Nigeria Can Create Five Million Jobs From Outsourcing In 5 Years – NAITEOC Chairman

Outsourcing is the contracting out of a business process to a third-party which sometimes involves transferring employees and assets from one firm to another.

The Nigeria Association of Information Technology Enabled Outsourcing Companies (NAITEOC) said Nigeria could create five million direct and indirect jobs from outsourcing in five years.

The NAITEOC Chairman, Dr David Onu, made the disclosure at the second “National Outsourcing Conference’’ with the theme “Empowering the Outsourcing Sector for Service Delivery and Job Creation on Tuesday in Abuja.

He said outsourcing could create jobs “if the necessary policy and infrastructure are put in place.’’

Onu said outsourcing had presently created jobs for more than 10,000 people as and contributed about one per cent to the national Gross Domestic Product (GDP).

“With the right policy and necessary infrastructure in place, outsourcing has the potential to create five million direct and indirect jobs in Nigeria in the next five years,’’ he added.

The chairman identified the absence of legal framework, poor social and IT infrastructure and high tax regime as some of the challenges facing the development of outsourcing in the country.

He said that although government was working hard to develop the sector, more efforts and collaboration from the private sector was still needed for its development.

Onu stressed the need for government establishments and corporate organisations to embrace outsourcing.

He noted that a vibrant outsourcing sector would not only help to create jobs, it would also promote economic development and accountability in government.

In her remarks, the Minister of Communication Technology, Mrs Omobola Johnson, said the ministry would continue to provide the necessary infrastructure and policy for outsourcing to grow in Nigeria.

Johnson, who was represented by Mr Tope Fashedemi, the Director of e-governance, said the ministry was providing necessary support to the National Information Technology Development Agency (NITDA).

The acting Director-General of NITDA, Dr Sani Daura, said the vision of the conference was to build a virile outsourcing sector that would drive service delivery and employment generation in the country.

He said “the outsourcing strategy is part of a broader ICT developmental effort that seeks to make Nigeria a regional hub by 2020.’’

Daura said that China, India and the U.S. had been the main destinations of global Foreign Direct Investments (FDIs) in ICTs, accounting for more than 50 per cent of the overall investment.

“India’s share alone amounts to nearly 17.2 billion dollars.

“Nigeria, with its enormous human resources and endowed skills should be seen at the top of the ladder in providing ICT solutions and outsourcing opportunities.

“Our aim is to be the market hub of outsourcing in Africa and to provide over 100,000 jobs annually for our teeming unemployed youths in the next three years,’’ Daura said.

He said that NITDA would collaborate with NAITEOC to develop a strategic plan for the implementation of the National Outsourcing Policy.

Daura also gave the assurance that the resolutions reached at the end of the conference would be implemented.