a long way from reaching our shores
I am all for Indian companies outsourcing their outsourcing to Kenya……come one come all!!!!!!!! If Kenyan entrepreneurs are unable or unwilling to pick up the slack and run with it, bring in the Indians……furthermore I think there is great utility in learning from the Indians after all if we are to become their competitors at some point in the future we will have to master their game and beat it. No point reinventing the wheel, even the Chinese admit they are students of how India has done it.
Nicely said Sijui. During the Kenya Open for Business Investment Forum that took place in Atlanta earlier this year I met a fellow from Atlanta who has a rather large call center in Kenya, if only I had not lost his name and contact info…’
Anyhow, I forget the name of the ICT minister, but from what I could tell this was the plan-to open up the country to anyone with the capital and expertise; and it makes sense. It is exactly what has happened in Mauritius and why they with a small population are a big force in Africa’s ICT scene – right now they are trying to steal the BPO spotlight from the continent’s other ICT hopefuls.
But I also agree with Steve who made the first comment that Kenya is strongly poised for the challenged-given how pleasing the Kenyan accent is to the Western ear as compared to someone from India. Plus, Kenya has a large resevoir of highly educated persons who are unemployed, I bet their kids and landlord’s won’t mind whether the outsorcing firm that employs them is based in Kenya or India…
Finally, I salute trail balzers like Preciss and the others that you mentioned. They as are any other existing domestic BPO companies are poised (after all they are already succesful both at being Kenyan and working with a Kenyan workforce and at the BPO game) to be of great assistance (for a fair market rate of course) to any outside firms coming in to Kenya and that to me also might outweigh the costs of having many foreign owned companies joining the party.
oops… I may have accidedently deleted some comments on this post. If I did, please re-post.
Sijui:
Kenyans can do it, if given the chance/opportunity. Again, the Indians would never, ever, reciprocate this favor to any Kenyans hoping to start businesses in India. And if this government is serious about creating jobs, they need to start encouraging LOCALLY grown entrepreneurs who’ll have a sense of loyalty to THEIR country.
I’m still waiting for someone to tell me how much internet charges cost on a monthly basis and why a freaking headset is quoted at $25,000 dollars! (that seems excessive)
KE,
Kenyans can do it if given the chance/opportunity. There is chance and opportunity in Kenya galore right now. As Benin pointed out, some Kenyans have already seized the opportunity. So there is absolutely nothing stopping Kenyans from exploiting this. Now with TEAMS, EASSY, KDN and the million other projects going on in terms of ICT infrastructure.
Even capital to me is not such a stumbling block anymore, let’s assume on the conservative side that start up capital ranges from $500,000 to $ 1 million. Even that is not such a prohibitive figure with all the liquidity sloshing about in the country. The name of the game is instinct, proactivity, good networking and plenty of hail marys!!!!!
BTW, I’m sure there are enough Kenyan muhindis who have this on their radar screen now that the real estate bubble has burst, miros can team up with them and form partnerships, this is not new since Kenyan politicos have been doing this since time in memorial.
If you lock out the Indians from Kenya then they will go to Uganda whose higher education system is as good as Kenya’s. Don’t forget Rwanda’s bid to be the ICT center of Africa. Many Rwandese are bilingual.
Whatever gripes you have against the Indians, you better get over them… they are becoming global players. Indian IT centers are “outsourcing” to their villages many “non-speaking” roles!
Kenya does not even have fibre-optics while the Indians made smart decisions to invest heavily in fibre. Reliance bought Global Crossing’s assets at a discount while idiots in Kenya’s government were protecting Telkom Kenya’s monopoly!
I read that Equity Bank bought banking software from Infosys not coz they were cheapest but coz of the highest technical score. Equity then introduced online banking which Barclays(K) doesn’t provide!
As Sijui said… India is moving up the food chain… and either we learn from the best or get left behind… India’s BPO industry dwarfs all other countries… Even Boeing has a Indian “design/engineering” center whereas in Kenya Michael Joseph claims we produce 1960s engineers in 2007!
whats up KE how can u limit ownership in biz that does not exist
i think we should be like teh chinese china has very few ownership limits – or did not have until the thsoe industries got established – and china is way ahead of india industrially and living standard wise
KE,
After our little confab on the Palestinians the other day, I assumed that you were a one world man. Saddens me that you would think of limiting ownership on the basis of ‘can I say this?’- race!! If it is reciprocating that you are worried about, I hardly think there are any countries on earth that will let foreigners go all over them the way that we do.
