OUTSOURCING TO AFRICA
A Relative Ranking of 15 Country Locations
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This comparative ranking report and the following fifteen country reports provide a general overview of
current activities and issues related to ICT Outsourcing in the country. The data presented here should
be regarded as illustrative rather than exhaustive. ICT Outsourcing is at a particularly dynamic stage in
Africa; new developments and announcements are happening almost on a daily basis somewhere on the
continent. Therefore, these reports should be seen as ‘snapshots’ that were current at the time they were
taken; it is expected that certain facts and figures presented may become outdated very quickly.
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Disclaimer
The findings, interpretations and conclusions expressed herein are a faithful representation of the respondents of the interviews and secondary data collected. Strict analytical analysis has been carried out with the
minimal influence of the authors/team members. References to data sources have been made as far as
possible. In the case of the detailed data parameters used for scores and ranking, the same data source
and timeline has been used for all the fifteen countries compared. In the descriptive section of the country
reports, all data received from the individual country has been used in order to give a complete assessment. Thus, countries that have provided more information have a better coverage than those that have
not been able to provide data to the research team.
Board of Executive Directors of the CBC or CyberMedia cannot guarantee the accuracy of the data
included in this work. The boundaries, colours, denominations, and other information shown on any map
in this work do not imply on the part of the CBC and CyberMedia any judgment of the legal status of
any territory or the endorsement or acceptance of such boundaries.
Neither the firm nor its directors, employees, agents or representatives shall be liable for any damages,
whether direct or indirect, special or consequential including lost revenue or profits that may arise from or
in connection with the use of this information. The information is in review and will be subject to change
and amendments as appropriate.
“The content of this report is of a general nature and is not intended to address the circumstances of
any particular individual or entity. Although we endeavour to provide accurate information, there can be no
guarantee that such information is accurate as of the date it is received or that it will continue to be
accurate in the future. No one should act on such information without appropriate examination of the
particular situation.”
Any clarifications/queries on the information should be addressed to CyberMedia.
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Development and education have come to many African nations but have the aspirations
of all the African people been met? How many have employment opportunities matching
their capabilities? How many people of African origin have reached the top positions in the
rest of the world?
This study is dedicated to the youth in developing African nations, where unemployment is
high and employment opportunities are low.
Although the central theme of outsourcing of services is cost-cutting, outsourced ICT tasks to
youth at IT-enabled service centers in developing nations, is an opportunity to give dignified
employment to the educated youth. Such experience in work done remotely in Africa to
serve the developed world enable the youth to obtain skills, experience and fierce competitive capabilities to face the challenging global world.
This study focuses on what all the African nations covered in this study could do to improve
and leverage the benefits that outsourcing can offer.
Arindam Bose
Research Advisor Global Services
CyberMedia India
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DEDICATION
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TABLE OF CONTENTS
vii
Preface by Chairman CyberMedia
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In This Study
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Scope and Definitions
2
Project Team
2
1. Africa Situation Overview
3
1.2. Overview of the Fifteen African Countries as Outsourcing Destinations
6
1.3. Outsourcing Attractiveness' Overall Scores and Ranking
7
1.4. Infrastructure, People & Skills and Business Environment Scores and Ranks
9
2. Methodology
2.1. Geographical Coverage
23
2.2. Research Framework and Design
24
2.3. Normalization and Calculation
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2.4. Definitions of Lower Level Abstraction, Constructs, and Major Data Points
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2.5. Definitions of Data Parameters, Units of Measurements, and Source
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1.1. Introduction
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Methodology
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Foreword by Director General CBC
Glossary
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Appendix I: Infrastructure Data Table
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Appendix II: People and Skills Data Table
42
Appendix III: Business Environment Data Table
44
Appendix IV: Fifteen Africa Country Profiles
47
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FOREWORD
I am delighted to present this report on the outsourcing potential of Africa, which is the
first of its kind to outline the key issues that face the continent. Whilst there are dominant
nations in the outsourcing arena such as India, Philippines, Mexico, and China, there is a
strong case emerging for African nations. With vastly improved connectivity; proximity to key
markets; multi-lingual skills; lower wage costs and suitable time-zones, many African nations
are now vying for a share of the global outsourcing business.
Having been given the mandate from the Commonwealth Heads of Government in 1997 to
involve the private sector in the promotion of trade and investment within the Commonwealth, the Commonwealth Business Council set out its vision for “sharing global prosperity
by making globalisation work for all”. Since then, CBC has pursued its mission through the
promotion of global trade and investment with an enhanced role for the private sector.
The Commonwealth Business Council is committed to pursuing the agenda on outsourcing
in Africa. This report, as well as providing a clear picture of the current state of play with
regard to infrastructure, society and economics, should act as a springboard for identifying
new areas for projects to flourish. I sincerely hope that governments and the private sector
find this report useful.
We look forward to working together to achieve our common goals for economic growth
and sustainable development in Africa.
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by Dr Mohan Kaul, Director General, CBC
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PREFACE
The world of outsourcing is going through major changes with a number of countries emerging as challengers to grab a share of the rapidly expanding pie. CyberMedia has witnessed,
chronicled and catalyzed the growth of the Indian outsourcing industry. CyberMedia was
part of the World Bank funded study in 1992, which looked into India’s competitiveness in
IT services. At that time, India’s total exports were under $150mn. In seventeen years, this
figure has risen to a stupendous $17bn. As part of the Steering Committee of that study, I
saw how seeds of an idea can be converted into strategy and executed to make a complete
transformation of an industry and indeed a nation.
Africa is ready to chart this journey. Of course, the path followed by India, will not work
today. A new strategy has to evolve relevant for a mature market with formidable players.
It is with this background that CyberMedia became the knowledge partner with Commonwealth Business Council in putting together this report that compares 15 African nations
and provides pointers and data for their growth into the outsourcing area.
This is merely the first step. I am sure the Africans nations covered in the study will evolve
their future strategies on the strength of this report.
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by Mr. Pradeep Gupta, Chairman, CyberMedia
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IN THIS STUDY
The attractiveness of a nation as an outsourcing destination depends on the ICT and other
supporting infrastructure available, the skill levels of the people and their availability, and
the business environment.
In this study, a framework comprising of qualitative and quantitative assessment was followed.
Parameters pertaining to outsourcing were carefully selected from reputed international studies. The data collected was converted to merit scores for Infrastructure, People and Skills and
Business Environment and sub elements of these aspects. This unique ‘CyberMedia Research
Methodology’ used to calculate the scores are described in chapter two of this report.
Multi-faceted observations, which cannot be directly measured, were observed. The following
qualitative aspects important in attracting a potential investor coming to the country to set
up an outsourcing operation have been analysed by survey of literature—Internet search
and limited country visits and telephonic interviews:
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• Principal Government Officials.
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• Foreign Relations.
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• Living, Security, and Safety Perceptions.
• ICT and BPO Industry Environment.
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• Country, Political and Economic Profile.
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Methodology
• ICT Policy, ICT Infrastructure and Service.
• Human Resource Efficiency and Cost.
• Legal and Enforcement Issues.
• Labour and Expatriate Worker’s Permits.
• Revenue, Tax, and Repatriation Issues.
• Investment Policy and Incentives.
• Government Agencies Giving Support to Outsourcing.
In case of the detailed data parameters used for scores and ranking, the same data source
and timeline has been used in order to give as complete an assessment as possible, for ranks
and scores. The ‘Infrastructure’ scores are calculated on the various infrastructure-related
parameters, and thereafter scores are divided into three bands i.e. ‘Ready’, ‘Upcoming’,
and ‘Yet to be ready’, for becoming an attractive outsourcing destination. In ‘Outsourcing
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In This Study
Attractiveness Index’, there are two abstraction levels—‘People and Skills’ and ‘Business
Environment’, having equal weightage in overall rankings of index.
The final outsourcing attractiveness index is produced keeping infrastructure rankings as the
base; only the countries which are able to qualify in infrastructure bands are placed higher
in the outsourcing attractiveness index.
Scope and Definitions
With improving connectivity, proximity to key markets, multi-lingual skills, lower wage costs
and physical infrastructure costs, and suitable time-zones many African nations are now vying
for a share of the global outsourcing business.
To make the best of this emerging opportunity, the Commonwealth Business Council (CBC)
with Global Services (GS), a CyberMedia (India) group company, is presenting the first
ever ‘African Outsourcing Summit’ in 2009. This summit will bring representatives from
over fifteen African nations together with key decision makers and other stakeholders from
European and global outsourcing industry.
This research effort by CyberMedia-Global Services (India) benchmarks fifteen African countries on many different parameters that will help decision makers in matching the right
outsourcing destinations with outsourcing needs. This report is the background paper for
the summit.
Project Team
1. Mr. Kamal Vohra, Assistant Manager, CyberMedia India
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Whilst there are dominant nations in the outsourcing arena such as India, Philippines,
Mexico, and China, etc., there is a strong case emerging for African nations.
2. Mr. Kapil Dev Singh, Senior Vice-President, CyberMedia India
3. Mr. Arindam Bose, Research Advisor, CyberMedia India
4. Mr. Hoshie Ghaswalla, President, CyberMedia India
5. Ms. Keerthi Nair, Sr. Manager (Editorial), CyberMedia India (Editorial Support)
6. Mr. Bhupendra Bhanu, GM, CyberMedia India (Production Co-ordinator)
7. Mr. Satish Khankriyal, Manager (R&D), CyberMedia India (Design & Layout)
8. Mr. Ashimendu Dey, Associate Art and Ms. Poonam Ujjainwal, Sr. Illustrator,
CyberMedia India (Illustrations)
9. Mr. Raj Kishore, Graphic Designer, CyberMedia India (Cover Design)
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1.
AFRICA SITUATION OVERVIEW
This research effort by CyberMedia-Global Services (India) benchmarks fifteen African countries on many different parameters that will help decision makers in matching the right
outsourcing destinations with outsourcing needs.
Whilst there are dominant nations in the outsourcing arena such as India, Philippines,
Mexico, and China, there is a strong case emerging for African nations.
With improving connectivity, proximity to key markets, multi-lingual skills, lower wage costs
and physical infrastructure costs, and suitable time zones many African nations are now vying
for a share of the global outsourcing business.
Africa is vast and varied and, thus, to begin, the diversity and commonality of these fifteen
countries is presented.
• Diversity: Africa is vast and diverse, but perhaps the greatest variation is in the wealth
and population of different countries. It is worth looking at these absolute figures for
the countries in this study.
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1.1. Introduction
GDP per capita (USD)
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7000
6000
5000
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* GDP below USD 2000
Source: CyberMedia, Global Services, CBC
Figure 1: GDP per capita (USD)
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1. Africa Situation Overview
60.00
Population unemployed (% of labour...)
50.00
40.00
30.00
20.00
10.00
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** Unemployment below 20%
Source: CyberMedia, Global Services, CBC
Figure 2: Population unemployed
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Egypt, Morocco, Tanzania, Uganda,
Ghana, and Zambia.
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High GDP and Low Unemployment:
Mauritius, Nigeria, and Tunisia.
Low GDP and High Unemployment:
Kenya, Mozambique, and Senegal.
High GDP and High Unemployment:
Botswana, South Africa, and Namibia.
• Commonality: There is one aspect common to Africa and specially sub-Saharan Africa—
severe limitations in broadband connectivity. This diagram shows the severe limitations
of this continent with reference to all other continents.
