IMPROVING BUSINESS COMPETITIVENESS AND INCREASING ECONOMIC · iv . Improving Business Competitiveness and Increasing Economic Growth in Ghana 4.3 Proposed Industry Bodies 70 4.4 ITES-BPO

www.infoDev.org

+ INNOVATION & ENTREPRENEURSHIP

www.infoDev.org

IMPRO

VING

BUSIN

ESS CO

MPETITIVEN

ESS AN

D IN

CREA

SING

ECO

NO

MIC

GRO

WTH

IN G

HA

NA

IMPROVING BUSINESS COMPETITIVENESS AND INCREASING ECONOMIC GROWTH IN GHANA

The Role of Information and Communication Technologies and ICT-Enabled Services


www.infoDev.org

Information for Development Program

The Role of Information and Communication Technologies & ICT-Enabled Services

Ghana front 2-27-07.indd iGhana front 2-27-07.indd i 2/27/07 10:49:19 AM2/27/07 10:49:19 AM


www.infoDev.org

Information for Development Program

The Role of Information and Communication Technologies & ICT-Enabled Services

Ghana front 2-27-07.indd iGhana front 2-27-07.indd i 2/27/07 10:49:19 AM2/27/07 10:49:19 AM

To cite this publication:Hewitt Associates. 2006. Improving Business Competitiveness and Increasing Economic Growth in Ghana: The Role of Information and Communication Technologies & IT-Enabled Services. Washington, DC: infoDev / World Bank. Available at: http://www.infodev.org/en/Publication.170.html

©2005The International Bank for Reconstruction and Development/The World Bank1818 H Street, N.W.Washington, D.C. 20433U.S.A.

All rights reservedManufactured in the United States of America

The fi ndings, interpretations and conclusions expressed herein are entirely those of the author(s) and do not necessarily refl ect the view of infoDev, the Donors of infoDev, the International Bank for Reconstruction and Development/The World Bank and its affi liated organizations, the Board of Executive Directors of the World Bank or the governments they represent. The World Bank cannot guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply on the part of the World Bank any judgement of the legal status of any territory or the endorsement or acceptance of such boundaries.

The material in this publication is copyrighted. Copying or transmitting portions of this work may be a violation of applicable law. The World Bank encourages dissemination of its work and normally will promptly grant permission for use. For permission to copy or reprint any part of this work, please contact [email protected].

Ghana front 2-27-07.indd iiGhana front 2-27-07.indd ii 2/27/07 10:49:20 AM2/27/07 10:49:20 AM

To cite this publication:Hewitt Associates. 2006. Improving Business Competitiveness and Increasing Economic Growth in Ghana: The Role of Information and Communication Technologies & IT-Enabled Services. Washington, DC: infoDev / World Bank. Available at: http://www.infodev.org/en/Publication.170.html

©2005The International Bank for Reconstruction and Development/The World Bank1818 H Street, N.W.Washington, D.C. 20433U.S.A.

All rights reservedManufactured in the United States of America

The fi ndings, interpretations and conclusions expressed herein are entirely those of the author(s) and do not necessarily refl ect the view of infoDev, the Donors of infoDev, the International Bank for Reconstruction and Development/The World Bank and its affi liated organizations, the Board of Executive Directors of the World Bank or the governments they represent. The World Bank cannot guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply on the part of the World Bank any judgement of the legal status of any territory or the endorsement or acceptance of such boundaries.

The material in this publication is copyrighted. Copying or transmitting portions of this work may be a violation of applicable law. The World Bank encourages dissemination of its work and normally will promptly grant permission for use. For permission to copy or reprint any part of this work, please contact [email protected].

Ghana front 2-27-07.indd iiGhana front 2-27-07.indd ii 2/27/07 10:49:20 AM2/27/07 10:49:20 AM

Table of Contents . iii

TABLE OF CONTENTS

ABOUT THIS REPORT vii

ABBREVIATIONS AND ACRONYMS viii

1 EXECUTIVE SUMMARY 1

1.1 Introduction 1

1.2 ITES as a Source of Enhanced Economic Growth 1

1.3 Key Findings and Recommendations of our Study 3

1.4 Suggested Target Markets and Segments 8

1.5 Monitoring and Evaluation Indicators 9

1.6 Conclusion 11

2 GHANA’S ATTRACTIVENESS IN THE GLOBAL ITES-BPO ARENA 13

2.1 Overall Analysis 13

2.2 Analysis on the People Driver 15

2.3 Analysis on the Infrastructure Driver 18

2.4 Analysis of the Environment Driver 21

2.5 Incumbents Driver 26

3 GHANA TODAY: KEY FINDINGS 31

3.1 People 31

3.2 Infrastructure 36

3.3 Environment 44

3.4 Clusters 48

3.5 Incumbents 51

4 SUGGESTED ROADMAP TO SUCCESS AS AN ITES-BPO DESTINATION 57

4.1 Recommended Approach for Ghana 57

4.2 Strategic Recommendations 67

Ghana front 2-27-07.indd iiiGhana front 2-27-07.indd iii 2/27/07 10:49:20 AM2/27/07 10:49:20 AM

Table of Contents . iii

TABLE OF CONTENTS

ABOUT THIS REPORT vii

ABBREVIATIONS AND ACRONYMS viii

1 EXECUTIVE SUMMARY 1

1.1 Introduction 1

1.2 ITES as a Source of Enhanced Economic Growth 1

1.3 Key Findings and Recommendations of our Study 3

1.4 Suggested Target Markets and Segments 8

1.5 Monitoring and Evaluation Indicators 9

1.6 Conclusion 11

2 GHANA’S ATTRACTIVENESS IN THE GLOBAL ITES-BPO ARENA 13

2.1 Overall Analysis 13

2.2 Analysis on the People Driver 15

2.3 Analysis on the Infrastructure Driver 18

2.4 Analysis of the Environment Driver 21

2.5 Incumbents Driver 26

3 GHANA TODAY: KEY FINDINGS 31

3.1 People 31

3.2 Infrastructure 36

3.3 Environment 44

3.4 Clusters 48

3.5 Incumbents 51

4 SUGGESTED ROADMAP TO SUCCESS AS AN ITES-BPO DESTINATION 57

4.1 Recommended Approach for Ghana 57

4.2 Strategic Recommendations 67

Ghana front 2-27-07.indd iiiGhana front 2-27-07.indd iii 2/27/07 10:49:20 AM2/27/07 10:49:20 AM

iv . Improving Business Competitiveness and Increasing Economic Growth in Ghana

4.3 Proposed Industry Bodies 70

4.4 ITES-BPO Policy Framework 74

4.5 Technology Park Framework 75

4.6 Skills Sets for ITES-BPO 77

4.7 The Future 79

5 INVESTMENT PROMOTION STRATEGY 83

5.1 Purpose of Investment Promotion 83

5.2 Recommended Investment Promotion Strategy 83

5.3 Components of Proposed Investment Promotion Strategy 83

5.4 Ownership of ITES Investment Promotion in Ghana—Investment Promotion Cell 84

5.5 Target Market Segments 85

5.6 Marketing Message 86

5.7 Key Strategic Initiatives 87

5.8 Suggested Marketing and Promotion Activities 88

5.9 Marketing and Promotion Tools and Materials 89

5.10 Conclusion 85

6 MONITORING & EVALUATION INDICATORS FOR ITES-BPO INDUSTRY IN GHANA 93

6.1 ITES-BPO Workforce Projections 93

6.2 Other Demographic Projections 95

6.3 Revenue Creation by ITES-BPO 96

Ghana front 2-27-07.indd ivGhana front 2-27-07.indd iv 2/27/07 10:49:21 AM2/27/07 10:49:21 AM

iv . Improving Business Competitiveness and Increasing Economic Growth in Ghana

4.3 Proposed Industry Bodies 70

4.4 ITES-BPO Policy Framework 74

4.5 Technology Park Framework 75

4.6 Skills Sets for ITES-BPO 77

4.7 The Future 79

5 INVESTMENT PROMOTION STRATEGY 83

5.1 Purpose of Investment Promotion 83

5.2 Recommended Investment Promotion Strategy 83

5.3 Components of Proposed Investment Promotion Strategy 83

5.4 Ownership of ITES Investment Promotion in Ghana—Investment Promotion Cell 84

5.5 Target Market Segments 85

5.6 Marketing Message 86

5.7 Key Strategic Initiatives 87

5.8 Suggested Marketing and Promotion Activities 88

5.9 Marketing and Promotion Tools and Materials 89

5.10 Conclusion 85

6 MONITORING & EVALUATION INDICATORS FOR ITES-BPO INDUSTRY IN GHANA 93

6.1 ITES-BPO Workforce Projections 93

6.2 Other Demographic Projections 95

6.3 Revenue Creation by ITES-BPO 96

Ghana front 2-27-07.indd ivGhana front 2-27-07.indd iv 2/27/07 10:49:21 AM2/27/07 10:49:21 AM

Table of Contents . v

FIGURES

Figure 1 Sector-wide employment trends in Ghana 2

Figure 1.5.1.1 ITES-BPO total employment projections for Ghana 10

Figure 2.1.1 Overall country analysis 14

Figure 2.2.2.1 Ghana compared with international destinations on the people driver 16

Figure 2.2.2.2 Ghana compared with regional destinations on the people driver 16

Figure 2.3.2.1 Ghana compared with international destinations on infrastructure driver 19

Figure 2.3.2.2 Ghana compared with regional destinations on infrastructure driver 20

Figure 2.4.2.1 Ghana compared with international destinations on the environment driver 23

Figure 2.4.2.2 Ghana compared with regional destinations on the environment driver 24

Figure 2.5.2.1 Ghana compared with international destinations on the incumbents driver 26

Figure 2.5.2.2 Ghana compared with regional destinations on the incumbents driver 27

Figure 3.2.1.1.1 Telecom subscriptions in Ghana 37

Figure 3.2.1.1.2 SAT 3 Landing points in Africa 38

Figure 3.2.1.3.1 Country comparison of full circuit E1 costs 40

Figure 3.2.4.1.1 U.S. state department rankings on Ghana’s transport system 43

Figure 4.1.1.1 Ghana’s “National ITES-BPO offer” 57

Figure 4.1.3.1.1 ITES-BPO processes 59

Figure 4.1.3.3.1 Target ITES-BPO segments for Ghana 66

Figure 4.3.1.1 ITES-BPO secretariat structure 71

Figure 4.3.2.1 ITES-BPO association structure 73

Figure 4.4.2.1 Key ITES-BPO policy areas 74

Figure 4.5.2.1 Key components of developing IT/technology parks 76

Figure 4.7.1.1 Issues to be addressed for reaching the destination 80

Figure 5.3 Components of an investment promotion strategy 84

Figure 5.4.2 Proposed structure of IPC 85

Ghana front 2-27-07.indd vGhana front 2-27-07.indd v 2/27/07 10:49:21 AM2/27/07 10:49:21 AM

Table of Contents . v

FIGURES

Figure 1 Sector-wide employment trends in Ghana 2

Figure 1.5.1.1 ITES-BPO total employment projections for Ghana 10

Figure 2.1.1 Overall country analysis 14

Figure 2.2.2.1 Ghana compared with international destinations on the people driver 16

Figure 2.2.2.2 Ghana compared with regional destinations on the people driver 16

Figure 2.3.2.1 Ghana compared with international destinations on infrastructure driver 19

Figure 2.3.2.2 Ghana compared with regional destinations on infrastructure driver 20

Figure 2.4.2.1 Ghana compared with international destinations on the environment driver 23

Figure 2.4.2.2 Ghana compared with regional destinations on the environment driver 24

Figure 2.5.2.1 Ghana compared with international destinations on the incumbents driver 26

Figure 2.5.2.2 Ghana compared with regional destinations on the incumbents driver 27

Figure 3.2.1.1.1 Telecom subscriptions in Ghana 37

Figure 3.2.1.1.2 SAT 3 Landing points in Africa 38

Figure 3.2.1.3.1 Country comparison of full circuit E1 costs 40

Figure 3.2.4.1.1 U.S. state department rankings on Ghana’s transport system 43

Figure 4.1.1.1 Ghana’s “National ITES-BPO offer” 57

Figure 4.1.3.1.1 ITES-BPO processes 59

Figure 4.1.3.3.1 Target ITES-BPO segments for Ghana 66

Figure 4.3.1.1 ITES-BPO secretariat structure 71

Figure 4.3.2.1 ITES-BPO association structure 73

Figure 4.4.2.1 Key ITES-BPO policy areas 74

Figure 4.5.2.1 Key components of developing IT/technology parks 76

Figure 4.7.1.1 Issues to be addressed for reaching the destination 80

Figure 5.3 Components of an investment promotion strategy 84

Figure 5.4.2 Proposed structure of IPC 85

Ghana front 2-27-07.indd vGhana front 2-27-07.indd v 2/27/07 10:49:21 AM2/27/07 10:49:21 AM

vi . Improving Business Competitiveness and Increasing Economic Growth in Ghana

Figure 5.5.1 Target vertical, markets and customers 86

Figure 5.6.1 Defining the message 87

Figure 6.1.1 ITES-BPO total employment projections for Ghana 94

TABLES

Table 1.2.1 Worldwide ITES-BPO market forecast1 (USD millions) 1

Table 1.4.3.1 Target ITES-BPO segments for Ghana 9

Table 1.5.1.1 ITES-BPO total employment projections for Ghana 10

Table 1.5.1.2 Projections for women in ITES-BPO in Ghana 10

Table 1.5.1.3 Projections for ITES-BPO revenue generation in Ghana 11

Table 3.1.1.1.1 Country comparison for number of tertiary enrolments 31

Table 3.1.2.1.1 Country comparison on quality of education 33

Table 3.1.2.2.1 Country comparison of English-speaking population 34

Table 3.1.3.1 Country comparison on average entry level salaries 35

Table 3.5.1.1.1 Existing ITES-BPO incumbents in Ghana 53

Table 4.1.3.2.1 ITES-BPO market segments 63

Table 6.1.1.1 Projections for ITES-BPO employment in Ghana—realistic growth 95

Table 6.1.2.1 Projections for ITES-BPO employment in Ghana—optimistic growth 95

Table 6.1.3.1 Projections for ITES-BPO employment in Ghana—conservative growth 96


Table 6.2.2.1 Projections for employment by skill—level 96

Table 6.3.1 Projections for ITES-BPO revenue generation in Ghana 96

Ghana front 2-27-07.indd viGhana front 2-27-07.indd vi 2/27/07 10:49:21 AM2/27/07 10:49:21 AM

vi . Improving Business Competitiveness and Increasing Economic Growth in Ghana

Figure 5.5.1 Target vertical, markets and customers 86

Figure 5.6.1 Defining the message 87

Figure 6.1.1 ITES-BPO total employment projections for Ghana 94

TABLES

Table 1.2.1 Worldwide ITES-BPO market forecast1 (USD millions) 1

Table 1.4.3.1 Target ITES-BPO segments for Ghana 9

Table 1.5.1.1 ITES-BPO total employment projections for Ghana 10


Table 1.5.1.3 Projections for ITES-BPO revenue generation in Ghana 11

Table 3.1.1.1.1 Country comparison for number of tertiary enrolments 31

Table 3.1.2.1.1 Country comparison on quality of education 33

Table 3.1.2.2.1 Country comparison of English-speaking population 34

Table 3.1.3.1 Country comparison on average entry level salaries 35

Table 3.5.1.1.1 Existing ITES-BPO incumbents in Ghana 53

Table 4.1.3.2.1 ITES-BPO market segments 63

Table 6.1.1.1 Projections for ITES-BPO employment in Ghana—realistic growth 95

Table 6.1.2.1 Projections for ITES-BPO employment in Ghana—optimistic growth 95

Table 6.1.3.1 Projections for ITES-BPO employment in Ghana—conservative growth 96


Table 6.2.2.1 Projections for employment by skill—level 96

Table 6.3.1 Projections for ITES-BPO revenue generation in Ghana 96

Ghana front 2-27-07.indd viGhana front 2-27-07.indd vi 2/27/07 10:49:21 AM2/27/07 10:49:21 AM

About This Report . vii

ABOUT THIS REPORTThis document discusses the role of information and communication technology (ICT) and informa-tion technology-enabled services (ITES) in improving business competitiveness and increasing economic growth in Ghana. In this context, the document includes:■ An analysis of Ghana’s ability to compete globally as well as regionally in the information technology-

enabled services (ITES)-business process outsourcing/offshoring (BPO) sector and the primary con-straints to improving Ghana’s competitiveness in the sector.

■ Recommendations for concrete actions for Ghana to increase its competitiveness and capability as an ITES-BPO destination, and target ITES-BPO activities and market segments in which it can be com-petitive in the short and medium term.

■ A roadmap for developing the ITES-BPO industry in Ghana, including a skills development compo-nent, policy framework, and measurement matrix.

■ Recommended investment promotion strategy for developing and attracting investments in Ghana’s ITES-BPO sector.

■ A monitoring and evaluation framework for the ITES-BPO sector in Ghana, providing baselines and targets.

The analysis presented in this report is based on information and findings as of April 2006, and may not reflect the impact of subsequent changes and developments.

This report was commissioned by the Information for Development Program (infoDev) in partnership with the Government of Ghana through the Ministry of Communications and the World Bank Group, and prepared by Hewitt Associates (India).

Ghana front 2-27-07.indd viiGhana front 2-27-07.indd vii 2/27/07 10:49:21 AM2/27/07 10:49:21 AM

About This Report . vii

ABOUT THIS REPORTThis document discusses the role of information and communication technology (ICT) and informa-tion technology-enabled services (ITES) in improving business competitiveness and increasing economic growth in Ghana. In this context, the document includes:■ An analysis of Ghana’s ability to compete globally as well as regionally in the information technology-

enabled services (ITES)-business process outsourcing/offshoring (BPO) sector and the primary con-straints to improving Ghana’s competitiveness in the sector.

■ Recommendations for concrete actions for Ghana to increase its competitiveness and capability as an ITES-BPO destination, and target ITES-BPO activities and market segments in which it can be com-petitive in the short and medium term.

■ A roadmap for developing the ITES-BPO industry in Ghana, including a skills development compo-nent, policy framework, and measurement matrix.

■ Recommended investment promotion strategy for developing and attracting investments in Ghana’s ITES-BPO sector.

■ A monitoring and evaluation framework for the ITES-BPO sector in Ghana, providing baselines and targets.

The analysis presented in this report is based on information and findings as of April 2006, and may not reflect the impact of subsequent changes and developments.

This report was commissioned by the Information for Development Program (infoDev) in partnership with the Government of Ghana through the Ministry of Communications and the World Bank Group, and prepared by Hewitt Associates (India).

Ghana front 2-27-07.indd viiGhana front 2-27-07.indd vii 2/27/07 10:49:21 AM2/27/07 10:49:21 AM

viii . Improving Business Competitiveness and Increasing Economic Growth in Ghana

ABBREVIATIONS AND ACRONYMS

BPO: Business Process Outsourcing/Offshoring

CAGR: Compounded Annual Growth Rate

ECOWAS: Economic Community of West African States

GDP: Gross Domestic Product

GIMPA: Ghana Institute of Management and Public Administration

GISPA: Ghana Internet Service Providers Association

GoG: Government of Ghana

GZFB: Ghana Free Zone Board

KPO: Knowledge Process Outsourcing

ICT4AD Policy: ICT for Accelerated Development Policy

ITES: Information Technology Enabled Services

MNC: Multinational Corporation

MoC: Ministry of Communications

NCA: National Communications Authority

OEM: Original Equipment Manufacturer

PC: Personal Computer

SLA: Service Level Agreement

SSS: Senior Secondary School

UK: United Kingdom

US: United States of America

USD: US Dollars

VoC: Voice of Customer

VoIP: Voice over Internet Protocol

WAMU: West African Monetary Union

Ghana front 2-27-07.indd viiiGhana front 2-27-07.indd viii 2/27/07 10:49:22 AM2/27/07 10:49:22 AM

viii . Improving Business Competitiveness and Increasing Economic Growth in Ghana

ABBREVIATIONS AND ACRONYMS

BPO: Business Process Outsourcing/Offshoring

CAGR: Compounded Annual Growth Rate

ECOWAS: Economic Community of West African States

GDP: Gross Domestic Product

GIMPA: Ghana Institute of Management and Public Administration

GISPA: Ghana Internet Service Providers Association

GoG: Government of Ghana

GZFB: Ghana Free Zone Board

KPO: Knowledge Process Outsourcing

ICT4AD Policy: ICT for Accelerated Development Policy

ITES: Information Technology Enabled Services

MNC: Multinational Corporation

MoC: Ministry of Communications

NCA: National Communications Authority

OEM: Original Equipment Manufacturer

PC: Personal Computer

SLA: Service Level Agreement

SSS: Senior Secondary School

UK: United Kingdom

US: United States of America

USD: US Dollars

VoC: Voice of Customer

VoIP: Voice over Internet Protocol

WAMU: West African Monetary Union

Ghana front 2-27-07.indd viiiGhana front 2-27-07.indd viii 2/27/07 10:49:22 AM2/27/07 10:49:22 AM

Executive Summary . 1

1 EXECUTIVESUMMARY

1.1 INTRODUCTIONThe Government of Ghana has identified IT-enabled services (ITES) as one of the key sectorsfor enhancing economic growth, along with agro-processing and tourism. It is implementing severalprograms under the e-Ghana initiative to improveits skills and infrastructure.

In an effort to understand Ghana’s capability and real-ize its potential in ITES, Hewitt Associates (India)Private Ltd., on behalf of the Government of Ghana,the Information for Development Program (infoDev),and the World Bank Group, conducted a study onthe role of ICTs and ITES in improving businesscompetitiveness and increasing economic growth inGhana.

1.2 ITES AS A SOURCE OFENHANCED ECONOMICGROWTHAfter studying economic progress in relation to theeconomic structure of different countries over time,it is clear that a higher average level of real incomeis always associated with a high proportion of theworking population engaged in the service or publicutility sectors. In many large economies, the servicesector is the largest in terms of employment, due

mostly to a massive increase in productivity growthand the progressively higher income elasticity in theprimary and secondary sectors. More economicallyadvanced countries, such as the United States,Germany, and the United Kingdom, have followedthe movement from agriculture as the largest sourceof employment, to industry, and finally to services.The structural transformation of employment hasoccurred even more markedly from agriculture toservices in the later developed and some of the cur-rently developing countries. The service sector isbecoming a dominant feature of the economic land-scape in these countries as its contributions towardsGDP steadily increase and the contributions of theagricultural sector to GDP decrease.

Within services, the IT-enabled service segment isbeginning to be perceived as the new growth fron-tier. The rise of this segment is driven by rapidgrowth in global outsourcing and offshoring.Outsourcing is defined as the delegation of one ormore IT-intensive business processes to an externalprovider who in turn, owns, administers, and man-ages selected processes, based on defined and meas-urable performance metrics. Offshoring refers tothe administration of these processes in a locationother than the company’s home country.

Countries such as India, Philippines, the CzechRepublic, and Ireland have completely transformedtheir economies by adopting IT and ITES-BPOsegments as the engine that propels their economies inan accelerated mode in relatively short periods of time.

Only 10 percent of the addressable market forglobal offshoring is estimated to be realized so far.The size of the addressable market itself is expand-ing as organizations continually expand servicesthat can be further outsourced and offshored. The

TABLE 1.2.1: Worldwide ITES-BPO market forecast1 (USD millions)

CAGR(%)

2004 2005 2006 2007 2008 2009 2004–2009

ITES-BPO 14,797 125,895 137,332 150,675 164,357 179,348 9.5Total

ITES-BPO 9.8 9.7 9.1 9.7 9.1 9.1 —Growth %

1 Source: Forecast by Gartner-Dataquest, 2004

WB Ghana text 2-27-07.qxd 2/27/07 11:11 AM Page 1


1 EXECUTIVESUMMARY

1.1 INTRODUCTIONThe Government of Ghana has identified IT-enabled services (ITES) as one of the key sectorsfor enhancing economic growth, along with agro-processing and tourism. It is implementing severalprograms under the e-Ghana initiative to improveits skills and infrastructure.

In an effort to understand Ghana’s capability and real-ize its potential in ITES, Hewitt Associates (India)Private Ltd., on behalf of the Government of Ghana,the Information for Development Program (infoDev),and the World Bank Group, conducted a study onthe role of ICTs and ITES in improving businesscompetitiveness and increasing economic growth inGhana.

1.2 ITES AS A SOURCE OFENHANCED ECONOMICGROWTHAfter studying economic progress in relation to theeconomic structure of different countries over time,it is clear that a higher average level of real incomeis always associated with a high proportion of theworking population engaged in the service or publicutility sectors. In many large economies, the servicesector is the largest in terms of employment, due

mostly to a massive increase in productivity growthand the progressively higher income elasticity in theprimary and secondary sectors. More economicallyadvanced countries, such as the United States,Germany, and the United Kingdom, have followedthe movement from agriculture as the largest sourceof employment, to industry, and finally to services.The structural transformation of employment hasoccurred even more markedly from agriculture toservices in the later developed and some of the cur-rently developing countries. The service sector isbecoming a dominant feature of the economic land-scape in these countries as its contributions towardsGDP steadily increase and the contributions of theagricultural sector to GDP decrease.

Within services, the IT-enabled service segment isbeginning to be perceived as the new growth fron-tier. The rise of this segment is driven by rapidgrowth in global outsourcing and offshoring.Outsourcing is defined as the delegation of one ormore IT-intensive business processes to an externalprovider who in turn, owns, administers, and man-ages selected processes, based on defined and meas-urable performance metrics. Offshoring refers tothe administration of these processes in a locationother than the company’s home country.

Countries such as India, Philippines, the CzechRepublic, and Ireland have completely transformedtheir economies by adopting IT and ITES-BPOsegments as the engine that propels their economies inan accelerated mode in relatively short periods of time.