Now, I am writing an article on the East African Community, and particularly Tanzania’s irrational fears. I am hoping they have better reasons than yours. We did an article on KI sometime back about Kenya and Entrepreneurship. As Sijui says, pesa ziko, maybe there’s just a disconnect between the creative and the wealthy.
http://www.kenyaimagine.com/in.....Itemid=121
I’d prefer to think of my stance on Indians as “tit for tat” (they’d never let kenyan entrepreneurs set-up businesses like the one’s they want to set-up in Kenya, so why should we be so generous?)
Anyway, many countries protect the economic interests of their citizens aka “voters”. America provides billions of dollars in farm subsidies to protect their farmers against cheaper, 3rd world competition. And again, India requires a 50% Indian-owned ownership partnership for any corporation looking to set-up a business in their country.
It would not be bad for Kenyan politicians to for once, look out for the interests of the people who’ve put them in office (isn’t that what democracy demands? you have to listen to the needs of the voters) and if it means providing some economic protections to them, then that would not necessarily be a bad thing.
KE,
I think the issue here is ’strategic’ and ‘pragmatic’ economic protections. Once again I will use the examples of China and India since they are obviously the emerging behemoths on the global scene.
India- I believe the Indian Finance Minister that you often cite as exemplary has stressed time and time again that one of their BIGGEST REGRETS was prolonging industrial protectionism in their country at a time when their neighbors read China were loosening restrictions in the most value added segments of their industrial and manufacturing sectors. The man is spot on, India coddled inefficiency and mediocrity and lost out while China instituted shock treatment to the upper echelons of its industry by forcing them to compete with Western firms. Unsurprisingly, India changed tack when they saw the runaway success of Chinese manufacturing and ironically opened the flood gates to Chinese firms in a bid to force their local industries to learn from the ‘best’ in terms of cheap manufacturing………that in itself came at a very high political cost.
The lesson I think from these two countries is pursuing protectionism that is strategic and pragmatic…….as you are aware China knows that its domestic manufacturing i.e. for internal consumption is its weakest link hence the reason why they impose heavy protectionism HOWEVER by the same token they have pursued a strategy of building the most sophisticated segments of their economy by courting massive foreign investment and ownership and learning their advancements. Ditto for India, ESPECIALLY its ICT sector. All countries have to face these options, especially THIRD WORLD ONES and the trick is knowing which value addition sectors you want to build using foreign investment/ownership and which weak domestic sectors you want to protect and nurture. In Kenya, prioritizing the weakest domestic sector means agriculture not ICT.
P.S. It is my hope that this is where Africans learn to master the game in terms of their relationship with India and China. What value addition sectors of our economy should we agressively court Indian and Chinese investment and which ones should we lock them out of?
I’m no economist but I figure lock them out of or restrict entry in to agribusiness and low end manufacturing whilst we build domestic capacity and ownership especially through the Jua Kali sectors and small scale farmers, get quid pro quo by securing favorable export access and then sweeten the deal by allowing entry in to the capital and skills intensive infrastructure and industrial sectors.
http://www.ft.com/cms/s/e6c652.....fd2ac.html
Good article that covers the waterfront in terms of the state of the BPO sector in Kenya………
Sijui:
That’s an excellent article. However, is this really true:” Internet access is little better because east Africa is the only region in the world not connected to the global broadband network.” — if it is, it would be stunning.
KE – You are not seeing the forest for the trees. No-one cares about investing in BPOs in Kenya except Kenyans. Anyone else who does so, does for a reason. PROFIT.
Most BPO firms need local input but forcing them to include local partners will not work unless we can prove ourselves.
Case in point is 2nd SNO license which has not been issued coz foreign firms were forced to choose local partners who turned out to be scam artists! Ask Econet or Vtel. They are pissed. Finally, this requirement will be removed… but I think the bidders will co-opt local partners.
In the end, it is Kenyans who pay the piper coz of VERY expensive calls… & reduced economic growth opportunities.
BPOs are reliant on HR, IT & ICT… so Kenya has only the HR. The IT will be supplied by Indian firms. Oh, you can complain about them but most multinationals looking for value choose India.
So the missing portion is ICT which can be provided by other countries e.g. Phillipines, Vietnam, etc… In fact, the Phillipines has a thriving BPO industry.
I hope that these Indian firms will push for fibre into Kenya. Reliance Telecom is one of the largest fibre owners/lessors among the Indian Ocean countries. If they support a BPO center in Kenya, in addition to their needs I think they would lay enough fibre to supply cheap(er) access for ALL of E.Africa!