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Low GDP* and Low Unemployment**:
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The gross national per capita income, population, population density, un-employment,
poverty, and other major characteristics are very diverse and at times seemingly contradictory. All possible combinations are there across these fifteen nations, namely:
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Fiber in use as of year-end 2004
>500
500
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@ 2006 PriMetrica.lnc.
Source: TeleGeography Research
Figure 3: Existing broadband connectivity to Africa
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1. Africa Situation Overview
Attempts to improve this situation are in progress and will take till 2011 to materialize
with the following systems coming up to connect African countries:
• Seacom
• East Coast.
• 13 700 km undersea cable.
• To connect Southern and East Africa.
• To India and Europe via Madagascar, Mozambique, Tanzania, Kenya.
• Complete by June 2009.
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• 10 000 km.
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• To connect South Africa, Mozambique, Madagascar, Somalia, Djibouti, Sudan.
• To be complete by end of 2010.
• Financed by World Bank and DBSA.
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• East Coast.
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• EASSy
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• To provide low-cost broadband.
• Infraco
• West Coast to UK.
• Originally built by State Companies Eskom and Transnet—both shareholders at
Neotel.
This is the expected scenario by 2011.
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• To be complete by first half of 2010.
Source: CyberMedia, Global Services, CBC
Figure 4: Anticipated broadband scenario by 2011
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1. Africa Situation Overview
Consequently the cost of connectivity is extremely high—negative to outsourcing
efforts; the figure below shows the comparison of connectivity costs of African countries with others.
Comparison of Regional Average Broadband Retail Prices
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US$ per 100 kbps (2006)
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South Asia
Middle East &
North Africa
Europe & Latin America East Asia &
Central Asia & Caribbean
Pacific
Source: ITU 2007a. World Bank staff analysis
Figure 5: Broadband connectivity costs by region
With the developments expected this situation should improve. This graph clearly shows an
advantage that North Africa has over sub-Saharan, central, and southern Africa on outsourcing infrastructure. Still, Africa is far disadvantaged as compared to East Asia, Pacific, and
even Latin America and the Caribbean.
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Sub-Saharan
Africa
1.2. Overview of the Fifteen African Countries as
Outsourcing Destinations
Outsourcing has arrived in Africa. This report quantitatively shows what is possible. In spite
of the negative perceptions that Africa has only places like Somalia with pirates, Congo full
of rebels, Nigeria the citadel of cyber crime, and South Africa the hotbed of carjacking and
Wild West type of shootouts, Africa has the most peaceful, clean, and serene locations. Today
most ‘Bollywood’1 and even some ‘Hollywood’ movies are shot in Africa. Thus outsourcing
has come for good, and it is for the African nations to come together and spread the right
message to propagate the right image of Africa as an outsourcing destination.
The findings reveal that Africa has arrived in outsourcing with North Africa leading and
South Africa close behind. The broadband connectivity projects in hand due to be completed in the next few years will make parts of Africa, more tranquil, sparsely populated, and
environmentally clear and clean—the next preferred outsourcing destination.
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Citadel of the Indian Cinema Industry—Hollywood of India
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1. Africa Situation Overview
Geographical Coverage and Rank
Egypt
Tunisia *
Morocco *
Mauritius
Egypt *
South Africa
Tunisia
Morocco
Senegal *
Botswana
Ghana Nigeria
Ghana
Uganda
Kenya
Zambia
Namibia
Africa
Zambia
Mozambique
Botswana
Namibia
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Tanzania
Kenya
Senegal
Mozambique
Mauritius
Tanzania
South
Africa
Uganda
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Nigeria
*Non-Commonwealth Countries
Figure 6: Map of Africa showing the countries in the three bands—Ready,
Upcoming, and Yet to be ready Infrastructure Status
1.3. Outsourcing Attractiveness’ Overall Scores and Ranking
The overall outsourcing attractiveness depends primarily on the infrastructure readiness followed by a combination of people and skills and business environment. The countries are
first categorized in bands depending on infrastructure readiness followed by ranking within
the bands based on the sum of the people and skills and business environment scores. People
and skills and business environment have equal importance, hence equal weightage.
Outsourcing Attractiveness Index
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Source: CyberMedia, Global Services, CBC
Countries are ranked within their bands based on their:
People & Skills Scores
plus
Business Environment Scores
Countries are ranked within their bands based on their
BE + People & Skill Scores
Source: CyberMedia, Global Services, CBC
Figure 7: Deriving outsourcing attractiveness ranking
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1. Africa Situation Overview
The following final ranks and scores emerge:
Outsourcing Attractiveness Rank
Band
READY
BE + People & Skills
Country
Score
7.18
Egypt
Mauritius
7.08
South Africa
6.98
Tunisia
6.77
Morocco
6.43
Botswana
Ghana
Zambia
Namibia
Kenya
Senegal
Mozambique
6.57
6.32
5.91
5.91
5.82
5.79
5.35
YET TO
BE READY
Nigeria
Uganda
Tanzania
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2
3
Nigeria
Tanzania
Uganda
6.30
5.68
5.68
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Ghana
Kenya
Botswana
Senegal
Mozambique
Namibia
Zambia
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Tunisia
South Africa
Egypt
Morocco
Mauritius
Source: CyberMedia, Global Services, CBC
Figure 8: Outsourcing attractiveness ranking
Egypt turns out as the most attractive location in Africa. Egypt will have strong competition
from all the others in the infrastructure ready band as all are working hard to improve. Egypt
has an edge because ICT is supported and believed in by the leadership and all actions are
coordinated. Further with the close coordination between different departments, especially the
Information Technology Industry Development Agency (ITIDA) and the General Authority for
Investment and Free zones (GAFI), makes a real single window service for any industry coming
in to Egypt. An additional strength is the serious and coordinated efforts that the government
and other stakeholders are making to maintain a steady supply of trained human resources on
a continuing basis. Egypt is first in the people and skills score in this study. Egypt will however
have to look at cyber laws, tax rates, and general living conditions and infrastructure to maintain
this position. Again, in January 2009, Egypt has done very well according to a study completed
by Gartner. The biggest challenge that Egypt will face is strong competition from South Africa,
Morocco, Tunisia, and Mauritius. South Africa will soon overtake all others in banking, finance,
and sensitive operations that need a strong security base. Also South Africa will forge closer ties
with the United Kingdom and United States of America than any other in the region.
In the next band Botswana is topping and may jump soon if the promises made in various policies and programmes are kept. The Botswana Innovation Hub and how it actually works and
keeps up the announced promises will pave the future as far as Botswana’s position is concerned.
If Botswana does jump to the ‘Ready’ band it may well overtake some of the current leaders.
In the Yet to be ready band Nigeria falls just short of the required infrastructure score. If
Nigeria improves to enter the infrastructure upcoming band it will be within the top three
in that band; thus there is potential to be taken advantage of here. Nigeria currently is the
best out of the fifteen in export of ICT services.
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1. Africa Situation Overview
1.4. Infrastructure, People & Skills and Business
Environment Scores and Ranks
A. Infrastructure Readiness
The ‘Infrastructure Readiness’ of a nation is the most important factor in the nation becoming an attractive outsourcing destination. This readiness is in terms of the availability and
penetration on one side, and the infrastructure cost on the other. The two infrastructure
construct scores come from the major data points of availability/penetration of infrastructure and cost of infrastructure.
Ready
Upcoming
Yet to be ready
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Country
Tunisia
South Africa
Egypt
Morocco
Mauritius
Ghana
Kenya
Botswana
Senegal
Mozambique
Namibia
Zambia
Nigeria
Uganda
Tanzania
Score
7.8
7.2
6.8
6.7
6.5
6.2
6.1
6.1
6.0
5.8
5.7
5.5
4.9
4.3
3.7
Scores of at least 6.5
Scores of between 5.5 and 6.5
Scores of at least 5.4
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To access the Infrastructure Data Table for all these fifteen countries, please see Appendix I.
Source: CyberMedia, Global Services, CBC
Figure 9: ‘Infrastructure Readiness’ scores and ranking
On the infrastructure readiness, Tunisia is far ahead of other countries with 7.8; South
Africa is following with a score of 7.2. Egypt, Morocco and Mauritius also easily passed in
the infrastructure to the ready category/band. The upcoming band contains Ghana, Kenya,
Botswana, Senegal, Mozambique, Namibia, and Zambia. The countries scoring very low on
current infrastructure state are, Tanzania, Nigeria, and Uganda ranking fifteen, fourteen,
and thirteen, respectively, out of the list of fifteen African countries.
Infrastructure—Availability & Penetration and Cost
There are two main factors that lead to the complete infrastructure score; infrastructure
availability and penetration and infrastructure cost. In the case of the outsourcing needs,
the first is critical and time consuming and thus has a greater role. Infrastructure cost is
important but second to the first as large outsourcing operators have the negotiating advantage of large volume and can manage better costs.
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1. Africa Situation Overview
• Infrastructure availability and penetration
This construct score is made up of the major data point (MDP) scores Network Readiness, Internet Bandwidth, Electricity Availability, and the Road and Rail Network.
Ready
Upcoming
or
oc
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Tu o
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So
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Af
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M
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N ius
am
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G a
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Za a
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am a
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N e
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U
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Ta
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Yet to be ready
Source: CyberMedia, Global Services, CBC
Figure 10: Infrastructure Availability and Penetration Scores and Ranking
• Infrastructure—cost
This construct score is made up of the major data point (MDP) scores coming from cost
of space and facilities (Africa Research Report, Knight Frank); Cost of Stay and Transport (UNDP rates and prevailing air fares) and data transfer costs (World Bank).
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Infrastructure Availability & Penetration
5.5
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4.5
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3.5
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2.5
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1.5
1
0.5
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Infrastructure Cost
3.5
Ready
Upcoming
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Yet to be ready
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y
Bo pt
tsw
an
Se a
ne
ga
l
M
or
oc
c
Za o
m
bi
a
N
ig
er
ia
N
am
ib
Ta ia
nz
an
ia
U
ga
nd
a
oz
am
bi
ric
Af
M
So
ut
h
Tu
ni
sia
0
Source: CyberMedia, Global Services, CBC
Figure 11: Infrastructure costs scores and ranking
It is now pertinent to look at each one of the individual ‘Major Data Points’ (MDPs)
that go towards these two constructs, namely availability and cost.
10
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1. Africa Situation Overview
• Infrastructure—availability/penetration-network readiness
Network Readiness
9.00
8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00
Ready
Upcoming
Source: CyberMedia, Global Services, CBC
Figure 12: Network readiness ‘MDP’ scores
In this MDP score all the fifteen countries are scoring between 5.79 (for Mozambique)
and 7.78 (for Tunisia, which is the best).