Only 10 percent of the addressable market forglobal offshoring is estimated to be realized so far.The size of the addressable market itself is expand-ing as organizations continually expand servicesthat can be further outsourced and offshored. The

TABLE 1.2.1: Worldwide ITES-BPO market forecast1 (USD millions)

CAGR(%)

2004 2005 2006 2007 2008 2009 2004–2009

ITES-BPO 14,797 125,895 137,332 150,675 164,357 179,348 9.5Total

ITES-BPO 9.8 9.7 9.1 9.7 9.1 9.1 —Growth %

1 Source: Forecast by Gartner-Dataquest, 2004


2 . Improving Business Competitiveness and Increasing Economic Growth in Ghana

2 Sources: Quarterly Digest of Statistics: Ghana Statistical Service, Government and World Bank Reports, Employment figures from GLSS 3 & 4 and 2000Population Census


4 The agricultural sector recorded an average annual growth rate of 2.3 percent between 1984 and 2004 compared with 4.7 percent and 4.8 percent in theindustrial and service sectors respectively

5 Census Data

Figure 1. Sector-wide employment trends in Ghana5

global forecasts for the ITES-BPO sector are pro-vided below by industry researcher Gartner-Dataquest.

From the above projections, it is evident that theITES-BPO phenomenon can therefore translateinto a very large opportunity for countries such asGhana, which have some of the basic buildingblocks required for becoming an ITES-BPO servic-es destination.

1.2.1 Why ITES-BPO for Ghana?Ghana’s economy remains predominately agrarian,and the sector continues to dominate the labormarket as the main source of employment.However the percentage contribution of the agri-culture sector dropped drastically to 46.6 percentin 2005 from the 1988 figure of 61.12 percent.This drop was determined by examining the levelof economic activity of the various sectors, meas-

ured in terms of percentage f economically activepopulations in each of these sectors.3 percent. Thedrop is partly caused by the declining performanceof the agricultural sector in the 1980s and the1990s, in line with similar trends across the world.The decline in agriculture employment in favor ofindustry and services reflects its declining share inreal GDP as against the increasing share of servicesand industry.4

The service sector has hence emerged as the second-largest source of employment for Ghana and thelargest contributor to GDP, with a contributionincrease in overall GDP from 22.1 percent in 1984to 43 percent in 2004. It consists of sub-sectorssuch as trade-related services, transportation, finan-cial and banking services, public administration,and business services (including the nascent ITES-BPO segment) and employs more than 25 percentof the work force. The Industrial sector, on theother hand, has not really developed in Ghana, being





4 The agricultural sector recorded an average annual growth rate of 2.3 percent between 1984 and 2004 compared with 4.7 percent and 4.8 percent in theindustrial and service sectors respectively

5 Census Data

Figure 1. Sector-wide employment trends in Ghana5

global forecasts for the ITES-BPO sector are pro-vided below by industry researcher Gartner-Dataquest.

From the above projections, it is evident that theITES-BPO phenomenon can therefore translateinto a very large opportunity for countries such asGhana, which have some of the basic buildingblocks required for becoming an ITES-BPO servic-es destination.

1.2.1 Why ITES-BPO for Ghana?Ghana’s economy remains predominately agrarian,and the sector continues to dominate the labormarket as the main source of employment.However the percentage contribution of the agri-culture sector dropped drastically to 46.6 percentin 2005 from the 1988 figure of 61.12 percent.This drop was determined by examining the levelof economic activity of the various sectors, meas-

ured in terms of percentage f economically activepopulations in each of these sectors.3 percent. Thedrop is partly caused by the declining performanceof the agricultural sector in the 1980s and the1990s, in line with similar trends across the world.The decline in agriculture employment in favor ofindustry and services reflects its declining share inreal GDP as against the increasing share of servicesand industry.4

The service sector has hence emerged as the second-largest source of employment for Ghana and thelargest contributor to GDP, with a contributionincrease in overall GDP from 22.1 percent in 1984to 43 percent in 2004. It consists of sub-sectorssuch as trade-related services, transportation, finan-cial and banking services, public administration,and business services (including the nascent ITES-BPO segment) and employs more than 25 percentof the work force. The Industrial sector, on theother hand, has not really developed in Ghana, being



the lowest employer, with 16.98 percent economi-cally active population employed by this sector.

Conclusion: Ghana has entered a phase of acceler-ated economic expansion over the last three years,with real GDP growth averaging 5.2 percent, com-pared to a 20-year average of 4.4 percent. To main-tain and enhance these growth rates, it becomesimperative that service sectors such as ITES-BPObecome the new focus for Ghana because of theirunique potential as harbingers of enhanced job cre-ation and accelerated economic growth. This senti-ment has also been expressed in the Ghana PovertyReduction Strategy which has identified ITES-BPOas one of the non-traditional sectors with thepotential to accelerate economic growth in Ghana.

Some key benefits that this industry can be expectedto bring to Ghana are summarized below:■ Enhanced job creation. As Ghana attains

greater development and maturity in the ITES-BPO sector, it will lead to more jobs, as it is alabor-intensive industry. Here, scale is achievedby the high deployment of people, unlike tradi-tional sectors where growth and development donot imply an increase in jobs.

■ Quick source of revenue. Unlike traditionalsectors of the economy, the ITES-BPO sectorrequires relatively smaller investments in bothtime and funds to set up and start generatingrevenues. Other sectors are structurally slow toestablish, requiring large capital and physicalinfrastructure with high gestation periods. Thismakes it a quick-win for a developing, economi-cally weaker economy such as Ghana.

■ Enhanced foreign direct investment. TheITES-BPO sector is primarily export-oriented.Focusing on this sector can enhance foreigndirect investment into Ghana, which can boostexport earnings, jobs, wages, and skills of theworkforce.

■ Positive spillover effects of the ITES-BPO sector.These include improvements in the informationand communication technology (ICT) infra-structure and business services, which furtherlead to an increase in business opportunities fordomestic companies.

■ Increased female participation in the work-force. One of the most salient features and per-sistent trends in the services industry is theincreased feminization of the labor force andthis is also evidenced in the ITES-BPO sector.

Female participation in the workforce is around44 percent (excluding sales-related sectors) andcan be expected to increase with development ofITES-BPO in Ghana.

■ Improved Performance. A constant focus onperformance metrics such as quality, timeliness,and accountability is a primary characteristic ofthe ITES-BPO industry. Such attributes can, inturn, help Ghanaian firms improve organiza-tional systems and adopt more globally competi-tive and strategic management approaches.Moreover, as such generic skills are portable,they can potentially benefit other sectors of theeconomy.

■ Indirect Employment Impact. The growth ofthe ITES-BPO industry in Ghana will also cre-ate demand for ancillary and support servicesand industries, such as housekeeping, security,catering, transport, language and domain train-ing, telecom and computer equipment provi-sion, maintenance, and real estate. It is estimat-ed that for every direct employment created inthe ITES-BPO sector, four indirect jobs arecreated in other aspects of the economy. Hence,the industry will be able to create large scaleindirect employment opportunities for the lessskilled and less educated

1.3 KEY FINDINGS ANDRECOMMENDATIONS OF OUR STUDY

1.3.1 Strengths, Weaknesses,Opportunities, and Threats (SWOT)Analysis for Ghana as an ITES-BPODestinationWe have studied Ghana’s current positioningunder each of the classifications of the HewittFive Driver Model, namely People, Infrastructure,Environment, Incumbents and Clusters. Ouranalytical framework for conducting the bench-marking aspects of this project is built upon thesefive drivers. Each of these drivers is further bro-ken down into factors, parameters, and elementsto comprehensively analyze each aspect.

Weights were assigned to each driver and parameterlevel to get the overall scores for comparator coun-tries both at regional and international levels. These



the lowest employer, with 16.98 percent economi-cally active population employed by this sector.

Conclusion: Ghana has entered a phase of acceler-ated economic expansion over the last three years,with real GDP growth averaging 5.2 percent, com-pared to a 20-year average of 4.4 percent. To main-tain and enhance these growth rates, it becomesimperative that service sectors such as ITES-BPObecome the new focus for Ghana because of theirunique potential as harbingers of enhanced job cre-ation and accelerated economic growth. This senti-ment has also been expressed in the Ghana PovertyReduction Strategy which has identified ITES-BPOas one of the non-traditional sectors with thepotential to accelerate economic growth in Ghana.

Some key benefits that this industry can be expectedto bring to Ghana are summarized below:■ Enhanced job creation. As Ghana attains

greater development and maturity in the ITES-BPO sector, it will lead to more jobs, as it is alabor-intensive industry. Here, scale is achievedby the high deployment of people, unlike tradi-tional sectors where growth and development donot imply an increase in jobs.

■ Quick source of revenue. Unlike traditionalsectors of the economy, the ITES-BPO sectorrequires relatively smaller investments in bothtime and funds to set up and start generatingrevenues. Other sectors are structurally slow toestablish, requiring large capital and physicalinfrastructure with high gestation periods. Thismakes it a quick-win for a developing, economi-cally weaker economy such as Ghana.

■ Enhanced foreign direct investment. TheITES-BPO sector is primarily export-oriented.Focusing on this sector can enhance foreigndirect investment into Ghana, which can boostexport earnings, jobs, wages, and skills of theworkforce.

■ Positive spillover effects of the ITES-BPO sector.These include improvements in the informationand communication technology (ICT) infra-structure and business services, which furtherlead to an increase in business opportunities fordomestic companies.

■ Increased female participation in the work-force. One of the most salient features and per-sistent trends in the services industry is theincreased feminization of the labor force andthis is also evidenced in the ITES-BPO sector.

Female participation in the workforce is around44 percent (excluding sales-related sectors) andcan be expected to increase with development ofITES-BPO in Ghana.

■ Improved Performance. A constant focus onperformance metrics such as quality, timeliness,and accountability is a primary characteristic ofthe ITES-BPO industry. Such attributes can, inturn, help Ghanaian firms improve organiza-tional systems and adopt more globally competi-tive and strategic management approaches.Moreover, as such generic skills are portable,they can potentially benefit other sectors of theeconomy.

■ Indirect Employment Impact. The growth ofthe ITES-BPO industry in Ghana will also cre-ate demand for ancillary and support servicesand industries, such as housekeeping, security,catering, transport, language and domain train-ing, telecom and computer equipment provi-sion, maintenance, and real estate. It is estimat-ed that for every direct employment created inthe ITES-BPO sector, four indirect jobs arecreated in other aspects of the economy. Hence,the industry will be able to create large scaleindirect employment opportunities for the lessskilled and less educated

1.3 KEY FINDINGS ANDRECOMMENDATIONS OF OUR STUDY

1.3.1 Strengths, Weaknesses,Opportunities, and Threats (SWOT)Analysis for Ghana as an ITES-BPODestinationWe have studied Ghana’s current positioningunder each of the classifications of the HewittFive Driver Model, namely People, Infrastructure,Environment, Incumbents and Clusters. Ouranalytical framework for conducting the bench-marking aspects of this project is built upon thesefive drivers. Each of these drivers is further bro-ken down into factors, parameters, and elementsto comprehensively analyze each aspect.

Weights were assigned to each driver and parameterlevel to get the overall scores for comparator coun-tries both at regional and international levels. These



were—People Driver—40 percent; Infrastructure—30 percent; Environment—20 percent andIncumbents—10 percent. Overall, Ghana wasplaced in the 10th position with respect to thesecountries.

Ghana’s positioning across these Drivers was bench-marked with respect to that of five leading andupcoming International ITES-BPO destinations(India, China, Philippines, Romania and Mexico)as well as six regional emerging or potential ITES-BPO destinations (South Africa, Egypt, Mauritius,Botswana, Nigeria and Senegal). In addition to theabove, we had several interactions with stakeholders,including incumbent organizations during thecourse of the study.

Based on our findings from the international bench-marking and an analysis of the development ofGhana’s ITES-BPO sector, we have identified theoverall SWOT for Ghana and made recommenda-tions that will help facilitate the growth of the sector.

1.3.2 People DriverHuman resources are a key differentiator of thecapability of a location to attract and sustain a par-ticular industry. The ITES-BPO sector is especiallylabor intensive and dependent on talent. To succeedin this sector, Ghana would require availability of

an abundant, low-cost, efficient, and suitable tal-ent pool. The following table addresses thestrengths and weaknesses of Ghana under thePeople Driver and provides recommendations fordeveloping the same with regards to the ITES-BPOindustry.

1.3.3 Infrastructure DriverAvailability of reliable infrastructure is anothercritical aspect for ITES-BPO establishments. Theindustry is heavily dependent on real time connec-tivity, with high demand for a robust telecom andpower infrastructure. Civic amenities such as goodroads, transportation systems, etc., make it easierfor companies to do business out of a particularlocation. The following table includes strengthsand weaknesses of Ghana under the InfrastructureDriver and provides recommendations for develop-ing it with regards to the ITES-BPO industry.

1.3.4 Environment DriverExternal environment refers to the legal and regula-tory setup. The attitude and support of governmentand other related administrative bodies in terms ofpolicies, procedures, ease of getting approvals,incentives, exemptions, special benefits, ease of han-dling, etc, are relevant in reducing the ‘pain-points’of doing business in a particular location. The fol-lowing table addresses the strengths and weaknesses

■ Large pool of potentially good English speaking population.■ Competitive labor costs differential to U.S. and U.K. companies.■ Stable geo-political environment in comparison with neighbor-

ing as well as other countries worldwide.■ ITES-BPO sector identified as a focus areas for economic

development by the government. ■ Availability and penetration of telecom and Internet services

are rising.■ Several investor-friendly policies including tax holidays, 100

percent foreign ownership are in place.■ Cyber laws to protect ITES-BPO investors are in the process

of being promulgated.

■ Employability in the context of the ITES-BPO industry of large tal-ent pool is proportionately low.

■ Inadequate education infrastructure and training facilities.■ Low levels of IT literacy and PC proliferation at educational and

business-commercial levels.■ Although infrastructure costs may be lower in comparison with

some countries, there is a lack of suitable telecommunications andquality real estate infrastructure, which is a bottleneck for investors.

■ High inflation and interest rates, despite recent decreases.■ No policies or incentives specifically for the ITES-BPO sector.■ Low level of incumbent presence in spite of early offshoring

activity (ACS.)

Strengths Weaknesses

■ Leverage the image of its democratic and relatively stablepolitical environment towards establishing itself as a regionalhub for offshoring services.

■ Establish itself as a subcontracting hub for more establisheddestinations.

■ Collaborate with countries such as South Africa and offercomplementary services.

■ Develop offerings such as medical transcription and dataprocessing in the short and medium term.

■ Proactive investment promotion of the ITES-BPO industry by com-peting regional destinations, such as Nigeria, Mauritius,Botswana.

■ Lack of development of necessary educational and traininginfrastructure resulting in limited scalability for the industry.

Opportunities Threats

SWOT Analysis for Ghana as an ITES-BPO Destination



were—People Driver—40 percent; Infrastructure—30 percent; Environment—20 percent andIncumbents—10 percent. Overall, Ghana wasplaced in the 10th position with respect to thesecountries.

Ghana’s positioning across these Drivers was bench-marked with respect to that of five leading andupcoming International ITES-BPO destinations(India, China, Philippines, Romania and Mexico)as well as six regional emerging or potential ITES-BPO destinations (South Africa, Egypt, Mauritius,Botswana, Nigeria and Senegal). In addition to theabove, we had several interactions with stakeholders,including incumbent organizations during thecourse of the study.

Based on our findings from the international bench-marking and an analysis of the development ofGhana’s ITES-BPO sector, we have identified theoverall SWOT for Ghana and made recommenda-tions that will help facilitate the growth of the sector.

1.3.2 People DriverHuman resources are a key differentiator of thecapability of a location to attract and sustain a par-ticular industry. The ITES-BPO sector is especiallylabor intensive and dependent on talent. To succeedin this sector, Ghana would require availability of

an abundant, low-cost, efficient, and suitable tal-ent pool. The following table addresses thestrengths and weaknesses of Ghana under thePeople Driver and provides recommendations fordeveloping the same with regards to the ITES-BPOindustry.

1.3.3 Infrastructure DriverAvailability of reliable infrastructure is anothercritical aspect for ITES-BPO establishments. Theindustry is heavily dependent on real time connec-tivity, with high demand for a robust telecom andpower infrastructure. Civic amenities such as goodroads, transportation systems, etc., make it easierfor companies to do business out of a particularlocation. The following table includes strengthsand weaknesses of Ghana under the InfrastructureDriver and provides recommendations for develop-ing it with regards to the ITES-BPO industry.

1.3.4 Environment DriverExternal environment refers to the legal and regula-tory setup. The attitude and support of governmentand other related administrative bodies in terms ofpolicies, procedures, ease of getting approvals,incentives, exemptions, special benefits, ease of han-dling, etc, are relevant in reducing the ‘pain-points’of doing business in a particular location. The fol-lowing table addresses the strengths and weaknesses

■ Large pool of potentially good English speaking population.■ Competitive labor costs differential to U.S. and U.K. companies.■ Stable geo-political environment in comparison with neighbor-

ing as well as other countries worldwide.■ ITES-BPO sector identified as a focus areas for economic

development by the government. ■ Availability and penetration of telecom and Internet services

are rising.■ Several investor-friendly policies including tax holidays, 100

percent foreign ownership are in place.■ Cyber laws to protect ITES-BPO investors are in the process

of being promulgated.

■ Employability in the context of the ITES-BPO industry of large tal-ent pool is proportionately low.

■ Inadequate education infrastructure and training facilities.■ Low levels of IT literacy and PC proliferation at educational and

business-commercial levels.■ Although infrastructure costs may be lower in comparison with

some countries, there is a lack of suitable telecommunications andquality real estate infrastructure, which is a bottleneck for investors.

■ High inflation and interest rates, despite recent decreases.■ No policies or incentives specifically for the ITES-BPO sector.■ Low level of incumbent presence in spite of early offshoring

activity (ACS.)


■ Leverage the image of its democratic and relatively stablepolitical environment towards establishing itself as a regionalhub for offshoring services.

■ Establish itself as a subcontracting hub for more establisheddestinations.

■ Collaborate with countries such as South Africa and offercomplementary services.

■ Develop offerings such as medical transcription and dataprocessing in the short and medium term.

■ Proactive investment promotion of the ITES-BPO industry by com-peting regional destinations, such as Nigeria, Mauritius,Botswana.

■ Lack of development of necessary educational and traininginfrastructure resulting in limited scalability for the industry.

Opportunities Threats

SWOT Analysis for Ghana as an ITES-BPO Destination



■ A large pool of workers with English language skills.6■ English is the official language. ■ There is high availability of mature workers, even at entry

level.■ The country offers competitive labor cost differential to U.S.

and U.K. investors, as well as the regional competitor, SouthAfrica.

■ There is strong cultural affinity with the U.S. and U.K.cultures.

■ Current ITES-BPO staff attrition rates are low at about5 percent as compared with 35–40 percent in destina-tions such as India.

■ Once trained, workers tend to perform consistently.■ Workforce is flexible to the demands of the ITES industry. It is

not difficult to staff operations in excess of a 12-hour day ora night shift, unlike in established destinations such as SouthAfrica.

■ Ghana ranks high on both the quality of math and scienceeducation (in schools) and the quality of management educa-tion (in management schools). Ghana is higher than some ofthe regional countries and even some established destinations7

■ Despite a large talent pool, employable proportion is lowbecause of high drop-out rates from primary to secondary to ter-tiary levels, as well as lack of IT skills,

■ There are capacity constraints for providing education at the sen-ior secondary school and college levels.

■ There is also an absence of market/demand led curriculum.Course curriculum has not evolved with the changes in the eco-nomic structure and composition of the country.

■ While talent pool availability is substantial at entry level, it is notso at middle management and senior levels.

■ Labor cost differential offered by Ghana is not as high as incountries such as India and the Philippines.

■ Training requirements are high in order to reach requisite qualitylevels of service delivery.

■ There is a shortage of technical talent and professionals in Ghana.■ The country is still characterized by low levels of IT literacy and

PC proliferation, at both the educational and business-commer-cial levels.

■ Ghana does not have any significant foreign language skillsacross the country, rendering it difficult to position it as a strongdestination for European companies.


■ The telecom industry in Ghana is partly liberalized.■ Internet availability and penetration is on the rise.■ Access to telephony (as measured by tele-density) has signifi-

cantly improved over the last five years, primarily due to theintroduction of mobile telephones in the country.

■ Initiatives are being undertaken to ensure that telecomcosts for ITES-BPO operations are competitive with otherdestinations.

■ Cost-effective services such as voice over Internet protocol(VoIP) have been allowed for ITES-BPO.

■ Real estate developers are granted several fiscal incentivesincluding custom import duty exemptions, depreciation orcapital allowance measures, exemption from taxes on con-struction activity, etc8.

■ There is a significant lack of telecom bandwidth, which is exacer-bated by a lack of competition in the industry, which is keepingprices of services currently higher than in competing destinations.

■ Telecom set up time (especially where location requires substan-tial last mile interventions) has come down, but is still high.

■ Quality of network (for voice, data and Internet) needs substan-tial improvement.

■ Information availability (on cost, availability, terms, and condi-tions) is highly “imperfect.”

■ Connectivity beyond Accra is considered unsatisfactory, even tokey centers such as Sekondi- Takoradi, Kumasi and Tamale.

■ There is a lack of quality real estate which is a constraint to thegrowth of the industry.

■ Availability of Grade ‘A’ buildings is limited and subsequentlyrentals for ‘Grade B’ buildings are artificially driven higher.

■ Real estate ownership and title procedures are considered cum-bersome and unclear due to presence of customary laws.

■ As most of the technology park projects are currently in the plan-ning stage, park availability is limited in the short to mediumterm. The ‘Shell’ concept is envisaged but not yet in place.


6 http://www.oasisint.net/about.php7 Quality of Math and Science Education score: Ghana- 3.51, South Africa – 2.82, Nigeria-2.72, Philippines- 2.78 Quality of Management Schools score:

Ghana-4.01, Nigeria – 3.51, Botswana-3.27,China-3.56; Source: The Global Information Technology Report 2003–20048 Source: Ghana investment Profile: Property Development, a publication of the Ghana Investment Promotion Centre (GIPC)

People Driver

Recommendations■ Set up an ITES-BPO vocational training expert group comprising of industry and educational experts. They would review and comment

upon a set of uniform skills standard for ITES-BPO.■ Define and adopt the set of uniform ITES-BPO skills standards and implement a National Level ITES-BPO skills assessment, certification and

training program. This program would assess potential candidates on certain pre-determined skill requirements and provide a score that canbe used by prospective employers to judge capability. This would reduce some of the costs associated with in-house recruitment assessment.

■ Develop and introduce an accreditation policy in conjunction with the Vocational Training Expert Group for private training institutions.This will help ensure quality of training.

■ Review and internationally benchmark educational syllabus at secondary and tertiary levels with a focus on building language, analyti-cal, and computer skills,

■ Introduce courses providing specialization in ITES-BPO management through the Ghana Institute of Management and PublicAdministration (GIMPA) and other facilities to develop local management talent.

■ Attract and retain skilled workers in the industry by: building awareness of career opportunities provided by ITES-BPO; setting up ITES-BPO career counselling cells; and aggressively targeting and promoting Ghana’s ITES-BPO industry in `Diaspora’ forums.

■ Enable educators to participate in the ITES-BPO movement by training them and providing a “hands-on” experience in the ITES-BPOand IT environment through Teacher externships, summer work programs, and consulting opportunities.

Infrastructure Driver



■ A large pool of workers with English language skills.6■ English is the official language. ■ There is high availability of mature workers, even at entry

level.■ The country offers competitive labor cost differential to U.S.

and U.K. investors, as well as the regional competitor, SouthAfrica.

■ There is strong cultural affinity with the U.S. and U.K.cultures.

■ Current ITES-BPO staff attrition rates are low at about5 percent as compared with 35–40 percent in destina-tions such as India.

■ Once trained, workers tend to perform consistently.■ Workforce is flexible to the demands of the ITES industry. It is

not difficult to staff operations in excess of a 12-hour day ora night shift, unlike in established destinations such as SouthAfrica.

■ Ghana ranks high on both the quality of math and scienceeducation (in schools) and the quality of management educa-tion (in management schools). Ghana is higher than some ofthe regional countries and even some established destinations7

■ Despite a large talent pool, employable proportion is lowbecause of high drop-out rates from primary to secondary to ter-tiary levels, as well as lack of IT skills,

■ There are capacity constraints for providing education at the sen-ior secondary school and college levels.

■ There is also an absence of market/demand led curriculum.Course curriculum has not evolved with the changes in the eco-nomic structure and composition of the country.

■ While talent pool availability is substantial at entry level, it is notso at middle management and senior levels.

■ Labor cost differential offered by Ghana is not as high as incountries such as India and the Philippines.

■ Training requirements are high in order to reach requisite qualitylevels of service delivery.

■ There is a shortage of technical talent and professionals in Ghana.■ The country is still characterized by low levels of IT literacy and

PC proliferation, at both the educational and business-commer-cial levels.

■ Ghana does not have any significant foreign language skillsacross the country, rendering it difficult to position it as a strongdestination for European companies.


■ The telecom industry in Ghana is partly liberalized.■ Internet availability and penetration is on the rise.■ Access to telephony (as measured by tele-density) has signifi-

cantly improved over the last five years, primarily due to theintroduction of mobile telephones in the country.

■ Initiatives are being undertaken to ensure that telecomcosts for ITES-BPO operations are competitive with otherdestinations.

■ Cost-effective services such as voice over Internet protocol(VoIP) have been allowed for ITES-BPO.

■ Real estate developers are granted several fiscal incentivesincluding custom import duty exemptions, depreciation orcapital allowance measures, exemption from taxes on con-struction activity, etc8.

■ There is a significant lack of telecom bandwidth, which is exacer-bated by a lack of competition in the industry, which is keepingprices of services currently higher than in competing destinations.

■ Telecom set up time (especially where location requires substan-tial last mile interventions) has come down, but is still high.

■ Quality of network (for voice, data and Internet) needs substan-tial improvement.

■ Information availability (on cost, availability, terms, and condi-tions) is highly “imperfect.”

■ Connectivity beyond Accra is considered unsatisfactory, even tokey centers such as Sekondi- Takoradi, Kumasi and Tamale.

■ There is a lack of quality real estate which is a constraint to thegrowth of the industry.

■ Availability of Grade ‘A’ buildings is limited and subsequentlyrentals for ‘Grade B’ buildings are artificially driven higher.

■ Real estate ownership and title procedures are considered cum-bersome and unclear due to presence of customary laws.

■ As most of the technology park projects are currently in the plan-ning stage, park availability is limited in the short to mediumterm. The ‘Shell’ concept is envisaged but not yet in place.