CT:
You make some very good points. In fact, the points you’ve made are highlighted in the FT article that Sijui posted above (check it out — they have a whole series on Kenya, the BPO sector, the economy, etc, etc…it’s quite interesting & thanks Sijui for providing the link)
I think Kenyans who are thinking about investing in BPO in Kenya are absolutely interested in making profits! Nobody goes into business without wanting to make lots and lots of money! This desire for profit is absolutely not limited to non-Kenyans.
In conclusion, I think we just have different opinions on how far free markets should be able to “run”. I think you are more of an extremist on this issue than I am (i.e. business for business & nothing else should matter). I am more of a believer in government and I think it does have a responsibilty to the citizens who elect them and give them that power. You must look out for the best interests of your citizens and if that means losing some profits in the short-run, then so be it.
You can just let foreigners control the bulk of the Kenyan economy and in that respect, we should be like the Indians (who require a 50% ownership rule).
the best way to follow, as the british learnt 200 years ago,is right down the middle.let the indians in,but not 100%. Let the kenyan’s who can invest,but not clowns who cant pay. somewhere there we’ll find a workable compromise.
You are a believer in government??? Well, my dear, Kenya’s government is a joke…
Sijui, KE, CT
Peter Ndiangui and I did an article at imagine? on the need for Kenyan entrepreneurs. It is not just in Kenya where CT’s analysis that government in a joke carries weight, it is evident everywhere across the world. Waiting for the government to be anything but a regulator is the reason why many countries are economically retarded. As we stand around and whine about the location of Kibaki’s 500,000 jobs, billions are being thrown at the NSE and Pyramid Schemes, even during this period of extremely cheap money.
KE,
Would you say the same thing for Americans? They clearly have a very protectionist regime, especially in particular sectors. At the end of the day, the only way we can get ourselves out of this rut is by creating jobs. I was speaking once in High School with the Del Monte Financial Director. In the passion of that time, I was very angry when he told me that they paid close to no tax or duties, including on the plant and machinery. To shut me up, he simply posed the question, what effect would it have on Kenya if they were to move out.
We have to realise that on a broad number of factors we simply do not compete. There’s a PDF at Kestrel that compares the cost of electricity in a range of African countries with what we have in Kenya. Then there’s another page at the World Bank, Doing Business I think it is called, that shows you just how onerous a task it is to invest in Kenya ( paperwork, delays, trouble with winding up,difficulty of employing and firing etc). Now from all these it is very clear to me that we are in no position at all to be calling the shots on the basis of cheap nationalism. Given everything that screams do not put your money in Kenya, we are lucky if anyone even looks at us for a minute. Until we can change that, silly patriotism is something we cannot at all afford, capital migrates to sunnier climes.
emmo
kenyaimagine.com
Emmo:
I’m not talking about “silly patriotism” or even “cheap nationalism”. I am talking about the responsibility that elected officials have to the citizens who’ve given them that enormous power.
And yes, CT…government is important. You need good government to provide roads, public education and the rule of law — just because Kenya has not had that doesn’t make the ROLE of government irrelevant. You need a balance between the public and private sectors. I think eventually, Kenyans will get the government they deserve, but only when the younger generation of kenyans take over the country (in another 10 or 20 years)
And after dealing with Indian IT workers, I’d say that they are not smarter than kenyans.
KE… I give up… Fine, “ban” the Indians… while you are at it… ban the Chinese or Japanese or anyone else…
Oh, and where are the jobs going to come from…
We are NOT talking about IT “workers” but entrepreneurs… You are based in the USA… does the US have smarter folks OR is it the US attracts the best talent from around the world?
Sergey Brin (origin/s from Russia)
Jerry Yang (origins from China/Taiwan)
Vinod Khosla (origins from India)
Oh, I could go on…
BUT you win… let’s ban the Indians from Kenya… who needs the jobs?
Who cares if Indian IT/BPO firms go to Uganda or Rwanda?
For all the inefficiencies/issues/problems Indian IT/BPO firms have… Infosys market cap… is LARGER than the entire NSE… forget about WIPRO or Tata or…
I would rather see Indian firms in Kenya so we can learn how to compete with them… these are world class firms… esp those in IT…
CT:
I’m not saying ban the Indians. I’m saying do like the Indians! place a 50% ownership requirement on foreign companies that want to do business in Kenya.
