The Federal Government has announced ambitious plans to earn $5 billion from the outsourcing industry through international trade in services by the year 2024.
The revelation came from Ezra Yakusak, the Executive Director of the Nigerian Export Promotion Council (NEPC), during the National Conference on International Trade-in-Service held in Abuja on Wednesday, July 19, 2023. Yakusak highlighted the pivotal role that outsourcing plays in the Nigerian economy and emphasised the need to prioritise this sector.
"Our high population, coupled with the advantage of a lower labor cost and widespread English proficiency, makes Nigeria an appealing choice for companies seeking to outsource their operations," Yakusak said.
He also pointed out that Nigeria has historically neglected the export of services, but now the government is keen on shifting its focus to this untapped potential. The Executive Director stressed that if the services sector is properly harnessed, it has the capacity to generate more revenue than the $4.8 billion earned from the country's physical products.
"We are looking at five billion dollars in 2024," he confidently declared.
What is this 'outsourcing industry'?
The outsourcing industry involves the practice of contracting out certain business processes or tasks to external service providers rather than handling them in-house. Companies or organisations often opt for outsourcing to take advantage of specialised skills, cost-effectiveness, and increased efficiency.
Common areas of outsourcing
1. Information Technology (IT) Services: Outsourcing IT tasks like software development, network management, technical support, and cybersecurity to specialised firms.
2. Business Process Outsourcing (BPO): Delegating non-core functions such as customer support, human resources, accounting, and payroll to external service providers.
3. Call Center Services: Outsourcing customer service and call center operations to handle inquiries, complaints, and provide support.
4. Manufacturing and Production: Contracting manufacturing processes to third-party facilities to reduce production costs and focus on core competencies.
5. Content Creation and Creative Services: Hiring external agencies or freelancers for content writing, graphic design, video production, and marketing.
6. Research and Data Analysis: Outsourcing market research, data entry, data analysis, and data management tasks to specialised firms.
7. Logistics and Supply Chain Management: Entrusting the management of transportation, warehousing, and distribution to third-party logistics providers.
It is important to position one's self and business for the opportunities to come.