A
F
R
I
C
A
So Tu
ut nis
h ia
Af
r
M ica
au
rit
iu
s
Eg
M ypt
or
o
Bo cco
tsw
an
a
G
ha
n
Se a
ne
ga
l
Ke
n
y
N
am a
ib
i
N a
ig
er
Ta ia
nz
an
U ia
ga
nd
a
M Za
oz mb
am ia
bi
qu
e
Yet to be ready
International Internet Bandwidth
12.00
10.00
8.00
6.00
4.00
2.00
0.00
Ready
Upcoming
rit
oc
au
M
or
M
R
U
S O
iu
Eg s
y
Tu pt
ni
Se sia
ne
ga
So Ke l
ut ny
h
a
Af
r
N ica
am
Bo ibi
tsw a
a
Za na
m
b
G ia
ha
U na
M
g
oz an
am da
bi
q
N ue
ig
Ta eri
nz a
an
ia
Yet to be ready
co
C
I
N
G
T O
• Infrastructure—availability/penetration-international Internet bandwidth
Source: CyberMedia, Global Services, CBC
O
U
T
Figure 13: International Internet bandwidth
It is important to recognise that all these will improve as soon as broadband connection
from all the new projects are complete in 2009 to 2011.
11
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1. Africa Situation Overview
• Infrastructure—availability/penetration-electricity availability
Electricity Availability
12.00
10.00
8.00
6.00
4.00
2.00
0.00
Ready
Upcoming
A
So
ut
h
Af
ric
a
Eg
y
M p
M or t
oz oc
am co
bi
qu
Za e
m
bi
G a
ha
na
Ke
n
N ya
am
ib
N ia
ig
er
Tu ia
n
Bo isia
tsw
Ta ana
nz
M ani
au a
rit
i
Se us
ne
g
U al
ga
nd
a
Yet to be ready
Figure 14: Electricity availability
• South Africa with a weighted ‘MDP’ score of 9.80 out of ten is topping the list in
electricity quality and availability, which is followed by Egypt, Morocco, Mozambique, Zambia, Ghana, Kenya, Namibia, Nigeria, and Tunisia.
• The rest of the countries like Botswana, Tanzania, Mauritius, Senegal, and Uganda,
having scored below half the maximum score, need to improve their electricity
infrastructure to make themselves world standard.
• At the same time there is a likehood of acute electricity shortages in South Africa
and the southern African region with the demand increasing and supply remaining the same. This shortage of power appears to be a satire as the region is a rich
coal bed with investors ready to put in power plants if they can arrange economies
of scale by negotiating long-term power purchase agreements with more than one
country in the region.
O
U
T
S O
U
R
C
I
N
T O
The availability of electricity is crucial for any industry to set up and flourish. And for
the offshore outsourcing where downtime is crucial for make or break, electricity availability plays a major role.
G
A
F
R
I
C
Source: CyberMedia, Global Services, CBC
• Botswana, currently scoring low in this data point, is one country that could take
advantage of this opportunity both in terms of an outsourcing destination as well
as a supplier of power from its abundant reserves of coal and exploitation of the
abundant solar radiation.
12
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1. Africa Situation Overview
• Infrastructure—availability/penetration
Road/Rail Network and Air Travel
9.00
8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00
Ready
Upcoming
N
Source: CyberMedia, Global Services, CBC
Figure 15: Road and rail network
More than half the countries score high in this major data point (MDP) with
Tunisia, Namibia, and Botswana leading, though Botswana and Namibia are in the
Upcoming band.
• Infrastructure cost—rental and cost of commercial premises
The rental and cost of commercial premises is a Major Data Parameter (MDP) that
helps in calculating overall cost of rental (per sq ft) and cost of ownership of premises
for commercial activity. It is worth remembering that a higher score means a more
cost-effective space and facilities. Thus space and facilities in Botswana are more cost
effective than those in South Africa or Egypt.
Rental and Cost of Commercial Premises
12.00
10.00
8.00
6.00
4.00
2.00
0.00
Ready
Upcoming
Yet to be ready
M
oz
Ke
am nya
bi
qu
Tu e
n
Bo isia
tsw
an
G a
h
M an
au a
rit
N iu
So am s
ut ib
h ia
Af
ric
a
U
ga
n
Ta da
nz
an
Za ia
m
M bia
or
oc
Se co
ne
ga
l
Eg
yp
t
N
ig
er
ia
O
U
T
S O
U
R
C
I
N
G
T O
A
F
R
I
C
A
Tu
n
isi
a
am
i
b
Bo
ia
tsw
an
a
M
So oro
ut
cc
h
Af o
ric
a
Eg
yp
M
t
au
rit
iu
s
Ke
ny
a
G
ha
n
Se a
M
n
oz
e
a m gal
bi
qu
e
Za
m
Ta bia
nz
an
U ia
ga
nd
N a
ig
er
ia
Yet to be ready
Source: CyberMedia, Global Services, CBC
Figure 16: Costs of inputs in terms of space and facilities
13
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1. Africa Situation Overview
• Infrastructure cost—stay and travel ‘MDP’ scores
Travel and stay costs of the people travelling to support the outsourcing industries
from countries that buy these services need to be considered. This ‘MDP’ is based on
the UNDP travelling allowance rates and prevailing cost of tickets from London to the
destination country as the detailed data points.
Ready
Upcoming
na
am
ib
ia
M
M oro
oz
c
am co
bi
q
Bo ue
tsw
an
a
Eg
Ta ypt
n
So za
ut nia
h
Af
ric
Se a
ne
M gal
au
rit
iu
s
Ke
ny
Za a
m
bi
N a
ig
er
U ia
ga
nd
a
ha
N
F
A
G
sia
Yet to be ready
Tu
ni
R
I
C
A
Cost of Stay & Travel
8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00
T O
Source: CyberMedia, Global Services, CBC
Figure 17: Costs of inputs in travel and stay
The Telecom/Data Transfer Cost major data parameters is based on the detailed data
parameter for call charges (mobile/landline) to major world cities and the Internet/
data transfer tariff per month. South Africa has the lowest telecom and data transfer
cost and is topping the list of fifteen African countries; it is followed closely by Egypt
and Tunisia. Namibia, Tanzania, Uganda, Botswana, and Kenya have to improve the
efficiency of their telecom infrastructure in this sector to lower the cost.
S O
U
R
C
I
N
G
• Infrastructure cost—telecom/data transfer ‘MDP’ cost
Ready
Upcoming
a
Eg
yp
Tu t
ni
si
N a
ig
er
Se ia
ne
M gal
au
rit
iu
s
G
M
ha
oz
n
am a
bi
qu
Za e
m
bi
a
M
or
oc
co
Ke
n
Bo ya
tsw
a
Ta na
nz
an
U ia
ga
n
N da
am
ib
ia
Yet to be ready
So
ut
h
Af
r
ic
O
U
T
Telecom/Data Transfer Cost
9.00
8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00
Source: CyberMedia, Global Services, CBC
Figure 18: Costs of inputs in terms of telecom/data transfer
14
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1. Africa Situation Overview
B. People and Skills
This lower level abstraction covers the resources in terms of people and skills-set requirements that go into an outsourcing engagement from the point of view of people and available skill sets to successfully operate outsourcing operations. People and skills lower level
abstraction score emerges from the construct scores related to availability, suitability and HR
Costs and is based on the following MDP’s:
• Quantity and Working Satisfaction.
• Quality.
A
• Personnel Compensation and Cost of Living.
Ranks
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Country
Egypt
Ghana
South Africa
Tunisia
Mauritius
Botswana
Morocco
Kenya
Uganda
Tanzania
Namibia
Zambia
Nigeria
Senegal
Mozambique
Score
3.620
3.543
3.491
3.447
3.385
3.215
3.173
3.009
2.964
2.948
2.933
2.884
2.879
2.867
2.640
Ready
Upcoming
Yet to be ready
Source: CyberMedia, Global Services, CBC
Figure 19: People and skills—ranking and scores
O
U
T
S O
U
R
C
I
N
G
T O
A
F
R
I
• Language and Domain Skills.
C
• ICT Exposure and Education.
To access the People and Skills Data Table for all these fifteen countries, please see
Appendix II.
In people and skills rankings, Egypt is leading the list with a weighted score of 3.620 out of
10, closely followed by Ghana and South Africa with a weighted score of 3.543 and 3.491,
respectively. Although the total population of Tunisia and Mauritius is much lower than the
South Africa, Ghana, Nigeria, Morocco but the high availability of educated skilled working population and their capability to cater to the niche of outsourcing market helped in
their favour.
In the lower band of People and Skills rankings, Uganda, Tanzania, Namibia, Zambia,
Nigeria, Senegal, and Mozambique have to improve their teaching standards, quality and
supply of human resources for the human intensive outsourcing industry.
15
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1. Africa Situation Overview
Botswana, Morocco, Kenya, Uganda and Tanzania are in the mid ranks and can improve
by improving the ICT exposure and by adopting better teaching standards suitable for outsourcing industry.
To conclude, the variation in this lower level abstraction covering people and skills is not
so great among all the fifteen countries.
The contributing factors to these findings are illustrated in the next section in graphs that
show the scores achieved by each country in a given contributing parameter.
This construct gives a score that indicates the availability of human resources required
for an outsourcing destination. The major data points are the quantity and working
satisfaction in the country. Quantity is based on a number of detailed data parameters
related to population, literacy, education levels, and unemployment rates.
The findings for the fifteen countries are shown as under.
T O
A
F
R
I
C
A
• People and skills—availability
People & Skills — Availability
Working Satisfaction
Quantity
da
ia
an
an
ge
ria
nz
Ni
Ug
M
U
Ta
0
an
a
Gh
an
Za a
mb
Na ia
mi
bia
Ke
ny
a
Se
M
n
e
oz
g
a
am
l
biq
ue
0.2
Bo
tsw
R
0.4
Eg
yp
t
au
So
rit
ius
ut
hA
fri
ca
Tu
n
M isia
or
oc
co
N
I
C
0.6
T
1
0.8
U
1.2
S O
G
1.4
Upcoming
Yet to be ready
O
Ready
Source: CyberMedia, Global Services, CBC
Figure 20: People and skills availability
It is interesting to observe that with diverse population figures from as low as 1.1 million to figures as high as 141 million all countries do contribute. The study has come
up with tangible scores for all countries. The variation of the scores among the diverse
countries is not so great. This shows that all fifteen countries have potential, and our
methodology caters for such a fair assessment in such diversity.
16
02_Africa_Report09_FR.indd Sec1:16
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1. Africa Situation Overview
• People and skills—suitability
The detailed data points relevant data from international sources as indicated in the
methodology. The findings for the fifteen countries are shown as under.
People & Skills—Suitability
ICT Exposure
Education, Languages, and Domain skills
Quality
0.8
0.7
0.6
0.3
0.2
0.1
ig
e
Ta ria
nz
an
ia
U
ga
nd
a
N
e
l
oz
am
bi
qu
ga
a
ne
ny
Se
ia
Ke
a
ib
bi
N
am
na
m
a
an
ha
G
tsw
Za
M
T O
G
Ready
Upcoming
Yet to be ready
Source: CyberMedia, Global Services, CBC
Figure 21: People and skills suitability
This construct assesses the suitability of the human resources available in the country
for outsourcing operations. The major data parameters include ICT exposure, education, language and domain skills, and quality.
The graph shows that there is a relatively large variation in ICT exposure among the
different countries with the countries in the infrastructure ready and upcoming bands
leading. In the case of education and quality all countries are comparable.