And on the above (khosla, brin, et al….these guys became u.s. citizens, they are all currently living here, etc, etc, do you think the Indians or japanese are going to become kenyan citizens and live in kenya permanently?
If Kenya provides the “right” environment… yes, why not?
This includes “justice”, security, amenities, etc… including liberty…
Look at the Kenyan-Asians (or Asian-Kenyans), many of whom are citizens… some retain British citizenship though they are Kenyans at heart… this is similar to many Kenyan-Americans who do it for economic reasons.
As a Irish-Kenyan, told me. He retains/applied for the Irish passport because it allowed him easy travel around the world. Without the need for getting visas every time he traveled in his line of work. It was a convenience for him.
The US passport allows for “convenience” of travel e.g. US citizens can get visas at the point of entry in many countries like Kenya & S.Africa.
Also the US allows dual citizenship.If Kenya were to do the same I would not be surprised if many took advantage of the dual status. Including yourself, I suspect).
CT:
My distrust of Indians has a basis. Ever since Ke nya was colonized, Indians have been getting “breaks”. First, they got a break from the British who put them ahead of the racial curve, which gave them economic opportunities that Africans were locked out of.
This colonized mentality continued once African dictators realized that they could use their bribe money.
Then of course, we have to look at the way indians behave in Kenya (isolating themselves from Africans, abusing their African employee’s, refusing to socialize with Africans, etc, etc,)
I don’t particularly like them or trust them!
Kenyans:
I would like to thank you all for the steps we are all taking in making sure that we are as diverse as we possibly can. I however have serious issues with attitudes that we carry around more so online.
Having worked in bangalore for almost three years I would like to inform you all that Indians are the best people to work with, The indians that we have met at home could be termed as rude (Perhaps) but the level of professionalism that i have come across is awesome. I have never been sidelined, I had a team that respected me, et all.
I worked for the third largest BPO in india and it was very clear that in order to maximise on profits companies needed to offshore more from current locations (e.g Bangalore to Phillipines, Mauritius,Hungary etc)
Kenya will have an opportunity in this space more sore because we have a workforce of approximately 1 million people who can easily fit in this industry.
I know that I have’nt answered your question on figures, If you would like to know more on cost against revenues please mail me.
Let us change our attitudes towards other races we stand a chance to gain from there expertise, and experience.
We got call centre solutions which will be cheaper than that. Contact me at njambs@e-ofisi.com
am eager to set up a call center but am constrained by lack of sufficient information, can someone assit me with sufficient information on how to go about it, or anybody who is experinced is looking for a partner, can he/she consoder me,
Thanks
Sylvester
sylvester njuguna
am living in a place am really fed up with,i wanna go back to K soonest i can sort thingzs out could you contact me and we can take it from there,indians,chinese,ngui i wanna put my money where my mouth is.get in touch.leave a message here for me.
hi all
I am Sanjeev, from India. I accidentaly stumbled upon this site. It is a wonderful site and it gives me great insight about Kenya, Kenyans, Economy, Ideas, et al…
I am working as a Manager in a leading BPO and belong to the ITES sector…
I am amazed at your ideas and knowledge about this emerging industy/trend…
As a experienced person from this field (around 7 yrs), i am sure E.Africa will surely be the next destination for Outsourcing…because of Kenya’s cultural orientation, Language, Cost, etc
Having said that, I would also like to point out why some counties still havent taken Africa seriously – firstly, political stability, secondly security…
Security is vital because of the odd working hours this job demands!!
Thanks for reading my blog…thanks all…I feel great sharing my thoughts with you! God bless!
We are holding Outsourcing & Contact Centre Conference & Exhibition 27-28 November 2007, Safari Park Hotel -Nairobi in partnership with the Kenya ICT Board and the BPO & Contact Centre Society.
As I’m sure you are aware, the country’s outsourcing and contact centre sub-sector is currently experiencing a major boom, fuelled by the following factors:
Ø The Kenyan government is promoting outsourcing, with a target of 30,000 seats by 2012.
Ø World Bank funds have been allocated to subsidize the bandwidth costs of outsourcing operators.
Ø Numerous major organizations are investing in the establishment of contact centre to meet their customer service requirements.
These developments represent major business opportunities for all suppliers of ICT infrastructure, technology and services.
One can make an impact on this range of potential new clients by having an exhibition stand at the conference- or as a delegate/ taking up sponsorship opportunities still available.
For more information and how to register kindly contact the undersigned.