6 http://www.oasisint.net/about.php7 Quality of Math and Science Education score: Ghana- 3.51, South Africa – 2.82, Nigeria-2.72, Philippines- 2.78 Quality of Management Schools score:

Ghana-4.01, Nigeria – 3.51, Botswana-3.27,China-3.56; Source: The Global Information Technology Report 2003–20048 Source: Ghana investment Profile: Property Development, a publication of the Ghana Investment Promotion Centre (GIPC)

People Driver

Recommendations■ Set up an ITES-BPO vocational training expert group comprising of industry and educational experts. They would review and comment

upon a set of uniform skills standard for ITES-BPO.■ Define and adopt the set of uniform ITES-BPO skills standards and implement a National Level ITES-BPO skills assessment, certification and

training program. This program would assess potential candidates on certain pre-determined skill requirements and provide a score that canbe used by prospective employers to judge capability. This would reduce some of the costs associated with in-house recruitment assessment.

■ Develop and introduce an accreditation policy in conjunction with the Vocational Training Expert Group for private training institutions.This will help ensure quality of training.

■ Review and internationally benchmark educational syllabus at secondary and tertiary levels with a focus on building language, analyti-cal, and computer skills,

■ Introduce courses providing specialization in ITES-BPO management through the Ghana Institute of Management and PublicAdministration (GIMPA) and other facilities to develop local management talent.

■ Attract and retain skilled workers in the industry by: building awareness of career opportunities provided by ITES-BPO; setting up ITES-BPO career counselling cells; and aggressively targeting and promoting Ghana’s ITES-BPO industry in `Diaspora’ forums.

■ Enable educators to participate in the ITES-BPO movement by training them and providing a “hands-on” experience in the ITES-BPOand IT environment through Teacher externships, summer work programs, and consulting opportunities.

Infrastructure Driver



of Ghana in the Environment Driver and includesrecommendations for developing a facilitative envi-ronment for the ITES-BPO industry.

1.3.5 Clusters DriverA cluster is defined as a concentration of companiesand sub-industries in a geographic region that areinterconnected by the industry they serve and theproducts they produce. The following table addressesthe strengths and weaknesses of Ghana in the Clusters

Driver and the recommendations for developingancillary industries for ITES-BPO establishments.

1.3.6 Incumbents DriverIncumbents refer to businesses in the relevantindustry sectors that are already established andoperating in the country. Established businesses canprovide immense insight about what works andwhat doesn’t. The following table addresses thestrengths and weaknesses of Ghana in the

Recommendations■ As in the case of the Ghana Internet Service Providers Association (GISPA), reducing E1 prices for its members9 proactively encourage

availability of cost competitive telecom services for ITES-BPO companies. ■ Monitor quality of telecom services through the National Communication Authority and intensify investment promotion in the telecom

sector to ensure effective competition and multi-provider situation.■ Provide infrastructure development assistance to telecom companies establishing infrastructure to provide services to ITES-BPO establish-

ments within Technology/ICT parks and designated special zones.■ Review ICT Park Strategy and unify other ICT Park initiatives.■ Revisit current model of Tema Park Development including availability of Shells (Public Sector led).■ Ensure that incentives provided to commercial real estate developers are linked to quality of development and timeliness. Existing incen-

tives in this regard should also be proactively promoted to international developers. ■ Government should also work towards simplifying land ownership and title procedures.

■ Financial structure in Ghana is healthy and investor friendly.■ Several incentives are in place to benefit foreign ITES-BPO

investors including Income tax holiday for 10 years from startof operations (if registered under the Ghana Free Zone Board(GFZB) and Double Taxation Agreements (DTA)10 signed withFrance and the United Kingdom.

■ Ghana is taking steps to develop through World Bank-sponsoredstudies on developmental steps for the IT/ITES-BPO sector, requiredin line with requirements from investors.

■ Ghana can leverage its favorable time zone. It follows theGMT standard providing `real-time’ offshoring capability tocompanies in the United Kingdom. It offers U.S. a good “timefit” with a four-seven hour difference depending on the timezone, and a five-seven hour difference with Asian countries.

■ Ghana has high political stability, and internal security is nota concern for investors.

■ Ghana has high inflation and interest rates, and an artificiallystrong cedi. As a result, the financial environment is not attrac-tive for domestic entrepreneurs.

■ Though Ghana is relatively low on geo-political risk, the percep-tion is otherwise because of the overall image of the region.

■ There are no special provisions for the ITES-BPO industry. TheGhana Investment Promotion Centre (GIPC) Act of 1994, theGhana Free Zone Act (1995) and the ICT for Accelerateddevelopment (ICT4AD) policy do not include any provisions orincentives for the development or promotion of ITES-BPO.

■ There is an absence of a common framework or strategy linkingall of the government’s efforts for developing and promoting theITES-BPO industry despite best intentions.

■ Unionism is perceived to be active and present by foreigninvestors.

■ There are currently no cyber security laws in place.

Recommendations■ Reposition ITES-BPO/Services vis-à-vis Agriculture and Manufacturing Sectors.■ Simplify set-up procedures and related regulations; provide single window clearance and support for ITES-BPO investors established in

areas outside the Free Zones. ■ Develop a comprehensive economic and policy package for facilitating growth of ITES-BPO.■ Set up an ITES-BPO Secretariat under the aegis of the Ministry of Communications to facilitate investment, promotion, infrastructure, and

policy development for ITES-BPO.■ Develop and implement an integrated and effective ITES-BPO investment promotion strategy, marketing Ghana as an ITES- BPO destination.■ Urge the government to ensure that cyber laws and e-crime legislation for data protection and security are introduced and implemented

on a priority basis.


9 GISPA reduced full circuit E1 costs for its members from $10,000 to $7,000 per month in February 2006 (Source: Interview with Eric Osiakwan, GISPA)10 Double Taxation implies that an investor residing in one country and doing business in another country is taxed by both countries on income earned by him/

her. Hence a Double Taxation Agreement implies that the foreign investor will be only taxed in the country of residence and not in the country of operation

Environment Driver



of Ghana in the Environment Driver and includesrecommendations for developing a facilitative envi-ronment for the ITES-BPO industry.

1.3.5 Clusters DriverA cluster is defined as a concentration of companiesand sub-industries in a geographic region that areinterconnected by the industry they serve and theproducts they produce. The following table addressesthe strengths and weaknesses of Ghana in the Clusters

Driver and the recommendations for developingancillary industries for ITES-BPO establishments.

1.3.6 Incumbents DriverIncumbents refer to businesses in the relevantindustry sectors that are already established andoperating in the country. Established businesses canprovide immense insight about what works andwhat doesn’t. The following table addresses thestrengths and weaknesses of Ghana in the

Recommendations■ As in the case of the Ghana Internet Service Providers Association (GISPA), reducing E1 prices for its members9 proactively encourage

availability of cost competitive telecom services for ITES-BPO companies. ■ Monitor quality of telecom services through the National Communication Authority and intensify investment promotion in the telecom

sector to ensure effective competition and multi-provider situation.■ Provide infrastructure development assistance to telecom companies establishing infrastructure to provide services to ITES-BPO establish-

ments within Technology/ICT parks and designated special zones.■ Review ICT Park Strategy and unify other ICT Park initiatives.■ Revisit current model of Tema Park Development including availability of Shells (Public Sector led).■ Ensure that incentives provided to commercial real estate developers are linked to quality of development and timeliness. Existing incen-

tives in this regard should also be proactively promoted to international developers. ■ Government should also work towards simplifying land ownership and title procedures.

■ Financial structure in Ghana is healthy and investor friendly.■ Several incentives are in place to benefit foreign ITES-BPO

investors including Income tax holiday for 10 years from startof operations (if registered under the Ghana Free Zone Board(GFZB) and Double Taxation Agreements (DTA)10 signed withFrance and the United Kingdom.

■ Ghana is taking steps to develop through World Bank-sponsoredstudies on developmental steps for the IT/ITES-BPO sector, requiredin line with requirements from investors.

■ Ghana can leverage its favorable time zone. It follows theGMT standard providing `real-time’ offshoring capability tocompanies in the United Kingdom. It offers U.S. a good “timefit” with a four-seven hour difference depending on the timezone, and a five-seven hour difference with Asian countries.

■ Ghana has high political stability, and internal security is nota concern for investors.

■ Ghana has high inflation and interest rates, and an artificiallystrong cedi. As a result, the financial environment is not attrac-tive for domestic entrepreneurs.

■ Though Ghana is relatively low on geo-political risk, the percep-tion is otherwise because of the overall image of the region.

■ There are no special provisions for the ITES-BPO industry. TheGhana Investment Promotion Centre (GIPC) Act of 1994, theGhana Free Zone Act (1995) and the ICT for Accelerateddevelopment (ICT4AD) policy do not include any provisions orincentives for the development or promotion of ITES-BPO.

■ There is an absence of a common framework or strategy linkingall of the government’s efforts for developing and promoting theITES-BPO industry despite best intentions.

■ Unionism is perceived to be active and present by foreigninvestors.

■ There are currently no cyber security laws in place.

Recommendations■ Reposition ITES-BPO/Services vis-à-vis Agriculture and Manufacturing Sectors.■ Simplify set-up procedures and related regulations; provide single window clearance and support for ITES-BPO investors established in

areas outside the Free Zones. ■ Develop a comprehensive economic and policy package for facilitating growth of ITES-BPO.■ Set up an ITES-BPO Secretariat under the aegis of the Ministry of Communications to facilitate investment, promotion, infrastructure, and

policy development for ITES-BPO.■ Develop and implement an integrated and effective ITES-BPO investment promotion strategy, marketing Ghana as an ITES- BPO destination.■ Urge the government to ensure that cyber laws and e-crime legislation for data protection and security are introduced and implemented

on a priority basis.


9 GISPA reduced full circuit E1 costs for its members from $10,000 to $7,000 per month in February 2006 (Source: Interview with Eric Osiakwan, GISPA)10 Double Taxation implies that an investor residing in one country and doing business in another country is taxed by both countries on income earned by him/

her. Hence a Double Taxation Agreement implies that the foreign investor will be only taxed in the country of residence and not in the country of operation

Environment Driver


Incumbents Driver and the recommendations fordeveloping incumbents in Ghana.

Given the limited resources available, we recom-mend that Ghana prioritize activities to be under-taken in the short term and those to be undertakenin the medium and long run.

While initiatives on developing human resourcecapacity will be an ongoing process, these will also

be a necessary first step requirement for the devel-opment and growth of the industry. The develop-ment of an ITES-BPO policy and formation of anITES-BPO Secretariat is also closely linked for thecurrent and future development of the industry.

With regards to infrastructure development,telecommunication infrastructure, once addressedin the short and medium run, will be expected toapply market corrections, again based on the indus-

■ All factors of production (for setting up an ITES-BPO facility)are available locally in Ghana.

■ Some prominent training institutions, providing programs forthe IT/ITES-BPO sectors have developed including theNational Institute of Information Technology (NIIT), Aptechand Kofi Annan Center of Excellence in ICT.

■ There are increasing opportunities available for financing frominternational sources, including venture capital firms, bilateraland multilateral donor agencies.

■ Private training institutions in Ghana are mainly providing train-ing related to IT and Networking and not ITES-BPO skills.

■ As a result, incumbents have to invest heavily into in-housetraining leading to high costs, bench as well as lack of talentpool creation.

■ Absence of an organized recruitment sector in Ghana impedesefficient, timely, and cost-effective hiring, a critical requirementof the people-intensive ITES-BPO industry.

■ Real-estate consultants, developers, and architects need toimprove skills to meet international standards.

■ There is an inactive trade association resulting in lack of a concert-ed effort towards knowledge exchange and strategy formulation.

Recommendations■ Create a nationwide training infrastructure incorporating public and private educational and commercial institutions.■ Publish a set of well-laid-down criteria in terms of academic curriculum (as per curriculum guidelines for ITES-BPO vocational/supplemen-

tal training), infrastructure, teaching faculty, and methodology for training institutions in the private and public sectors that wish to provideITES-BPO training to prevent mushrooming of ill-equipped training institutes that do not provide quality education.

■ Develop an inventory and rationalizations for sources of capital and financing.■ Develop potential ITES-BPO destinations other than Accra, such as Cape Coast, Winneba and Kumasi.


■ Presence of a `big-name client’ (ACS) that has expand-ed operations nearly ten fold since its set-up in 2001.

■ Ghana has the availability of domestic ITES-BPOorganizations, such as Exzeed that are interested inestablishing an offshore model.

■ There has been a generally low level of incumbent presence inspite of early offshoring activity (ACS in 2001).

■ Absence of formal linkages with established ITES-BPO destina-tions and of experienced players (other than ACS) in the mar-ket, has not allowed the local or small entrepreneurial set-upsto learn from best practices and experiences of others.

■ The lack of service provisioning maturity results in problemsfaced by the industry on account of service quality, work plan-ning and productivity issues.

Recommendations■ Facilitate the creation of an “ITES-BPO Industry Association,” an autonomous association, with a primary membership comprising only

ITES-BPO industry incumbents in Ghana and secondary membership from cluster organizations. ■ Train ITES-BPO companies on quality and establish a Global Delivery Model by adopting industry benchmarking systems to measure

against global standards.■ Develop an enabling environment for small ITES-BPO businesses through training, incentive schemes, incubator centers, and access to

venture capital.■ Encourage, promote and develop strong linkages and tie-ups with companies, industry associations, and private education service

providers in established destinations, such as India and Philippines, and also regional hot-spots, such as Mauritius and Egypt.



Clusters Driver

Incumbents Driver


Incumbents Driver and the recommendations fordeveloping incumbents in Ghana.

Given the limited resources available, we recom-mend that Ghana prioritize activities to be under-taken in the short term and those to be undertakenin the medium and long run.

While initiatives on developing human resourcecapacity will be an ongoing process, these will also

be a necessary first step requirement for the devel-opment and growth of the industry. The develop-ment of an ITES-BPO policy and formation of anITES-BPO Secretariat is also closely linked for thecurrent and future development of the industry.

With regards to infrastructure development,telecommunication infrastructure, once addressedin the short and medium run, will be expected toapply market corrections, again based on the indus-

■ All factors of production (for setting up an ITES-BPO facility)are available locally in Ghana.

■ Some prominent training institutions, providing programs forthe IT/ITES-BPO sectors have developed including theNational Institute of Information Technology (NIIT), Aptechand Kofi Annan Center of Excellence in ICT.

■ There are increasing opportunities available for financing frominternational sources, including venture capital firms, bilateraland multilateral donor agencies.

■ Private training institutions in Ghana are mainly providing train-ing related to IT and Networking and not ITES-BPO skills.

■ As a result, incumbents have to invest heavily into in-housetraining leading to high costs, bench as well as lack of talentpool creation.

■ Absence of an organized recruitment sector in Ghana impedesefficient, timely, and cost-effective hiring, a critical requirementof the people-intensive ITES-BPO industry.

■ Real-estate consultants, developers, and architects need toimprove skills to meet international standards.

■ There is an inactive trade association resulting in lack of a concert-ed effort towards knowledge exchange and strategy formulation.

Recommendations■ Create a nationwide training infrastructure incorporating public and private educational and commercial institutions.■ Publish a set of well-laid-down criteria in terms of academic curriculum (as per curriculum guidelines for ITES-BPO vocational/supplemen-

tal training), infrastructure, teaching faculty, and methodology for training institutions in the private and public sectors that wish to provideITES-BPO training to prevent mushrooming of ill-equipped training institutes that do not provide quality education.

■ Develop an inventory and rationalizations for sources of capital and financing.■ Develop potential ITES-BPO destinations other than Accra, such as Cape Coast, Winneba and Kumasi.


■ Presence of a `big-name client’ (ACS) that has expand-ed operations nearly ten fold since its set-up in 2001.

■ Ghana has the availability of domestic ITES-BPOorganizations, such as Exzeed that are interested inestablishing an offshore model.

■ There has been a generally low level of incumbent presence inspite of early offshoring activity (ACS in 2001).

■ Absence of formal linkages with established ITES-BPO destina-tions and of experienced players (other than ACS) in the mar-ket, has not allowed the local or small entrepreneurial set-upsto learn from best practices and experiences of others.

■ The lack of service provisioning maturity results in problemsfaced by the industry on account of service quality, work plan-ning and productivity issues.

Recommendations■ Facilitate the creation of an “ITES-BPO Industry Association,” an autonomous association, with a primary membership comprising only

ITES-BPO industry incumbents in Ghana and secondary membership from cluster organizations. ■ Train ITES-BPO companies on quality and establish a Global Delivery Model by adopting industry benchmarking systems to measure

against global standards.■ Develop an enabling environment for small ITES-BPO businesses through training, incentive schemes, incubator centers, and access to

venture capital.■ Encourage, promote and develop strong linkages and tie-ups with companies, industry associations, and private education service

providers in established destinations, such as India and Philippines, and also regional hot-spots, such as Mauritius and Egypt.



Clusters Driver

Incumbents Driver



try requirements and volumes. Once these initia-tives are addressed, the technology park initiativeswill be smoother to role out for Ghana as theymove up the value chain.

1.4 SUGGESTED TARGETMARKETS AND SEGMENTS

1.4.1 Ghana’s “National ITES-BPOOffer” or Value PropositionBased on our experience and understanding ofITES-BPO market at large, its dynamics andpotential, we have defined three possible `value dis-ciplines11’ that we believe a country could adopt tobuild its unique positioning and strategy in theITES-BPO market. These are:

■ Scale/volume play■ Niche/product leadership■ Operational excellence

Ghana’s current capabilities, its latent strengths,hindering weakness, and market perceptions are thecrux to our determining “Niche/Product leadership”as Ghana’s “National ITES-BPO Offer” based onthe concept of sustainable competitive advantage.Developing a Niche/Product Leadership involvesoperating in a particular niche and developingproduct leadership, and setting quality standards.

1.4.2 Market Opportunities for GhanaIn the dynamic world of ITES-BPO, prevailingconcepts and definitions are continually being chal-lenged as market players redefine the boundaries ofITES-BPO and therefore there are various evolving

Regional shared servicescenter for West Africa

Primary offshoring hub formedical transcription, cod-ing, billing and data pro-cessing (entry, conversionand transfer) work

■ Position as business “Gateway to West Africa.” ■ Stable and peaceful economy.■ Improving macroeconomic situation. ■ Free market economy with an emphasis and commitment towards private sector led development.■ Positive investment climate with attractive incentives.■ Positive perception with the world business community. Increased economic cooperation and coor-

dination with the region through the Economic Community of West African States (ECOWAS) andWest African Monetary Union (WAMU) treaties.

■ Experience in delivering these services.■ Critical mass available to increase scale.■ Low complexity, lower infrastructure requirements with respect to both capacity and investment

(relative to voice processes) intensive work; enable domestic entrepreneur participation.■ Typically high-volume work.■ Other African ITES-BPO destinations focusing on voice processes; clear opportunity in non-voice

for the region.■ Established destinations unable to sustain cost arbitrage for such work as they move up the

value chain.

Sub-contracting hub forestablished ITES-BPO locations.

■ Mature destinations plagued by escalating salary levels and high attrition rates. ■ Movement up the value-chain leading these countries to focus on mid high-level work■ Established destinations such as India, Philippines, and China looking to subcontract work such

as data entry, data conversion, and data processing to more cost-effective destinations. ■ Increasing requirements by clients to have global footprints to mitigate country and region

specific risks.

Complementing SouthAfrican ITES-BPO operations

■ South Africa is the largest economy in Africa, and also the most established in the ITES-BPOmarket.

■ It has a significant pool of skilled workers but is plagued by high emigration and low appetite forworking a 24*7 shift.

■ Labor market perceived by foreign businesses to be relatively inflexible. ■ Not competitive on salary cost aspect when compared with destinations in Asia and East

Europe.■ While the focus in South Africa is on voice/contact center processes, Ghana can complement

South Africa and help it to extend its offering on both voice and data processes.■ Ghana seen as a familiar and secure business center by South African businesses; hub for South

African companies seeking to do business in West Africa with more than 40 South Africancompanies doing business in Ghana.12

Niche area Drivers

11 Adapted from the `Treacy and Wieserma Model of Value discipline’12 Source: SA Institute of International Affairs (SAIIA) survey. This includes AngloGold, whose merger with Ghana's Ashanti created the world's second-

largest gold mining company, food retailer Shoprite, brewer SABMiller, and a number of smaller companies involved mostly in the supply of goods



try requirements and volumes. Once these initia-tives are addressed, the technology park initiativeswill be smoother to role out for Ghana as theymove up the value chain.

1.4 SUGGESTED TARGETMARKETS AND SEGMENTS

1.4.1 Ghana’s “National ITES-BPOOffer” or Value PropositionBased on our experience and understanding ofITES-BPO market at large, its dynamics andpotential, we have defined three possible `value dis-ciplines11’ that we believe a country could adopt tobuild its unique positioning and strategy in theITES-BPO market. These are:

■ Scale/volume play■ Niche/product leadership■ Operational excellence

Ghana’s current capabilities, its latent strengths,hindering weakness, and market perceptions are thecrux to our determining “Niche/Product leadership”as Ghana’s “National ITES-BPO Offer” based onthe concept of sustainable competitive advantage.Developing a Niche/Product Leadership involvesoperating in a particular niche and developingproduct leadership, and setting quality standards.

1.4.2 Market Opportunities for GhanaIn the dynamic world of ITES-BPO, prevailingconcepts and definitions are continually being chal-lenged as market players redefine the boundaries ofITES-BPO and therefore there are various evolving

Regional shared servicescenter for West Africa

Primary offshoring hub formedical transcription, cod-ing, billing and data pro-cessing (entry, conversionand transfer) work

■ Position as business “Gateway to West Africa.” ■ Stable and peaceful economy.■ Improving macroeconomic situation. ■ Free market economy with an emphasis and commitment towards private sector led development.■ Positive investment climate with attractive incentives.■ Positive perception with the world business community. Increased economic cooperation and coor-

dination with the region through the Economic Community of West African States (ECOWAS) andWest African Monetary Union (WAMU) treaties.

■ Experience in delivering these services.■ Critical mass available to increase scale.■ Low complexity, lower infrastructure requirements with respect to both capacity and investment

(relative to voice processes) intensive work; enable domestic entrepreneur participation.■ Typically high-volume work.■ Other African ITES-BPO destinations focusing on voice processes; clear opportunity in non-voice

for the region.■ Established destinations unable to sustain cost arbitrage for such work as they move up the

value chain.

Sub-contracting hub forestablished ITES-BPO locations.

■ Mature destinations plagued by escalating salary levels and high attrition rates. ■ Movement up the value-chain leading these countries to focus on mid high-level work■ Established destinations such as India, Philippines, and China looking to subcontract work such

as data entry, data conversion, and data processing to more cost-effective destinations. ■ Increasing requirements by clients to have global footprints to mitigate country and region

specific risks.

Complementing SouthAfrican ITES-BPO operations

■ South Africa is the largest economy in Africa, and also the most established in the ITES-BPOmarket.

■ It has a significant pool of skilled workers but is plagued by high emigration and low appetite forworking a 24*7 shift.

■ Labor market perceived by foreign businesses to be relatively inflexible. ■ Not competitive on salary cost aspect when compared with destinations in Asia and East

Europe.■ While the focus in South Africa is on voice/contact center processes, Ghana can complement

South Africa and help it to extend its offering on both voice and data processes.■ Ghana seen as a familiar and secure business center by South African businesses; hub for South

African companies seeking to do business in West Africa with more than 40 South Africancompanies doing business in Ghana.12

Niche area Drivers

11 Adapted from the `Treacy and Wieserma Model of Value discipline’12 Source: SA Institute of International Affairs (SAIIA) survey. This includes AngloGold, whose merger with Ghana's Ashanti created the world's second-

largest gold mining company, food retailer Shoprite, brewer SABMiller, and a number of smaller companies involved mostly in the supply of goods



and latent opportunities that late entrants such asGhana can adopt and exploit.

Based on the value proposition that we havedefined for Ghana, we have identified the followingmarket opportunities or niches for the country asan ITES-BPO destination:

1.4.3 Target ITES-BPO Segments for GhanaBased on our study of Ghana, the suggested valueproposition and the niches identified, we haveidentified the following ITES-BPO segments forGhana to target. The following illustration depictsthe service sectors and functions within each sectorthat Ghana should focus on in the short and themedium term:

1.5 MONITORING ANDEVALUATION INDICATORSThe ITES-BPO industry can make a significantcontribution towards job growth. However, the

rate of growth for the industry is highly dependenton the level of institutional and government sup-port provided to develop the sector and the rela-tive stage of development of the ITES-BPO sectorin a country.

1.5.1 ITES-BPO WorkforceProjections13

Taking into consideration both the parameters ofexpected government initiative and current stage ofdevelopment of the ITES-BPO industry, we haveprovided projections on the impact of the ITES-BPO industry on job creation in Ghana.

The projections made are based on three scenarios: ■ S1: Realistic Growth ■ S2: Optimistic Growth ■ S3: Conservative Growth

As shown in the diagram above, the employmentgeneration in the ITES-BPO sector over the nextfive years, assuming a realistic growth rate, is pro-jected to be 24,727. Assuming an optimisticgrowth rate, it is 36,910. In a conservative growthscenario, this will be 16,565.

TABLE 1.4.3.1 Target ITES-BPO segments for Ghana

Vertical Based Services

Dat

a C

onve

rsio

nD

ata

Ent

ryM

edic

al T

rans

crip

tion

Shar

ed S

ervi

ces

Fun

ctio

n

Banking InsuranceHealthCare

TelecomFinance & Accounts

HumanResources

• Indexing• Data

verification• Data entry• Check

processing• Loan

processing• Mortgage

processing

• Indexing• Data verification• Data entry • Loan processing• Claims processing • Application

processing


verification• Data entry• Account

payable• Account

receivable• Invoice

processing

• Indexing• Verification• Image keying• Transcription• Translation• Invoice processing• Medical billing • Member

management

• Indexing• Verification• Order

management• Invoice

processing• Billing


verification• Time and

attendance• Employee data

management• Leave tracking• Invoice

processing

Cus

tom

er S

uppo

rt

Serv

ices

(Voi

ce/

E-M

ail)

Inbound/outbound customer services, help desk, product inquiries, (sale, services &reminders), ticket logging, collection support

Fun

ctio

ns

Medium

Term

Targeted Opportunities for Ghana


Short Term

13 Projections are based on growth trends witnessed by other ITES-BPO destinations across the world as well as the expected growth of the global ITES-BPOindustry in future. For detailed methodology refer Chapter 5



and latent opportunities that late entrants such asGhana can adopt and exploit.

