Teleperformance, a global leader in digital business services, has announced the expansion of its operations in Kenya with the opening of a state-of-the-art center at the Two Rivers International Finance and Innovation Centre (TRIFIC). This strategic investment will create between 4,000 and 5,000 new jobs, solidifying Kenya’s position as a premier outsourcing destination in Africa.

Kenya’s Strategic Role in Global Outsourcing

Kenya has increasingly become a hub for global outsourcing, driven by its youthful, tech-savvy population, linguistic diversity, and cost-competitive business solutions. With the opening of its second Kenyan center, Teleperformance aims to leverage these advantages to provide advanced services such as customer experience management, digital business services, and data analytics.

Gary Slade, CEO of Teleperformance UK, Ireland, and South Africa (UKISSA), underscored the significance of the new operation at TRIFIC, located within the Special Economic Zone (SEZ).

“Teleperformance’s investment in Kenya is a game-changer,” Slade remarked. “This operation will bring significant employment opportunities to the region, and with the capacity to accommodate up to 5,000 employees, we are excited about the future potential of this hub.”

The Role of Two Rivers International Finance and Innovation Centre (TRIFIC)

TRIFIC, a subsidiary of Centum Investment Company Plc and a recognized Special Economic Zone, is strategically designed to attract multinational companies. The SEZ offers world-class infrastructure, tax incentives, and a favorable regulatory environment, making it an ideal location for international firms.

James Mworia, CEO of Centum Plc, highlighted TRIFIC’s pivotal role in attracting investments:
“This announcement highlights Kenya’s growing potential as an investment destination and showcases the TRIFIC SEZ as an ideal hub for international business outsourcing.”

The center’s location in Nairobi, a city known as the economic and technological capital of East Africa, further enhances its strategic significance. TRIFIC’s robust infrastructure and proximity to other multinational companies position it as a critical node in Kenya’s growing outsourcing ecosystem.

Teleperformance’s Existing Presence in Kenya

Teleperformance has operated in Kenya since 2021, initially employing 1,400 staff members. The addition of the TRIFIC center marks a significant expansion, aligning with the company’s broader strategy to strengthen its footprint in Africa.

The Kenyan operation has already earned a reputation for excellence, leveraging the country’s unique strengths:

• Linguistic Excellence: Kenya’s workforce is proficient in English and other global languages, making it an attractive outsourcing destination for businesses requiring multilingual support.
• Technological Talent: The country is home to a thriving tech ecosystem, with Nairobi often referred to as “Silicon Savannah.”
• Cost-Effectiveness: Kenya offers competitive operational costs compared to traditional outsourcing destinations such as India and the Philippines.

Economic and Social Impact

The establishment of the TRIFIC center by Teleperformance is expected to have far-reaching economic and social benefits:

Job Creation

With the capacity to employ up to 5,000 individuals, the center will provide opportunities for young Kenyans in customer service, IT, and other professional fields. This aligns with the government’s agenda to reduce unemployment, particularly among youth.

Skill Development

Teleperformance is known for investing in employee training and development. The new center will provide local workers with access to global best practices, improving their employability in a competitive market.

Economic Growth

The increased economic activity spurred by Teleperformance’s expansion is expected to contribute to Kenya’s GDP, further enhancing its reputation as a regional economic powerhouse.

Kenya’s Growing Reputation in Outsourcing

Brenda Mbathi, CEO of TRIFIC SEZ, emphasized Kenya’s burgeoning status as a global outsourcing hub:
“With a young, talented workforce and a reputation for linguistic excellence, Kenya is increasingly being recognized as one of the top outsourcing destinations in Africa.”

Kenya ranks highly among African countries for its outsourcing potential, competing with established markets such as South Africa, Morocco, and Egypt. Its success in this sector can be attributed to:

• Government Support: Policies aimed at improving infrastructure and creating favorable business conditions for foreign investors.
• Digital Transformation: Increased internet penetration and digital adoption have positioned Kenya as a leader in tech-enabled services.
• Youthful Workforce: With over 75% of the population under the age of 35, Kenya offers a dynamic, adaptable labor pool.

Teleperformance and Africa: A Broader Vision

Teleperformance’s investment in Kenya is part of its larger strategy to expand operations across Africa, a continent increasingly viewed as the next frontier for outsourcing.

The company is also exploring opportunities in other African nations with similar advantages, such as:

• South Africa: Known for its mature outsourcing industry and time-zone alignment with Europe.
• Egypt: A growing hub for multilingual call centers and tech support.
• Ghana: An emerging player in outsourcing, particularly for West African markets.

Teleperformance’s global CEO, Daniel Julien, has often emphasized the potential of Africa as a growth driver for the company, citing its youthful demographics, increasing internet connectivity, and untapped talent.

Challenges Ahead

Despite the positive outlook, there are challenges to sustaining and scaling outsourcing operations in Kenya:

• Infrastructure Gaps: While urban centers like Nairobi are well-developed, rural areas still face connectivity and infrastructure issues.
• Security Concerns: Political instability and security risks can deter investors.
• Competition: Kenya faces competition from other African nations and traditional outsourcing destinations globally.

To address these issues, stakeholders must work collaboratively to improve infrastructure, ensure political stability, and continue positioning Kenya as a leader in the outsourcing industry.

Conclusion

The opening of Teleperformance’s new center at TRIFIC represents a significant milestone in Kenya’s journey to becoming a global outsourcing leader. By creating thousands of jobs and enhancing the country’s global reputation, the investment demonstrates the transformative power of strategic partnerships between multinational companies and African nations.

As Kenya continues to capitalize on its strengths—linguistic excellence, technological talent, and a youthful workforce—it is well-positioned to attract even more international investments in the outsourcing sector.

Teleperformance’s commitment to Kenya serves as both a testament to the country’s potential and a blueprint for sustainable growth in the region.

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photo source: Google

By: Montel Kamau

Serrari Financial Analyst

10^th January, 2024