C. Macharia
+254 722 284328 /
celestinem@in-sync.co.ke
there is also a breakfast organised by the ICT board tomorrow at the Sarova Stanely.
Mr.Sanjeev,please give us more insight on costs, More advantages,More disadvantages et al.Can I visit your call centre in India? Next year will be great after I vote in December.
It would be interesting to have indians and other countries to invest in kenya but I still think for us to be able to learn from them a percentage of ownership should be left to kenyans because we dont know up to what level they’ll have kenyans hold offices in the company and I think thats the reasoning behind having locals own a piece of the investment for them to learn.
are there any other calll centers in kenya .because i have done iccsp in business process outsourcing?
This is an area that is still foreign to most of us. You all agree that only afew companies have managed to venture into this area profitably.The starting capital may be restrictive but i also know that there are so many entrepreneurs in Kenya who can afford and would start up 100 call centres simultaneously if they wanted. Competition is what we need. It will ensure that information is quickly disseminated causing the idea become real in our households. I have been researching on this area with a view to starting my call centre business in future. But since i am not in the category of those who can afford the initial capital, i guess i will have to wait for some time. Meanwhile, let the indians come.
Friends, let us also talk about debt collection. This industry is young and not regulated. The practitioners need your support!!!
I believe so many people have done call center and have no jobs. To my opinion i believe u can start inbound and outbound calls,BPO and data entry for people not to suffer. Thanks for your consideration
Hi guyz.im crazy about starting a call center here in kenya.just wondering if i could get some info on how to start on,the costs and if anyone wants a partnership.find me at flight066@yahoo.com
Mr Sanjeev, please give me your contact. I want to start up a BPO project and would like to borrow a leaf from you guys in India at a technical level. We could discuss details in subsequent correspondence. Thanks anthony_watola@yahoo.com
I fully concur with the views documented above, Kenya has the raw materials to succeed in the global contact centre market. There is a tremendous level of enthusiasm, dedication and talentI in Kenya and that gives the country a superb foundation to build a successfully industry. Unfortunately, though, it isn’t as easy as that. To get the business required to make a success in this world, you have to demonstrate to potential clients, that you have the appropriate controls in place, from the selection of staff, through to the internal policies. It is imperative that when you establish your contact centre, that you get this right from the start as you don’t have a second chance to make a first impression.
With the ever increasing regulations in the UK industries, coupled with the media perception of offshored operations, companies have got to be 100% certain that they are going to get all the benefits, without increasing their risk. Fundamentally, a company can outsource a process but they cannot outsource the risk.
We, in Secure Future Associates, have invested a lot of time and money into the Kenyan BPO offering, as we fully believe that Kenya can address a number of the issues currently being experienced by the UK market with offshoring partners. As such, we are currently running workshops for people who are looking for help in their contact centre business and would welcome any further requests for assistance.
Just for clarity on my last comment. Secure Future Associates have partnered with another company called, Contactworld, which has joint UK and Kenyan ownership to run these workshops. This partrship enables Contactworld to provide best practice education from the UK Contact Centre industry and tailor it to be specifically relevant to the Kenyan requirements. As Contactworld is providing the majority of the information being cascaded in these sessions, they are branded under the Contactworld brand.
I was disappointed to find out that none of you has any information on how much it would cost to start a call centre lets say of about 50 seats.
Can someone please enlighten us. I am sure it’s not $2500 per head even if the devil was in it all along.
TOTS
BPO – data only not voice
50 seats,
Furniture – 150,000 (vary depending on quality)
Office space – 100,000 (will vary depending on location- godown in Mombasa road vs business park at ngong!!!)
Computers with Head sets and UPS – about 1.5 M (Assuming reliable second hand P4 machines with 512 ram etc)
Routers, cabling etc – 100,000
Band width – (KDN fibre optic) 260,000
Miscellanious- 50,000
then now there are costs involved in test runs…training and paying wages etc….
Now do the math ….
Hope this helps…its based on experience (in Ksh.)…
incidentaly, credit facilities does wonders to your cash flow…eg 6 months credit on comps etc..
Githinji:
Thanks for that info (very helpful).
[...] is going to go up or down? it’s all speculation and nobody really knows). Anyway, I had a post a while back on this BPO sector and I was going through this blogs comments when I found this reply [...]
its good you have this site i would like to know firms that would assist me to acquire more skills in entrepreneurship am currently taking a diploma in entrepreneurship in KENYA POLYTECHNIC UNIVERSITY COLLEGE assist me in getting an industrial attachment starting this september will be glad to hear from youn thank you.
