Business outsourcing hotspot: Madagascar shines in the BPO market

Business outsourcing hotspot: Madagascar shines in the BPO market

The Big Island has not finished surprising us in terms of ICT. It now qualifies as a Business outsourcing hotspot thanks to its fast internet connection. Moreover, one of the BPO companies in Madagascar, Outsourcia, has achieved a new quality certification in 2018. It is one of the 233 BPO companies present on the island, an undeniable sign of its expansion on the digital and economic market.



Madagascar: a business outsourcing hotspot in the French-speaking market

With the advent of the digital marketplace, artificial intelligence and the explosion of e-commerce, the BPO industry has seen a real expansion in the last 15 years. And it’s not going to stop any time soon, given the growing demand from businesses for real-time services and a presence on multiple platforms. Madagascar seems to be ready to take up this challenge, and for that, it can count on its high speed internet. Indeed, the red island has quickly become a real business outsourcing hotspot, especially for the French speaking market. However, the competition is tough with countries like Mauritius, Morocco, Tunisia or Senegal serving this same market.


Value for money in the BPO market

From a small handful of BPO companies about ten years ago, Madagascar now has 233. In the capital alone, there are between 10,000 and 15,000 employees in this sector. By comparison, Morocco, the current leader in the BPO market, has 70,000 BPOs. What attracts companies is above all the quality-price ratio of the services offered in Madagascar. Indeed, the basic salaries are around $130 (471,770.00 Ariary) per month, which is 50% cheaper than in Morocco for a BPO service of equal quality. In addition, the Big Island boasts an industrious workforce. With 75% of the Malagasy population living on less than $1.90 a day, the growth of this sector is a real boost to job creation.


Outsourcia an example of expertise in Madagascar

Madagascar is now renowned for its expertise in data processes. And among the hundreds of BPO experts on the island, we can cite the example of Outsourcia. Indeed, the latter offers a range of services from data entry to image segmentation. Youssef Chraibi, president ofOutsourcia, explains that the BPO sector in Morocco has set the salary bar very high, but has also offered social benefits to employees. These same practices are now a norm in Madagascar in the BPO world. In addition, a large number of women are entering the labour market, which is important for the country.

Deliveroo and Marie-Claire among Vivetic’s clients

In addition, other companies such as Vivetic are also propelling the red island into the BPO market. Among its most prestigious clients are Deliveroo and Voyage Privé, as well as Marie-Claire magazine, for which it manages subscriptions. This is an undeniable indicator of the success of the BPO sector in Madagascar. Moreover, Vivetic is compliant with the General Data Protection Regulation. A guarantee of quality and reliability, especially in this very rigorous market.


Continued growth in this sector

The real challenge now is to continue this growth. While the workforce is available, there are still skill gaps. This is where the professional organization Goticom comes in. Indeed, its role is to ensure quality training and to find synergies: call centres start early and finish late. Therefore, a solution for the transportation of employees, for example, should be put in place.

Photo credit: Outsourcia

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