Safaricom to outsource sales workforce in cost-cutting drive

Safaricom CEO Peter Ndegwa. [File, Standard]

Safaricom plans to outsource its sales workforce, internal documents by the company show. The move is seen as part of plans to restructure and cut costs as the telco seeks to compete with fast-growing rivals.

The market leader has been spending billions of shillings to expand its local and regional operations, but outsourcing certain services is part of a wider trend in the mature telecoms market.

Safaricom has invited firms to bid for the provision of external sales staff.

"Safaricom Plc is intending to run a request for proposals (RFP/tender) for the provision of an outsourced sales workforce, which is intended to lead to the identification of a reputable firm(s) to carry out trade development support activities for our consumer business, financial services, and enterprise business units, and enable the achievement of set business targets," says Safaricom in documents seen by The Standard.

"The firm(s) will accomplish this through dedicated agents for acquisition and retention supporting our regional business teams' activities."

Safaricom's regional business team is tasked with recruiting new customers, retaining them and ensuring market penetration on all its offerings.

It is also charged with accelerating the sale of the telco's fibre and fixed wireless access solutions.

Safaricom, part-owned by South Africa's Vodacom and Britain's Vodafone, is under pressure to create new revenue streams as its voice business matures.

Safaricom has been seeking to diversify its income from voice, short message services, cash transfers and payments.

Last October, the firm revealed it is targeting large water utilities with smart meter solutions.