Kenya need to control its drug mafia and improve education,
if you need halp to improve education we Indians are ready to help
I think kenya has more advantage than the indians and can provide worthwhile competition to the indians in terms of outsourcing if only the government chipped in to aid growth of this sector.at least the fibre optic is being laid and clearcut effective policies to support enterprenuers intrested in this sector should be formulated e.g subsidies/tax cuts e.t.c
kenya has too much potential and if marketed properly then we dont need the indians exploiting our workforce.
we are rational beings and dont have to learn by expirience from them.on the contrary we can structure orselves and be a force to reckon with….be wary of this indian ‘investors’there is always a catch!!!!
Hello All
My name is Amos ,
I have a call centre setup and ready my big obstables is getting the projects.
Anyone willing to help me get clients can be of great help
I have a 30 seater on Kimathi street opposite Nation centre the location is ideal.
My internet is 256kb by 512kb great speed
It has costed me sh 2m but am yet to get clients
I was in india this may 2008 for 2 weeks to see and learn how to operate a call centre but unfortunate the indians are not willing to diverge any information to foreigners so i came back without any help,
please help me i have the capacity to hire 30 person for night shift and 30 person for day shift all of them kenyans.
I really need trascriptions,data entry mass mailing but not not voice becoz my the satelite internet we have at the moment is not that good till we get the fibre
My email Is kibaru1506@yahoo.com,kibaru@stylescomputers.co.ke
anyone contact me will give more information
Hi we have been running a center in kenya for the past two years our capacity is 300 seats .
To give you some addvice about indian companies most do not have a centre hat they do is convice the uk market that they have centre then out source the work to other countries offer a project at half what they are being paid and then still insist on 25% of your billing, .
To get in to the market kenyan companies need to stand on there own go strait to the client use your staff to uk and us clients direct .
I have com a cross so called brokers in kenya who have followed example set by indain but a lot worse one piticular is chargeing client $10 PER HOUR AND PAY TO KENYA CENTRES $1.80 PLUS 25% OF BILLING. if we follow india then we will have the same reputation indian companies do which will only end the industry before it starts.
Ian Rees, thank you for that information. I talked to contactworld and found that they could assist with writing the needed processes and procedures at $1000 per day! That is awfully high for a start up especially since they say it would take about 10 days to evaluate my needs and work on the project. That totals $10,000 (Ksh. 660,000 for 10 days). The lowest they could go was $800 a day. Do you have a less costly way to pass information to those of us still willing to learn?
Hi
Am am doing some market research on BPO marketing which seems to be the main hindrance in Kenya,any advice and source?
I have some call centre management skills. I will be happy to share experience as we prepare to be a call centre hub
Am wondering are there any jobs on the BPO industry? I have an ICCSP certificate from KCCT
Hi,
After reading through all the comments about call centers in Kenya, I am left to wonder if some of the comments given by some respondents are genuine or they are not aware of the IT sector. India has been a champion in BPO’s, why dont we let them come to Kenya so that We can learn from them.
Forget the politicians, I dont think there is any MP with a degree in IT in the August house, i stand to be corrected. The policies they make will only be based on their interests.
I am calling to Kenyans, Indians, Chinese, Americans .. name them with money to come and invest in Kenya by starting BPO’s and Call centre. Kudos to those already here.
Am looking for a job
menagainstwomenempowerment@yahoo.co.uk
Am looking for a job
please please help
Ezekiel
menagainstwomenempowerment@yahoo.co.uk
i’ve been to india twice this year, trying to atleast learn more about bpo’s, call centre’s and related fields. in a state of being prepared for the fibre optic cable, am one kenyan willing to put up one of these centres. Are there consultants who can guide me on the how this “bpo in kenya” storm is moving. Has the cake been shared and eaten by a few individuals … A well calculated risk is wat i need to take.. contact me at amkbaitz@yahoo.com
More than the ICT policy that we desperately need, knowledge and professional training is very essential if Kenya is to grab this chance.
We need more training in ICT sector. We need more professionals! Now more that ever in the past! ICT gurus!
Are our 8:4:4 producing them?
Well i think the entry point into the industry by upcoming centers is a big time blander.
Not taking time to understand and also people are getting into it because they have been told there is big time money.
This money does not exist and people should be informed that the west have their BDM’s in Asia thus the Indian companies are the ones outsourcing the west business.
