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Kenya extends subsidy deal: A huge boost for the bpo companies

By: Ivana Lewis

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The extension of the satellite bandwidth subsidy program by the Government of Kenya gave a major boost to the business process outsourcing (BPO) firms operating within the country. The decision taken extensively aims to increase the competitiveness amongst existing firms within the country and also form to be a guard for them against the high connectivity charges internationally.

The announced subsidy funded by the World Bank was especially granted to operators so as to enable them to compete effectively with their peers based in different parts of the world enjoying low internet costs.

Based on two important factors, the issuance period was finally nailed. First is the onset of the undersea fiber optic cable, it was projected to bring the prices to a record low of about $ 200 per megabyte each month (in between Sh 6,000 and Sh 7, 500 every month) that is charged by the satellite operators. Next basic reason was the exhaustion of the funds.

Why was the extension announced?

Mr. Paul Kukubo speaks:

The state corporation- Kenya ICT Board, which is basically in charge with the promotion and development of the national BPO sector came forward with this decision thinking about the growth of the Kenyan business process outsourcing. industry globally.

In the words of Mr. Paul Kukubo, who is the CEO Kenya ICT Board – it is highly significant to increase the competitiveness of the country in the BPO sector. Similarly, improving the competitiveness of BPO firms in the global sphere stands vital in the path towards the growth and development of the same. Mr. Kukubo also added that with the inclusion of the fiber optic cable, Kenya has embarked on its way to emerge as a major competitor in the global scenario.

The CEO of Kenya ICT Board also expected internet connectivity cost to drop down significantly in the near future. However, he also pointed out that this can take some time to offer the better results. His words were directed towards the influx of the fiber cables and the operators’ inability to lower the prices in the manner it should be.

The expansion of the bandwidth capacity support will also sustain the industry by means of reducing the operating costs thereby increasing the global competitiveness within a short term.

What is expected?

Experts feel that the extension of the subsidy will serve as a great support for the business process outsourcing industry. It is even predicted that it will hugely improve the subsidy uptake by the chief industry players thereby giving the required boost to the industry to bloom and to compete globally.

Within the timeframe of the subsidy extension- March 1, 2009 to March 31, 2010, it is also expected that the amount spent on the satellite bandwidth will be refunded to the operators.

Requirements to fulfill:

Companies engaged in offering business process outsourcing services will have to register with the ICT Board of Kenya as the BPO operators. Moreover, each and every service provider will have to complete the registration form present at the Kenya ICT Board offices.

Article Source: http://depositarticles.com/

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