Based on the value proposition that we havedefined for Ghana, we have identified the followingmarket opportunities or niches for the country asan ITES-BPO destination:

1.4.3 Target ITES-BPO Segments for GhanaBased on our study of Ghana, the suggested valueproposition and the niches identified, we haveidentified the following ITES-BPO segments forGhana to target. The following illustration depictsthe service sectors and functions within each sectorthat Ghana should focus on in the short and themedium term:

1.5 MONITORING ANDEVALUATION INDICATORSThe ITES-BPO industry can make a significantcontribution towards job growth. However, the

rate of growth for the industry is highly dependenton the level of institutional and government sup-port provided to develop the sector and the rela-tive stage of development of the ITES-BPO sectorin a country.

1.5.1 ITES-BPO WorkforceProjections13

Taking into consideration both the parameters ofexpected government initiative and current stage ofdevelopment of the ITES-BPO industry, we haveprovided projections on the impact of the ITES-BPO industry on job creation in Ghana.

The projections made are based on three scenarios: ■ S1: Realistic Growth ■ S2: Optimistic Growth ■ S3: Conservative Growth

As shown in the diagram above, the employmentgeneration in the ITES-BPO sector over the nextfive years, assuming a realistic growth rate, is pro-jected to be 24,727. Assuming an optimisticgrowth rate, it is 36,910. In a conservative growthscenario, this will be 16,565.

TABLE 1.4.3.1 Target ITES-BPO segments for Ghana


Dat

a C

onve

rsio

nD

ata

Ent

ryM

edic

al T

rans

crip

tion

Shar

ed S

ervi

ces

Fun

ctio

n



HumanResources



processing• Loan


processing


processing



payable• Account


processing


management








processing

Cus

tom

er S

uppo

rt

Serv

ices

(Voi

ce/

E-M

ail)


Fun

ctio

ns

Medium

Term


Vertical Based ServicesShort T

erm

13 Projections are based on growth trends witnessed by other ITES-BPO destinations across the world as well as the expected growth of the global ITES-BPOindustry in future. For detailed methodology refer Chapter 5



Figure 1.5.1.1 ITES-BPO total employment projections for Ghana14

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0Y0 Y3

16,565

24,727

36,910

9,011

2,200

Projected Growth of Total ITES Employment in Ghana

9,0116,037

Y5

S1 S2 S3

TABLE 1.5.1.1 ITES-BPO total employment projections for Ghana15

EMPLOYMENT PROJECTIONS FOR ITES-BPO

2005 - Y0 Y3 Y5

S1 2,200 9,011 24,727

S2 2,200 9,011 36,910

S3 2,200 6,037 16,565

TABLE 1.5.1.2 Projections for women in ITES-BPO in Ghana

PROJECTIONS FOR WOMEN IN ITES-BPO

2005 - Y0 Y3 Y5

Ratio 70:30 65:35 65:35

S1 1,540 5,857 16,073

S2 1,540 5,857 23,992

S3 1,540 3,924 10,767

14 Source: Hewitt Associates, 200615 Source: Hewitt Associates, 2006



Figure 1.5.1.1 ITES-BPO total employment projections for Ghana14

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0Y0 Y3

16,565

24,727

36,910

9,011

2,200


9,0116,037

Y5

S1 S2 S3

TABLE 1.5.1.1 ITES-BPO total employment projections for Ghana15

EMPLOYMENT PROJECTIONS FOR ITES-BPO

2005 - Y0 Y3 Y5

S1 2,200 9,011 24,727

S2 2,200 9,011 36,910

S3 2,200 6,037 16,565

TABLE 1.5.1.2 Projections for women in ITES-BPO in Ghana

PROJECTIONS FOR WOMEN IN ITES-BPO

2005 - Y0 Y3 Y5

Ratio 70:30 65:35 65:35

S1 1,540 5,857 16,073

S2 1,540 5,857 23,992

S3 1,540 3,924 10,767

14 Source: Hewitt Associates, 200615 Source: Hewitt Associates, 2006



The ITES-BPO industry is also a high employer ofwomen. The female-to male-ratio in Ghana’s ITES-BPO industry is 70:30. This is expected to ration-alize to international standards of around 65:35resulting in a female workforce of 16,073 in a real-istic scenario, 23,992 with an optimistic growthand 10,767 in a conservative growth scenario.

Based on the above-mentioned employment projec-tions as well as an estimated revenue contributionper employee per annum, the revenue projectionsfor Ghana’s ITES-BPO sector will be as follows:

1.6 CONCLUSIONWith one of the most competitive demographics inthe ITES-BPO world, Ghana has the potential ofdeveloping itself as the preferred ITES-BPO desti-nation in the region. The country benefits from astable and supportive political scenario as well as alatent talent pool which, if trained, can provide thenecessary scale for growth of the industry.

Ghana can develop itself as a niche player develop-ing product leadership in specific ITES-BPO verti-cals and processes. Moreover, the country canexploit collaboration opportunities with relativelymore established countries, such as India and SouthAfrica, by providing sub-contracting or comple-mentary services.

However, to achieve the desired success, Ghana willneed to develop cost-effective and suitable infra-structure, Moreover, the country will need to devel-op the talent pool, as well as introduce the neces-sary policy and regulatory frameworks. Therefore,high growth aspirations will demand that adequateactions are taken to ensure that supply-side con-straints do not prevent Ghana from realizing itspotential.

If Ghana is able to successfully distinguish itself asan ITES-BPO destination among other emerginglocations, the sector will lead to approximately36,910 jobs and revenue creation of aroundUS$738 million in year five.

TABLE 1.5.1.3 Projections for ITES-BPOrevenue generation in Ghana16

ITES-BPO INDUSTRY REVENUE CREATION

USD Million Y3 Y5

S1 180.22 494.53

S2 180.22 738.20

S3 120.74 331.30

16 Revenue per employee is assumed to be around US$20,000 (for a US based voice/data process). The revenue generated per employee is assumed to bethe same over the years. Source: Hewitt Associates, 2006



The ITES-BPO industry is also a high employer ofwomen. The female-to male-ratio in Ghana’s ITES-BPO industry is 70:30. This is expected to ration-alize to international standards of around 65:35resulting in a female workforce of 16,073 in a real-istic scenario, 23,992 with an optimistic growthand 10,767 in a conservative growth scenario.

Based on the above-mentioned employment projec-tions as well as an estimated revenue contributionper employee per annum, the revenue projectionsfor Ghana’s ITES-BPO sector will be as follows:

1.6 CONCLUSIONWith one of the most competitive demographics inthe ITES-BPO world, Ghana has the potential ofdeveloping itself as the preferred ITES-BPO desti-nation in the region. The country benefits from astable and supportive political scenario as well as alatent talent pool which, if trained, can provide thenecessary scale for growth of the industry.

Ghana can develop itself as a niche player develop-ing product leadership in specific ITES-BPO verti-cals and processes. Moreover, the country canexploit collaboration opportunities with relativelymore established countries, such as India and SouthAfrica, by providing sub-contracting or comple-mentary services.

However, to achieve the desired success, Ghana willneed to develop cost-effective and suitable infra-structure, Moreover, the country will need to devel-op the talent pool, as well as introduce the neces-sary policy and regulatory frameworks. Therefore,high growth aspirations will demand that adequateactions are taken to ensure that supply-side con-straints do not prevent Ghana from realizing itspotential.

If Ghana is able to successfully distinguish itself asan ITES-BPO destination among other emerginglocations, the sector will lead to approximately36,910 jobs and revenue creation of aroundUS$738 million in year five.

TABLE 1.5.1.3 Projections for ITES-BPOrevenue generation in Ghana16


USD Million Y3 Y5

S1 180.22 494.53

S2 180.22 738.20

S3 120.74 331.30

16 Revenue per employee is assumed to be around US$20,000 (for a US based voice/data process). The revenue generated per employee is assumed to bethe same over the years. Source: Hewitt Associates, 2006


WB Ghana text 2-27-07.qxd 2/27/07 11:11 AM Page 12 WB Ghana text 2-27-07.qxd 2/27/07 11:11 AM Page 12

Ghana’s Attractiveness in the Global ITES-BPO Arena . 13

2 GHANA’SATTRACTIVENESSIN THE GLOBALITES-BPO ARENA

While embarking on a journey to make Ghanaattractive as an offshore destination, it is imperativeto compare the country with established and otheremerging offshore destinations. This will enable adetailed evaluation of Ghana’s positioning vis-à-visother destinations. The best practices of othernations analyzed will also provide lessons andimplications for Ghana and lead to an evaluation ofoptions where Ghana can achieve a definitive com-petitive edge in the global offshoring space.

Based on our experience in advising national andstate governments in developing their locations asITES-BPO destinations, and our work withclients in evaluating various locations for estab-lishing their offshore operations, we have definedfive critical parameters that are essentially thedrivers to its success in attracting and sustainingthe ITES-BPO industry. These comprise the“Hewitt Five Driver Model for LocationAttractiveness Analysis.” These five drivers are:People, Infrastructure, External Environment,Incumbents, and Clusters.

Eleven established and emerging offshore destina-tions have been benchmarked with Ghana. Theyare: India, Philippines, China, Romania, Mexico,South Africa, Mauritius, Egypt, Botswana, Senegal,and Nigeria.

For comparing Ghana with other destinations, wehave customized the Model and aggregated theanalysis under four drivers. These are: People,Infrastructure, Environment, and Incumbents. Thefifth driver–Clusters–was not included because ofthe subjective nature and lack of quantifiable dataavailable for this driver.

A four tier data hierarchy was used for the data col-lection and analysis. Each of the four drivers was

further broken down into factors, parameters, anddata elements. These data elements were a mix ofquantitative and qualitative data elements.

2.1 OVERALL ANALYSIS■ Ghana comes high globally and in the region on

the size of its English-speaking population andcompetitive labor costs. It, however, comes outpoorly on quality of infrastructure and demon-strated government focus towards the develop-ment of the ITES-BPO sector.

■ The benchmarking clearly establishes India’sposition as the leading global destination forITES-BPO delivery in concurrence with com-mon knowledge. India’s key strengths are in itslarge labor pool with high English language andanalytical skills, propelled by a good qualityeducation system. Low salary levels, favorablegovernment policies, and market environmentalso help put India in the top position.However, India scores lower than some of theother countries with respect to infrastructuredevelopment.

■ With its low cost base, superior infrastructure,and large talent pool, China is a keen challengerto India’s position as a leader. It is howeverseverely constrained by language capabilities.

■ Philippines is attractive as an ITES-BPOdestination because of its high Englishlanguage skills and cultural and educationalalignment with the West. It however, lacksscale in terms of talent pool size.

■ Mexico is seen a key player in the ITES-BPOspace because it is a near-shore player to theUnited States. Its positioning as a low-cost baserelative to the United States and its close prox-imity serves as an attractive proposition for U.S.companies considering offshoring. However,Mexico’s talent pool is not at the same skill levelas that of India, Philippines, or China.

■ Romania, along with other Central and EastEuropean nations, is trying to become a hub fornear-shoring with its multi-lingual capabilitiesand high cultural affiliation with Europe. Thetalent base is small and therefore the scope forfuture scalability remains a concern.

■ South Africa is seen as the prime offshore desti-nation in Africa and is becoming become thetier one location for contact center and ITES-BPO



2 GHANA’SATTRACTIVENESSIN THE GLOBALITES-BPO ARENA

While embarking on a journey to make Ghanaattractive as an offshore destination, it is imperativeto compare the country with established and otheremerging offshore destinations. This will enable adetailed evaluation of Ghana’s positioning vis-à-visother destinations. The best practices of othernations analyzed will also provide lessons andimplications for Ghana and lead to an evaluation ofoptions where Ghana can achieve a definitive com-petitive edge in the global offshoring space.

Based on our experience in advising national andstate governments in developing their locations asITES-BPO destinations, and our work withclients in evaluating various locations for estab-lishing their offshore operations, we have definedfive critical parameters that are essentially thedrivers to its success in attracting and sustainingthe ITES-BPO industry. These comprise the“Hewitt Five Driver Model for LocationAttractiveness Analysis.” These five drivers are:People, Infrastructure, External Environment,Incumbents, and Clusters.

Eleven established and emerging offshore destina-tions have been benchmarked with Ghana. Theyare: India, Philippines, China, Romania, Mexico,South Africa, Mauritius, Egypt, Botswana, Senegal,and Nigeria.

For comparing Ghana with other destinations, wehave customized the Model and aggregated theanalysis under four drivers. These are: People,Infrastructure, Environment, and Incumbents. Thefifth driver–Clusters–was not included because ofthe subjective nature and lack of quantifiable dataavailable for this driver.

A four tier data hierarchy was used for the data col-lection and analysis. Each of the four drivers was

further broken down into factors, parameters, anddata elements. These data elements were a mix ofquantitative and qualitative data elements.

2.1 OVERALL ANALYSIS■ Ghana comes high globally and in the region on

the size of its English-speaking population andcompetitive labor costs. It, however, comes outpoorly on quality of infrastructure and demon-strated government focus towards the develop-ment of the ITES-BPO sector.

■ The benchmarking clearly establishes India’sposition as the leading global destination forITES-BPO delivery in concurrence with com-mon knowledge. India’s key strengths are in itslarge labor pool with high English language andanalytical skills, propelled by a good qualityeducation system. Low salary levels, favorablegovernment policies, and market environmentalso help put India in the top position.However, India scores lower than some of theother countries with respect to infrastructuredevelopment.

■ With its low cost base, superior infrastructure,and large talent pool, China is a keen challengerto India’s position as a leader. It is howeverseverely constrained by language capabilities.

■ Philippines is attractive as an ITES-BPOdestination because of its high Englishlanguage skills and cultural and educationalalignment with the West. It however, lacksscale in terms of talent pool size.

■ Mexico is seen a key player in the ITES-BPOspace because it is a near-shore player to theUnited States. Its positioning as a low-cost baserelative to the United States and its close prox-imity serves as an attractive proposition for U.S.companies considering offshoring. However,Mexico’s talent pool is not at the same skill levelas that of India, Philippines, or China.

■ Romania, along with other Central and EastEuropean nations, is trying to become a hub fornear-shoring with its multi-lingual capabilitiesand high cultural affiliation with Europe. Thetalent base is small and therefore the scope forfuture scalability remains a concern.

■ South Africa is seen as the prime offshore desti-nation in Africa and is becoming become thetier one location for contact center and ITES-BPO



work, both captive17 and outsourced. Qualitystandards are high and there is high culturalaffinity with Western countries. The countryhowever faces high telecom costs and escalatingwage levels. Deregulation is currently on theagenda though progress is reportedly slow.

■ Mauritius with its bilingual (French andEnglish) population and a firmly established tra-dition for attracting, winning, and successfullymanaging inward foreign investment, is posi-tioned as a promising offshore destination. Dueto its popular tourism industry, the service ori-entation of Mauritius and its people is high andsuited for the ITES-BPO industry. However, thecountry does not provide sufficient potential forscalability.

■ Egypt is one of Africa’s strong emerging destina-tions for offshoring with a growing contact cen-ter industry that is scalable and cost effective.Egypt has strong English language skills andhigh quality IT and engineering skills. However,

the country scores low on cultural adaptabilitywithin the talent driver.

■ Botswana can boast of one of Africa’s most highlyeducated, English-speaking workforce and a trans-parent business environment. The internationalbusiness community has marked it as a country towatch out for in the African continent. It has a rel-atively competent IT infrastructure, but its attrac-tiveness is hampered by concerns about scalability,high telecom costs and health hazards due to highprevalence of HIV-AIDS. Botswana also does notscore well with regards to cultural adaptability.

■ Senegal is being considered as an ideal off-shoring location for French contact centers andITES companies. French is the official languagein Senegal and there exists a large workforce ofFrench-speaking nationals there. However, thecountry is rated comparatively lower on theTalent Driver than other countries in the region.

■ Nigeria is one of the largest economies inWest Africa. However, a weak talent pool,

Figure 2.1.1 Overall country analysis

1

2

3

4

5

6

7

8

9

1 0

1 1

1 2

1

2

3

4

5

6

7

8

9

1 0

1 1

1 2

17 Captive refers to an organization which provides dedicated support only for operations of the parent company



work, both captive17 and outsourced. Qualitystandards are high and there is high culturalaffinity with Western countries. The countryhowever faces high telecom costs and escalatingwage levels. Deregulation is currently on theagenda though progress is reportedly slow.

■ Mauritius with its bilingual (French andEnglish) population and a firmly established tra-dition for attracting, winning, and successfullymanaging inward foreign investment, is posi-tioned as a promising offshore destination. Dueto its popular tourism industry, the service ori-entation of Mauritius and its people is high andsuited for the ITES-BPO industry. However, thecountry does not provide sufficient potential forscalability.

■ Egypt is one of Africa’s strong emerging destina-tions for offshoring with a growing contact cen-ter industry that is scalable and cost effective.Egypt has strong English language skills andhigh quality IT and engineering skills. However,

the country scores low on cultural adaptabilitywithin the talent driver.

■ Botswana can boast of one of Africa’s most highlyeducated, English-speaking workforce and a trans-parent business environment. The internationalbusiness community has marked it as a country towatch out for in the African continent. It has a rel-atively competent IT infrastructure, but its attrac-tiveness is hampered by concerns about scalability,high telecom costs and health hazards due to highprevalence of HIV-AIDS. Botswana also does notscore well with regards to cultural adaptability.

■ Senegal is being considered as an ideal off-shoring location for French contact centers andITES companies. French is the official languagein Senegal and there exists a large workforce ofFrench-speaking nationals there. However, thecountry is rated comparatively lower on theTalent Driver than other countries in the region.

■ Nigeria is one of the largest economies inWest Africa. However, a weak talent pool,

Figure 2.1.1 Overall country analysis

1

2

3

4

5

6

7

8

9

1 0

1 1

1 2

1

2

3

4

5

6

7

8

9

1 0

1 1

1 2




poor infrastructure, and an unsatisfactory law-and-order situation do not contribute towardsenhancing Nigeria’s position as an offshoringdestination

Performance of each of the countries on the fourdrivers and overall rankings are provided in the fol-lowing graph:

Other key inferences for Ghana: ■ People Driver: Ghana has a sizeable talent pool

with good English language skills. Ghana comesout as one of the most suitable ITES-BPO des-tinations on the talent front.

■ Infrastructure Driver: Ghana has scored poorlyon this driver mainly because of a lack of avail-ability, suitability, and reliability of requisiteinfrastructure. Countries such as China lead inthis area because of the government’s clear focusand efforts leading to proactive development

■ Environment Driver: While Ghana has a com-paratively stable political environment in theregion, it scores poorly on this driver because ofthe lack of demonstrated focus for ITES-BPO.While ICT has been adopted as a nationalpriority, efforts to provide an enabling environ-ment may lack focus and coordination.

■ Incumbents Driver: Although Ghana scoreslow on this driver, it has a small but significantITES-BPO population.

2.2 ANALYSIS ON THEPEOPLE DRIVER

2.2.1 Factors consideredThe ITES-BPO industry is a people-intensiveand manpower-dependent industry, and as such,this criteria represents a critical driver in definingthe attractiveness of any offshore location.Favorable offshore locations offer an abundantand suitable labor pool that is cost effective andproductive.

The People driver plays a crucial role in definingthe direction of policy intervention, since this high-lights the gaps and concerns that need to be target-ed for future development of the talent pool.

The factors considered under this driver are as follows:■ Talent Availability

■ Talent Quality■ Talent Costs■ Cultural Adaptability

2.2.2 Analysis and Rankings■ About 52 percent of the population in Ghana

speaks English. English-speaking skills, asused in our analysis, refer to the number ofpeople with the ability to read and write inEnglish. However, the base being smaller, thistranslates to around 11 million for Ghana ascompared to India (350 million) and China(220 million).

■ Comparing Ghana with regional ITES-BPOdestinations in Africa, it can be inferred thatGhana has high potential with regards to talentavailability and suitability in the region. But ithas been unable to capitalize on its peopleresources to promote offshoring.

■ Overall scalability of the talent pool in Ghanais limited. In terms of talent cost, Ghana is lessattractive than established destinations, such asIndia and Philippines. In terms of talent quali-ty, it is among the laggards when compared toboth established and emerging internationaldestinations.

■ A large, well-qualified talent pool is necessaryfor making a destination ITES-BPO attractive.Although China has a large talent pool, it stillneeds to develop its talent with regards toEnglish language capabilities. Therefore, it hasbeen a less attractive ITES-BPO destinationthan India.

■ Countries such as Mexico and Romania possessingmulti-lingual capabilities have an added advantage,because they provide an added incentive for com-panies servicing multi-lingual populations.

Ghana’s position on the People Driver bench-marked with Global and Regional destinations isrepresented in the graphs below:

2.2.3 Best Practices and LearningTalent is the most critical factor in determining theattractiveness of an offshore destination. Ampleavailability of a suitable talent pool at efficient costsis key to providing an impetus to this industry.There are a number of examples of countries thathave been successful or are working to make a suc-cess on developing this aspect, as elaborated in thefollowing pages.



poor infrastructure, and an unsatisfactory law-and-order situation do not contribute towardsenhancing Nigeria’s position as an offshoringdestination

Performance of each of the countries on the fourdrivers and overall rankings are provided in the fol-lowing graph:

Other key inferences for Ghana: ■ People Driver: Ghana has a sizeable talent pool

with good English language skills. Ghana comesout as one of the most suitable ITES-BPO des-tinations on the talent front.

■ Infrastructure Driver: Ghana has scored poorlyon this driver mainly because of a lack of avail-ability, suitability, and reliability of requisiteinfrastructure. Countries such as China lead inthis area because of the government’s clear focusand efforts leading to proactive development

■ Environment Driver: While Ghana has a com-paratively stable political environment in theregion, it scores poorly on this driver because ofthe lack of demonstrated focus for ITES-BPO.While ICT has been adopted as a nationalpriority, efforts to provide an enabling environ-ment may lack focus and coordination.

■ Incumbents Driver: Although Ghana scoreslow on this driver, it has a small but significantITES-BPO population.

2.2 ANALYSIS ON THEPEOPLE DRIVER

2.2.1 Factors consideredThe ITES-BPO industry is a people-intensiveand manpower-dependent industry, and as such,this criteria represents a critical driver in definingthe attractiveness of any offshore location.Favorable offshore locations offer an abundantand suitable labor pool that is cost effective andproductive.

The People driver plays a crucial role in definingthe direction of policy intervention, since this high-lights the gaps and concerns that need to be target-ed for future development of the talent pool.

The factors considered under this driver are as follows:■ Talent Availability

■ Talent Quality■ Talent Costs■ Cultural Adaptability

2.2.2 Analysis and Rankings■ About 52 percent of the population in Ghana

speaks English. English-speaking skills, asused in our analysis, refer to the number ofpeople with the ability to read and write inEnglish. However, the base being smaller, thistranslates to around 11 million for Ghana ascompared to India (350 million) and China(220 million).

■ Comparing Ghana with regional ITES-BPOdestinations in Africa, it can be inferred thatGhana has high potential with regards to talentavailability and suitability in the region. But ithas been unable to capitalize on its peopleresources to promote offshoring.

■ Overall scalability of the talent pool in Ghanais limited. In terms of talent cost, Ghana is lessattractive than established destinations, such asIndia and Philippines. In terms of talent quali-ty, it is among the laggards when compared toboth established and emerging internationaldestinations.

■ A large, well-qualified talent pool is necessaryfor making a destination ITES-BPO attractive.Although China has a large talent pool, it stillneeds to develop its talent with regards toEnglish language capabilities. Therefore, it hasbeen a less attractive ITES-BPO destinationthan India.

■ Countries such as Mexico and Romania possessingmulti-lingual capabilities have an added advantage,because they provide an added incentive for com-panies servicing multi-lingual populations.

Ghana’s position on the People Driver bench-marked with Global and Regional destinations isrepresented in the graphs below:

2.2.3 Best Practices and LearningTalent is the most critical factor in determining theattractiveness of an offshore destination. Ampleavailability of a suitable talent pool at efficient costsis key to providing an impetus to this industry.There are a number of examples of countries thathave been successful or are working to make a suc-cess on developing this aspect, as elaborated in thefollowing pages.



Figure 2.2.2.1 Ghana compared with international destinationson the people driver18

Figure 2.2.2.2 Ghana compared with regional destinations onthe people driver19

People: Ghana Compared with International Destinations

6.816.00

4.63

2.43 2.25 2.32

3.82

3.07

2.84

2.88 2.80 2.73

0.96

0.87

1.00

0.830.57 0.91

1.00

0.20

1.00

1.001.00 0.60

India China Philippines Romania Mexico Ghana

Talent availability Talent quality Labour costs Cultural adaptability

12.58

6.576.627.47

9.47

10.14

People: Ghana Compared with Regional Destinations

2.322.65

2.291.92

1.47 1.420.74

2.732.68

2.85

2.70

2.77 2.61

2.42

0.910.94

0.94

0.550.64 0.83

0.80

0.60 0.200.20

1.00

0.20 0.20

0.20

Ghana Egypt Mauritius South Africa Botswana Nigeria Senegal

6.57

4.16

5.065.07

6.176.286.47


18 Source: Hewitt Associates, April 200619 Source: Hewitt Associates, April 2006



Figure 2.2.2.1 Ghana compared with international destinationson the people driver18

Figure 2.2.2.2 Ghana compared with regional destinations onthe people driver19

People: Ghana Compared with International Destinations

6.816.00

4.63

2.43 2.25 2.32

3.82

3.07

2.84

2.88 2.80 2.73

0.96

0.87

1.00

0.830.57 0.91

1.00

0.20

1.00

1.001.00 0.60

India China Philippines Romania Mexico Ghana


12.58

6.576.627.47

9.47

10.14

People: Ghana Compared with Regional Destinations

2.322.65

2.291.92

1.47 1.420.74

2.732.68

2.85

2.70

2.77 2.61

2.42

0.910.94

0.94

0.550.64 0.83

0.80

0.60 0.200.20

1.00

0.20 0.20

0.20

Ghana Egypt Mauritius South Africa Botswana Nigeria Senegal

6.57

4.16

5.065.07

6.176.286.47


18 Source: Hewitt Associates, April 200619 Source: Hewitt Associates, April 2006



Nicaragua - Vying for a Share in the Near-shore Offshoring Pie

Creating a sustainable and substantial BPO industry that in-turn creates jobs is the government’s number one priority. The government iswooing investors through an aggressive incentive structure, suitable talent base and best-in-class infrastructure.

