Why local BPO sector stands out among its regional peers

Director ADEC Innovations Kenya, Pravin Eazhawa. [File Courtesy]

What began with high hopes for Kenya’s  Silicon Savannah faced early setbacks from limited infrastructure and costly satellite links, but has transformed over the past decade into a dynamic, technology-led sector. 

Improved connectivity, widespread cloud adoption, a thriving fintech ecosystem and a growing talent pipeline have helped Kenyan firms move beyond traditional call‑centre work into higher‑value IT‑enabled services like software development, data analytics, FAO (finance and accounting outsourcing), AI data services and industry‑specific solutions for fintech, healthtech and agritech.

Industry veteran Pravin Eazhawa, who is also the director of Growth Africa at ADEC Innovations Kenya, has been part of Kenya’s Business Process Outsourcing (BPO) journey since 2007.

He highlights how process maturity, partnerships and smart adoption of emerging tech have reshaped the business case for Kenya’s BPOs. He also speaks on what the future looks like for the industry, including the disruption and opportunities that AI poses. 

Why did the BPO sector in Kenya struggle to gain traction initially?

 In its early years, Kenya’s BPO sector was held back by connectivity constraints: undersea fibre only arrived in late 2010, so providers depended on expensive, unreliable satellite links.

That raised operating costs and caused technical glitches—like brief call drops from solar interference—undermining service quality and competitiveness. The arrival of fibre was a game‑changer, greatly improving reliability, lowering costs and enabling Kenyan BPOs to compete effectively in global markets.

How has the State’s role within the industry changed over time?

The government’s role in the industry has evolved significantly over time. While early interest did not immediately drive sector growth, there has been a notable shift in recent years—especially since 2022—with renewed commitment and strategic focus. The government now recognises the sector as a key driver of digital transformation and youth employment.

At the same time, the industry itself has undergone a major transformation. It has evolved from being primarily known as Business Process Outsourcing to a broader Global Business Services (GBS) model. This expanded scope now includes voice, non-voice, and AI-enabled services, making the sector more dynamic, diversified, and resilient.

How do you view the disruption of AI compared to previous milestones like the undersea cable?

 Artificial intelligence (AI) represents a transformative force for the GBS sector—arguably even more impactful than milestones such as the arrival of undersea fibre connectivity.

While undersea cables enabled global connectivity and unlocked offshore service delivery, AI is now reshaping how that work is executed. Rather than replacing human talent, AI is best understood as an enabler. It is accelerating efficiency, automating routine processes and improving service delivery across both voice and non-voice functions.

In high-value areas such as healthcare services, telecommunications, and customer experience, human expertise remains indispensable.

AI is enhancing productivity by supporting professionals, allowing them to focus on more complex, judgment-driven, and value-added tasks.

 Could AI replace humans in the GBS sector?

 AI is unlikely to fully replace humans in the GBS sector. Instead, it is best integrated as an augmentation to service delivery. In areas such as healthcare, customer experience, and manufacturing, AI can effectively handle routine and repetitive tasks, improving efficiency and consistency. However, high-value GBS functions such as telecommunications and telemedicine still require human judgment, empathy and expertise.

While AI will undoubtedly have a significant impact on how services are delivered, the extent of that impact remains uncertain. What is clear is that AI will play a complementary role, enhancing human capabilities rather than replacing them.

ADEC has, in the recent past, been expanding operations in South Africa, Egypt and Ghana. What is the strategy behind this move?

ADEC Innovations’ recent expansion into markets such as South Africa, Egypt and Ghana reflects a deliberate strategy to leverage the unique strengths of each location. These markets offer distinct advantages, from diverse language capabilities to specialised talent pools enabling the company to deliver more tailored and competitive solutions to global clients.  By building a multi-country presence, ADEC is enhancing Africa’s overall value proposition in the GBS sector. At the same time, this regional footprint reinforces Kenya’s position as a central hub within a broader, integrated service ecosystem.

 How does Kenya compare to these other African hubs?

 Kenya continues to stand out as a leading GBS destination, supported by a strong combination of political stability, a skilled workforce, reliable infrastructure, and competitive operating costs.

These factors make it an attractive base for both regional and global service delivery. In many cases, companies that initially establish operations in other African markets later expand into—or transition to Kenya to take advantage of these strengths, reinforcing its position as a central hub within the continent’s GBS ecosystem.

You mentioned a Sh1.3 billion investment in Kenya. Where is that money being deployed?

 ADEC’s recent $10 million (Sh1.3 billion) investment reflects strong confidence in Kenya’s growth potential. The funds are being deployed toward the development of a large-scale service delivery facility designed to support the company’s expanding GBS operations.

In its first phase, the facility is expected to create about 1,600 jobs, with total employment projected to reach around 3,000 as operations scale.

This investment underscores the sector’s increasing role as a major employer and contributor to Kenya’s economy.

Can you tell us about the award ADEC Innovations recently won?

 ADEC Innovations was recently honoured with the Service Provider of the Year Award at the SSON Impact Awards, a prestigious global platform that features leading companies such as IBM, Tata Consultancy Services, TP Healthcare, and Trustpair. This recognition is a strong testament to the depth and quality of talent within Kenya’s GBS sector.

It highlights the country’s ability to deliver world-class services and compete at the highest global level.  Notably, ADEC Innovations operates within the specialised niche of Knowledge Process Outsourcing, which focuses on high-value, expertise-driven services.

This achievement underscores Kenya’s continued evolution from basic outsourcing to advanced, knowledge-intensive service delivery.

What does Kenya’s policy environment look like for players in this sector?

Kenya’s policy environment remains supportive of investment in the GBS sector. The government has put in place frameworks designed to attract and retain investors, creating a conducive environment for growth.

Key incentives include Export Processing Zones and the expansion of Special Economic Zones, which offer tax benefits, streamlined regulatory processes, and ready-to-use infrastructure. Together, these measures provide a strong foundation for companies looking to establish or scale operations in Kenya.

What does the future portend for Kenya’s BPO industry?

Kenya’s BPO industry, now a broader GBS sector, has moved well beyond its early challenges and is entering a new phase of growth and sophistication. This progress is driven by improved infrastructure, stronger policy support, increasing global recognition, and the integration of AI into service delivery.

Rather than being disrupted by technological change, Kenya is actively embracing it. The country is positioning itself as a forward-looking, competitive hub for global business services, with a growing emphasis on high-value, knowledge-driven outsourcing.