If you must make in this industry start small,make your CV then and only then will you be able to break even.
I have been in it, have consulted for several upcoming centers but they are not willing to get business from India and i know business is there.
We can make it. Yes we can.
Your inquiries are welcome at gdiversity@gmail.com
Dont think that investing in computers, Internet, seats and softwares are all you require to set-up a call center. Establishing a relationship with a client and landing on a business deal is what you should focuse on before investing, more importantly maintaining a client, most of the Call center services are not long term. So you should constantly search for clients. I advise people interested to do extensive reasearch before venturing into a business such as this.
The only way on call cewntres
i think outsourcing is one of the best industries tha young kenyans can invet in…..all we need is to have determination and good plans to fight the indians in the industry,Smart and quality competition plus looking for funds in this hard time why dont we come 2gether as a group and put up ideas.
Frank
The only way on call centers
i think outsourcing is one of the best industries that young kenyans can invet in…..all we need is to have determination and good plans to fight the indians in the industry,Smart and quality competition plus looking for funds in this hard time why dont we come 2gether as a group and put up ideas.
Frank
An informative article on why we need Business Process Outsourcing in developing countries like Kenya.
http://www.mytopcompany.com/articles.php?artid=5
i would want to invest in bpo sometimes early next year 2010…who can help on what i need to establish one…i have capital. cane get me at chenoh2002@yahoo.com
I am pleased to see how my fellow Kenyan entrepreneurs are determined to get involved in the very promising outsourcing industry. If well handled, the ICT sector, through outsourcing, has the potential of being the greatest contributor to our GDP; surpassing tourism and the horticulture industry. This will create jobs for our youth and thus significantly reduce the current unemployment levels and by extension crime.
I beleive Kenyans are very intelligent people who can play a vital role in the economic development of our country.
The launch of the fibre optic cable presents great opportunities.Generally, the level of awareness on this issue of fibre optic is quite low. The government in collaboration with the private sector should develop programs which will educate Kenyan entrepreneurs on how to exploit these opportunities.
Knowledge is power. We live in the information age and thus our economy must also be driven by the availablity of accurate and timely information. One must develop the required level of understanding before making any investment. Anything else is equated with gambling of one’s hard earned money. Warren Buffet is the world’s greatest investor because he takes time to study and analyze a company before making an investment.
For now, I think the best way foward in regard to BPO is extensive research and establishing meaningful networks. I belive we can do it if only we have the guts to try. From the words of Martin Luther King jr. ” Take the first step in faith. You don’t have to see the whole staircase, just take the first step.”
since the main issue is actually landing the clients, how exactly are we supposed to find these companies? is there a database that we can access? are we supposed to show up to their head office and propose to them? is there a procedure?
Regarding the cost of starting a call center, there’s new way of reducing the basic cost of implementation that’s totally feasible. Its a software that expands the capabilities of one CPU to be shared by many monitors in a network partitioning the hard drive to allow the sharing of hardware and software resources at the same time, with independent functionalities. Here the benefits are immense and you cant put a price tag really given the hurdles in terms of annual PC hardware maintenance, software purchases and updates, power consumption, carbon emission etc.
githinji had indicated that ‘Computers with Head sets and UPS – about 1.5 M (Assuming reliable second hand P4 machines with 512 ram etc)’
Assume that the cost of acquiring 30 branded Pcs each going for ksh. 50000 will add up to 1.5M alone, no cabling etc.
The operative system also is another hurdle; ksh 10000 per machine to total ksh 300000
if you add the previous items i mentioned, the Sam gets uglier to look at figuratively, of course.
That alone will cost you 1.8M (vat excluded)
With this new software that is vended on per user basis, assuming a license goes for 8000 (per monitor, and supports a maximum of 8 monitors per CPU)put just four CPU s separate monitors and keyboards / mice. you’ll have spent ksh. 350000 + software license 240000 = ksh 590000!
