The Ministry of ICT and National Guidance has unveiled a new Business Process Outsourcing (BPO) policy aimed at creating jobs and tapping into the rapidly expanding global BPO market, projected to hit $525.3 billion(about Shs 1,931,189,400,000,000 quadrillion) by 2030.
The policy seeks to position Uganda as a leading BPO hub, enabling the country to compete on the global stage.
It emphasizes partnerships with academic institutions to equip students and the wider population with the skills required for the BPO industry.
BPO involves companies outsourcing services such as customer support, data entry, accounting, and IT solutions to skilled professionals.
Instead of hiring full-time staff, businesses contract Ugandan BPO firms to handle these tasks efficiently, saving costs and boosting productivity.
Prof. William Bazeyo, Chairperson of the BPO Council, expressed confidence that the new policy would transform public service delivery and create jobs, especially for Uganda’s youthful and educated population.
“The policy we are launching today will cause a lot of change. Outsourcing is crucial for public institutions. Why should ministries continue buying printers, paper, and toner when such services can be outsourced cheaply and effectively?” Prof. Bazeyo said during the launch of the policy in Kampala.
He highlighted Uganda’s advantages, including a young, well-trained workforce with strong English language proficiency.
“Uganda produces more graduates annually than Kenya and Tanzania combined. Our English is globally competitive, giving us an edge in the BPO sector,”he added.
Uganda’s favorable time zone, allowing collaboration with markets in both the Americas and Asia, also boosts its appeal as a BPO destination..
Prof. Bazeyo emphasized that government involvement including favorable taxation policies and supportive infrastructure further strengthens Uganda’s position.
“With internet costs declining, more Ugandans can participate in remote jobs, including healthcare roles like nursing for clients abroad,” he noted.
He urged Permanent Secretaries to embrace the policy, arguing that outsourcing would cut operational costs for ministries while improving service delivery.
“Ugandans must believe in the potential of working remotely for global clients. This policy offers a framework that protects both employers and employees,” Prof. Bazeyo said.
Dr. Rebecca Isabella Kiconco, Vice Chairperson of the BPO Council, stressed the need for aggressive marketing and strategic partnerships to unlock the sector’s potential.
“We need to be visible. Uganda has what it takes to compete globally, but nobody knows about us. We must aggressively market and shout at the top of our voices so that we are heard,” Dr. Kiconco said.
Currently, Uganda’s local BPO market is valued at $3 million, a small share of the $100 million total BPO sector value in the country.
“Internationally, our presence is minimal. To attract investors, incentives are necessary,” she added.
With the African Union (AU) projecting that 60% of the marketplace will be digital by 2030, Dr. Kiconco believes Uganda can tap into this opportunity through collaboration.
“Achieving over 150,000 BPO jobs by 2030 will not magically happen. The government must work with the private sector, which in turn must engage with academia. Development partners are also crucial for funding and facilitation,” she emphasized.
Dr. Kiconco revealed that the Ministry of Finance is developing a framework to provide incentives for BPO operations. She also called for tax reforms to attract international investors.
“Conversations about taxes being paid after invoicing need to be had to make Uganda attractive to both international and local investors,” she noted.
Additionally, Dr. Kiconco highlighted the need to subsidize operational costs, including training expenses, to boost investor confidence and support local entrepreneurs.
“Collaboration is the key to achieving the numbers we need to compete globally,” she said.
The policy seeks to create jobs, improve livelihoods, and drive economic growth by leveraging Information and Communication Technologies (ICTs)
The policy focuses on enhancing the regulatory environment to ensure coordinated promotion of the BPO sector.
It aims to develop an efficient system for acquiring external services to support industrial and professional operations. The government expects the policy to stimulate sector growth, increase investment, and improve service delivery across public and private sectors
Key priorities under the new policy include re-engineering public and private sector processes, reducing operational costs for BPO companies, and enhancing access to markets. The policy also emphasizes developing skilled labor tailored for the BPO industry and providing essential infrastructure support to bolster the sector
The Ministry anticipates that the policy will lead to increased efficiency in service delivery, enhanced performance of the BPO industry through innovation, and a rise in foreign direct investment.
The policy is expected to boost Uganda’s visibility in the global BPO market, creating new market opportunities for local operators and increasing industry-relevant certifications among BPO companies
Economic benefits outlined in the policy include a higher contribution of the BPO sector to the country’s Gross Domestic Product (GDP), growth in tax revenue, and improved job security.
The government projects a significant rise in job creation as the sector expands, driven by increased infrastructure investments and market growth
The Ministry of ICT and National Guidance will monitor progress through key performance indicators such as productivity growth in the BPO industry, the number of skills development programs initiated, foreign investment volumes, and the acquisition of industry certifications.
The policy is set to play a vital role in strengthening Uganda’s competitiveness in the global BPO landscape while providing employment opportunities for the country’s growing workforce
