The African business process outsourcing (BPO) industry is facing a major transformation. 40% of tasks could be automated by 2030 due to the growing adoption of artificial intelligence (AI). This change is detailed in a study conducted by Caribou and Genesis Analytics in partnership with the Mastercard Foundation.
Challenges and Opportunities Posed by the Emergence of AI in the BPO Sector
While AI offers significant opportunities, it also poses challenges, particularly for women and young people who primarily hold entry-level jobs. In the sector, tasks performed by women are on average 10% more likely to be automated than those performed by men. If not proactively addressed, this disparity could exacerbate gender inequalities within the sector’s workforce.
Customer experience-related professions, which account for 44% of business process outsourcing (BPO) positions, are among the most affected, as half of their activities are likely to be automated.
Targeted upskilling programs are essential
Currently, artificial intelligence is already heavily implemented in the business process outsourcing (BPO) and information technology (ITES) sectors in Africa. This is driving efficiency and innovation on a massive scale. Employees are leveraging emerging technologies like ChatGPT, Microsoft Copilot, and various internal chatbots to increase their productivity, boost their creativity, and hone their accuracy.
These AI technologies simplify coding, debugging, content creation, and customer support. These processes allow employees to focus on:
- Strategic problem solving
- Decision-making
- Higher-value tasks
They therefore perceive opportunities for career advancement and transition to higher-level positions.
Finance and Accounting: Anticipate Training and Reskilling
Furthermore, finance and accounting positions within the business process outsourcing (BPO) sector face similar challenges. In fact, nearly two-thirds of entry-level jobs are at risk.
Without action, these changes could have a disproportionate impact on the livelihoods of young employees in the sector. To mitigate these risks, the report emphasizes the urgent need for balanced training and reskilling efforts in the field of AI. The goal is to ensure that all profiles have the opportunity to access future positions.
Projected Growth Despite Challenges
Despite these threats, the African BPO sector continues to grow rapidly. For example, the Kenyan market is expected to reach 343 million USD by 2029, growing at a CAGR of 5.96%. The Kenyan government also plans to create one million BPO/ITES jobs over the next five years through incentive policies.
To secure the future of the industry, which is a key employer of tech-savvy young people, AI-focused upskilling programs are needed to enable workers to access more skilled and better-paid roles in cybersecurity, AI management, and data services.
In conclusion, while AI poses a major challenge for the African BPO sector, it also offers a unique opportunity to transform this industry by investing in training and inclusion.