Building suitable talent is the key to offshoring and Nicaragua's leaders realize that English is the linga-franca of offshoring. It has estab-lished an English-language registry so outsourcing suppliers can easily find workers. There are 4,500 people in the directory with around40 percent that are fluent. The country also has several bilingual high schools so students can perfect their English before graduating.Additionally, the cost structure is competitive with a bilingual customer service representative earning $300-$400 a month fully loaded.

The government is interested in attracting outsourcing service providers to Nicaragua because the country “has a huge pool of talentedworkers looking for jobs.” Around 70 percent of the population is under 30.

Source: OutsourcingBPO.com, April 2005

Ranking of Ghana International RegionalPeople Driver #6 Overall the people driver #1 Ahead of all regional

requires improvements comparators

Talent Availability #5 Better positioned than Mexico #2 After Egypt

Talent Costs #3 After Philippines and India #3 After Egypt and Mauritius

Talent Quality #6 Ranked last among all countries #3 After Mauritius and Botswana

Cultural Adaptability #5 Better positioned than China #2 After South Africa

Summarized Comparison

Lost in Translation: Poor English Skills Threaten the Philippines’ Dreams ofBecoming a New Call-center Magnet in Asia.

In a recent speech while inaugurating a Dell call centre in Manila, President Gloria Macapagal Arroyo predicted that up to 2 millionFilipinos will be employed in such places by 2010. However, the burgeoning BPO industry is already encountering growing pains—serious ones. The problem: many call centres can’t keep up with demand because they can’t find enough employees who speak “proper”English. “For every 100 people that apply in the call centres, only three to five are accepted,” says Mitch Locsin, executive director ofthe Business Processing Association of the Philippines.

Now, to become more globally competitive, the government is scrambling to promote English to young people as the ticket to a goodcareer. Three years ago the Department of Education reinstated English as the primary language of instruction in schools. Various businessgroups, including both the U.S. and European chambers of commerce, are sponsoring public-relations programs lauding the career benefitsof English; one of the campaigns is called “English is cool” and is designed to break young people of their habit of speaking “Taglish”–amix of English and Tagalog. In addition, Arroyo has promised to set aside $9.6 million to help put so-called near hires–an industry euphe-mism for applicants rejected due to a weak command of English–through a 100-hour English refresher course. The grant was made after anaggressive campaign by the industry lobby group, which was getting worried about call centers’ losing business to countries like India.

The government well understands the critical importance of the industry–one of the few high-value sectors in which the country can com-pete with its bigger Asian neighbours. Manila has granted the outsourcing companies various concessions, ranging from tax breaks tozoning changes that allow fast-food restaurants, for instance, to operate in office buildings to serve call-centre employees.

One enterprising Filipino has also started a private school catering to near hires. Based in the city of Cebu, the company, calledExcelAsia, is opening a second branch in the Manila financial district of Makati, where many call centres are located. The goal is tohelp the locals not only understand common American expressions and idioms, but also to speak with an American twang. “Just imaginethe problem we get when an American says to one of our call-centre employees, ‘Get outta here’,” Locsin jokes. “And the call-centreemployee responds, ‘Sir, you want me to put down the phone already?’ “ For a country desperately in need of an economic-successstory, such gaffes are no laughing matter.

Source: Newsweek International, May 2006



Nicaragua - Vying for a Share in the Near-shore Offshoring Pie

Creating a sustainable and substantial BPO industry that in-turn creates jobs is the government’s number one priority. The government iswooing investors through an aggressive incentive structure, suitable talent base and best-in-class infrastructure.

Building suitable talent is the key to offshoring and Nicaragua's leaders realize that English is the linga-franca of offshoring. It has estab-lished an English-language registry so outsourcing suppliers can easily find workers. There are 4,500 people in the directory with around40 percent that are fluent. The country also has several bilingual high schools so students can perfect their English before graduating.Additionally, the cost structure is competitive with a bilingual customer service representative earning $300-$400 a month fully loaded.

The government is interested in attracting outsourcing service providers to Nicaragua because the country “has a huge pool of talentedworkers looking for jobs.” Around 70 percent of the population is under 30.

Source: OutsourcingBPO.com, April 2005

Ranking of Ghana International RegionalPeople Driver #6 Overall the people driver #1 Ahead of all regional

requires improvements comparators

Talent Availability #5 Better positioned than Mexico #2 After Egypt

Talent Costs #3 After Philippines and India #3 After Egypt and Mauritius

Talent Quality #6 Ranked last among all countries #3 After Mauritius and Botswana

Cultural Adaptability #5 Better positioned than China #2 After South Africa


Lost in Translation: Poor English Skills Threaten the Philippines’ Dreams ofBecoming a New Call-center Magnet in Asia.

In a recent speech while inaugurating a Dell call centre in Manila, President Gloria Macapagal Arroyo predicted that up to 2 millionFilipinos will be employed in such places by 2010. However, the burgeoning BPO industry is already encountering growing pains—serious ones. The problem: many call centres can’t keep up with demand because they can’t find enough employees who speak “proper”English. “For every 100 people that apply in the call centres, only three to five are accepted,” says Mitch Locsin, executive director ofthe Business Processing Association of the Philippines.

Now, to become more globally competitive, the government is scrambling to promote English to young people as the ticket to a goodcareer. Three years ago the Department of Education reinstated English as the primary language of instruction in schools. Various businessgroups, including both the U.S. and European chambers of commerce, are sponsoring public-relations programs lauding the career benefitsof English; one of the campaigns is called “English is cool” and is designed to break young people of their habit of speaking “Taglish”–amix of English and Tagalog. In addition, Arroyo has promised to set aside $9.6 million to help put so-called near hires–an industry euphe-mism for applicants rejected due to a weak command of English–through a 100-hour English refresher course. The grant was made after anaggressive campaign by the industry lobby group, which was getting worried about call centers’ losing business to countries like India.

The government well understands the critical importance of the industry–one of the few high-value sectors in which the country can com-pete with its bigger Asian neighbours. Manila has granted the outsourcing companies various concessions, ranging from tax breaks tozoning changes that allow fast-food restaurants, for instance, to operate in office buildings to serve call-centre employees.

One enterprising Filipino has also started a private school catering to near hires. Based in the city of Cebu, the company, calledExcelAsia, is opening a second branch in the Manila financial district of Makati, where many call centres are located. The goal is tohelp the locals not only understand common American expressions and idioms, but also to speak with an American twang. “Just imaginethe problem we get when an American says to one of our call-centre employees, ‘Get outta here’,” Locsin jokes. “And the call-centreemployee responds, ‘Sir, you want me to put down the phone already?’ “ For a country desperately in need of an economic-successstory, such gaffes are no laughing matter.

Source: Newsweek International, May 2006



2.2.4 Implications for Ghana■ Talent development is critical because it increases

employability for the ITES-BPO sector, whichis key for ensuring offshoring success. Ghanaalready has a large English-speaking population(52 percent)–among the largest in the region.Ghana needs to leverage this to launch itself inthe ITES-BPO market.

■ Development of education infrastructure and aconcentrated effort to increase the enrolment-to-actual-admission ratio are also critical toensuring greater employability. This ratio is cur-rently low in Ghana, compared with developedcountries.

■ It is important to increase utilization of studentsfrom senior secondary schools and colleges whoare not absorbed by tertiary institutions toincrease the availability of the talent pool and todrive down talent costs.

■ The government of Ghana needs to implementconcentrated initiatives to promote ICT educa-tion and computer literacy to provide a readytalent pool for the ITES-BPO industry.

■ Ghana’s talent pool is not experienced in off-shoring, it is important to determine an evolu-tion path that starts with lower-end ITES-BPOoperations and moving to high-end, complextransactions.

2.3 ANALYSIS ON THEINFRASTRUCTURE DRIVER

2.3.1 Factors ConsideredThe availability of best-in class and reliableinfrastructure is a critical parameter for anITES-BPO organization, as one of the key successfactors for any such organization is its ability todeliver continuous services in a fast, efficient andcost effective manner. Consequently, the industryis heavily dependent on real time connectivity with

a high demand for robust telecom and power infra-structures.

Taking into consideration the infrastructurerequirements of ITES-BPO, this driver includesanalysis of the following factors:■ Telecom■ Power Availability■ Real Estate Costs ■ Accessibility and Connectivity

2.3.2 Analysis and Rankings■ Africa lags as a continent in terms of develop-

ment of infrastructure. The basic physical infra-structure networks—road and railroad, powersupply and distribution, and telecom are often inpoor condition. They are concentrated in urbanareas and along major roads in the countries.

■ Infrastructure is a bottleneck for Ghana. Incomparison with most international and region-al offshore destinations, Ghana ranks low onbasic telecom and power efficiency. The countryscores low on critical telecom parameters such asavailability, quality, and cost.20 Faults per 100mainline per year are about 67.4 in Ghana, sig-nificantly higher than most established offshorelocations such as China (3.49), Philippines(5.20) and Mexico (1.70) and countries in theregion such as Botswana, South Africa, andMauritius. Internet bandwidth and E1 costs arehigh.21 The high cost makes services such asITES-BPO, which are directed towards servingexport markets, an expensive proposition.

■ Average link uptime at 95 percent in Ghana ismuch lower than the internationally acceptednorm of 99.5 percent. Access to telecom andpower are important factors and the backboneto service delivery for ITES-BPOs. In thisrespect, China, Mexico, and Philippines providethe best infrastructure facilities for offshoring.Even when comparing Ghana with regional off-shore destinations, the single factor that pullsdown the attractiveness of Ghana has been the

20 The bandwidth price for a full-circuit E1 line between Accra and Portugal is $7,000 per month for Ghana Internet Service Providers Association (GISPA)members and $10,000 for non-members. This price is charged by Ghana Telecom, the sole provider of E1 in Ghana. This is higher than approx. $6,000per month for full-circuit connectivity between the US and most established offshoring destinations. The costs are likely to be made more competitive forITES-BPO establishments. Internet bandwidth costs in Ghana are also on the higher side ($680 per 100 kbps per month versus $4 in Philippines, $5 inRomania, $16 in India, $3 in China) – Source: Hewitt Research

21 Cost of E1 IPLC link has not been used as part of the scoring. We have however, used these costs to draw inferences and analyze Ghana’s current statewith other countries - Source: Hewitt Research



2.2.4 Implications for Ghana■ Talent development is critical because it increases

employability for the ITES-BPO sector, whichis key for ensuring offshoring success. Ghanaalready has a large English-speaking population(52 percent)–among the largest in the region.Ghana needs to leverage this to launch itself inthe ITES-BPO market.

■ Development of education infrastructure and aconcentrated effort to increase the enrolment-to-actual-admission ratio are also critical toensuring greater employability. This ratio is cur-rently low in Ghana, compared with developedcountries.

■ It is important to increase utilization of studentsfrom senior secondary schools and colleges whoare not absorbed by tertiary institutions toincrease the availability of the talent pool and todrive down talent costs.

■ The government of Ghana needs to implementconcentrated initiatives to promote ICT educa-tion and computer literacy to provide a readytalent pool for the ITES-BPO industry.

■ Ghana’s talent pool is not experienced in off-shoring, it is important to determine an evolu-tion path that starts with lower-end ITES-BPOoperations and moving to high-end, complextransactions.

2.3 ANALYSIS ON THEINFRASTRUCTURE DRIVER

2.3.1 Factors ConsideredThe availability of best-in class and reliableinfrastructure is a critical parameter for anITES-BPO organization, as one of the key successfactors for any such organization is its ability todeliver continuous services in a fast, efficient andcost effective manner. Consequently, the industryis heavily dependent on real time connectivity with

a high demand for robust telecom and power infra-structures.

Taking into consideration the infrastructurerequirements of ITES-BPO, this driver includesanalysis of the following factors:■ Telecom■ Power Availability■ Real Estate Costs ■ Accessibility and Connectivity

2.3.2 Analysis and Rankings■ Africa lags as a continent in terms of develop-

ment of infrastructure. The basic physical infra-structure networks—road and railroad, powersupply and distribution, and telecom are often inpoor condition. They are concentrated in urbanareas and along major roads in the countries.

■ Infrastructure is a bottleneck for Ghana. Incomparison with most international and region-al offshore destinations, Ghana ranks low onbasic telecom and power efficiency. The countryscores low on critical telecom parameters such asavailability, quality, and cost.20 Faults per 100mainline per year are about 67.4 in Ghana, sig-nificantly higher than most established offshorelocations such as China (3.49), Philippines(5.20) and Mexico (1.70) and countries in theregion such as Botswana, South Africa, andMauritius. Internet bandwidth and E1 costs arehigh.21 The high cost makes services such asITES-BPO, which are directed towards servingexport markets, an expensive proposition.

■ Average link uptime at 95 percent in Ghana ismuch lower than the internationally acceptednorm of 99.5 percent. Access to telecom andpower are important factors and the backboneto service delivery for ITES-BPOs. In thisrespect, China, Mexico, and Philippines providethe best infrastructure facilities for offshoring.Even when comparing Ghana with regional off-shore destinations, the single factor that pullsdown the attractiveness of Ghana has been the

20 The bandwidth price for a full-circuit E1 line between Accra and Portugal is $7,000 per month for Ghana Internet Service Providers Association (GISPA)members and $10,000 for non-members. This price is charged by Ghana Telecom, the sole provider of E1 in Ghana. This is higher than approx. $6,000per month for full-circuit connectivity between the US and most established offshoring destinations. The costs are likely to be made more competitive forITES-BPO establishments. Internet bandwidth costs in Ghana are also on the higher side ($680 per 100 kbps per month versus $4 in Philippines, $5 inRomania, $16 in India, $3 in China) – Source: Hewitt Research

21 Cost of E1 IPLC link has not been used as part of the scoring. We have however, used these costs to draw inferences and analyze Ghana’s current statewith other countries - Source: Hewitt Research



Figure 2.3.2.1 Ghana compared with international destinations on infrastructure driver22

Infrastructure: Ghana Compared with International Destinations

8.767.75

6.915.69 5.84

4.40

2.66

2.632.98

2.44 1.92

2.10

1.41

1.031.30

1.751.23

1.42

0.41

0.98 1.08

0.46

0.51

0.24

Romania Mexico China Philippines India Ghana

Telecom connectivity Power Real estate Accessibility and connectivity

13.23

8.17

9.50

10.34

12.2612.38

availability and cost of a suitable telecommuni-cations network across the country.

■ Apart from Egypt and Mauritius, most of Africasuffers from a lack of bandwidth, which is aserious impediment to the development ofoffshore businesses. The bulk of the internation-al bandwidth available is provided through satel-lites, which weakens the price competitivenessof these countries.

■ Costs of suitable, high-quality real estate arelowest in the Philippines and this is an impor-tant factor in determining its attractiveness as anoffshore location. Ghana has low real estatecosts as well, but due to an inadequate presenceof suitable and scalable buildings or IT parks forITES-BPO operations, the total business cost ofquality real estate gets artificially inflated.

■ Although India’s success in ITES-BPO has beenexcellent, the availability of suitable infrastructurehas been diminishing the overall attractiveness ofthe location. However, significant improvementshave been made, spurred by increasing competi-tion among a large number of service providers.

■ South Africa has the best international anddomestic accessibility and connectivity as com-pared with its African counterparts. However,the International locations are far ahead in termsof having a well developed international anddomestic transport system as compared to theAfrican countries.

Overall, Ghana’s position on this Driver in compar-ison with Global and Regional destinations is rep-resented in the graphs on the following page.

22 Source: Hewitt Associates, April 2006We have not considered Telecom costs (Cost of E1 IPLC link) as part of the scoring. We have however, used these costs to draw inferences and analyzeGhana’s current state with other countries.



Figure 2.3.2.1 Ghana compared with international destinations on infrastructure driver22

Infrastructure: Ghana Compared with International Destinations

8.767.75

6.915.69 5.84

4.40

2.66

2.632.98

2.44 1.92

2.10

1.41

1.031.30

1.751.23

1.42

0.41

0.98 1.08

0.46

0.51

0.24

Romania Mexico China Philippines India Ghana


13.23

8.17

9.50

10.34

12.2612.38

availability and cost of a suitable telecommuni-cations network across the country.

■ Apart from Egypt and Mauritius, most of Africasuffers from a lack of bandwidth, which is aserious impediment to the development ofoffshore businesses. The bulk of the internation-al bandwidth available is provided through satel-lites, which weakens the price competitivenessof these countries.

■ Costs of suitable, high-quality real estate arelowest in the Philippines and this is an impor-tant factor in determining its attractiveness as anoffshore location. Ghana has low real estatecosts as well, but due to an inadequate presenceof suitable and scalable buildings or IT parks forITES-BPO operations, the total business cost ofquality real estate gets artificially inflated.

■ Although India’s success in ITES-BPO has beenexcellent, the availability of suitable infrastructurehas been diminishing the overall attractiveness ofthe location. However, significant improvementshave been made, spurred by increasing competi-tion among a large number of service providers.

■ South Africa has the best international anddomestic accessibility and connectivity as com-pared with its African counterparts. However,the International locations are far ahead in termsof having a well developed international anddomestic transport system as compared to theAfrican countries.

Overall, Ghana’s position on this Driver in compar-ison with Global and Regional destinations is rep-resented in the graphs on the following page.




Figure 2.3.2.2 Ghana Compared with Regional Destinations onInfrastructure Driver23

Infrastructure: Ghana Compared with Regional Destinations

7.166.16 5.92

5.354.40 4.37

3.42

2.48

2.682.34

1.76

2.101.28

1.88

1.52

1.371.59

1.64

1.42

1.751.19

0.04

0.330.42

0.22

0.240.24

0.31

Mauritius Egypt South Africa Botswana Ghana Senegal Nigeria

11.20

6.80

7.648.17

8.97

10.2710.55




Ranking of Ghana International RegionalInfrastructure Driver #6 Overall the infrastructure driver requires #5 Ahead of Senegal and Nigeria

improvements so Ghana can compete with established locations

Telecom #6 Ranked last among all countries #5 Better positioned than Senegal and Nigeria

Power Availability #5 Better than India #4 Ahead of Nigeria, Botswana and Senegal

Real Estate Cost #2 After Philippines #5 More economical than Egypt and Nigeria

Accessibility and Connectivity #6 Ranked last amongst all countries #4 Along with Senegal better positioned thanMauritius and Botswana



Figure 2.3.2.2 Ghana Compared with Regional Destinations onInfrastructure Driver23

Infrastructure: Ghana Compared with Regional Destinations

7.166.16 5.92

5.354.40 4.37

3.42

2.48

2.682.34

1.76

2.101.28

1.88

1.52

1.371.59

1.64

1.42

1.751.19

0.04

0.330.42

0.22

0.240.24

0.31

Mauritius Egypt South Africa Botswana Ghana Senegal Nigeria

11.20

6.80

7.648.17

8.97

10.2710.55




Ranking of Ghana International RegionalInfrastructure Driver #6 Overall the infrastructure driver requires #5 Ahead of Senegal and Nigeria

improvements so Ghana can compete with established locations

Telecom #6 Ranked last among all countries #5 Better positioned than Senegal and Nigeria

Power Availability #5 Better than India #4 Ahead of Nigeria, Botswana and Senegal

Real Estate Cost #2 After Philippines #5 More economical than Egypt and Nigeria

Accessibility and Connectivity #6 Ranked last amongst all countries #4 Along with Senegal better positioned thanMauritius and Botswana



2.3.3 Best Practices and Learnings

China develops Dalian as a National Software Export Centre

In 1984 the Chinese government declared Dalian a “Coastal Open City” in order to attract international business. China wanted tocapitalize on the boom in outsourcing of IT and ITES-BPO services.

Pre-empting the need for superior infrastructure as a key enabler to development of these industries, the Chinese government declaredDalian Software Park (DLSP) as a “National Software Export Centre” in 1998 and developed world-class infrastructure including suitablereal estate, telecom, and power.

Built strategically close to many universities and research institutes, Dalian services companies engaged in software development, busi-ness process outsourcing and IT-enabled services.

IBM opened its BPO centre in Dalian in May 2005 with an initial target to hire 600 people. It is estimated that this number has alreadycrossed 1,000.

Global MNCs such as Accenture, Dell, SAP and Braxton are among a host of companies already running their BPO centres in Dalianand all are scaling up aggressively.

The pioneer among Indian BPOs, Genpact (formerly GE Capital International Services) already has a 1,800 people center in Dalianand is expected to grow to 3,500 in the near future.

“We were the pioneers in Dalian when we started our centre six years ago (in 2000). We will expand in China, as it is a major thrustfor us. And Dalian has all the requisites required to grow business: good infrastructure, educated workforce, and excellent governmentsupport,” says Genpact CEO Pramod Bhasin.

The reason Dalian is very attractive is that companies find world-class infrastructure along with the ability to service proximity marketssuch as Japan, Korea and China.

Source: Media, Hewitt Analysis

2.3.4 Implications for Ghana■ Improving infrastructure is imperative to devel-

oping the offshoring industry.■ Telecom availability, including international

bandwidth, is critical. ITES standards do notallow inefficiencies in terms of operations orcost.

■ There is an urgent need to accelerate the devel-opment of specialized zones, which will serveas a software/ITES-BPO export centers withenabling infrastructure, such as power and tele-com in conjunction with real estate developers.

2.4 ANALYSIS OF THEENVIRONMENT DRIVER

2.4.1 Factors ConsideredFor the offshoring sector to succeed, it is importantthat the external and internal environments of acountry be properly aligned to its needs. Whileexternal environment refers to government andother related administrative bodies, internal

environment refers to the country’s economic scenario,its markets, political and regulatory environment,and intellectual property laws.

The factors considered under this driver are as follows:■ Economic and investment scenario■ General law and order situation■ Business environment■ Tax and regulatory environment

2.4.2 Analysis and Rankings■ Ghana has been ranked fifth amongst the seven

countries in the region on this driver. It needs tocreate an attractive business environment foroffshore companies, as well as provide a stimu-lus to the industry in the form of additionalincentives (tax and fiscal).

■ Ghana lacks a focused development effort towardsthe offshoring sector and the ability to create anenvironment for growth, despite good intentions.

■ Growth of home-grown entrepreneurs in theITES-BPO industry in Ghana is hampered bythe unavailability of cost-effective finance. As ofFebruary 2006, the London Interbank Offered



2.3.3 Best Practices and Learnings

China develops Dalian as a National Software Export Centre

In 1984 the Chinese government declared Dalian a “Coastal Open City” in order to attract international business. China wanted tocapitalize on the boom in outsourcing of IT and ITES-BPO services.

Pre-empting the need for superior infrastructure as a key enabler to development of these industries, the Chinese government declaredDalian Software Park (DLSP) as a “National Software Export Centre” in 1998 and developed world-class infrastructure including suitablereal estate, telecom, and power.

Built strategically close to many universities and research institutes, Dalian services companies engaged in software development, busi-ness process outsourcing and IT-enabled services.

IBM opened its BPO centre in Dalian in May 2005 with an initial target to hire 600 people. It is estimated that this number has alreadycrossed 1,000.

Global MNCs such as Accenture, Dell, SAP and Braxton are among a host of companies already running their BPO centres in Dalianand all are scaling up aggressively.

The pioneer among Indian BPOs, Genpact (formerly GE Capital International Services) already has a 1,800 people center in Dalianand is expected to grow to 3,500 in the near future.

“We were the pioneers in Dalian when we started our centre six years ago (in 2000). We will expand in China, as it is a major thrustfor us. And Dalian has all the requisites required to grow business: good infrastructure, educated workforce, and excellent governmentsupport,” says Genpact CEO Pramod Bhasin.

The reason Dalian is very attractive is that companies find world-class infrastructure along with the ability to service proximity marketssuch as Japan, Korea and China.


2.3.4 Implications for Ghana■ Improving infrastructure is imperative to devel-

oping the offshoring industry.■ Telecom availability, including international

bandwidth, is critical. ITES standards do notallow inefficiencies in terms of operations orcost.

■ There is an urgent need to accelerate the devel-opment of specialized zones, which will serveas a software/ITES-BPO export centers withenabling infrastructure, such as power and tele-com in conjunction with real estate developers.

2.4 ANALYSIS OF THEENVIRONMENT DRIVER

2.4.1 Factors ConsideredFor the offshoring sector to succeed, it is importantthat the external and internal environments of acountry be properly aligned to its needs. Whileexternal environment refers to government andother related administrative bodies, internal

environment refers to the country’s economic scenario,its markets, political and regulatory environment,and intellectual property laws.

The factors considered under this driver are as follows:■ Economic and investment scenario■ General law and order situation■ Business environment■ Tax and regulatory environment

2.4.2 Analysis and Rankings■ Ghana has been ranked fifth amongst the seven

countries in the region on this driver. It needs tocreate an attractive business environment foroffshore companies, as well as provide a stimu-lus to the industry in the form of additionalincentives (tax and fiscal).

■ Ghana lacks a focused development effort towardsthe offshoring sector and the ability to create anenvironment for growth, despite good intentions.

■ Growth of home-grown entrepreneurs in theITES-BPO industry in Ghana is hampered bythe unavailability of cost-effective finance. As ofFebruary 2006, the London Interbank Offered



Rate (LIBOR) is around 5.3 percent, Ghana’sPrime Lending Rate (PLR) is 14 percent, mak-ing it expensive to raise finances within thecountry. The emergence of entrepreneurs isimportant for the development of the overallprivate sector as well as for the ITES-BPO sec-tor, which relies on cheap sources of finance foran undeveloped industry/segment. Absence ofprovisions of seed capital by banks or financialinstitutions in this nascent industry hampersdevelopment and growth of entrepreneurs.

■ Among international destinations, China andIndia offer the most preferred environment for

offshoring. Both countries have focused specifi-cally on the offshoring sector and have tailoredtheir policies and incentives to suit the off-shoring business. Additionally, both economiesare on a fast growth path, making them attrac-tive investment destinations.

■ South Africa offers the most conducive businessenvironment as well as the highest economicpotential in the region, with GDP growth at5 percent per annum.

■ In the region, Botswana, South Africa, andMauritius score high on the desire and intent toestablish a suitable offshoring environment as

India improves its infrastructure offering

India, in the 1980s and 1990s had a monopolistic and controlled telecommunications regime, which was primarily state owned andoperated. This had built in several inefficiencies including cost and operating efficiencies.