• People and skills—human resource costs
O
U
T
S O
U
R
C
I
N
Bo
Eg
y
au pt
r
i
So
tiu
ut
s
h
Af
ric
a
Tu
ni
sia
M
or
oc
co
0
M
A
F
R
C
0.4
I
A
0.5
This construct assesses the human resource cost factor in outsource operations and is
based on scores for personnel compensation and the cost of living. The detailed data
parameters used are from the UNDO local salary rates and cost of living index from
World Bank World Development indicators. The findings from the fifteen countries are
presented in the graph below. It is important to remember that a low score for the cost
of living indicates an expensive country and similarly a high personal compensation
score represents a lower salary rate. Thus Botswana, Ghana, and Tanzania are more
competitive than South Africa or Tunisia.
17
02_Africa_Report09_FR.indd Sec1:17
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1. Africa Situation Overview
People & Skills— HR Cost
HR Cost — Personal compensation
Cost of living
1
0.8
0.6
0.4
0.2
an
da
ni
a
Ug
nz
a
ge
ria
Ta
Ni
an
a
Gh
an
a
Za
mb
ia
Na
mi
bia
Ke
ny
a
Se
ne
ga
M
l
oz
am
biq
ue
tsw
Bo
Eg
yp
t
M
au
rit
ius
So
ut
hA
fri
ca
Tu
ni
sia
M
or
oc
co
Ready
T O
G
N
Yet to be ready
Figure 22: People and skills—HR costs
C. Business Environment
This lower-level abstraction covers a large number of factors that go into making a business
operation successful in the country especially with reference to outsourcing. Factors like
the economic outlook, corruption perception, rule of law, government policies related to
outsourcing, tax policies, risk factors, and financial aspects are considered in this data set.
O
U
T
S O
U
R
C
I
Upcoming
Source: CyberMedia, Global Services, CBC
A
F
R
I
C
A
0
Ranks
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Country
Mauritius
Egypt
South Africa
Nigeria
Botswana
Tunisia
Morocco
Zambia
Namibia
Senegal
Kenya
Ghana
Tanzania
Uganda
Mozambique
Score
3.695
3.558
3.486
3.419
3.357
3.326
3.261
3.026
2.976
2.927
2.813
2.781
2.735
2.713
2.711
Ready
Upcoming
Yet to be ready
Source: CyberMedia, Global Services, CBC
Figure 23: Business environment—scores and ranking
The Business Environment lower-level abstraction score emerges from five construct
scores indicated:
18
02_Africa_Report09_FR.indd Sec1:18
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1. Africa Situation Overview
• Business Environment Index.
• ICT Industry Activeness.
• Economic Outlook.
• Risk Parameter.
• Tax and Financial Incentives.
The detailed framework links the lower level abstraction with the constructs and major data
points covered in Chapter 2 (Methodology).
In the business environment rankings, Mauritius is leading the list with weighted score of
3.695 for its business-positive environment. Egypt is at second position with a weighted score
of 3.558; closely following is South Africa with weighted score of 3.486. Startlingly, the rankings of Tunisia and Morocco are trailing the list at sixth and seventh positions with weighted
scores of 3.326 and 3.261, respectively.
T O
A
F
R
I
C
A
To access the Business Environment Data Table for all the fifteen countries, please see
Appendix III.
The contributing factors to these findings are illustrated in the next section in graphs that
show the scores achieved by each country in a given contributing parameter.
• Business environment—ease of doing business score
This construct gives a score and a measure of the steps that need to be completed
before starting a business. This is determined by one Major Data Parameter ‘Ease of
Doing Business’ derived from considering detailed data parameters that include procedures to start a business, protecting investors, and corruption perception index.
S O
U
R
C
I
N
G
Contributing Constructs and Major Data Points
T
0.35
O
U
Ease of Doing Business
0.40
0.30
0.25
0.20
0.15
0.10
0.05
Upcoming
Nig
eria
Tan
zan
ia
Ug
and
a
ana
Zam
bia
Na
mib
ia
Ken
ya
Sen
ega
l
Mo
zam
biq
ue
ana
Ready
Gh
tsw
Bo
nis
ia
roc
co
Mo
Tu
tius
fric
a
th A
Sou
Egy
Ma
uri
pt
0.00
Yet to be ready
Source: CyberMedia, Global Services, CBC
Figure 24: Business environment—ease of doing business score
19
02_Africa_Report09_FR.indd Sec1:19
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1. Africa Situation Overview
Mauritius, South Africa, and Botswana are leading and are closely, followed by Egypt,
though in practice Egypt is perhaps doing much better after the establishment of the
General Authority for Investment and Free Zones (GAFI) as a true single window;
in the case of outsourcing industry in Egypt, the Information Technology Industry
Development Agency (ITIDA) supports the GAFI. The time and effort were found to
have really improved as a result of this initiative. South Africa and Mauritius have similar agencies in place working for the last few years, and once the Botswana Innovation
Hub (BIH) is operational Botswana would improve further.
The ICT industry attractiveness has been determined by the ICT Legislation and
enforcement procedures in place and the magnitude of ICT in exports.
I
C
A
• Business environment—ICT industry attractiveness score
R
ICT Industry Attractiveness
Expot & Share of ICT
ia
da
an
an
Ug
ria
nz
ge
Ni
am
oz
Ta
ga
l
biq
ue
a
M
C
R
U
S O
T
U
O
ne
ny
Ke
Se
ia
bia
Na
mi
a
mb
Za
an
Gh
Bo
tsw
an
a
co
sia
ni
M
or
oc
ca
Tu
ius
fri
So
ut
hA
t
yp
Eg
au
M
N
I
rit
G
T O
A
F
ICT Security; Cyber Laws and IPR Scores
0.45
0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
Ready
Upcoming
Yet to be ready
Source: CyberMedia, Global Services, CBC
Figure 25: Business environment—ICT industry attractiveness score
In ICT laws and its enforcement South Africa and Kenya lead (most banks do their
back-office processing there). Even Egypt, Botswana, Morocco, and Tunisia need to
improve. Nigeria has a moderate score here, but this is a bit of a surprise as cyber
crime literature reports that most cyber crime and related negative actions originate in
Nigeria. Further, Nigeria has the highest score of ICT exports; however, it is in the Yet
to be ready band. Perhaps this is due to the population of 141 million and several Nigerians working abroad. It is a case of ‘Buddy Shopping’ like in the old days in India.
20
02_Africa_Report09_FR.indd Sec1:20
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1. Africa Situation Overview
• Business environment—economic outlook score
This is based on economic and trade parameters.
Economic Outlook
za
ni
Ug a
an
da
ge
ria
Ta
n
Ni
Ke
ny
a
Se
ne
ga
M
oz
l
am
biq
ue
ia
bia
mi
Na
a
an
a
mb
Za
Gh
sw
an
Bo
t
co
a
oc
isi
or
Upcoming
Yet to be ready
Source: CyberMedia, Global Services, CBC
Figure 26: Business Environment—economic outlook score
As per the report, South Africa, Mauritius, and Botswana lead with Egypt and Tunisia
following close behind.
• Business environment—risk parameter score
This factor is determined from the perceived risk in the country from geopolitical,
currency fluctuation, and legislative risk.
Business Environment—Risk Parameter
T
Geo-Political Risk
Currecy Risk
Legislative Risk
Ready
Upcoming
i
Ug a
an
da
an
ria
ge
nz
Ta
Ni
Ke
ny
a
Se
ne
M
ga
oz
l
am
biq
ue
ia
bia
mi
Na
mb
Za
Gh
an
a
a
an
tsw
Bo
c
Tu a
ni
sia
M
or
oc
co
ius
fri
hA
So
ut
Eg
M
au
yp
t
0.60
0.50
0.40
0.30
0.20
0.10
0.00
rit
U
O
M
ca
Tu
n
th
Af
ri
rit
au
Ready
S O
U
R
C
I
N
G
T O
A
F
M
R
Eg
yp
t
ius
0.40
0.35
0.30
0.25
0.20
0.15
0.10
0.05
0.00
So
u
I
C
A
Share of Services in GDP, Economy Size and Growth, Inflation
Share of Exports, Share of Services in Exports
Country Forex Reserves
Yet to be ready
Source: CyberMedia, Global Services, CBC
Figure 27: Business environment—risk parameter score
21
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1. Africa Situation Overview
Egypt, Tunisia, and Morocco lead with the least risk in all three factors followed by
South Africa and Botswana in all aspects except the currency risk where South Africa,
Botswana, and Namibia (all ties to the rand basket) are the worst in Africa.
• Business environment—tax and financial incentive scores
This is based on the overall tax on profit and cost of finance.
Business Environment—Tax & Financial Incentive
Tax Rate
Easy & Cost of finance
A
C
0.40
I
0.35
R
0.30
0.25
A
0.45
F
0.50
0.20
0.10
0.05
Upcoming
Ni
g
Ta eria
nz
an
Ug ia
an
da
mi
bia
Ke
ny
a
M Sen
oz
eg
am al
biq
ue
Na
Za
mb
ia
a
a
an
an
Ready
Gh
Bo
tsw
M
Eg
y
au pt
r
So
ut itius
hA
fri
c
Tu a
ni
sia
M
or
oc
co
0.00
Yet to be ready
C
I
N
G
T O
0.15
S O
• In the cost of finance South Africa leads with Botswana and Egypt following.
• Although there is a vast variation in tax rates across the fifteen countries, the cost
of finance is comparable.
O
• In tax benefits Botswana and Zambia lead with South Africa and Mauritius not far
behind. Egypt, Tunisia, and Morocco fall far behind.
T
Figure 28: Business environment—tax and financial incentive scores
U
U
R
Source: CyberMedia, Global Services, CBC
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2.
METHODOLOGY
2.1. Geographical Coverage
In this report, fifteen African nations shown in the following map have been covered.
Morocco *
Tunisia *
Egypt *
Senegal *
Ghana Nigeria
Tanzania
Zambia
Africa
Mozambique
Botswana
Namibia
T
S O
U
I
C
Uganda
Kenya
R
N
G
T O
A
F
R
I
C
A
This part of the report describes the research methodology followed
South
Africa
U
O
Mauritius
*Non-Commonwealth Countries
Source: CyberMedia, Global Services, CBC
Figure 29: Geographical coverage
23
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2.
Methodology
2.2. Research Framework and Design
CyberMedia Research Framework
In this research the broad framework shown in the following diagram has been followed.
A multi-faceted concept,
which cannot be directly
measured
A
Abstraction
Sub aspects of the
abstraction flow from
the top
Constructs, Sub-Constructs, Major
Date Points (MDP’s)
Specific measurable
aspects, more clear than
abstraction but still broad
Detailed Date Parameters and
Operational Variables (DDP’s)
Scale
Variables actually
measure the entities
on the basis of defined
scale
Measurement
Source: CyberMedia, Global Services, CBC
Figure 30: Research approach
S O
• Country Political and Economic Profile.
T
• Foreign Relations.
U
• Abstraction: At this level, multi-faceted observations which cannot be directly measured
are observed. The following aspects, important in attracting a potential investor coming to the country to set up an outsourcing operation, have been analysed by survey of
literature, Internet search, and limited country visits and telephonic interviews.
• Living, Security, and Safety Perceptions.
O
U
R
C
I
N
G
T O
A
F
R
I
C
Lower Level
Abstraction
• ICT Policy, ICT Infrastructure and Service.
• Principal Government Officials.
• ICT and BPO Industry Environment.
• Human Resource Efficiency and Cost.
• Legal and Enforcement Issues.
• Labour and Expatriate Worker’s Permits.
• Revenue, Tax, and Repatriation Issues.
• Investment Policy and Incentives.
