The BPO market in Kenya is on the rise, with revenues expected to reach US $272.10 million by 2025 and projected to hit US $343.00 million by 2029. The Kenyan government is actively working towards creating 1 million BPO/ITES jobs in the next five years through supportive policies and incentives.
Despite this growth, the advancement of automation poses a potential threat to the sector. According to recent research by Caribou and Genesis Analytics in collaboration with the Mastercard Foundation, Customer Experience roles, which account for 44% of current employment in the African BPO sector, are at risk of automation, with half of the tasks in these roles vulnerable. The report also predicts that 40% of tasks in Africa’s tech outsourcing sector, including BPO and ITES, could be automated by 2030, creating opportunities for workers to transition into higher-skilled, higher-paying positions. Strategic investments in AI upskilling and training are essential to unlock Africa’s $35 billion BPO potential by 2028, with only 10% of tasks being fully resilient to automation.
Rodwell Mangisi, Director of Digital Economy Pan African Programs at the Mastercard Foundation, emphasized the importance of investing in targeted upskilling programs, particularly for women and young professionals, to ensure that the growth in the tech outsourcing industry translates into sustainable employment opportunities for all demographics.
AI technologies are already playing a significant role in Africa’s BPO and ITES sectors, enhancing efficiency and innovation. Tools like ChatGPT, Microsoft Copilot, and chatbots are being used to increase productivity, creativity, and accuracy in tasks such as coding, debugging, content generation, and customer service. This allows employees to focus on strategic decision-making and higher-value activities, paving the way for career advancement.
While AI presents opportunities for advancement, it also poses challenges, especially for women and youth who predominantly hold entry-level positions. The report highlights that tasks performed by women are 10% more vulnerable to automation than those performed by men in the sector, potentially exacerbating gender-based inequalities. Customer Experience and Finance and Accounting roles in the BPO sector are among the most affected, with a significant portion of tasks at risk of automation.
To address these challenges, the report underscores the need for equitable AI upskilling and reskilling programs to ensure all demographics can transition into future-proof roles. Without intervention, the livelihoods of young workers and women in the sector could be disproportionately impacted by automation.
In conclusion, while the growth of the BPO market in Kenya presents exciting opportunities, it is essential to address the potential impact of automation on the workforce. By investing in AI upskilling and training programs, the sector can navigate the challenges posed by automation and create a sustainable and inclusive environment for all workers. Stay informed and ahead with the latest updates on tech and startups in Africa. Join our WhatsApp Channel for exclusive content covering all 54 countries across the continent. Be the first to know and stay informed!