After privatization of its telecom sector, India has witnessed world-class infrastructure being developed with ‘fat pipes’ and ‘dark fibre’capacity across the country. This in turn has created bandwidth capacity and from an earlier situation of shortage of bandwidth, Indiahas moved to a bandwidth surplus nation.

Telecom Regulatory Authority of India (TRAI), a quasi- government body, has issued from time to time a large number of regulations,orders and directives to deal with issues coming before it and provided the required direction to the evolution of Indian telecom marketfrom a Government owned monopoly to a multi operator multi service open competitive market.

The directions, orders and regulations issued cover a wide range of subjects including tariff, interconnection and quality of service aswell as governance of the Authority. TRAI has played an important role in reduction of tariffs, which has benefited the growth of theBPO sector in India.

Now multiple service operators bring in efficiencies of both cost and operations, driven by competitive forces. As can be seen from thegraph below, after privatization, cost of E1 lines has come down drastically in India

Source: Elmst & Young

Additionally, with special IT zones and parks being developed, high speed digital communication, independent power infrastructure andother basic facilities are being pre-developed to cater to the needs of IT/ITES-BPO companies. The government plays an important rolein providing private sector developers concessions and incentives to develop IT parks. The core strategy of the Ministry of InformationTechnology’s (MIT) is the development and growth of technology parks for both software and hardware. Technology parks have also beensetup by various state governments like the HITEC City located in Hyderabad, Andhra Pradesh and the Chandigarh Technology Park.


Mumbai-US E1(Mbps)

(Half Circuit Cost, USD)

106,38395,745

55,319

42,55328,889

0

20000

40000

60000

80000

100000

120000

Q1 2001 Q4 2001 Q4 2004Q1 2002 Q4 2005



Rate (LIBOR) is around 5.3 percent, Ghana’sPrime Lending Rate (PLR) is 14 percent, mak-ing it expensive to raise finances within thecountry. The emergence of entrepreneurs isimportant for the development of the overallprivate sector as well as for the ITES-BPO sec-tor, which relies on cheap sources of finance foran undeveloped industry/segment. Absence ofprovisions of seed capital by banks or financialinstitutions in this nascent industry hampersdevelopment and growth of entrepreneurs.

■ Among international destinations, China andIndia offer the most preferred environment for

offshoring. Both countries have focused specifi-cally on the offshoring sector and have tailoredtheir policies and incentives to suit the off-shoring business. Additionally, both economiesare on a fast growth path, making them attrac-tive investment destinations.

■ South Africa offers the most conducive businessenvironment as well as the highest economicpotential in the region, with GDP growth at5 percent per annum.

■ In the region, Botswana, South Africa, andMauritius score high on the desire and intent toestablish a suitable offshoring environment as

India improves its infrastructure offering

India, in the 1980s and 1990s had a monopolistic and controlled telecommunications regime, which was primarily state owned andoperated. This had built in several inefficiencies including cost and operating efficiencies.

After privatization of its telecom sector, India has witnessed world-class infrastructure being developed with ‘fat pipes’ and ‘dark fibre’capacity across the country. This in turn has created bandwidth capacity and from an earlier situation of shortage of bandwidth, Indiahas moved to a bandwidth surplus nation.

Telecom Regulatory Authority of India (TRAI), a quasi- government body, has issued from time to time a large number of regulations,orders and directives to deal with issues coming before it and provided the required direction to the evolution of Indian telecom marketfrom a Government owned monopoly to a multi operator multi service open competitive market.

The directions, orders and regulations issued cover a wide range of subjects including tariff, interconnection and quality of service aswell as governance of the Authority. TRAI has played an important role in reduction of tariffs, which has benefited the growth of theBPO sector in India.

Now multiple service operators bring in efficiencies of both cost and operations, driven by competitive forces. As can be seen from thegraph below, after privatization, cost of E1 lines has come down drastically in India

Source: Elmst & Young

Additionally, with special IT zones and parks being developed, high speed digital communication, independent power infrastructure andother basic facilities are being pre-developed to cater to the needs of IT/ITES-BPO companies. The government plays an important rolein providing private sector developers concessions and incentives to develop IT parks. The core strategy of the Ministry of InformationTechnology’s (MIT) is the development and growth of technology parks for both software and hardware. Technology parks have also beensetup by various state governments like the HITEC City located in Hyderabad, Andhra Pradesh and the Chandigarh Technology Park.


Mumbai-US E1(Mbps)

(Half Circuit Cost, USD)

106,38395,745

55,319

42,55328,889

0

20000

40000

60000

80000

100000

120000

Q1 2001 Q4 2001 Q4 2004Q1 2002 Q4 2005



Figure 2.4.2.1 Ghana compared with international destinationson the environment driver24

Environment: Ghana Compared with International Destinations

3.662.28 2.70

2.08 1.610.99

0.58

0.550.63

0.610.55

0.59

8.09

8.56 8.00

7.207.04 7.71

1.23

1.371.00

1.011.53 1.05

China India Mexico Romania Philippines Ghana

Economic and investment scenario General law and order situation Business environment Tax and regulatory environment

13.56

10.3410.74

10.90

12.32

12.76

measured by proactive steps taken by thegovernment and industry. For example,Botswana provides the lowest tax on goods andservices and the highest country credit rating inthe region. Additionally, Botswana has the high-est level of transparency and the lowest level ofcorruption. However, Botswana needs to focuson providing a package of incentives specificallydesigned for the ITES-BPO sector.

Ghana’s position on this Driver benchmarked withGlobal and Regional destinations is represented inthe graphs that follow.

2.4.3 Best Practices and LearningsA number of countries have introduced tailoredpolicy interventions for attracting investments inthe offshore sector. They have provided compellingreasons through a focused development of theinternal and external environments, for becomingattractive global offshore destinations. Some of thecountries and their developmental efforts are listedbelow:

2.4.4 Implications for Ghana■ Government involvement is a must- to kick-

start the development of the industry. The roleof nodal agencies is critical in lobbying with thegovernment and providing the industry withbenefits and incentives. Most local governmentsin developed ITES-BPO destinations have real-ized the importance of giving this industry animpetus for growth, and have set up special taskteams to recommend strategies that need to beadopted.

■ There is a need to develop a comprehensive eco-nomic policy for promoting the ITES-BPO sec-tor including an attractive package of tax, fiscal,and investment incentives.

■ The government should provide a business-friendly environment, make it easier for foreigncompanies to enter, and have simple regulationspertaining to the ITES-BPO industry. All sup-porting regulations (labor, company, inflow offoreign funds, infrastructure availability, multi-shift and night-shift operations) must be aligned

24 Source: Hewitt Associates, April 2006



Figure 2.4.2.1 Ghana compared with international destinationson the environment driver24

Environment: Ghana Compared with International Destinations

3.662.28 2.70

2.08 1.610.99

0.58

0.550.63

0.610.55

0.59

8.09

8.56 8.00

7.207.04 7.71

1.23

1.371.00

1.011.53 1.05

China India Mexico Romania Philippines Ghana


13.56

10.3410.74

10.90

12.32

12.76

measured by proactive steps taken by thegovernment and industry. For example,Botswana provides the lowest tax on goods andservices and the highest country credit rating inthe region. Additionally, Botswana has the high-est level of transparency and the lowest level ofcorruption. However, Botswana needs to focuson providing a package of incentives specificallydesigned for the ITES-BPO sector.

Ghana’s position on this Driver benchmarked withGlobal and Regional destinations is represented inthe graphs that follow.

2.4.3 Best Practices and LearningsA number of countries have introduced tailoredpolicy interventions for attracting investments inthe offshore sector. They have provided compellingreasons through a focused development of theinternal and external environments, for becomingattractive global offshore destinations. Some of thecountries and their developmental efforts are listedbelow:

2.4.4 Implications for Ghana■ Government involvement is a must- to kick-

start the development of the industry. The roleof nodal agencies is critical in lobbying with thegovernment and providing the industry withbenefits and incentives. Most local governmentsin developed ITES-BPO destinations have real-ized the importance of giving this industry animpetus for growth, and have set up special taskteams to recommend strategies that need to beadopted.

■ There is a need to develop a comprehensive eco-nomic policy for promoting the ITES-BPO sec-tor including an attractive package of tax, fiscal,and investment incentives.

■ The government should provide a business-friendly environment, make it easier for foreigncompanies to enter, and have simple regulationspertaining to the ITES-BPO industry. All sup-porting regulations (labor, company, inflow offoreign funds, infrastructure availability, multi-shift and night-shift operations) must be aligned




Figure 2.4.2.2 Ghana compared with regional destinations on the environment driver25

Environment: Ghana Compared with Regional Destinations

2.48 2.76 2.791.48

0.99 0.69 0.90

0.75 0.61 0.65

0.600.59

0.450.60

8.819.28

8.11

7.787.71

6.97 6.36

2.00 0.93

0.93

1.271.05

1.501.22

Botswana South Africa Mauritius Egypt Ghana Nigeria Senegal

14.04

9.089.62

10.3411.13

12.48

13.58



Ranking of Ghana International RegionalEnvironment Driver #6 Overall, the environment driver requires #5 Ahead of Nigeria and Senegal

improvements to allow Ghana to compete effectively

Economic and Investment #6 Ranked last among all countries #5 Better positioned than Nigeria and Scenario Senegal

General Law and Order Situation #3 Ahead of China, India and Philippines #6 Better positioned than Nigeria

Business Environment #4 Ahead of Romania and Philippines #5 Substantially better positioned than Nigeriaand Senegal and quite close to Egypt

Tax and Regulatory Environment #4 Better positioned than Mexico and Romania #5 Better positioned than South Africaand Mauritius


to suit the offshoring sector (Ghana has alreadytaken some positive steps in this direction).

■ There is a need for an active ITES-BPO indus-try association that will be responsible for devel-

oping and promoting the ITES-BPO sector, aswell as guiding the government through a Voiceof Customer Process to identify the needs of thesector.



Figure 2.4.2.2 Ghana compared with regional destinations on the environment driver25

Environment: Ghana Compared with Regional Destinations

2.48 2.76 2.791.48

0.99 0.69 0.90

0.75 0.61 0.65

0.600.59

0.450.60

8.819.28

8.11

7.787.71

6.97 6.36

2.00 0.93

0.93

1.271.05

1.501.22

Botswana South Africa Mauritius Egypt Ghana Nigeria Senegal

14.04

9.089.62

10.3411.13

12.48

13.58



Ranking of Ghana International RegionalEnvironment Driver #6 Overall, the environment driver requires #5 Ahead of Nigeria and Senegal

improvements to allow Ghana to compete effectively

Economic and Investment #6 Ranked last among all countries #5 Better positioned than Nigeria and Scenario Senegal

General Law and Order Situation #3 Ahead of China, India and Philippines #6 Better positioned than Nigeria

Business Environment #4 Ahead of Romania and Philippines #5 Substantially better positioned than Nigeriaand Senegal and quite close to Egypt

Tax and Regulatory Environment #4 Better positioned than Mexico and Romania #5 Better positioned than South Africaand Mauritius


to suit the offshoring sector (Ghana has alreadytaken some positive steps in this direction).

■ There is a need for an active ITES-BPO indus-try association that will be responsible for devel-

oping and promoting the ITES-BPO sector, aswell as guiding the government through a Voiceof Customer Process to identify the needs of thesector.



Egyptian Government Provides Impetus for Offshoring Growth

The Egyptian government actively supports the offshoring industry through various incentives. The GDP growth and inflation are at sustain-able and constant levels providing a stable business environment.

The Egyptian government is using a four-pronged approach to attract ITES-BPO companies: tax breaks, competitive telecommunicationsrates, training funds, and marketing aid.

■ Telecom rates are as low as 7 cents and 5 cents per minute to Western Europe and North America, respectively. ■ International 2M bit/sec half circuit (E1 circuits) can be rented at $3,800 per month. ■ Egypt offers a 10 year tax holiday and Tax breaks from the existing 40% current corporate levy for contact centers that wish to establish

in Egypt

Source: IDG News Service, July 2005

Philippines—A Silent Outsourcing Star

Outsourcing is an important earner for the Philippines. The US accounts for at least half the world's potential outsourcing and thePhilippines, a former US colony, is well placed to benefit. It has a compatible commercial code and over 90 percent of the populationspeaks English.

A high literacy rate, a large pool of IT professionals, and patchy, but cheap telecommunications infrastructure, makes the Philippines a com-petitive place for US outsourcing, reflected in the fact the US companies account for about 90 percent of outsourcing deals in the country.

Procter & Gamble, Delta Airlines, AIG, and Citibank have all outsourced work to the Philippines. US engineering giant Fluor Daniel hasmuch of its technical work undertaken there by an almost 1000-strong team of local engineers, architects and draughtsmen. And AIG'sPhilippines business processing unit now has more than 4000 staff.

The Philippines Department of Labor and Employment, is implementing policies aimed to ensure optimum, safe and healthy, and non-dis-criminatory working conditions in the ITES-BPO industry. House Bills 3792 and 3851, amending Article 131 of the country's Labor Code,and seeking to broaden the legitimate exemptions from the night work prohibition of women.

Source: TheAge.com, March 2006

South Africa Wants to Catch-up with India and Philippines ITES-BPO

The government will allocate R70 million for the ITES-BPO support programme, which includes a learnership allowance to lower the costs oftraining, a funding mechanism to assist in start-up costs and the development of technology centres through private-public partnerships. Thegovernment is also pushing for lowering telecom tariffs, which are currently viewed as a hindrance to the development of the offshoring sector.

South Africa is also using a tax-break strategy. Companies can claim back around 20 – 30 percent of capital expenditure costs in a cashgrant paid out over three years. Companies can also effectively claim back up to 30 percent of training costs.

The Department of Trade and Industry (DTI) has launched the BPO and Outsourcing Sector Development Strategy in 2005 which highlightsthe need for policy initiatives for the industry.

For promoting awareness about South Africa’s potential in IT and ITES-BPO sectors, the DTI established the ICT Development Council calledSAVANT in 2000.

The goal of SAVANT is to establish an awareness campaign for the sector by marketing the industry locally and internationally. The initiativealso aims to strengthen the South African IT/ ITES-BPO sector in order to add dimension to its global competitiveness.

Source: SAVANT, Media, Hewitt Analysis



Egyptian Government Provides Impetus for Offshoring Growth

The Egyptian government actively supports the offshoring industry through various incentives. The GDP growth and inflation are at sustain-able and constant levels providing a stable business environment.

The Egyptian government is using a four-pronged approach to attract ITES-BPO companies: tax breaks, competitive telecommunicationsrates, training funds, and marketing aid.

■ Telecom rates are as low as 7 cents and 5 cents per minute to Western Europe and North America, respectively. ■ International 2M bit/sec half circuit (E1 circuits) can be rented at $3,800 per month. ■ Egypt offers a 10 year tax holiday and Tax breaks from the existing 40% current corporate levy for contact centers that wish to establish

in Egypt

Source: IDG News Service, July 2005

Philippines—A Silent Outsourcing Star

Outsourcing is an important earner for the Philippines. The US accounts for at least half the world's potential outsourcing and thePhilippines, a former US colony, is well placed to benefit. It has a compatible commercial code and over 90 percent of the populationspeaks English.

A high literacy rate, a large pool of IT professionals, and patchy, but cheap telecommunications infrastructure, makes the Philippines a com-petitive place for US outsourcing, reflected in the fact the US companies account for about 90 percent of outsourcing deals in the country.

Procter & Gamble, Delta Airlines, AIG, and Citibank have all outsourced work to the Philippines. US engineering giant Fluor Daniel hasmuch of its technical work undertaken there by an almost 1000-strong team of local engineers, architects and draughtsmen. And AIG'sPhilippines business processing unit now has more than 4000 staff.

The Philippines Department of Labor and Employment, is implementing policies aimed to ensure optimum, safe and healthy, and non-dis-criminatory working conditions in the ITES-BPO industry. House Bills 3792 and 3851, amending Article 131 of the country's Labor Code,and seeking to broaden the legitimate exemptions from the night work prohibition of women.

Source: TheAge.com, March 2006

South Africa Wants to Catch-up with India and Philippines ITES-BPO

The government will allocate R70 million for the ITES-BPO support programme, which includes a learnership allowance to lower the costs oftraining, a funding mechanism to assist in start-up costs and the development of technology centres through private-public partnerships. Thegovernment is also pushing for lowering telecom tariffs, which are currently viewed as a hindrance to the development of the offshoring sector.

South Africa is also using a tax-break strategy. Companies can claim back around 20 – 30 percent of capital expenditure costs in a cashgrant paid out over three years. Companies can also effectively claim back up to 30 percent of training costs.

The Department of Trade and Industry (DTI) has launched the BPO and Outsourcing Sector Development Strategy in 2005 which highlightsthe need for policy initiatives for the industry.

For promoting awareness about South Africa’s potential in IT and ITES-BPO sectors, the DTI established the ICT Development Council calledSAVANT in 2000.

The goal of SAVANT is to establish an awareness campaign for the sector by marketing the industry locally and internationally. The initiativealso aims to strengthen the South African IT/ ITES-BPO sector in order to add dimension to its global competitiveness.

Source: SAVANT, Media, Hewitt Analysis



2.5 INCUMBENTS DRIVER

2.5.1 Factors consideredIncumbents refer to ITES-BPO players (captive26

and third party) operating in a particular country.The scale and maturity of incumbents can be usedto gauge the growth achieved in the ITES-BPOsector in any country. The Incumbents driver is criticalin understanding the current state of the ITES-BPOsector in the country and evaluating its competitivenesswith respect to other emerging destinations.

The factors considered under this driver are:■ Number of ITES companies■ Incidence of captives■ Total outsourced agent positions■ Ability to scale

2.5.2 Analysis and Rankings■ Most countries in Africa, except for South Africa,

have not grown as large offshore destinations.

Our analysis of the previous three drivers hasclearly identified South Africa as a preferred desti-nation for ITES-BPO in Africa. This has translat-ed into an increase in investments in the SouthAfrican offshoring industry and building up ofscale.

■ Ghana has been unable to develop its peopleand infrastructure resources and has not hadmuch success in creating an attractive environ-ment for offshore industry investments. This hasled to a low number of incumbents and lowdegree of ramp-up as compared with some ofthe global offshore destinations, even though theITES-BPO industry in the country is about fiveyears old.

■ Within Africa, there has been little develop-ment of non-voice ITES-BPO and transactionprocessing. Apart from small operations inMauritius and Botswana, the bulk of off-shoring to Africa has been in ContactCenters.

26 Captive refers to an organization which provides dedicated support only for operations of the parent company27 Source: Hewitt Associates, April 2006

Figure 2.5.2.1 Ghana Compared with International Destinationson the Incumbents Driver27

1.00

0.25 0.25 0.20 0.10 0.01

1.00

1.000.60 0.60

0.20 0.20

1.50

0.17

0.09 0.05

0.02 0.01

1.50

1.50

0.90

0.300.90 0.90

India Philippines Mexico Romania China Ghana

5.00

1.121.221.75

1.84

2.92

Number of ITES companies Incidence of captives Total outsourced agent positions Ability to scale

Incumbent: Ghana Compared with International Destinations



2.5 INCUMBENTS DRIVER

2.5.1 Factors consideredIncumbents refer to ITES-BPO players (captive26

and third party) operating in a particular country.The scale and maturity of incumbents can be usedto gauge the growth achieved in the ITES-BPOsector in any country. The Incumbents driver is criticalin understanding the current state of the ITES-BPOsector in the country and evaluating its competitivenesswith respect to other emerging destinations.

The factors considered under this driver are:■ Number of ITES companies■ Incidence of captives■ Total outsourced agent positions■ Ability to scale

2.5.2 Analysis and Rankings■ Most countries in Africa, except for South Africa,

have not grown as large offshore destinations.

Our analysis of the previous three drivers hasclearly identified South Africa as a preferred desti-nation for ITES-BPO in Africa. This has translat-ed into an increase in investments in the SouthAfrican offshoring industry and building up ofscale.

■ Ghana has been unable to develop its peopleand infrastructure resources and has not hadmuch success in creating an attractive environ-ment for offshore industry investments. This hasled to a low number of incumbents and lowdegree of ramp-up as compared with some ofthe global offshore destinations, even though theITES-BPO industry in the country is about fiveyears old.

■ Within Africa, there has been little develop-ment of non-voice ITES-BPO and transactionprocessing. Apart from small operations inMauritius and Botswana, the bulk of off-shoring to Africa has been in ContactCenters.

26 Captive refers to an organization which provides dedicated support only for operations of the parent company27 Source: Hewitt Associates, April 2006

Figure 2.5.2.1 Ghana Compared with International Destinationson the Incumbents Driver27

1.00

0.25 0.25 0.20 0.10 0.01

1.00

1.000.60 0.60

0.20 0.20

1.50

0.17

0.09 0.05

0.02 0.01

1.50

1.50

0.90

0.300.90 0.90

India Philippines Mexico Romania China Ghana

5.00

1.121.221.75

1.84

2.92

Number of ITES companies Incidence of captives Total outsourced agent positions Ability to scale

Incumbent: Ghana Compared with International Destinations



Ghana’s position on this Driver benchmarked withGlobal and Regional destinations is represented inthe graphs on the following page:

2.5.3 Best Practices and LearningsAttracting incumbents and successfully scaling upoffshoring operations is a culmination of the efforts

of developing talent resources, suitable infrastruc-ture, and a business-friendly environment. Thereare several examples of how countries have lever-aged their initial ànchor’ incumbents to propel theindustry forward.

Ranking of Ghana International RegionalIncumbents Driver #6 Overall the incumbents driver is ranked the #3 After South Africa and Egypt

lowest essentially on account of low presence of the number of players

Number of ITES companies #6 Ranked last amongst all countries #5 Along with Botswana, before Nigeria

Incidence of captives #5 Along with China All countries are at the same ranking after South Africa

Total outsourced agent positions #6 Ranked last amongst all countries #2 Along with Mauritius after South Africa

Ability to scale #5 Along with China #2 Along with Egypt after South Africa

Figure 2.5.2.2 Ghana compared with regional destinations on the incumbents driver28

0.10 0.08 0.02 0.08 0.06 0.02 0.01

2.00

0.40 0.40 0.40 0.40 0.40 0.40

0.04

0.01 0.02 0.02 0.00 0.00 0.00

3.00

1.80 1.80

0.60 0.60 0.60 0.60

South Africa Egypt Ghana Maurit ius Senegal Botswana Nigeria

Number of ITES CompaniesIncidence of CaptivesTotal outsourced agent positionsAblity to Scale

5.14

1.021.061.09

2.242.28

1.01





Ghana’s position on this Driver benchmarked withGlobal and Regional destinations is represented inthe graphs on the following page:

2.5.3 Best Practices and LearningsAttracting incumbents and successfully scaling upoffshoring operations is a culmination of the efforts

of developing talent resources, suitable infrastruc-ture, and a business-friendly environment. Thereare several examples of how countries have lever-aged their initial ànchor’ incumbents to propel theindustry forward.

Ranking of Ghana International RegionalIncumbents Driver #6 Overall the incumbents driver is ranked the #3 After South Africa and Egypt

lowest essentially on account of low presence of the number of players

Number of ITES companies #6 Ranked last amongst all countries #5 Along with Botswana, before Nigeria

Incidence of captives #5 Along with China All countries are at the same ranking after South Africa

Total outsourced agent positions #6 Ranked last amongst all countries #2 Along with Mauritius after South Africa

Ability to scale #5 Along with China #2 Along with Egypt after South Africa

Figure 2.5.2.2 Ghana compared with regional destinations on the incumbents driver28

0.10 0.08 0.02 0.08 0.06 0.02 0.01

2.00

0.40 0.40 0.40 0.40 0.40 0.40

0.04

0.01 0.02 0.02 0.00 0.00 0.00

3.00

1.80 1.80

0.60 0.60 0.60 0.60

South Africa Egypt Ghana Maurit ius Senegal Botswana Nigeria

Number of ITES CompaniesIncidence of CaptivesTotal outsourced agent positionsAblity to Scale

5.14

1.021.061.09

2.242.28

1.01





Evolution of ITES-BPO in India

American Express and General Electric pioneered the trend of outsourcing to India by setting up facilities in Gurgaon, near Delhi, in theearly 1990s. Some of the other early birds were companies such as British Airways that have also operated their back office in Indiasince the mid-1990s.

The early reasons for considering offshoring to India were centered around reducing costs and minimizing the effort spent on “non-core”activities. With increasing confidence of the companies in the capabilities of Indian operations, higher value added activities, such asprocessing of human resources, accounting and other non-core functions is reaching Indian shores.

The growth in the Indian BPO sector has been the result of an exponential rise in incumbents – both captive companies as well as third-party service providers. The graph below summarizes the growth of the Indian BPO industry from early 1990s to early 2000s. The com-panies mentioned above the trend line are the captive incumbents while those below the trend line are the third party service providers.

The BPO sector in India generated around US$6 billion in revenues and provided employment to around 315,000 people in 2005.The employment is growing at an exponential rate and is expected to reach 400,000 in 2006.

The government of India has taken various steps to nurture incumbents. A majority of the states have an IT policy or an ITES/ BPO policyin place providing specific initiatives for data protection and consumer privacy (to reassure ITES companies of data safety) and specialincentives/schemes/employment subsidies for attracting foreign companies/foreign investment. The state governments provide IT/ITEScompanies exemptions from applicable labor laws such as 24-hour operation, working on national holidays, consecutive night shifts,special provisions for women and self certification under different labor and establishment related laws for ease of operation.


0.0

0.4

0.6

0.8

1.0

1.50

1.75

2.0

2.25

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

BPO total revenues-India example$ billion

2004

2005

1992

2.503.04.05.0

0.0

0.2

1.25

$ billion

Lufthansa in South Africa

According to a report by the Department of Trade and Industry, South Africa, the South African Call Center (CC) industry has evolvedrapidly over the past 10 years, gaining in experience and knowledge. CCs in specific sectors of the industry, such as financial services,healthcare, travel and utilities are well integrated and perform above industry benchmarks in most key areas of performance.

With the rapid growth of the CC industry, South Africans have developed the skills to design, build, and operate call centers rapidlyand at reasonable scale. Many such centers offer multilingual capabilities and support both sales and service activities. South Africanshave learned how to operate efficiently and effectively in these relatively complex environments.