• Government Agencies Giving Support to Outsourcing.
• Lower-level abstraction: At this level the qualitative aspects augment the quantitative
scores coming up from the scores at the ‘Construct’ and ‘Major Data Point’ levels. As
24
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2.
Methodology
the scores have to be added in a weighted sum depending on the relative importance
of each data point, a careful normalisation and calculation method has been evolved.
The weightage is defined in detailed research framework charts. These are explained
in the next sections.
• Constructs: These are specific and more measurable aspects, broad but clearer, than the
lower level abstraction. The construct scores are derived by a weighted sum of ‘Major
Data Points’. The principles are the same as indicated for lower level abstracts.
• Rating Scores representing the result of any extensive survey and study conducted
by a recognised board like World Economic Forum’s Global Information Technology
Report or Global Competitiveness Report, the United Nations Human Developments
Reports. Such scores are in a skill of one to ten, one to seven, or zero to one.
• Absolute values of data like number of procedures to start a business, total tax as a
percentage of profit (World Bank doing Business Report or International Internet
Bandwidth [Bits per person]).
2.3. Normalization and Calculation
Normalization
All the scores need to be added, averaged, or proportionately averaged; thus normalisation
is necessary. Thus scores for the ‘Detailed Data Points’ are determined as follows:
O
U
T
S O
U
R
C
I
N
G
F
R
I
A
• Detailed data points: These are variables actually measured on the basis of unit and skill.
In this research, such data has been collected from reliable internationally recognised
and published reports. The data that has been used is in two forms:
T O
C
A
• Major data points: These are more specific and more measurable aspects. The ‘Major Data
Points’ scores are derived by the average of all the ‘Detailed Data Points’ allotted to that
‘Major Data Point’. The principles are the same as indicated for lower level abstracts.
• All rating scores in the range of zero to one, one to seven, or one to ten are normalised
proportionately to a range of one to ten across all the data. All scores used further are
thus in the range of one to ten before the weightage specified in the detailed framework are applied.
• All data in the form of absolute values are normalised to a score by using the following formulae
Score = Score = 1+ ((LOG10 (Actual Value)-LOG10 (Min Value))/
(LOG10 (Max Value)-LOG10 (Min Value)))*9
Calculation
The calculations are done as follows:
• ‘Lower Level Abstract’ Score = Weighted Average of contributing ‘Constructs’ Scores.
• ‘Construct’ Scores = Weighted Average of contributing ‘Major Data Point’ Scores.
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2.
Methodology
• ‘Major Data Point’ Scores = Average of contributing ‘Detailed Data Point’ Scores.
• ‘Detailed Data Point’ Score = the normalised value of the score as per the rule and
formulae given above.
The overall ‘Outsourcing Attractiveness Index’ is determined by the following method:
Detailed Framework
Lower Level Abstraction
Outsourcing
Attractiveness
Rank
Business
Environment (50%)
Source: CyberMedia, Global Services, CBC
Figure 31: Detailed framework—outsourcing attractiveness
Outsourcing Attractiveness Index
Countries are ranked within their bands based on their:
People & Skills Scores
plus
Business Environment Scores
Countries are ranked within their bands based on their
BE + People & Skill Scores
O
U
T
S O
U
R
C
I
N
G
T O
A
F
R
I
C
A
People and Skills
(50%)
Source: CyberMedia, Global Services, CBC
Figure 32: Components leading to outsourcing attractiveness
A. Infrastructure Bands
• The ‘Infrastructure’ lower level abstraction score is calculated as per the detailed framework and the normalisation and calculation method indicated above.
• The countries with an infrastructure score greater than 6.5 are placed in the ‘Ready’
band.
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2.
Methodology
• The countries with an infrastructure score between 5.5 and 6.5 are placed in the
‘Upcoming’ band.
• The countries with an infrastructure score less than 5.5 are placed in the ‘Yet to be
ready’ band.
B. People & Skills and Business Environment Scores
• The ‘Business Environment’ lower level abstraction score is calculated as per the detailed
framework and the normalisation and calculation method indicated above.
A
C. Overall Outsourcing Attractiveness Scores and Ranks
• The ‘Outsourcing Attractiveness’ score of the country is determined for countries in
each band. This is the sum of the ‘People and Skills’ score and ‘Business Environment’
score.
T O
F
R
I
C
A
• The ‘People and Skills’ lower level abstraction score is calculated as per the detailed
framework and the normalisation and calculation method indicated above.
• The rankings are made in each band using this total score.
The Approach
Infrastructure
C
I
N
G
The following diagram shows this approach graphically.
O
U
T
S O
U
R
Ready/Upcoming
Yet to be Ready
Business Environment
Political
Economic
Social
People & Skills
Technology
People
Skill-sets
✓Attractiveness in terms of Outsourcing
✓Characteristics of a country
Source: CyberMedia, Global Services, CBC
Figure 33: Detailed framework—outsourcing attractiveness
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2.
Methodology
2.4. Definitions of Lower Level Abstraction, Constructs,
and Major Data Points
Lower-Level Abstraction
• People and skills: This ‘Lower level abstraction’ covers the extent to which the human
resource needs of the outsourcing engagement are met by the country in terms of
number of personnel available, their suitability for outsourcing, and the cost of personnel meeting these needs. There are three constructs: availability, suitability, and cost.
• Business environment: This has five constructs that cover various aspects of the business
environment that make a country favourable or otherwise to attract an outsourcing
operation.
T O
A
F
R
I
C
A
• Infrastructure: This ‘Infrastructure Ready/Upcoming/Yet to be ready Decision’ scores
are calculated on a separate scale and cover all the important parameters needed to setup the facility for outsourcing work. This scale would judge the nation’s infrastructure
on a scale denoted by Ready/Upcoming/Yet to be ready. These parameters include
two major ‘Constructs’: Availability/Penetration and Cost.
Constructs and Major Data Points
N
G
Infrastructure
Lower Level Abstraction
Constructs
Major Data Points
Network Readiness Index (33%)
U
R
C
I
Detailed Framework—Infrastructure
International Internet Bandwidth (34%)
S O
Availability/Penetration (60%)
Electricity Availability (16%)
O
U
T
Road/Rail Network, Air Travel (16%)
Infrastructure
Rental, Cost of Commercial Premises (25%)
Cost of stay, Travel Cost (25%)
Infrastructure Cost (40%)
Telecom/Data Transfer Cost (50%)
Source: CyberMedia, Global Services, CBC
Figure 34: Detailed framework—infrastructure readiness
The major data points come from a number of carefully selected detailed data points.
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2.
Methodology
• Network readiness index: This ‘Major Data Point’ is based on a report produced by
the World Economic Forum in cooperation with INSEAD, published for the seventh
consecutive year with record coverage of 127 economies worldwide, the report has
become the world’s most comprehensive and authoritative international assessment
of the impact of ICT on the development process and the competitiveness of nations.
This index is a standard measure of the availability and penetration of ICT infrastructure in a country. This is updated annually. In this case no separate detailed
data parameters will be considered as this ‘Network Readiness Index’ will be taken
as it is (33 per cent weightage).
• International Internet bandwidth: This ‘Major Data Point’ is based on World Development Indicators produced by the World Bank. This is indication of availability of International Internet Bandwidth in mbps in each country (34 per cent weightage).
O
U
T
S O
U
R
C
I
N
G
T O
A
F
R
I
C
A
• Infrastructure—availability/penetration: This ‘Construct’ gives a score that covers the
penetration of IT communication network by using the ‘Network Readiness Index’, and
availability of other resources like Internet bandwidth, electricity, commercial space,
railways, and air travel; the four ‘Major Data Points’ are as follows:
• Electricity availability: This ‘Major Data Point’ is based on ‘Detailed Data Parameters’
like electricity production, consumption and import. (5 per cent weightage).
• Road/Rail/Air travel: This ‘Major Data Point’ is based on few ‘Detailed Data Parameters’ like number of major railway stations, length of rail network (in km), length
of road network (in km); number of major airports, connectivity with major cities
of the world, frequency of flights, etc. (16 per cent weightage).
• Infrastructure cost (40 per cent weightage): This ‘Construct’ will give us a score that
includes the entire infrastructure cost incurred by business to acquire infrastructure
resources, i.e., Communication, Electricity, Transportation, Railways, Air-Travel, etc.
The three ‘major data points’ are as follows:
• Rental and cost commercial premises: This ‘major data point’ is based on ‘Detailed
Data Parameters’ that is used in calculating overall cost of rental (per sq. ft.) and
cost of ownership of premises for commercial activity (25 per cent weightage).
• Cost of stay and travel: This ‘Major Data Point’ is based on ‘Detailed Data Parameters’
that helps calculating the cost of stay for the expatriate executive; it includes board
and lodging charges and travel costs to major countries where the outsourcing
market exists (25 per cent weightage).
• Telecom/Internet service cost: This ‘Major Data Point’ is based on ‘Detailed Data
Parameters’ like call charges (mobile/landline) to major world cities, Internet/data
transfer tariff per month, etc. (50 per cent weightage).
29
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2.
Methodology
People and Skills
Detailed Framework—People and Skills
Lower Level Abstraction
Constructs
Major Data Points
Quantity (75%)
Availability (40%)
Working Satisfaction (25%)
People and Skills
Suitability (30%)
Education, Languages, and Domain Skills (33%)
C
A
ICT Exposure (53%)
R
I
Quality (14%)
A
F
Personnel Compensation at Various Levels (66%)
H R Cost (30%)
T O
Cost of Living (34%)
Source: CyberMedia, Global Services, CBC
O
U
T
S O
U
R
C
I
N
G
Figure 35: Detailed framework—merit of people and skills
• People and skills—availability: This ‘Construct’ gives a score that gives us an idea of
the quantity of personnel available along with the attrition rates of available personnel leaving; this will give a score to assess the availability of personnel in the country.
(40 per cent weightage). The two ‘Major Data Points’ thus are as follows:
• Quantity: This ‘Major Data Point’ is based on a number of ‘detailed data parameters’
like population, education, qualified personnel available, ease of meeting shortfalls by
expatriate employment, unemployment rate, and so on (75 per cent weightage).
• Working satisfaction: This major data point is derived from the UNDP human develpment report 2008. This HDI Index, a number from 0 to 1, indicates the overall
satisfaction in working in that country. (See Table B of section 2.5, S. No. 9 to
understand it better.)
• People and skills suitability: This ‘Construct’ gives a score that gives us an idea of the
compatibility of personnel to the outsourcing work, based on quality of personnel, their
language skills, and exposure to the cultures of other countries that are the outsourced
service markets, (30 per cent weightage). The four ‘Major Data Points’ are as follows:
• ICT exposure: This ‘Major Data Point’ will give an idea of the familiarity that the
people or the available work force has to ICT. Detailed data parameters like density
of PCs, mobile phones, Internet, etc., among the people will be used to assess this
factor (53 per cent weightage).
• Education, languages, and domain skills: This ‘Major Data Point’ is based on a few
‘detailed data parameters’ like knowledge of European languages, management, and
ICT/domain skills relevant to outsourcing operations. The level of accreditation
30
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2.
Methodology
of these skills and qualifications to international standards will also be considered
(33 per cent weightage).
• Quality: This ‘Major Data Point’ is based on a few ‘detailed data parameters’ like
the attitude of people towards work, health conditions affecting efficient operations,
and related issues (14 per cent weightage).