for more info contact me on denis@softlinkoptions.com and ill send you free support info on the same. thanks
Anyone who would want to partner on IT project i will be ready to meet him/her for more information email josphat.ndungu@gmail.com
alot of countries in the west are outsourcing jobs to other countries (India, Phillipines & Guatemala) Make a deal with the indians this may set a footprint and open doors for other opportunities. Call Center outsourcing is all about English lang, Countries in the west0 are outsourcing to Philliphines as they are the best english speaking nation in Asia
hi,
This is a very interesting blog, i am pleased to see that kenyans are taking such an aggressive and keen interest in the bpo industry, i am an indian by the way, hope that is not a problem , some of the comments in this blog are not agreeable, the reason why india is at the top of the bpo food chain is because back in the 1980’s we had a few entrepreneurs who took the risk of getting into the IT industry, their names have been mentioned earlier in this blog i think, Mr murthy of Infosys, Shiv Nadar of HCL, Azim Premji of Wipro, and TCS(the largest IT firm in india with over 120000 employees and offices in 77 countries)after reading the blog i think the kind of confusion and enthusiasm that exists in kenya right now regarding the BPO industry, is pretty similar to what existed in India in the early 90’s when BPO as an industry was looking very promising, i know this because my mom joined the BPO industry some 22 years ago in India, and i have heard stories from her about what people thought in the early stages, and believe it was pretty similar to what you guys are saying today, i will not be surprised if 10 years down the line some of you from this blog might be heading 5000 seat BPO’s
As far as the India coming to kenya issue is concerned, guys doesnt matter how much we argue, we cant ignore the amount of experience and marketing tactics Indian BPO’s can bring to the table, rather than resisting the change, be a part of the change, that way you will get to your goal faster.
The kenyan BPO market is like a young child right now and if it doesnt get the right kind of parenting it could get lost in the race or worse, waste its most precious years arguing and resisting.
Now coming to the main point i put across in my earlier blog of being open to assistance and partnerships,
” A little about myself”
I own and operate a 400 seat BPO in India, and have been researching an offshore location for a few months now to expand my operations and i have concluded that kenya is one of the topmost contenders, “i like your accent”, its very neutral ideal for call centres.
I am coming to masai mara on a holiday for a week and am planning to come to Nairobi on the 2nd Jan 2010 and will be there for three days, i am flying back to india on the 5th, i am looking to set up a bpo in Nairobi, and am looking for a local partner to help me cordinate with the local issues, office, permissions and handling, i am not primarily looking for an investor, i will be investing all the money i need some one to handle the show. If the business climate is favourable i will set up, and will get my team from india for technical and operational assistance, but after they are finished with their work in a month or two i will need a local kenyan partner to keep the show going for me, for which i will remunerate handsomely.
Please contact me if you are interested
Also please find out (3) things before you contact me:
1) Are there any call centres with ready seats and network for rent in nairobi, i require minimum 50 seats (look for callcenters that closed down because of lack of business and are just lying vacant, they should have a good looking infrastructe)
2) If i want to bring my own computers from india for the callcenter will the kenyan government allow me, and if they will are there any taxes or duties i will have to pay on those computers.
3) Can a foreign national set up a company in Kenya?, and if yes what are the exact documents i will require to bring with me?
IF YOU DO NOT INCLUDE ACCURATE ANSWERS TO ALL THE THREE QUESTIONS IN YOUR EMAIL I WILL NOT RESPOND.
Sorry not trying to be rude just trying to save time, both yours and mine.
Please Please please, do the research and include the answers to the 3 questions in your email, so that i can plan my schedule better in Nairobi as i have only three days when im there.
Why does this fellow think as low as he does about Indians firstly? get over the fact that we can do it better than the rest of the world and move on!
Secondly Indians run The BPO Sector and have seen it thrive over the past 16+ years. We make it work, the GDP grows, the economy benefits, happy days!!!
The cost of $ 25,000 is the average cost PER SEAT PER MONTH. You would need to be in the business to get the facts.
The bandwidth cost was around $ 3,500 per MB through satellite links which tend to have too much lag due to latency meaning some platforms for your customers in the Western countries would sometimes not work at all. This is bound to come down under $ 600 per MB on the now operational 2 fiber optic links commissioned last year.
Yes there are contact centers with over 50 available seats and you don’t have to bring your PC’s from India. These two atleast are running on high end HP and Compaq PC’s with fully redudant network and power infrastructures. They also have the option of you renting out but why rent out when your workforce is in Kenya and someone already guarantees you of effective recruitment processes as well as management processes. Your challenge will be importing skills and trying to justify why you want to import.
Yes Indians have done a good job and are therefore eating the bigger piece of the cake. Simple principles of nature and business dictate you must give time for the growth and learning curve. However, they can never beat us on our anglicized natural accent hands down. I respect them for that and think we can learn from them and even form profitable partnerships.
@ Denis your solution would work well for data solutions but not for voice accounts.
Incase you need any more answers on what is real on the ground, write me on kurega00 at yahoo dot com.