The primary industry association in South Africa - SACCOM has been created by the incumbents. There isno direct government involvement in the association.

The international business community has demonstrated its confidence in South Africa by placing morethan 2,500 seats in the country in the past three years.

Lufthansa is one such international organization, with one of its outsourced call centres in Cape Town, South Africa, despite the fact thatGerman is not generally a first language among South Africans. The reasons for the decision were as follows:

■ There is a significant pool of German-speakers living in and around Cape Town■ The telecom infrastructure in South Africa is stable and well-developed, even if somewhat more expensive than in many other poten-

tial locations■ Cape Town has a pool of experienced Systems Integrators that can provide the hardware and software solutions needed for the callcentre■ The time differential (maximum 2 hours) between South Africa and Europe assisted Lufthansa in providing a 24/7 service to its

customers



Evolution of ITES-BPO in India

American Express and General Electric pioneered the trend of outsourcing to India by setting up facilities in Gurgaon, near Delhi, in theearly 1990s. Some of the other early birds were companies such as British Airways that have also operated their back office in Indiasince the mid-1990s.

The early reasons for considering offshoring to India were centered around reducing costs and minimizing the effort spent on “non-core”activities. With increasing confidence of the companies in the capabilities of Indian operations, higher value added activities, such asprocessing of human resources, accounting and other non-core functions is reaching Indian shores.

The growth in the Indian BPO sector has been the result of an exponential rise in incumbents – both captive companies as well as third-party service providers. The graph below summarizes the growth of the Indian BPO industry from early 1990s to early 2000s. The com-panies mentioned above the trend line are the captive incumbents while those below the trend line are the third party service providers.

The BPO sector in India generated around US$6 billion in revenues and provided employment to around 315,000 people in 2005.The employment is growing at an exponential rate and is expected to reach 400,000 in 2006.

The government of India has taken various steps to nurture incumbents. A majority of the states have an IT policy or an ITES/ BPO policyin place providing specific initiatives for data protection and consumer privacy (to reassure ITES companies of data safety) and specialincentives/schemes/employment subsidies for attracting foreign companies/foreign investment. The state governments provide IT/ITEScompanies exemptions from applicable labor laws such as 24-hour operation, working on national holidays, consecutive night shifts,special provisions for women and self certification under different labor and establishment related laws for ease of operation.


0.0

0.4

0.6

0.8

1.0

1.50

1.75

2.0

2.25

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

BPO total revenues-India example$ billion

2004

2005

1992

2.503.04.05.0

0.0

0.2

1.25

$ billion

Lufthansa in South Africa

According to a report by the Department of Trade and Industry, South Africa, the South African Call Center (CC) industry has evolvedrapidly over the past 10 years, gaining in experience and knowledge. CCs in specific sectors of the industry, such as financial services,healthcare, travel and utilities are well integrated and perform above industry benchmarks in most key areas of performance.

With the rapid growth of the CC industry, South Africans have developed the skills to design, build, and operate call centers rapidlyand at reasonable scale. Many such centers offer multilingual capabilities and support both sales and service activities. South Africanshave learned how to operate efficiently and effectively in these relatively complex environments.

The primary industry association in South Africa - SACCOM has been created by the incumbents. There isno direct government involvement in the association.

The international business community has demonstrated its confidence in South Africa by placing morethan 2,500 seats in the country in the past three years.

Lufthansa is one such international organization, with one of its outsourced call centres in Cape Town, South Africa, despite the fact thatGerman is not generally a first language among South Africans. The reasons for the decision were as follows:

■ There is a significant pool of German-speakers living in and around Cape Town■ The telecom infrastructure in South Africa is stable and well-developed, even if somewhat more expensive than in many other poten-

tial locations■ Cape Town has a pool of experienced Systems Integrators that can provide the hardware and software solutions needed for the callcentre■ The time differential (maximum 2 hours) between South Africa and Europe assisted Lufthansa in providing a 24/7 service to its

customers



2.5.4 Implications for Ghana

■ Ghana has an opportunity to position itself as apremiere non-voice ITES-BPO and transactionprocessing player since there is a lack of suchactivity in Africa.

■ Ghana should leverage ACS’ growing presencein Ghana to gain investor confidence by usingthe example of the successful establishment andexpansion of ACS operations as part of its mar-keting initiatives for promoting Ghana as aBPO destination. ACS employs close to 2000employees at its Ghana facility.

AIG set-up offshore center in Philippines

AIG, the United States’ second largest life insurer chose to set up offshore operations in the Philippines because of the following advan-tages offered by the country:■ Quality of labor; familiarity with American jargon and culture.■ Cost advantages in terms of labor.■ Preference of western expatriates as the lifestyle offered there is more conducive to their needs.■ Financial reporting and accounting standards aligned to the United States.■ Government support through tax holidays.■ Breadth of experience of the local AIG partner, Phililam Life. ■ Superior infrastructure - a prerequisite for offshore operations.

The company provides back-end processes, such as data entry, policy administration, claims, disbursement and premium processingand customer service to AIG worldwide. The company operates two centers in the Philippines, in Manila and Cebu.




2.5.4 Implications for Ghana

■ Ghana has an opportunity to position itself as apremiere non-voice ITES-BPO and transactionprocessing player since there is a lack of suchactivity in Africa.

■ Ghana should leverage ACS’ growing presencein Ghana to gain investor confidence by usingthe example of the successful establishment andexpansion of ACS operations as part of its mar-keting initiatives for promoting Ghana as aBPO destination. ACS employs close to 2000employees at its Ghana facility.

AIG set-up offshore center in Philippines

AIG, the United States’ second largest life insurer chose to set up offshore operations in the Philippines because of the following advan-tages offered by the country:■ Quality of labor; familiarity with American jargon and culture.■ Cost advantages in terms of labor.■ Preference of western expatriates as the lifestyle offered there is more conducive to their needs.■ Financial reporting and accounting standards aligned to the United States.■ Government support through tax holidays.■ Breadth of experience of the local AIG partner, Phililam Life. ■ Superior infrastructure - a prerequisite for offshore operations.

The company provides back-end processes, such as data entry, policy administration, claims, disbursement and premium processingand customer service to AIG worldwide. The company operates two centers in the Philippines, in Manila and Cebu.




Ghana Today: Key Findings . 31

3 GHANA TODAY:KEY FINDINGS

This chapter presents an analysis of Ghana’s currentcapabilities and limitations across the five drivers,i.e., People, Infrastructure, Environment,Incumbents and Clusters. It identifies key strengthsthat Ghana can leverage, as well as challenges thatGhana must address to develop itself as a leadingITES-BPO destination.

3.1 PEOPLEThe ITES-BPO industry is highly people-intensiveand availability of adequate, good quality talent atcompetitive costs is critical for its development andgrowth. In this context, we have analyzed Ghana’scurrent talent scenario with respect to availability,quality, costs, and cultural adaptability.

3.1.1 Talent AvailabilityThe importance Ghana has placed on the educa-tion sector has ensured an adequate pipeline ofeducated workforce. The government spendsbetween 28–40 percent of its annual budget oneducation.

The education system in Ghana comprises of threelevels—basic, secondary, and tertiary. The Ministryof Education (MoE) is responsible for formulatingthe education policy, while the Ghana EducationService (GES) and the National Council forTertiary Education (NCTE) is responsible forimplementing the policies at pre-tertiary and terti-ary level respectively.

In 1957, Ghana had one university and few sec-ondary and primary schools. By 2004–2005, therewere 6,729 junior secondary schools, 506 seniorsecondary schools, 10 polytechnics and 11 universi-ties (six public and five private universities).29.

3.1.1.1 Talent Supply Graduate Pool and Floating PopulationAs per a White Paper Report on EducationReforms, published by the MoE, there is a highdrop-out rate between junior secondary school andsenior secondary school enrolment–estimated atapproximately 60 percent. Thus, for every 100students in junior secondary school, only 40 makeit to senior secondary school.

Moreover, although the education sector has experi-enced significant improvements over the last fewdecades, there still exists a capacity constraint withrespect to public universities and polytechnics,resulting in a further drop-out rate of approximate-ly 40 percent between senior secondary school andtertiary levels, eventually allowing only 16 studentsto pass out for every 100 students enrolled in jun-ior secondary schools.30

The following table compares the number ofenrollments in tertiary-level education across vari-ous established and offshore destinations.

Table 3.1.1.1.1 Country comparisonfor number of tertiary enrolments31

Country Number of tertiary enrollments/annum

China 12,284,999

India 10,874,872

Egypt 2,672,771

Philippines 2,558,898

Mexico 2,147,075

Nigeria 969,995

South Africa 673,067

Romania 580,825

Ghana 69,968

Senegal 33,121

Mauritius 16,905

Botswana 9,161

29 Source: http://www.uis.unesco.org/template/pdf/scb/StateReports/InformationAndMonitoringSheet/Ghana.pdf30 Acknowledged by Ministry of Education in its whitepaper on ‘Education Reforms Review in Ghana’31 Source: UNESCO 2003- 2004



3 GHANA TODAY:KEY FINDINGS

This chapter presents an analysis of Ghana’s currentcapabilities and limitations across the five drivers,i.e., People, Infrastructure, Environment,Incumbents and Clusters. It identifies key strengthsthat Ghana can leverage, as well as challenges thatGhana must address to develop itself as a leadingITES-BPO destination.

3.1 PEOPLEThe ITES-BPO industry is highly people-intensiveand availability of adequate, good quality talent atcompetitive costs is critical for its development andgrowth. In this context, we have analyzed Ghana’scurrent talent scenario with respect to availability,quality, costs, and cultural adaptability.

3.1.1 Talent AvailabilityThe importance Ghana has placed on the educa-tion sector has ensured an adequate pipeline ofeducated workforce. The government spendsbetween 28–40 percent of its annual budget oneducation.

The education system in Ghana comprises of threelevels—basic, secondary, and tertiary. The Ministryof Education (MoE) is responsible for formulatingthe education policy, while the Ghana EducationService (GES) and the National Council forTertiary Education (NCTE) is responsible forimplementing the policies at pre-tertiary and terti-ary level respectively.

In 1957, Ghana had one university and few sec-ondary and primary schools. By 2004–2005, therewere 6,729 junior secondary schools, 506 seniorsecondary schools, 10 polytechnics and 11 universi-ties (six public and five private universities).29.

3.1.1.1 Talent Supply Graduate Pool and Floating PopulationAs per a White Paper Report on EducationReforms, published by the MoE, there is a highdrop-out rate between junior secondary school andsenior secondary school enrolment–estimated atapproximately 60 percent. Thus, for every 100students in junior secondary school, only 40 makeit to senior secondary school.

Moreover, although the education sector has experi-enced significant improvements over the last fewdecades, there still exists a capacity constraint withrespect to public universities and polytechnics,resulting in a further drop-out rate of approximate-ly 40 percent between senior secondary school andtertiary levels, eventually allowing only 16 studentsto pass out for every 100 students enrolled in jun-ior secondary schools.30

The following table compares the number ofenrollments in tertiary-level education across vari-ous established and offshore destinations.

Table 3.1.1.1.1 Country comparisonfor number of tertiary enrolments31

Country Number of tertiary enrollments/annum

China 12,284,999

India 10,874,872

Egypt 2,672,771


Mexico 2,147,075

Nigeria 969,995

South Africa 673,067

Romania 580,825

Ghana 69,968

Senegal 33,121

Mauritius 16,905

Botswana 9,161

29 Source: http://www.uis.unesco.org/template/pdf/scb/StateReports/InformationAndMonitoringSheet/Ghana.pdf30 Acknowledged by Ministry of Education in its whitepaper on ‘Education Reforms Review in Ghana’31 Source: UNESCO 2003- 2004



Approximately 70,000 students enroll for tertiary-level education in Ghana each year, and in2003–2004, 29,230 students graduated from publicuniversities and polytechnics in Ghana. Among itsAfrican counterparts, the number of tertiary enroll-ments in Ghana is more than in Senegal, Botswana,and Mauritius.

The gap between the number of applicants for thepublic universities and polytechnics and the actualenrolments, creates a Floating Population which,when provided adequate training, can be a poten-tial talent pool for the ITES-BPO industry inGhana - for jobs such as data entry/conversion thatdo not require any exception handling.

In addition to the above, the ITES-BPO industryin Ghana can absorb the self-employed andunemployed population, which has completedsenior secondary schooling but not enrolled intertiary education. Based on our estimates anddiscussions with various stakeholders32 this trans-lates to an additional unskilled talent pool of38,00033.

Technical/Scientific Talent

Ghana faces a shortage of adequate talent in tech-nical and scientific areas. Almost two-thirds oftertiary education enrolments are in the Artsdiscipline, with the remaining one-third in Sciencecourses. Ghana produces approximately 3,600engineers from various universities and polytech-nics each year, and about 219 graduates inmedicine34 (polytechnics do not have any graduatesin medicine).

A World Bank-sponsored analytical study on theLabour Market for Tertiary Graduates in Ghana35

acknowledges an oversupply of graduates in Artsand Humanities, and an undersupply in areas suchas Engineering, Accounting, Medicine, InformationTechnology, and Management. The report alsofinds that, on the basis of data till the year 2000,there are deficits in the supply of medical andhealth; engineering, and technical; and administra-tion graduates in Ghana. Within each profession,

the deficit in talent supply to current output is asfollows:

■ A deficit of 66 percent in the supply of medicaland health graduates

■ A deficit of 10 percent in the supply of engi-neering and technical graduates

■ A deficit of 23 percent in the supply of gradu-ates in management and accounting

Our discussion with stakeholders in the Ministryof Education and the ITES-BPO industry hasrevealed that the situation has not changed signifi-cantly since 2000. Ghana’s ICT policy (ICT4AD)also corroborates this finding. In this policy docu-ment, it is estimated that Ghana has about 174 reg-istered engineers, 53 legal practitioners, 60 certifiedaccountants, 50 architects and surveyors and 145medical and detail practitioners (including doctors)per million people.

This is significantly low and we believe that thisshortage of technical professionals will impactGhana’s ability to attract the high-segment ITES-BPO work in the long term.

Managerial Talent

The occupational profile of the economically activepopulation aged 15 years and over depicts lownumbers in professional and managerial positions.Of a total pool of about 8.3 million economicallyactive workers, only ~9 percent are engaged in pro-fessional and technical positions and ~0.3 percentare engaged in administrative and managerial posi-tions. These low numbers are indicative of thedemand and supply of this talent in the currentbusiness conditions.

While managerial talent for traditional sectorsrequires strong emphasis on technical domain skillsand knowledge, managerial talent in the ITES-BPOindustry requires knowledge of company-specificprocesses irrespective of educational back-ground. Middle-level managers require verticalskills that are usually developed from within theorganization given the strong training that is

32 Mary Greenslade, Exzeed, Ariba33 Calculated as - Unemployment rate of ~20%; Applicants denied admission to tertiary education ~ 60%34 Source: National Council of Tertiary Education (NCTE)35 Source: Labour Market for Tertiary Graduates in Ghana, World Bank/National Council For Tertiary Education & The National Accreditation Board Project



Approximately 70,000 students enroll for tertiary-level education in Ghana each year, and in2003–2004, 29,230 students graduated from publicuniversities and polytechnics in Ghana. Among itsAfrican counterparts, the number of tertiary enroll-ments in Ghana is more than in Senegal, Botswana,and Mauritius.

The gap between the number of applicants for thepublic universities and polytechnics and the actualenrolments, creates a Floating Population which,when provided adequate training, can be a poten-tial talent pool for the ITES-BPO industry inGhana - for jobs such as data entry/conversion thatdo not require any exception handling.

In addition to the above, the ITES-BPO industryin Ghana can absorb the self-employed andunemployed population, which has completedsenior secondary schooling but not enrolled intertiary education. Based on our estimates anddiscussions with various stakeholders32 this trans-lates to an additional unskilled talent pool of38,00033.

Technical/Scientific Talent

Ghana faces a shortage of adequate talent in tech-nical and scientific areas. Almost two-thirds oftertiary education enrolments are in the Artsdiscipline, with the remaining one-third in Sciencecourses. Ghana produces approximately 3,600engineers from various universities and polytech-nics each year, and about 219 graduates inmedicine34 (polytechnics do not have any graduatesin medicine).

A World Bank-sponsored analytical study on theLabour Market for Tertiary Graduates in Ghana35

acknowledges an oversupply of graduates in Artsand Humanities, and an undersupply in areas suchas Engineering, Accounting, Medicine, InformationTechnology, and Management. The report alsofinds that, on the basis of data till the year 2000,there are deficits in the supply of medical andhealth; engineering, and technical; and administra-tion graduates in Ghana. Within each profession,

the deficit in talent supply to current output is asfollows:

■ A deficit of 66 percent in the supply of medicaland health graduates

■ A deficit of 10 percent in the supply of engi-neering and technical graduates

■ A deficit of 23 percent in the supply of gradu-ates in management and accounting

Our discussion with stakeholders in the Ministryof Education and the ITES-BPO industry hasrevealed that the situation has not changed signifi-cantly since 2000. Ghana’s ICT policy (ICT4AD)also corroborates this finding. In this policy docu-ment, it is estimated that Ghana has about 174 reg-istered engineers, 53 legal practitioners, 60 certifiedaccountants, 50 architects and surveyors and 145medical and detail practitioners (including doctors)per million people.

This is significantly low and we believe that thisshortage of technical professionals will impactGhana’s ability to attract the high-segment ITES-BPO work in the long term.

Managerial Talent

The occupational profile of the economically activepopulation aged 15 years and over depicts lownumbers in professional and managerial positions.Of a total pool of about 8.3 million economicallyactive workers, only ~9 percent are engaged in pro-fessional and technical positions and ~0.3 percentare engaged in administrative and managerial posi-tions. These low numbers are indicative of thedemand and supply of this talent in the currentbusiness conditions.

While managerial talent for traditional sectorsrequires strong emphasis on technical domain skillsand knowledge, managerial talent in the ITES-BPOindustry requires knowledge of company-specificprocesses irrespective of educational back-ground. Middle-level managers require verticalskills that are usually developed from within theorganization given the strong training that is

32 Mary Greenslade, Exzeed, Ariba33 Calculated as - Unemployment rate of ~20%; Applicants denied admission to tertiary education ~ 60%34 Source: National Council of Tertiary Education (NCTE)35 Source: Labour Market for Tertiary Graduates in Ghana, World Bank/National Council For Tertiary Education & The National Accreditation Board Project



imparted to employees. Senior level managersrequire horizontal skills and such talent can bemade available from the other industries in theshort run.

Given the current level of maturity of the ITES-BPOindustry in Ghana, there is lack of adequatemanagerial talent especially at the middle manage-ment levels.

In the medium to long run, the availability of man-agerial talent will be directly proportional to thegrowth of the industry including the supportingclusters such as human resources and training agen-cies, education, and research institutions.

3.1.1.2 Talent SourcingThe ease of sourcing/recruiting talent is anotherimportant parameter for any ITES-BPO organiza-tion. Various channels, such as referrals, direct appli-cations, advertisements, job sites and search agenciesare utilized for recruiting employees. Depending onthe requirement a mix of such channels is used.

In Ghana, the most prevalent mode of recruitmentis through newspaper advertisements or by employeereferrals. Our discussions with incumbents revealedthat search firms are rarely utilized due to inade-quate availability of candidate database with thesearch firms.

The typical talent sourcing time through newspa-per advertisement is around two months. Theacceptance rates vary from organization to organi-zation, but the average application to acceptancerate is in the region of 6:1 for most positions. Webelieve this ratio will improve as industry maturesand pool of trained talent is created.

3.1.2 Talent QualityThe quality of talent with respect to the ITES-BPOindustry is gauged by basic skills in English literacyand comprehension, basic keyboarding and computingskills and neutral voice accent. For high-end segmentswithin ITES-BPO, specific skills for certain domainssuch as accounting, payroll processing, medical tran-scription are also important. This section discusses

TABLE 3.1.2.1.1 Country comparison on quality of education36

Quality of Education

Quality of Math and Quality of Country Science Education Rank Management Schools Rank

China 4.39 3 3.56 9

India 5.54 2 5.75 1

Philippines 2.78 11 4.80 3

Mexico 3.14 9 4.59 4

Romania 5.89 1 3.87 7

Egypt 3.59 6 3.52 10

South Africa 2.82 10 5.37 2

Nigeria 2.72 12 3.51 11

Senegal 3.15 8 4.12 5

Ghana 3.51 7 4.01 6

Botswana 3.85 5 3.27 12

Mauritius 4.23 4 3.65 8

36 Source: The Global Information Technology Report 2003–2004



imparted to employees. Senior level managersrequire horizontal skills and such talent can bemade available from the other industries in theshort run.

Given the current level of maturity of the ITES-BPOindustry in Ghana, there is lack of adequatemanagerial talent especially at the middle manage-ment levels.

In the medium to long run, the availability of man-agerial talent will be directly proportional to thegrowth of the industry including the supportingclusters such as human resources and training agen-cies, education, and research institutions.

3.1.1.2 Talent SourcingThe ease of sourcing/recruiting talent is anotherimportant parameter for any ITES-BPO organiza-tion. Various channels, such as referrals, direct appli-cations, advertisements, job sites and search agenciesare utilized for recruiting employees. Depending onthe requirement a mix of such channels is used.

In Ghana, the most prevalent mode of recruitmentis through newspaper advertisements or by employeereferrals. Our discussions with incumbents revealedthat search firms are rarely utilized due to inade-quate availability of candidate database with thesearch firms.

The typical talent sourcing time through newspa-per advertisement is around two months. Theacceptance rates vary from organization to organi-zation, but the average application to acceptancerate is in the region of 6:1 for most positions. Webelieve this ratio will improve as industry maturesand pool of trained talent is created.

3.1.2 Talent QualityThe quality of talent with respect to the ITES-BPOindustry is gauged by basic skills in English literacyand comprehension, basic keyboarding and computingskills and neutral voice accent. For high-end segmentswithin ITES-BPO, specific skills for certain domainssuch as accounting, payroll processing, medical tran-scription are also important. This section discusses

TABLE 3.1.2.1.1 Country comparison on quality of education36

Quality of Education

Quality of Math and Quality of Country Science Education Rank Management Schools Rank

China 4.39 3 3.56 9

India 5.54 2 5.75 1

Philippines 2.78 11 4.80 3

Mexico 3.14 9 4.59 4

Romania 5.89 1 3.87 7

Egypt 3.59 6 3.52 10

South Africa 2.82 10 5.37 2

Nigeria 2.72 12 3.51 11

Senegal 3.15 8 4.12 5

Ghana 3.51 7 4.01 6

Botswana 3.85 5 3.27 12

Mauritius 4.23 4 3.65 8

36 Source: The Global Information Technology Report 2003–2004



the quality of talent in Ghana based on the definedskill sets for ITES operation:

3.1.2.1 Quality of EducationAlthough the education sector in Ghana suffersfrom severe capacity constraints, the quality of edu-cation imparted is fairly good. According to theGlobal Information Technology Report, publishedby the World Economic Forum, on a scale of 1–7(where 1 denotes poor quality and 7 denotes excel-lent quality) Ghana scored 3.51 on the quality ofits mathematics and science education and 4.01 onthe quality of management schools.

As can be seen from the table below, this was higherthan most regional countries and even some estab-lished offshore destinations. On mathematics andscience South Africa scored 2.82, Nigeria scored2.72 and Philippines scored 2.78 in the same sur-vey. On the quality of management schools, Ghanascored better than Nigeria (3.51), Botswana (3.27)and China (3.56).

3.1.2.2 English Language SkillsEnglish is the official language in Ghana and themedium of instruction in Ghana’s education system.Around 52 percent of the population (or 11 millionpeople) over 15 years in age in Ghana can read andwrite in English. In Accra metropolis, almost860,000 people can read and write English. Withinthis population, about 29,230 are graduates ofpublic universities and polytechnics.

As presented in the table below, other potential off-shoring destinations in Africa have much smallerEnglish-speaking populations.

Moreover, the average scores on the Test of Englishas a Foreign Language (TOEFL) of Ghanaian stu-dents also compare favorably with countries such asthe Philippines and Mexico. Because TOEFL testsspeaking, listening, reading and writing skills foreffective communications, it is an established bench-mark for evaluating English-speaking talent quality.

Since companies in English-speaking countries(United States, United Kingdom) are the leaders inoffshoring, and the majority of the work that canbe located offshore in IT and ITES-BPO sectors

requires strong English language capability, Ghanais strongly positioned on this parameter.

3.1.2.3 Foreign Language SkillsAlthough Ghana fares favorably in English languageskills, it does not possess significant foreign languagecapability. This makes Ghana a weaker candidate asa potential offshore destination for Europeancompanies when compared with countries such asEgypt, Mauritius, Morocco, and Romania, whichoffer multilingual capability.

3.1.2.4 Computer/IT ProficiencyComputer/IT skills among fresh and experiencedtalent in Ghana are moderate to low, mainlybecause personal computers are not readily avail-able to them. Access to computers in colleges andat work is relatively low. Overall, PC penetration inGhana is about 0.52 per 100 people38.

Although computers are being introduced in schools,most of them are used to teach other subjects39. Forexample, the senior secondary school curriculum inGhana does not include computer courses. Therefore,

Table 3.1.2.2.1 Country comparisonof English-speaking population37

Country English Speaking Population

India 350,000,000

China 220,000,000


Ghana 11,000,000

South Africa 5,336,219

Romania 5,000,000

Egypt 2,325,173

Nigeria 1,000,000

Mauritius 430,711

Mexico 350,000

Senegal 50,000

Botswana 34,442

37 Source : Hewitt Research38 Source: International Telecommunications Union39 Interview with Coordinator, Ministry of Education



the quality of talent in Ghana based on the definedskill sets for ITES operation:

3.1.2.1 Quality of EducationAlthough the education sector in Ghana suffersfrom severe capacity constraints, the quality of edu-cation imparted is fairly good. According to theGlobal Information Technology Report, publishedby the World Economic Forum, on a scale of 1–7(where 1 denotes poor quality and 7 denotes excel-lent quality) Ghana scored 3.51 on the quality ofits mathematics and science education and 4.01 onthe quality of management schools.

As can be seen from the table below, this was higherthan most regional countries and even some estab-lished offshore destinations. On mathematics andscience South Africa scored 2.82, Nigeria scored2.72 and Philippines scored 2.78 in the same sur-vey. On the quality of management schools, Ghanascored better than Nigeria (3.51), Botswana (3.27)and China (3.56).