• Compensation at various levels: This ‘Major Data Point’ is based on a few ‘detailed
data parameters’ like the cost of a fresh graduate, cost of a professional with five
years’ experience, average cost of all other personnel, and related parameters
(66 per cent weightage).
• Consumer price index: This ‘Major Data Point’ is based on a few ‘detailed data
parameters’ like the cost of living index, cost of medical insurance, cost of children’s
education, and similar factors (34 per cent weightage).
A
F
R
I
C
A
• People and skills—HR cost: This ‘Construct’ gives a score that gives us an idea of the
cost of personnel doing the outsourcing work (30 per cent weightage). The two ‘Major
Data Points’ are as follows:
T O
Business Environment
Detailed Framework–Business Environment
Constructs
N
G
Lower Level Abstraction
R
C
I
Business Environment Index (10%)
Business
Environment
Economic Outlook (20%)
U
T
S O
U
ICT Industry Attractiveness (20%)
O
Risk Parameter (30%)
Tax & Financial Incentives (20%)
Source: CyberMedia, Global Services, CBC
Figure 36: Detailed framework—merit of business environment
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2.
Methodology
Detailed Framework—Business Environment
Constructs
Major Data Points
Business Environment
Index (10%)
Ease of Doing Business (100%)
ICT Security, Cyber Laws ans IPR (66%)
ICT Industry
Attractiveness (20%)
Exports and Share of ICT (34%)
Economic Outlook
(20%)
Share of Exports, Share of Services in Exports (40%)
I
C
A
Share of Services in GDP, Size and Growth, Inflation (40%)
A
Source: CyberMedia, Global Services, CBC
Figure 37: Detailed framework—components of business environment
T O
F
R
Foreign Exchange/Gold Reserves (20%)
Detailed Framework—Business Environment
Major Data Points
G
Constructs
Currency Risk (33%)
Risk Parameter (30%)
C
I
N
Geopolitical Risk (33%)
Tax Rate (50%)
Tax & Financial Incentive (20%)
Ease & Cost of Finance (50%)
O
U
T
S O
U
R
Legislative Risk (34%)
Source: CyberMedia, Global Services, CBC
Figure 38: Detailed framework—components of business environment
• Business Environment—business environment index: This ‘Construct’ will give us a
score that covers all the important parameters needed for positive business environment of a nation. This data will be taken from the World Bank ‘Ease of Doing Business’
research that examines a number of factors like starting a business, licences, employing
workers, property, taxes, credit, protecting investors, enforcing contracts, trading across
borders, and closing a business (10 per cent weightage).
• Business Environment—ICT industry attractiveness: This ‘Construct’ will give us a score
that covers all the important parameters needed for ICT Industry Attractiveness of a
nation (20per cent weightage). It includes the following ‘Major Data Points’:
32
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2.
Methodology
• Security/IPR law: This ‘major data point’ will be based on ‘Detailed Data Parameters’ like IPR laws, Cyber laws, etc. (66 per cent weightage).
• Export and share of ICT industry: This ‘major data point’ will be based on ‘Detailed
Data Parameters’ that helps us estimate the ICT industry size of a nation. It will also
cover factors like total export/import of services, telecommunication revenue, etc.
(34 per cent weightage).
• Percentage of services of GDP, size and growth and inflation: This ‘Major Data Point’
will be based on ‘Detailed Data Parameters’ like Total GDP, percentage of share of
Services, increase of GDP, and Economic Growth, Inflation of a nation (40 per cent
weightage).
O
U
T
S O
U
R
C
I
N
G
T O
A
F
R
I
C
A
• Business Environment—economic outlook: This ‘Construct’ will give us a score that
covers all the important parameters needed to define Economic Outlook of a nation
(20 per cent weightage). It includes the following ‘Major Data Points’:
• Percentage share of exports and share of services: This ‘major data point’ is based
on ‘Detailed Data Parameters’ like percentage of Exports in overall economy of a
nation (40 per cent weightage).
• Foreign exchange/gold reserves: This ‘major data point’ is based on ‘Detailed
Data Parameters’ like foreign exchange/gold reserves of a nation, etc. (20 per cent
weightage).
• Business Environment—risk parameters: This ‘Construct’ gives us a score that covers all the important risk parameters needed to define the risk to operate a business
(30 per cent weightage). It includes the following ‘Major Data Points’:
• Geo-political risk: Political risk, also known as ‘geopolitical risk’—the risk that an
investment’s returns could suffer as a result of political changes or instability in a
country. This ‘major data point’ is based on instability affecting investment returns
could stem from a ‘Detailed Data Parameters’ like change in government, other
foreign policy makers, or military control, factors in enforcement of contracts, etc.
(33 per cent weightage).
• Currency risk: The risk that a business’ operations or an investment’s value is affected
by changes in exchange rates. This ‘major data point’ is based on ‘Detailed Data
Parameters’ like rate of currency fluctuation, changes in the value of the currency
relative to the American dollar, total loss or gain on the investment when the money
is converted back, etc. (33 per cent weightage).
• Legislative risk: The risk that a new law or a change in an existing law, cost, and
efforts in the enforcement of a contract could have a significant impact on an investment. This ‘Major Data Point’ is based on ‘Detailed Data Parameters’ like stability in
legislative reform, judicial independence, etc. (34 per cent weightage).
• Business Environment Tax and Financial Incentive (20 per cent weightage): This ‘Construct’ gives us a score that covers the entire imperative parameters needed to compute
the financial depth of a nation. It includes the following ‘Major Data Points’:
• Tax rate (per cent of profit): This ‘Major Data Point’ is based on ‘Detailed Data
Parameters’ like corporate tax rates, VAT, property tax, stamp duty on advertisements,
33
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2.
Methodology
tax on insurance premiums, social security contributions, tax concessions for ITenabled services exports, etc. (50 per cent weightage).
• Ease and cost of finance: This ‘Major Data Point’ will be based on ‘Detailed Data
Parameters’ like bank interest on finances necessary for setting up outsourced service
industry, Financial market sophistication, extent, and effect of taxation, etc. (50 per
cent weightage).
2.5. Definitions of Data Parameters, Units of Measurements,
and Source
C
A
Table A. Infrastructure Data Points
I
S. No.
Detailed Data Parameter and Units
F
A
R
Network readiness
Network Readiness Index (Score from one to
seven)
International Internet bandwidth
1
International Internet Bandwidth
(Bits/Person)
WEF Global IT
WDI
Electricity availability
3
Electricity Consumption (Bn KWH)
CIA Fact Sheet
4
Electricity Production (Bn KWH)
CIA Fact Sheet
5
Electricity Import (Bn KWH)
CIA Fact Sheet
6
Quality of electricity supply
WEF
Quality of railroad infrastructure (Score from one
to seven)
Global Competitiveness Report
2008, WEF
8
Quality of roads (Score from one to seven)
Global Competitiveness Report
2008, WEF
9
Quality of air transport infrastructure (Score from
one to seven)
Global Competitiveness Report
2008, WEF
Rental, cost of commercial premises
Infrastructure Cost
O
S O
U
R
7
T
Road/Rail network, air travel
U
Availability/Penetration
I
N
G
T O
2
C
Source
10
Average rent per month (USD/sq. meter)
Africa Property Research Report
2007: Knight Frank
11
Average cost of Commercial space (USD/sq. meter) Africa Property Research Report
2007: Knight Frank
Cost of stay & travel
12
Hotel tariff (USD)
UN Travel Allowance
13
Other Charges (USD)
UN Travel Allowance
14
Cost of Air Travel (USD) (London—Nearest Int.
Airport)
Prevailing Ticket Rate
Telecom/Data transfer cost
15
Call rate for US (USD/3 min)
World Bank
16
Internet Service Cost/Month (USD)
World Bank
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2.
Methodology
Table B. People and Skills Data Points
S. No.
Detailed Data Parameter
Source
Total score
Availability
Total population (in Millions)
UNDP HDR 2008
2
Population in urban areas/100
UNDP HDR 2008
3
Population over 15 yrs./100
UNDP HDR 2008
4
Adult literacy/100
UNDP HDR 2008
5
Population educated at school/100
UNDP HDR 2008
6
Population educated at tertiary/100
UNDP HDR 2008
7
Availability of educated at science & engineering
graduates (Score from one to seven)
WEF Global IT
8
Population unemployed (% of labour force)
UNDP HDR 2008
I
C
A
Quantity
1
R
Working satisfaction
A
F
9
Overall satisfaction in working in that country (HDI UNDP HDR 2008 (HDI*100)
Index from zero to one)
N
G
T O
ICT exposure
10
Proportion of households with a computer (%)
World Bank Indicators
11
Internet Users/1000
UNDP HDR 2008
12
Landline/1000
UNDP HDR 2008
13
Mobile/1000
UNDP HDR 2008
14
Internet Access in Schools
WEF Global IT
Suitability
15
Quality of Scientific Institution (Score from one to
seven)
WEF Global IT
16
Quality of Education System (Score from one to
seven)
WEF Global IT
17
Extent Staff Training (Score from one to seven)
WEF Global IT
18
Quality of Math’s & Science education (Score from
one to seven)
WEF Global IT
19
Quality of Management Schools (Score from one to
seven)
WEF Global IT
20
University - Industry research collaboration (Score
from one to seven)
WEF Global IT
O
U
T
S O
U
R
C
I
Education, languages, and domain skills
Quality
21
Business Impact of HIV (Score from one to seven)
Global Competitiveness Report
2008, WEF
22
Business Impact of TB (Score from one to seven)
Global Competitiveness Report
2008, WEF
23
Business Impact of Malaria (Score from one to
seven)
Global Competitiveness Report
2008, WEF
35
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2.
Methodology
S. No.
Detailed Data Parameter
Source
H R Cost
Personnel compensation at various levels
24
Cost of fresh graduate Agent (USD per yr)
Local UN Salary Rates
25
Cost of experienced Agent
Local UN Salary Rates
26
Cost of Executives
Local UN Salary Rates
27
Cost of Manager
Local UN Salary Rates
Cost of living
28
Consumer price index (2000=100)
WDI
A
Table C. Business Environment Data Points
C
S. No.
BE Index
I
R
F
A
1
No. of procedures to start a business
Global Competitiveness Report
WEF 2008
2
Protecting Investors (Score from one to ten)
Doing Business
3
Corruption Perception Index (zero least desirable
to ten most desirable)
Africa Development Indicators,
World Bank
T O
ICT Industry Attractiveness
G
N
I
C
R
U
Source
ICT security, Cyber laws and protection of
intellectual property rights
T
S O
Detailed Data Parameter
Ease of doing business
4
Laws Related to ICT (Score from one to seven)
WEF Global IT
5
Intellectual Property Protection (Score from one to
seven)
WEF Global IT
6
Accessibility of digital content (Score from one to
seven)
WEF Global IT
Exports and share of ICT
7
Computer, Communication, and other services
(% of commercial service imports)
WDI
8
Computer, Communication, and other services
(% of commercial service exports)
WDI
9
Telecommunication Revenue (% of GDP)
WDI
Economic Outlook
O
U
Share of services in GDP, economy size
and growth, inflation
10
Total GDP (USD Bn)
UNDP HDR 2008
11
Share of Services in GDP
CIA Fact Book
12
GDP per capita (USD)
UNDP HDR 2008
13
GDP growth rate
UNDP HDR 2008
14
Inflation Rate
CIA Fact Book
Share of exports, share of services in exports
15
Exports (USD Bn)
CIA Fact Book
16
Share of export in GDP (% of GDP)
UNDP HDR 2008
17
Total export of services (% of Export)
CIA Fact Book
Foreign exchange/gold reserves
18
Foreign exchange/gold reserves (USD Bn)
CIA Fact Book
36
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GLOSSARY
Detailed Data Parameter The parameters measured and used by Global Information
Technology Report produced by WEF would be used as such.
