Connectivity and growth in the Rwandan BPO...
Transcript of Connectivity and growth in the Rwandan BPO...
Connectivity and growth in the Rwandan BPO sector Mark Graham, @geoplace, [email protected]
Nicolas Friederici, @friedema, [email protected]
cii.oii.ox.ac.uk
East Africa was the last major region on Earth without fibre-‐op9c broadband Internet access, but the last couple of years have seen a rapid expansion of its Internet infrastructure. Maps: hCp://manypossibili9es.net/african-‐undersea-‐cables
Changing connectivity will allow East Africa to “become part of the global economy.” - Tanzania’s President, Jakaya Kikwete
Vision 2020 Vision 2030
Methods: In-depth qualitative
102 in-depth interviews in Kenya & Rwanda, 2 years Theory & literature • ICTs & distance, (dis-) intermediation • Trust/reputation/conceptual
connectivity • Value chains and networks • Inflows of BPO work
Overview: Connectivity-based enterprises 1. No vibrant BPO sector in Rwanda;
Kenya had longer history
2. ICT innovators: startups, entrepreneurs, entrepreneurial software developers ICT connectivity enhancers: electronic payment intermediaries, coding training institutions, etc.
3. Connectivity-based enterprises providing content and services through value chains and networks that depended on ICT infrastructure (hardware and software)
BPO
Connectivity enhancers
Innovators
Findings: Agenda
BPO
Connectivity enhancers Innovators
BPO
Connectivity enhancers Innovators
BPO
Rwanda
BPO
Rwanda
BPO
Kenya
BPO
Connectivity enhancers Innovators
1
4
2
3
BPO in Rwanda
1. Social connectivities and the focus on domestic and regional markets
2. International firms in Rwanda; outflows of work
3. Trends, debates and demands: local markets & partnerships
BPO
Rwanda
Learning from Kenya?
1. Learning curve and social connectivity
2. Global markets brings global competition and dependency
3. BPO requires scale efficiencies and clients that trust
BPO
Rwanda
BPO
Kenya
BPO in Rwanda and Kenya
1. Diverse, persistent (re-)intermediation
2. Global market forces
3. Late-follower disadvantages and learning curves
BPO
Rwanda
BPO
Kenya
Learning from other sectors?
Rwanda & Kenya 3. ICT innovators • Enterprise-centric value
networks • Focus on local from the start • Sense of opportunity for a
few
4. Connectivity enhancers • Dynamic and diverse value
chains • Transitions from informal to
formal
Rwanda 1. ICT innovators • Skills • Innovation & local
adaptation • Motors for reputation
beyond sector
2. Connectivity enhancers • Exploiting niches through
social connectivities • Transitions and pathways
BPO
Connectivity enhancers Innovators
Learning from CBEs?
1. Skills, learning and combinations of local & global knowledge
2. Trust is needed for ICTs to be able to bridge distances
3. Accessibility of local and regional markets as competitive advantage
4. Gateways and gatekeeping
BPO
Connectivity enhancers Innovators
BPO
Connectivity enhancers Innovators
Findings: Summary
1. Connectivity-based enterprises
2. Opportunities for cross-sectoral/geographical learning
3. Social connectivity/trust and local/regional markets
4. Change dynamics and diversity
Your feedback:
Is this in line with
your experience?
Is this in line with your experience? (1/2)
1. Are these findings accurate?
2. Are these findings relevant?
3. What did we miss?
4. What are your lessons learned from these findings?
5. What would you recommend to your colleagues / a new entrant into the sector?
Is this in line with your experience?(2/2)
1. Does the category of “connectivity-based enterprises” make sense to you?
2. Can BPO in Rwanda learn from other sectors, from other countries?
3. Does it match up with your experience that social connectivity/trust matter a great deal?
4. What was your experience with the learning and change that is happening in the sector?
Policy & sector recommendations
1. Identifying a competitive edge for the local sector
2. Adopting a holistic perspective across sectors
3. Considering social connectivity beyond internet connectivity
4. Building a sector’s reputation
5. Setting realistic expectations for collective learning
High-level conclusions
1. Planning is difficult, and new & unforeseen value chain and network adaptations have been occurring
All actors, incl. policymakers, need to continue to adapt; big upfront investments by governments into CBEs are risky. Company failures are inherent to the process.
2. Social connectivity matters just as much as internet connectivity for accessing markets and customers
Geography influences social connectivity, so what is geographically close can be more accessible
3. Competitive advantage has many dimensions One factor, like labour cost, can be nullified by others, and local markets might offer viable business models
Your feedback:
What is
missing?
What is
next?
What is missing? What is next?
1. Which aspects were confusing or contradictory, and didn’t add up in your view?
2. What important questions remained unanswered?
3. What are the barriers that you don’t know how to tackle?
4. Where do you see the sector in 5 years?
Thank you!
Mark Graham, @geoplace, [email protected] Nicolas Friederici, @friedema, [email protected]