BPO in Madagascar: A rising success story

Madagascar emerges as a key destination for Business Process Outsourcing (BPO) in Africa, creating over 15,000 jobs through approximately 230 operating companies in this rapidly growing sector.

Experiencing significant growth, Madagascar’s Business Process Outsourcing (BPO) sector comprises around 230 companies, currently generating over 15,000 jobs. Data from the Ministry of Digital Development, Digital Transformation, Posts, and Telecommunications (MNDPT) in line with the 2023-2028 Digital Strategic Plan (PSN) indicates that 51 % of these employees work with computer data, 31 % are in customer service centers, and 18 % are involved in call and data management.

This sector stands as a pillar of Madagascar’s digital economy, providing significant employment opportunities, especially for young people. Non-executive employees, who make up 85 % of our call center staff, have an average age of 24 years. Moreover, executive employees boast an average age of 29, highlighting the diversity in age across our workforce.

Over the past two decades, Madagascar has become a key player in the global business process outsourcing industry, attracting a significant volume of Foreign Direct Investments (FDI) thanks to favorable tax incentives for companies operating in the sector and the country’s excellent IT resources.

Opportunities and growth in the Malagasy digital sector

The overall digital sector, including BPO, telecommunications, and digital service companies, accounts for approximately 23,000 direct jobs, constituting 3.4 % of formal employment nationwide. According to MNDPT data, it records an annual turnover of about 365 million EUR, which is equivalent to approximately 2 % of the national GDP. The potential for job creation in the digital sector is estimated to generate an additional 25,000 direct jobs and could represent over 6 % of Madagascar’s GDP by 2028, as per the Malagasy Digital Strategic Plan.

MNDPT is optimistic about Madagascar’s digital transformation prospects, highlighting the presence of a talent pool in software development, fueled by around 500 to 600 computer engineers graduating each year. Additionally, it views the dynamism of the private sector in information and communication technology (ICT) as a major asset in providing digital services tailored to the population’s needs.

J.J.R