Ease and Cost of Finance It provides a measure of ease of availability of finance and
easy tax rates.
U
Electricity Cost The cost of electricity for the commercial establishment.
S O
Foreign exchange/Gold Reserves It gives us a measure of stability of the government by
computing the debt and foreign exchange/gold reserves of a nation.
Geopolitical Risk It gives measure of geopolitical risk that could cause an instability affecting the investment returns.
O
U
C
I
R
Education, Languages, and Domain Skills A score or rating that will give an idea of the
readiness of the work force to language, ICT, and other skills to make an outsource operation successful.
T
N
F
A
Cultural Exposure A score or rating that will give an idea of the exposure of the available
work force to the cultures of European and Western countries where the outsource service
market exists.
T O
Cost of Stay and Travel The cost of stay and of travel to the outsourcing facility in the
host country/city from the major world cities for the expatriate executive; it includes boarding and lodging charges.
G
R
I
C
A
Cost of Living This measure will give an estimate of the overall cost of living for the
country taking the cost of living index, expenses on children’s education, medical insurance
costs, and so on.
Human Development Index A score or rating that will give an idea of the number of
personnel at various levels that leave an organisation for better prospects or better living
conditions after gaining experience and contacts in an outsourcing assignment.
ICT Exposure A score or rating that will give an idea of the exposure of the PC, Internet,
and mobile connectivity to the people and work force available in the country.
ICT Industry Size This score will be an estimate of the ICT Industry size of a nation,
Import/export of ICT services, and telecommunication revenue.
ICT Security, Cyber Laws and Protection of Intellectual Property Rights This score
will give an estimate of the trust that can be placed on transactions and interactions over
ICT and cyber space. It relates to enactment implementation, enforcement, and execution
of Cyber, IPR, and related Laws.
37
02_Africa_Report09_FR.indd Sec1:37
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Glossary
International Internet Bandwidth A standard measure of availability International Internet Bandwidth (in mbps) throughout the country prepared annually by the World Development Indicators by World Bank.
Legislative Risk It provides a measure of how frequently law changes to the extent that
business and investors are affected by it.
Network Readiness Index A standard measure of availability and penetration of ICT
Infrastructure throughout the country prepared annually by the World Economic Forum
(WEF) Report (The Global Information Technology Report 2006–07).
Direct cost to the outsourcing business for
Quality Attitude of people towards work, health conditions affecting efficient operations
and related issues.
Quantity A score or rating that will give an idea of the number of personnel at various
levels who will be available for an organisation wishing to start outsource operations in the
country .
Rental, Cost of Commercial Premises
feet) on rent for business activity.
A month’s cost to take a commercial space (in sq.
Share of Exports in GDP, Share of Services in Exports It is measure of share of exports
in total GDP and percentage share of services in the total export by a nation.
Share of Services in GDP, Economy Size and Growth, Inflation It denotes the percentage share of services in total GDP, the total size of economy, GDP of the country.
Telecom/Internet Service Cost The cost of data transfer and call rate from the African
nation to the Europe, Americas, and Australia.
O
U
T
S O
U
R
C
I
N
G
T O
A
F
R
I
C
A
Personnel Compensation at Various Levels
the personnel recruited for this purpose.
38
02_Africa_Report09_FR.indd Sec1:38
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Appendix I: Infrastructure Data Table
Appendix II: People and Skills Data Table
Appendix III: Business Environment Data Table
Appendix IV: Fifteen Africa Country Profiles
O
U
T
S O
U
R
C
I
N
G
T O
A
F
R
I
C
A
APPENDICES
02_Africa_Report09_FR.indd Sec1:39
2/26/09 12:14:15 PM
S. No
.
Electricity Production (Bn KWH)
Electricity Import (Bn KWH)
Quality of electricity supply
4
5
6
Quality of railroad infrastructure
(Score from 1 to 7)
Quality of roads (Score from
1 to 7)
Quality of air transport
infrastructure (Score from 1 to 7)
7
8
9
Road/Rail Network, Air Travel
Electricity Consumption (Bn
KWH)
Electricity Availability
International Internet Bandwidth
(Bits/Person)
International Internet
Bandwidth
Network Readiness Index (Score
from 1 to 7)
Network Readiness
Deta
iled
Data
Para
m
e
ter
and
Unit
s
3
2
1
Sour
ce
Global
Competitiveness
Report 2008, WEF
Global
Competitiveness
Report 2008, WEF
Global
Competitiveness
Report 2008, WEF
WEF
CIA Fact Sheet
CIA Fact Sheet
CIA Fact Sheet
WDI
WEF Global IT
Bots
wana
4.5
4.5
3.6
3.8
1.75
0.91
2.6
16
3.59
h Afr
ica
Sout
Egyp
t
117
92
126
3.74
a
7
6.9
9
3.49
Ghan
3.4
4.8
3.5
5.9
5.2
3.4
3
5.1
3.2
3.4
1.3
4.1
11.32 0.168 0.461
264
241
19
4.05
Keny
a
3.7
2.8
2.3
4.7
0.28
5.5
4.4
21
3.34
ritiu
s
5.4
4.5
1.6
5.4
0.01
2.35
2
153
3.96
Mau
APPENDIX I
INFRASTRUCTURE DATA TABLE
Moro
cco
ique
9.1
1
2.82
5.2
3.6
3.2
4.8
0.802
3.7
2
1.8
3.5
9.5
21.37 13.17
20.67
377
3.67
amb
Moz
02_Africa_Report09_FR.indd Sec1:40
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Nam
ibia
5
5.4
4.3
5.1
1.56
1.68
2.8
18
3.33
Nige
ria
1.6
2.3
1.4
4.2
0.01
22.5
16.88
1
3.32
Sene
gal
2.5
3.2
1.7
4.8
0.01
2.15
1.8
103
3.46
Tanz
a
nia
2.3
2.5
1.8
3.5
0.136
1.88
1.19
0.01
3.17
Tuni
si
a
5.8
4.9
4.4
5.8
0.01
12.85
11.17
126
4.33
Ugan
da
1.9
2.5
1.5
3.3
0.01
1.98
1.67
4
3.06
bia
2.9
2.5
1.7
3.7
0.465
8.85
86
11
3.02
Zam
Availability/Peneration
02_Africa_Report09_FR.indd Sec1:41
2/26/09 12:14:16 PM
Infrastructure Cost
Average cost of Commercial space
(USD/sq. metre)
11
Other Charges (USD)
Cost of Air Travel (USD)
(London—Nearest Int. Airport)
13
14
Call rate for US (USD/3 min)
Internet Service Cost/Month
(USD)
15
16
Telecom/Data Transfer Cost
Hotel tariff (USD)
12
Cost of Stay & Travel
Average rent per month (USD/
sq. metre)
10
Rental, Cost of Commercial
Premises
World Bank
World Bank
Prevailing Ticket Rate
UN Travel Allowance
UN Travel Allowance
Africa Property
Research Report
2007: Knight Frank
Africa Property
Research Report
2007: Knight Frank
18.2
2.88
3971
61
111
700
14
11.6
0.79
3721
70
147
800
16
5
1.45
1941
107.1
147.9
1250
25
12
1.99
3450
53
94
700
14
15.8
3
3468
86
156
500
10
16.2
1.59
2859
97
158
750
15
27
1.69
913
97
158
1000
20
32.9
1.17
4471
87
89
600
12
48.7
5
4471
21
135
750
15
11.3
1.49
3721
122
148
1250
25
25.8
1
2260
113
156
1000
20
36
3.17
3610
69
141
950
19
3.1
2
963
90
94
600
12
99.6
3.21
3874
68
196
800
16
33.3
1.41
4471
84
156
950
19
Availability
Suitability
Population educated at school/100 UNDP HDR 2008
Population educated at tertiary/100 UNDP HDR 2008
Availability of educated at science
& engineering graduates
(Score from 1 to 7)
Population unemployed
(% of labour force)
5
6
7
8
Proportion of households with a
computer (%)
Internet Users/1000
Landline/1000
Mobile/1000
Internet Access in Schools
11
12
13
14
ICT Exposure
Overall satisfaction in working in
that country (HDI Index from
0 to 1)
10
9
Adult literacy/100
4
Working Satisfaction
Population over 15 years/100
WEF Global IT
UNDP HDR 2008
UNDP HDR 2008
UNDP HDR 2008
World Bank Indicators
UNDP HDR 2008
(HDI*100)
UNDP HDR 2008
WEF Global IT
UNDP HDR 2008
UNDP HDR 2008
UNDP HDR 2008
Population in urban areas/100
3
S. No
.
