Buyer expertise roles, which account for 44% of jobs within the BPO business, are among the many most affected, with half of duties in these roles being automatable.
Finance and accounting positions within the BPO sector face comparable challenges, with practically two-thirds of junior-level duties in danger.
Duties carried out by girls within the BPO business are on common 10% extra inclined to automation than these by males.
Kenya’s Enterprise Course of Outsourcing (BPO) market is present process tectonic shifts with revenues anticipated to achieve $272.10 million in 2025 with an annual development price of 5.96 per cent. This alteration has resulted in a projected market quantity of $343.00 million by 2029.
To harness the expansion potential of this business, policymakers within the authorities of Kenya plans to create a million BPO/ Data Know-how Enabled Companies (ITES) jobs within the subsequent 5 years by supportive insurance policies and incentives.
Nonetheless, the rise of automation might decelerate this development. A brand new research by Caribou and Genesis Analytics, in partnership with the Mastercard Basis identifies Buyer Expertise roles, which account for roughly 44 per cent of present employment within the African BPO business, as notably susceptible, with half of the duties liable to automation.
The survey additional identifies that 40 per cent of duties in Africa’s tech outsourcing sector, together with BPO (Enterprise Course of Outsourcing) and ITES (IT-Enabled Companies), may very well be automated in just below 5 years, creating new pathways for employees to maneuver into higher-skilled, and, due to this fact, higher-paying alternatives.
With simply 10 % of duties absolutely resilient to automation, strategic funding in widespread Synthetic Intelligence (AI) upskilling and coaching can be essential in unlocking Africa’s $35 billion BPO potential by 2028, the business survey notes.
Why focused upskilling packages are inevitable
In response to Rodwell Mangisi, Director of Digital Financial system Pan African Packages on the Mastercard Basis, “Africa’s tech outsourcing business is increasing quickly, including new jobs and alternatives annually. As AI transforms world enterprise processes, Africa can lead by making certain its workforce is AI-ready. By investing in focused upskilling packages, particularly for girls and younger professionals, we are able to guarantee this 6 per cent annual development interprets into sustainable, high-value employment that advantages all demographics.”
In the mean time, AI is already deeply built-in into Africa’s BPO and ITES business, driving effectivity and innovation at scale. Staff are utilizing rising instruments and applied sciences comparable to ChatGPT, Microsoft Copilot, and in-house chatbots to boost productiveness, creativity, and accuracy.
These AI-powered applied sciences help with coding, debugging, content material era, and customer support, enabling workers to deal with strategic problem-solving, decision-making, and higher-value duties. Consequently, they see alternatives for profession development and transitioning into higher-level roles.
Regardless of these alternatives, AI’s fast rise might impression sure roles within the BPO business, the survey reveals. As an illustration, entry-level jobs, which represent 68 per cent of the workforce are notably at excessive danger, with greater than half of duties being automatable.
To futureproof the business, which is an important employer of tech-savvy youth, AI-driven upskilling packages are wanted to allow employees to shift into higher-skilled, better-paying roles in cybersecurity, AI administration, and information companies.
Charlene Migwe, Program Director at Caribou mentioned: “Africa’s tech outsourcing sector is at a pivotal second. With the appropriate investments in abilities growth, moral AI, and inclusive insurance policies, we are able to rework the dangers of automation into new alternatives for innovation and resilience.”
Learn additionally: Kenya eyes $262Bn BPO market with labour legislation reforms
Challenges and alternatives posed by emergence of AI in BPO business
Whereas AI presents vital alternatives, it additionally poses challenges, notably for girls and youth who predominantly occupy entry-level roles. The report highlights duties carried out by girls are on common 10 per cent extra inclined to automation than these by males within the business. This disparity dangers exacerbating gender-based inequalities within the sector’s workforce if not proactively addressed.
Moreover, buyer expertise roles, which account for 44 per cent of employment within the BPO business, are among the many most affected, with half of duties in these roles being automatable. What’s extra, finance and accounting positions within the BPO sector face comparable challenges, with practically two-thirds of junior-level duties in danger.
With out intervention, these shifts might disproportionately impression the livelihoods of younger employees and ladies within the sector. To mitigate these dangers, the report stresses the urgency of equitable AI upskilling and reskilling efforts to make sure all demographics can transition into future-proof roles.