2
Deta
iled
Dat
Para
mete a
r
Total population (in millions)
UNDP HDR 2008
Sour
ce
1
Quantity
Total Score
Bots
wana
Keny
a
a
Ghan
Egyp
t
h Afr
ica
Sout
47.90 72.80 22.50 35.60
s
1.26
ique
Moro
cco
30.50 20.50
bia
Ugan
da
Tuni
si
a
Tanz
a
nia
Sene
gal
Nige
ria
Nam
ibia
2.00 141.40 11.80 38.50 10.10 28.90 11.50
Zam
7.00
3.62
5.00
3.79
3.48
9.60
4.57
3.08
2.79
466
75
34
6
3.01
724
101
109
8.5
3.07
530
157
161
14
2.4
129
15
18
0.6
3.44
135
8
32
1.4
2.07
734
289
146
24.2
2.69
6.11
3.49
411
44
152
2.5
2.07
62
4
7
1.4
2.74
244
64
40
12.3
0.65
2.5
141
9
38
0.8
0.47
4.90
4.17
10.18
5.10
4.00
14.20
5.65
3.20
4.05
12.00
3.98
2.33
65.00 15.00 26.00
24.00 31.00 10.00
1.39
2.9
148
23
46
2.1
2.33
52
4
9
9
4.85
566
125
95
6.3
2.12
53
3
17
1.7
1.81
81
8
20
1.1
0.499 0.467 0.766 0.505 0.434
48.00
4.30
5.40
39.00 27.00 17.00
11.00 21.00 33.80
4.89
0.654 0.674 0.708 0.553 0.521 0.804 0.646 0.384
23.80 26.60 11.00 11.00 40.00
3.33
17.00 20.00 35.00 26.00 29.00 26.00 21.00 24.00
60.00 62.00 82.00 37.00 42.00 82.00 35.00
81.20 82.40 71.40 57.90 73.60 84.30 52.30 38.70 85.00 69.10 39.30 69.40 74.30 66.80 68.00
64.40 67.90 66.70 41.00 57.40 76.70 69.70 55.80 60.90 55.70 57.80 55.60 74.00 50.60 54.30
57.40 59.30 42.80 47.80 20.70 42.40 58.70 34.50 35.10 48.20 41.60 24.20 65.30 12.60 35.00
1.80
ritiu
Mau
APPENDIX II
PEOPLE AND SKILLS DATA TABLE
amb
Moz
02_Africa_Report09_FR.indd Sec1:42
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Suitability
H R Cost
02_Africa_Report09_FR.indd Sec1:43
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Quality of Education System
(Score from 1 to 7)
Extent Staff Training
(Score from 1 to 7)
Quality of Maths & Science
education (Score from 1 to 7)
Quality of Management Schools
(Score from 1 to 7)
University - Industry research
collaboration (Score from 1 to 7)
16
17
18
19
20
Business Impact of TB
(Score from 1 to 7)
Business Impact of Malaria
(Score from 1 to 7)
22
23
Cost of Executives
Cost of Manager
26
27
28
Cost of experienced Agent
25
Local UN Salary Rates
Local UN Salary Rates
Local UN Salary Rates
Local UN Salary Rates
Global Competitiveness
Report 2008, WEF
Global Competitiveness
Report 2008, WEF
Global Competitiveness
Report 2008, WEF
WEF Global IT
WEF Global IT
WEF Global IT
WEF Global IT
WEF Global IT
WEF Global IT
Consumer price index (2000=100) WDI
Cost of Living
Cost of fresh graduate Agent
(USD per yr)
24
Personnel Compensation
at Various Levels
Business Impact of HIV
(Score from 1 to 7)
21
Quality
Quality of Scientific Institution
(Score from 1 to 7)
15
Education, Languages, and
Domain Skills
5.4
3.6
2.2
4.2
5.24
2.35
5.02
2.84
4.7
6.5
6
6
2.82
3.49
3.06
3.54
2.31
3.4
3.2
4.4
4
2.8
3.8
3.28
3.48
3.1
3.59
9550
4.3
4.3
3.5
2.9
3.62
4.2
4.68
3.8
3.74
5.5
5
4.8
3.03
4.74
4.62
3.62
3.08
3.58
2.6
3.1
2.3
2.61
2.69
2.81
3.37
2.63
3.09
4.8
4.2
3
2.71
2.5
2.52
3.89
2.58
3.01
4.5
5.1
5
3.09
3.64
3.17
3.6
3.47
3.95
4.6
4.9
4.9
2.82
4.64
3.85
2.98
3.33
3.9
3.3
3.8
3.1
3.21
3.22
2.93
3.35
3.22
4.12
6.6
6.4
6.2
3.87
5.37
5.62
4.56
5.25
4.41
2.9
3.8
2.8
3.21
3.4
3.08
3.54
3.43
4.29
3.4
3.3
2.5
2.46
3.57
3.38
2.51
3.68
3.32
8862 11757 12272 10500 14200 10504 9100 11750 6000 12113
6.6
6.5
5.4
3.4
4.06
3.9
3.9
4.42
4.57
174
144
151
278
183
153
113
214
128
237
116
136
123
139
303
18671 19700 19391 15000 19907 20428 22141 24990 17640 43800 19240 14230 20300 15000 23180
14800 16300 15500 7200 15987 15373 18083 19483 14800 35700 15630 12300 16800 10500 18360
11700 13500 12500 6000 12893 11650 14575 15463 12500 29000 12721 10600 13900 8000 14660
9143 11400 10000 4500
4.8
3.9
2.6
2.81
3.39
3.78
3.76
3.78
3.77
BE Index
ICT Industry Attractiveness
S. No
.
9
8
7
6
5
4
3
2
1
Deta
iled
Dat
Para
mete a
r
ICT Security, Cyber Laws
and Protection of Intellectual
Property Rights
Laws Related to ICT
(Score from 1 to 7)
Intellectual Property Protection
(Score from 1 to 7)
Accessibility of digital content
(Score from 1 to 7)
Exports and Share of ICT
Computer, Communication, and
other services (% of commercial
service imports)
Computer, Communication, and
other services (% of commercial
service exports)
Telecommunication Revenue
( % of GDP)
Ease of Doing Business
No. of procedures to start a
business
Protecting Investors
(Score from 1 to 10)
Corruption Perception Index
(0 least desirable -10 most desirable)
Sour
ce
WDI
3
17
25
WDI
3.11
2.99
ica
8
23
24
4.78
5.2
4.75
4.6
5.6
8
8
3.51
WDI
h Afr
Sout
6
11
Bots
wana
WEF Global IT
WEF Global IT
WEF Global IT
Africa Development
Indicators, World Bank
Global Competitiveness
Report WEF 2008
Doing Business
Egyp
t
4
16
29
4.63
3.51
3.29
3.3
5.3
7
Ghan
a
2
17
20
4
3.49
3.39
3.3
6
11
Keny
a
4
15
20
4.64
4.13
4.23
2.2
5
12
ritiu
s
4
16
29
3.52
3.01
3.34
5.1
7.7
6
Mau
APPENDIX III
BUSINESS ENVIRONMENT DATA TABLE
Moro
cco
5
19
29
4.6
3.85
3.19
3.2
3
6
amb
ique
1
30
36
3.67
2.6
2.56
2.8
6
10
Moz
02_Africa_Report09_FR.indd Sec1:44
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Nam
ibia
5
4
31
3.36
4.1
3.09
4.1
5.3
10
Nige
ria
3
82
64
3.71
2.94
3.4
2.2
5.7
9
Sene
gal
9
47
26
4.88
3.19
3.17
3.3
3
10
Tanz
a
nia
2
11
17
3.7
3.21
3.12
2.9
5
12
Tuni
si
a
4
13
21
4.87
4.63
4.6
4.6
3.7
10
Ugan
da
3
23
30
3.63
2.69
2.97
2.7
4
19
bia
3
16
39
3.6
2.72
2.86
2.6
5.3
6
Zam
Economic Outlook
Risk Parameter
Tax & Financial Incentive
02_Africa_Report09_FR.indd Sec1:45
2/26/09 12:14:17 PM
29
28
27
26
25
24
23
22
21
20
19
18
17
15
16
10
11
12
13
14
Geo- Political Risk
Transparency of Government
policy makers (Score from 1 to 7)
Reliability of police services
(Score from 1 to 7)
Currency Risk
Currency fluctuation rate
Legislative Risk
Judicial independence
(Score from 1 to 7)
Efficiency of legal framework
(Score from 1 to 7)
Burden of govt. regulation
(Score from 1 to 7)
Tax Rate
Total Tax Rate (% of Profit)
Ease & Cost of Finance
Financial market Sophistication
(Score from 1 to 7)
Restriction on capital flow
(Score from 1 to 7)
Extent and effect of taxation
(Score from 1 to 7)
Strength of investor protection
(Hard Data 0-10(best) scale)
Exchange rate (1 USD)
Exports (USD Bn)
Share of export in GDP
(% of GDP)
Total export of services
(% of Export)
Foreign exchange/Gold Reserves
Foreign exchange/gold reserves
(USD Bn)
Share of Services in GDP, Economy
Size and Growth, Inflation
Total GDP (USD Bn)
Share of Services in GDP
GDP per capita (USD)
GDP growth rate
Inflation Rate
Share of Exports, Share of
Services in Exports
17.2
Global Competitiveness 4.01
Report WEF 2008
Global Competitiveness 5.7
Report WEF 2008
Global Competitiveness 4.9
Report WEF 2008
Global Competitiveness 4.3
Report WEF 2008
CIA Fact Book
7.94
WDI World Bank
89.4
48
1739
7
9.5
57
3.1
4.9
5
5.58
9.78
4.1
4.4
3.44
47.9
3.17
4.17
5
8
4.5
3.7
6
27.1
2.68
5.43
5.2
1.52
4.7
4.1
32.98 31.37
15.8
79.19 40.38
27
30
239.5
70
5109
4.9
3.9
15.22 16.18
4.7
4.6
9.79
14.8
5.5
51
26
46
5846
4.8
7.1
Global Competitiveness 5.3
Report WEF 2008
Global Competitiveness 4.8
Report WEF 2008
Global Competitiveness 3.08
Report WEF 2008
CyberMedia Research
Global Competitiveness
Report WEF 2008
Global Competitiveness
Report WEF 2008
CIA Fact Book
CIA Fact Book
CIA Fact Book
UNDP HDR 2008
UNDP HDR 2008
CIA Fact Book
UNDP HDR 2008
UNDP HDR 2008
CIA Fact Book
1.17
6
3.7
4.2
3.74
32.9
3.2
4.3
3.8
10.84
3.8
3.9
2.2
26
4.2
13.5
10.7
37
485
2
12
68
5
2.8
4.4
4.13
50.9
2.99
3.08
3
5.22
3.8
4.1
3.35
38.8
4.1
27
18.7
60
547
0.1
9.7
32
7.7
5.4
6.2
4.43
21.7
3.08
4.67
5
3.78
4.3
4.9
3.1
42.2
4.4
57
14.27
70
5957
5.4
8.8
6.6
46.9
335
4.3
12.5
8.35
3
3.5
3.6
3.74
53.1
3.46
4.03
3.9
3.25
4.8
4.4
24.72
41
24.25
6
3.1
2.8
2.46
34.3
2.87
2.8
3.1
5.84
2.8
3.8
1.4
12.2
12.75 0.238
36
41
51.6
56
1711
1.5
2
9.78
5.3
3.7
3.9
4.32
26.5
2.98
4.44
5.5
15.81
4
4.3
0.89
15.6
2.92
46
6.6
58
3016
2.9
6.7
117.7
5.7
4
4.1
3.67
29.9
3.33
3.29
4.3
5.28
2.8
4.2
51.33
8.8
61.79
53
206
29.8
2100
0.8
5.4
516
3
3.2
4.1
3.04
46
2.64
2.78
2.6
4.01
5.1
3.2
1.66
27.8
1.65
27
8.2
61
707
1.2
5.9
1300
5
3.4
4.3
2.95
44.3
3.59
3.66
3.9
5.65
4.3
4
2.91
43.8
2.22
17
12.1
37
316
1.7
7
1.27
3.3
4.7
4.4
4.48
61
4.44
5.15
5
2.23
5.8
5.2
7.85
4.4
15.15
48
28.7
62.8
2860
6.3
3.1
2000
4
2.8
5.1
2.7
32.3
3.55
3.27
3.3
6.60
3.7
3.9
2.56
31.2
1.68
13
8.7
13
303
3.2
6.1
4705
5.3
2.8
5.6
3.01
16.1
3.98
3.75
3.5
10.46
4.1
4.7
1.09
7.2
4.59
16
7.3
56.5
623
0.3
10.6
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APPENDIX IV
FIFTEEN AFRICA COUNTRY PROFILES
Here’s the flow for each one of the fifteen countries:
C
3. Country Political and Economic Profile
4. Principal Government Officials
A
F
R
2. Country Outsourcing Attractiveness Profile
I
A
1. Country Overview
5. Foreign Relations
T O
6. Living, Security, and Safety Perceptions
7. ICT Policy, ICT Infrastructure, and Service
9. Human Resource Efficiency and Cost
I
11. Labour and Expatriate Worker’s Permits
12. Revenue, Tax, and Repatriation Issues
13. Investment Policy and Incentives
14. Government Agencies Giving Support to Outsourcing
15. Recommendations
O
U
T
S O
U
R
10. Legal and Enforcement Issues
C
N
G
8. ICT and BPO Industry Environment
16. Contact Details
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