3.1.2.2 English Language SkillsEnglish is the official language in Ghana and themedium of instruction in Ghana’s education system.Around 52 percent of the population (or 11 millionpeople) over 15 years in age in Ghana can read andwrite in English. In Accra metropolis, almost860,000 people can read and write English. Withinthis population, about 29,230 are graduates ofpublic universities and polytechnics.

As presented in the table below, other potential off-shoring destinations in Africa have much smallerEnglish-speaking populations.

Moreover, the average scores on the Test of Englishas a Foreign Language (TOEFL) of Ghanaian stu-dents also compare favorably with countries such asthe Philippines and Mexico. Because TOEFL testsspeaking, listening, reading and writing skills foreffective communications, it is an established bench-mark for evaluating English-speaking talent quality.

Since companies in English-speaking countries(United States, United Kingdom) are the leaders inoffshoring, and the majority of the work that canbe located offshore in IT and ITES-BPO sectors

requires strong English language capability, Ghanais strongly positioned on this parameter.

3.1.2.3 Foreign Language SkillsAlthough Ghana fares favorably in English languageskills, it does not possess significant foreign languagecapability. This makes Ghana a weaker candidate asa potential offshore destination for Europeancompanies when compared with countries such asEgypt, Mauritius, Morocco, and Romania, whichoffer multilingual capability.

3.1.2.4 Computer/IT ProficiencyComputer/IT skills among fresh and experiencedtalent in Ghana are moderate to low, mainlybecause personal computers are not readily avail-able to them. Access to computers in colleges andat work is relatively low. Overall, PC penetration inGhana is about 0.52 per 100 people38.

Although computers are being introduced in schools,most of them are used to teach other subjects39. Forexample, the senior secondary school curriculum inGhana does not include computer courses. Therefore,

Table 3.1.2.2.1 Country comparisonof English-speaking population37

Country English Speaking Population

India 350,000,000

China 220,000,000


Ghana 11,000,000

South Africa 5,336,219

Romania 5,000,000

Egypt 2,325,173

Nigeria 1,000,000

Mauritius 430,711

Mexico 350,000

Senegal 50,000

Botswana 34,442

37 Source : Hewitt Research38 Source: International Telecommunications Union39 Interview with Coordinator, Ministry of Education



workers in Ghana lack basic computer and keyboard-ing skills.

In the short-term, this gap in computing skills canbe addressed by developing training support clusterorganizations such as the National Institute ofInformation Technology (NIIT), the AdvancedInformation Technology Institute of Kofi AnnanCentre of Excellence (AITI-KACE), and the GhanaInstitute of Management and Public Administration(GIMPA) and others operating in the country. Inthe long-term, however, computing skills will haveto be integrated into the course curriculum atschool and tertiary levels.

Acknowledging this need for long term policychanges, the government plans to introduce a mar-ket demand-led curriculum at the pre-tertiary andtertiary levels of education. For example, Universityof Ghana plans to make basic computer educationcompulsory for all courses. The senior secondarySchool system also intends to modify its curricu-lum to include subjects in computing. Moreover,the MoC is supporting the roll-out of Internetaccess points, as well as small mobile infrastructurecontaining PCs in areas outside Accra to increasePC proficiency and encourage Internet usage.

3.1.2.5 Attrition and Workforce FlexibilityDue to the high unemployment rate in the formalsector in Ghana, attrition rates are relatively low.Workers there tend to stay in their jobs longer thanother offshore destinations. The attrition rate in theITES-BPO sector in Ghana is estimated to be about5 percent, much lower than the 35–40 percent attri-tion rate in established offshore destinations such asIndia. However, it should be noted that the ITES-BPO industry in India also experienced similarattrition rates in the nascent stage, with attritionclimbing as the industry grew and employmentopportunities expanded.

However, at this stage, the low attrition rate inGhana is a key strength given that incumbents facesignificant costs in training and retraining talent ina high-attrition employment market.

The workforce is also flexible to working in shifts, anecessity in the ITES-BPO industry. It is not diffi-cult to staff operations in excess of 12-hour day or

night shifts, unlike established regional destinationssuch as South Africa.

Incumbents also point to the quality of the work-force in Ghana. Although they may take longer totrain in basic ITES skills due to a lack of a market-ledcurriculum in the education system, Ghanaiansperform consistently when appropriately trained.The government’s initiatives in improving the ITproficiency and introducing market demand ledcurriculum will aid in meeting the long termdemand of skill sets in the ITES-BPO industry.

3.1.3 Talent CostTalent costs (in terms of compensation) for theITES-BPO sector in Ghana are very competitive incomparison with the corresponding labor costs indeveloped economies such as the United States andthe United Kingdom.

As indicated in the table below, the total cost to acompany (inclusive of all benefits) for an entry-level ITES-BPO employee in Ghana is about$5,369 per year. While some incumbents pay their

TABLE 3.1.3.1 Country comparisonon average entry level salaries40

Average Entry Level Salaries Country (in $/annum)South Africa 19,764

Mexico 18,653

Botswana 14,823

Romania 8,736

Nigeria 8,445

Senegal 8,445

China 5,680

Ghana 5,369

Mauritius 4,281

Egypt 4,237

India 3,911

Philippines 3,858

40 Source: Hewitt Analysis



workers in Ghana lack basic computer and keyboard-ing skills.

In the short-term, this gap in computing skills canbe addressed by developing training support clusterorganizations such as the National Institute ofInformation Technology (NIIT), the AdvancedInformation Technology Institute of Kofi AnnanCentre of Excellence (AITI-KACE), and the GhanaInstitute of Management and Public Administration(GIMPA) and others operating in the country. Inthe long-term, however, computing skills will haveto be integrated into the course curriculum atschool and tertiary levels.

Acknowledging this need for long term policychanges, the government plans to introduce a mar-ket demand-led curriculum at the pre-tertiary andtertiary levels of education. For example, Universityof Ghana plans to make basic computer educationcompulsory for all courses. The senior secondarySchool system also intends to modify its curricu-lum to include subjects in computing. Moreover,the MoC is supporting the roll-out of Internetaccess points, as well as small mobile infrastructurecontaining PCs in areas outside Accra to increasePC proficiency and encourage Internet usage.

3.1.2.5 Attrition and Workforce FlexibilityDue to the high unemployment rate in the formalsector in Ghana, attrition rates are relatively low.Workers there tend to stay in their jobs longer thanother offshore destinations. The attrition rate in theITES-BPO sector in Ghana is estimated to be about5 percent, much lower than the 35–40 percent attri-tion rate in established offshore destinations such asIndia. However, it should be noted that the ITES-BPO industry in India also experienced similarattrition rates in the nascent stage, with attritionclimbing as the industry grew and employmentopportunities expanded.

However, at this stage, the low attrition rate inGhana is a key strength given that incumbents facesignificant costs in training and retraining talent ina high-attrition employment market.

The workforce is also flexible to working in shifts, anecessity in the ITES-BPO industry. It is not diffi-cult to staff operations in excess of 12-hour day or

night shifts, unlike established regional destinationssuch as South Africa.

Incumbents also point to the quality of the work-force in Ghana. Although they may take longer totrain in basic ITES skills due to a lack of a market-ledcurriculum in the education system, Ghanaiansperform consistently when appropriately trained.The government’s initiatives in improving the ITproficiency and introducing market demand ledcurriculum will aid in meeting the long termdemand of skill sets in the ITES-BPO industry.

3.1.3 Talent CostTalent costs (in terms of compensation) for theITES-BPO sector in Ghana are very competitive incomparison with the corresponding labor costs indeveloped economies such as the United States andthe United Kingdom.

As indicated in the table below, the total cost to acompany (inclusive of all benefits) for an entry-level ITES-BPO employee in Ghana is about$5,369 per year. While some incumbents pay their

TABLE 3.1.3.1 Country comparisonon average entry level salaries40

Average Entry Level Salaries Country (in $/annum)South Africa 19,764

Mexico 18,653

Botswana 14,823

Romania 8,736

Nigeria 8,445

Senegal 8,445

China 5,680

Ghana 5,369

Mauritius 4,281

Egypt 4,237

India 3,911

Philippines 3,858

40 Source: Hewitt Analysis



employees on piece rate basis with built-in incen-tives for higher productivity, the average costs are inthe range of $4,200-$4,800 per year. At the middlemanagement (4–7 years of experience) and seniorlevels (more than 8 years experience) the salary isbetween $5,400–$7,200 and $12,000–$18,000respectively.

As illustrated in the table below, salary levels inGhana are also lower than most offshore destina-tions, with the exception of India, Philippines,Egypt, and Mauritius.

3.1.4 Cultural CompatibilityThe culture and upbringing of the workforce arecompatible with the West. Hence, adaptability tothe American or European work cultures andaccents is not very difficult for workers in Ghana.This results in a relatively shorter period requiredfor voice training–two weeks as compared with afour- to six-week period elsewhere — dependingupon the mother tongue influence, cultural adapt-ability, and other similar parameters.

In summary, while Ghana has several strengthsrelated to its talent pool that it can leverage, it willalso need to address challenges such as education

reforms, low IT/PC proficiency, etc., in order toprovide the required impetus for growth of itsITES-BPO sector.

3.2 INFRASTRUCTUREAvailability of reliable infrastructure is a critical aspectfor an ITES-BPO industry. This section includes ananalysis of the availability, quality, and cost of criticalinfrastructure components for the ITES-BPO indus-try in Ghana, namely—telecom, Internet, power, realestate and transport—so as to identify key strengthsof Ghana as well as existing developmental challengesfor each of the above segments.

3.2.1 Telecommunication3.2.1.1 Availability of Telecom Services

Domestic TelecommunicationsHistorically, Ghana Telecom, the state-ownedincumbent operator provided telecommunicationservices on a monopoly basis. However, since 1996,the government of Ghana has made efforts to par-tially privatize its telecom monopoly to introduce alevel of competition in the telecom market41.

Summary

People Driver: Key Strengths and Challenges for Ghana

Strengths

■ Availability of large talent pool comprising both graduate and floating population.

■ Established educational system.

■ English language proficiency.

■ Low attrition and workforce adaptable to ITES work environment.

■ Culturally compatible with Western countries.

■ Lower labor cost in comparison with the United States and the United Kingdom.

Challenges

■ Low employable workforce due to high drop-out rates at successive levels of education (primary to secondary to tertiary).

■ Capacity constraints in tertiary education – indicated by low application to admission conversion ratios.

■ Education course curriculum not in line with market demand.

■ Availability of adequate technical and managerial talent in the long-term.

■ Lack of foreign language capability.

■ Low computer/IT proficiency at educational and business/commercial levels.

■ High training requirements to reach requisite quality levels of service delivery.

41 In 1996, Telecom Malaysia was granted 30 percent stake in Ghana Telecom. Later, Telecom Malaysia filed an international dispute against the Governmentof Ghana, which has now been settled. The Government of Ghana has bought back its share and is now planning to re-launch the privatisation process.



employees on piece rate basis with built-in incen-tives for higher productivity, the average costs are inthe range of $4,200-$4,800 per year. At the middlemanagement (4–7 years of experience) and seniorlevels (more than 8 years experience) the salary isbetween $5,400–$7,200 and $12,000–$18,000respectively.

As illustrated in the table below, salary levels inGhana are also lower than most offshore destina-tions, with the exception of India, Philippines,Egypt, and Mauritius.

3.1.4 Cultural CompatibilityThe culture and upbringing of the workforce arecompatible with the West. Hence, adaptability tothe American or European work cultures andaccents is not very difficult for workers in Ghana.This results in a relatively shorter period requiredfor voice training–two weeks as compared with afour- to six-week period elsewhere — dependingupon the mother tongue influence, cultural adapt-ability, and other similar parameters.

In summary, while Ghana has several strengthsrelated to its talent pool that it can leverage, it willalso need to address challenges such as education

reforms, low IT/PC proficiency, etc., in order toprovide the required impetus for growth of itsITES-BPO sector.

3.2 INFRASTRUCTUREAvailability of reliable infrastructure is a critical aspectfor an ITES-BPO industry. This section includes ananalysis of the availability, quality, and cost of criticalinfrastructure components for the ITES-BPO indus-try in Ghana, namely—telecom, Internet, power, realestate and transport—so as to identify key strengthsof Ghana as well as existing developmental challengesfor each of the above segments.

3.2.1 Telecommunication3.2.1.1 Availability of Telecom Services

Domestic TelecommunicationsHistorically, Ghana Telecom, the state-ownedincumbent operator provided telecommunicationservices on a monopoly basis. However, since 1996,the government of Ghana has made efforts to par-tially privatize its telecom monopoly to introduce alevel of competition in the telecom market41.

Summary

People Driver: Key Strengths and Challenges for Ghana

Strengths

■ Availability of large talent pool comprising both graduate and floating population.

■ Established educational system.

■ English language proficiency.

■ Low attrition and workforce adaptable to ITES work environment.

■ Culturally compatible with Western countries.

■ Lower labor cost in comparison with the United States and the United Kingdom.

Challenges

■ Low employable workforce due to high drop-out rates at successive levels of education (primary to secondary to tertiary).

■ Capacity constraints in tertiary education – indicated by low application to admission conversion ratios.

■ Education course curriculum not in line with market demand.

■ Availability of adequate technical and managerial talent in the long-term.

■ Lack of foreign language capability.

■ Low computer/IT proficiency at educational and business/commercial levels.

■ High training requirements to reach requisite quality levels of service delivery.

41 In 1996, Telecom Malaysia was granted 30 percent stake in Ghana Telecom. Later, Telecom Malaysia filed an international dispute against the Governmentof Ghana, which has now been settled. The Government of Ghana has bought back its share and is now planning to re-launch the privatisation process.



Ghana Telecom and WESTEL now provide fixed-line services, while several private sector playersoffer mobile telephony services.

The domestic telecom sector in Ghana has experi-enced stellar growth since this initiative, driven bymobile communications, supportive governmentpolicies, and private sector participation. The follow-ing graph indicates the growth in the number of tele-phone subscribers (both fixed and mobile) in Ghana:

The total teledensity (number of fixed and mobilephone subscribers per 100 inhabitants) in Ghanaincreased by over 1200 percent during the last5 years, and as of July 2006 is pegged at 20 percent(i.e., 20 people out of every 100 own a telephone).This rise in domestic telecommunication penetra-tion has been largely driven by the growth inmobile telephones, which is stepping up to meetthe demand arising from the insufficient quantityof fixed-line networks.

At the end of 2005, Ghana had a total telephonesubscriber base of nearly 3 million, of which about2.8 million were mobile cellular lines. The mobiletelecommunication sector in Ghana has experi-enced significant growth and this trend is expectedto continue. According to the Ministry ofCommunications, the total subscriber base is

expected to reach 4.5 million by the end of 2006,with mobile telephones significantly leading thegrowth in fixed-line telephony. In addition to thetelephone subscriptions, Ghana also has 11, 314,000 pay phones.43

The government’s plan to re-launch the completetelecom sector privatization process will likely pro-vide a significant boost to the growth of domestictelecommunication services.

International Telecommunications

Ghana has access to undersea cable connectivity viathe SAT-3 cable, which lands at Accra. The follow-ing illustration depicts the landing points of theSAT-3/WASC/SAFE cable:

As illustrated above, the SAT-3/WASC/SAFE cableis split into two segments: SAT-3/WASC, whichruns from South Africa to Portugal with landingpoints in Angola, Gabon, Cameroon, Nigeria,Benin, Ghana, Ivory Coast, Senegal, Canary Islands,and Spain, and SAFE which runs from South Africato Malaysia and India via Mauritius and Reunion.

While Ghana Telecom is one of the cable owners ofSAT-3, non-owners can also get capacity on SAT-3in one of the following two ways:

Figure 3.2.1.1.1 Telecom subscriptions in Ghana42

Growth in Telecommunication in Ghana-2000–2005

218460

655

1,060

1,600

2,900

2000 2001 2002 2003 2004 2005

Year

Tot

al te

leph

one

subs

crib

ers

(in

'000

s)

42 Source – Ministry of Communication, Ghana43 Source: Ghana Ministry of Communications (http://www.moc.gov.gh/)



Ghana Telecom and WESTEL now provide fixed-line services, while several private sector playersoffer mobile telephony services.

The domestic telecom sector in Ghana has experi-enced stellar growth since this initiative, driven bymobile communications, supportive governmentpolicies, and private sector participation. The follow-ing graph indicates the growth in the number of tele-phone subscribers (both fixed and mobile) in Ghana:

The total teledensity (number of fixed and mobilephone subscribers per 100 inhabitants) in Ghanaincreased by over 1200 percent during the last5 years, and as of July 2006 is pegged at 20 percent(i.e., 20 people out of every 100 own a telephone).This rise in domestic telecommunication penetra-tion has been largely driven by the growth inmobile telephones, which is stepping up to meetthe demand arising from the insufficient quantityof fixed-line networks.

At the end of 2005, Ghana had a total telephonesubscriber base of nearly 3 million, of which about2.8 million were mobile cellular lines. The mobiletelecommunication sector in Ghana has experi-enced significant growth and this trend is expectedto continue. According to the Ministry ofCommunications, the total subscriber base is

expected to reach 4.5 million by the end of 2006,with mobile telephones significantly leading thegrowth in fixed-line telephony. In addition to thetelephone subscriptions, Ghana also has 11, 314,000 pay phones.43

The government’s plan to re-launch the completetelecom sector privatization process will likely pro-vide a significant boost to the growth of domestictelecommunication services.

International Telecommunications

Ghana has access to undersea cable connectivity viathe SAT-3 cable, which lands at Accra. The follow-ing illustration depicts the landing points of theSAT-3/WASC/SAFE cable:

As illustrated above, the SAT-3/WASC/SAFE cableis split into two segments: SAT-3/WASC, whichruns from South Africa to Portugal with landingpoints in Angola, Gabon, Cameroon, Nigeria,Benin, Ghana, Ivory Coast, Senegal, Canary Islands,and Spain, and SAFE which runs from South Africato Malaysia and India via Mauritius and Reunion.

While Ghana Telecom is one of the cable owners ofSAT-3, non-owners can also get capacity on SAT-3in one of the following two ways:

Figure 3.2.1.1.1 Telecom subscriptions in Ghana42

Growth in Telecommunication in Ghana-2000–2005

218460

655

1,060

1,600

2,900

2000 2001 2002 2003 2004 2005

Year

Tot

al te

leph

one

subs

crib

ers

(in

'000

s)

42 Source – Ministry of Communication, Ghana43 Source: Ghana Ministry of Communications (http://www.moc.gov.gh/)



■ Buy capacity from Ghana Telecom—A prerequi-site for direct access is that such operators arelicensed to carry international traffic, so typical-ly mobile operators will be able to have directaccess but not ISPs.

■ Buy directly from cable’s network administrator,Telkom SA, through an Indefeasible Right ofUse (IRU), and therefore bypass GhanaTelecom. However, the national carrier has thefirst right of refusal. Moreover, to allow carriersto recover their investment in the cable, theyenjoy exclusivity for the first five years. Thiscould mean that operators would be forced tobuy capacity from the incumbent carrier, whichcould therefore charge whatever price it likes.But in order to protect the buyer, carriers can-not charge more than the pool price.

In Ghana, the connectivity is currently limited toAccra. However, Ghana Telecom intends to expandthe network through the optical fiber network ofthe Voltas River Authority (VRA), the electricityutility company in Ghana. VRA, which hasinstalled more than 600-kilometre stretch of fiberoptic cable on its high voltage transmission line,has a backbone that covers many cities in Ghana.Power line data and voice transmission is yet to

catch on in Ghana and other African countries, butwith VRA’s investment, the relatively cheap alterna-tive in power line communication may soon be thevogue. Voltacom, a subsidiary of VRA, has strungthe entire hydropower network with optical-fibercable. This network will serve all 110 districts ofthe country, paving the way for a nationwide back-bone for the Internet.

However, since the SAT-3 cable is the only under-sea cable system that Ghana has access to, it raisesconcerns on the lack of redundancy; particularlywith respect to international cable connectivity. Incontrast, India has three undersea cable landingpoints, with multiple cables landing at each landingpoint, avoiding any issues pertaining to lack ofredundancy.

Though satellite communication is used as an alter-nate mode of connectivity, it is not found to beappropriate for the ITES-BPO sector because of highcost. It also results in inefficiencies when there is hightraffic. According to Ecoband, a connectivity serviceprovider in Ghana, a satellite link costs $12,000 morethan establishing connectivity through the submarinecable. Additionally the quality of the link also suffersdue to heavy traffic and congestion.

Figure 3.2.1.1.2 SAT 3 Landing Points in Africa

1

3

4 5 78

9

10

11 12

13

14

15

16

SAT-3/WASC

SAFE

2 2Landing Points

1. Portugal 2. Chipiona (Spain) & Alta vista (Canary Is.)3. Senegal 4. Côte d'Ivoire 5. Ghana 6. Benin 7. Nigeria 8. Cameroon 9. Gabon 10. Angola 11. Melkbosstrand 12. Mtunzini 13. Reunion 14. Mauritius15. India 16. Malaysia

6



■ Buy capacity from Ghana Telecom—A prerequi-site for direct access is that such operators arelicensed to carry international traffic, so typical-ly mobile operators will be able to have directaccess but not ISPs.

■ Buy directly from cable’s network administrator,Telkom SA, through an Indefeasible Right ofUse (IRU), and therefore bypass GhanaTelecom. However, the national carrier has thefirst right of refusal. Moreover, to allow carriersto recover their investment in the cable, theyenjoy exclusivity for the first five years. Thiscould mean that operators would be forced tobuy capacity from the incumbent carrier, whichcould therefore charge whatever price it likes.But in order to protect the buyer, carriers can-not charge more than the pool price.

In Ghana, the connectivity is currently limited toAccra. However, Ghana Telecom intends to expandthe network through the optical fiber network ofthe Voltas River Authority (VRA), the electricityutility company in Ghana. VRA, which hasinstalled more than 600-kilometre stretch of fiberoptic cable on its high voltage transmission line,has a backbone that covers many cities in Ghana.Power line data and voice transmission is yet to

catch on in Ghana and other African countries, butwith VRA’s investment, the relatively cheap alterna-tive in power line communication may soon be thevogue. Voltacom, a subsidiary of VRA, has strungthe entire hydropower network with optical-fibercable. This network will serve all 110 districts ofthe country, paving the way for a nationwide back-bone for the Internet.

However, since the SAT-3 cable is the only under-sea cable system that Ghana has access to, it raisesconcerns on the lack of redundancy; particularlywith respect to international cable connectivity. Incontrast, India has three undersea cable landingpoints, with multiple cables landing at each landingpoint, avoiding any issues pertaining to lack ofredundancy.

Though satellite communication is used as an alter-nate mode of connectivity, it is not found to beappropriate for the ITES-BPO sector because of highcost. It also results in inefficiencies when there is hightraffic. According to Ecoband, a connectivity serviceprovider in Ghana, a satellite link costs $12,000 morethan establishing connectivity through the submarinecable. Additionally the quality of the link also suffersdue to heavy traffic and congestion.

Figure 3.2.1.1.2 SAT 3 Landing Points in Africa

1

3

4 5 78

9

10

11 12

13

14

15

16

SAT-3/WASC

SAFE

2 2Landing Points

1. Portugal 2. Chipiona (Spain) & Alta vista (Canary Is.)3. Senegal 4. Côte d'Ivoire 5. Ghana 6. Benin 7. Nigeria 8. Cameroon 9. Gabon 10. Angola 11. Melkbosstrand 12. Mtunzini 13. Reunion 14. Mauritius15. India 16. Malaysia

6



Internet (Users and ISPs)

By the end of 2004, there were more than1,000,000 Internet users in Ghana, as cited in thestatistics published by the MoC. The users are amix of dial-up accounts, Internet cafes, schools,and universities. It is also estimated that there willbe about 50,000-60,000 Internet cafes in Ghana bythe end of 2005 (up from 750 in 2003)44.

Almost 100 new ISPs were licensed in 2004, bring-ing the total to 163. Broadband ADSL serviceswere introduced in 2003. Two-way satellite-basedInternet services using very small aperture terminals(VSAT) to connect directly to the United States orEurope or other parts of the world have also beenadopted. These are not dependent on the monop-oly telecom operator for their international band-width. There are currently more than 170 VSAToperators in Ghana.

VoIP Access

VoIP has emerged as a cost efficient technology fortelecommunication. It is increasingly being usedby ITES-BPO companies in established offshoredestinations. There have been few reports45 of thegovernment, in association with the NationalCommunications Authority (NCA), shutting downcompanies suspected of using VoIP technology.Moreover, the government has since clarified thestatus for VoIP usage by ITES-BPO companies in thecountry. NCA issues licenses that allow ITES-BPOcompanies to employ VoIP in their operations.This proactive measure on the part of the govern-ment and the telecom regulator will provide signifi-cant encouragement and cost-competitiveness tothe sector in Ghana.

3.2.1.2 Quality of Telecom and InternetServices

Telecommunications

The quality of domestic telecommunication services,particularly the fixed line network, is a continuingcause for concern. Faults per 100 mainline per yearare about 67.4 in Ghana, higher than most estab-lished offshore locations, such as China (3.49),

the Philippines (5.20) and Mexico (1.70). On aregional basis also, all comparator countries(Egypt, South Africa, Nigeria, Senegal, Botswana,and Mauritius) reported lower faults per 100 main-line per year.

Mobile connectivity is very strong within andaround Accra. However, the quality of service inmobile telephony outside of Accra to key centerssuch as Sekondi-Takoradi, Kumasi, and Tamale isstill not adequate.

Service Level Agreements (SLAs), which will helpdefine and sustain a desired level of quality ofservice, are also not defined clearly for serviceproviders. However, NCA has taken some steps onthis issue. NCA has been requested to publish thequality of service standards as spelled out in theoperating licenses of all telecom service providers(i.e. define SLAs) for telecom service providers. Inhis speech in January 2006, the minister of com-munications said that, since December 2004, theNCA has had the responsibility for evaluating theperformance of the service providers, in the area ofissuing licences to replace authorizations, as record-ed in their respective Network ManagementSystems. The evaluation process has since com-menced to cover the period January 2005 toDecember 2005. It is expected that the NCA willmake the results and sanctions if any, publiclyavailable by the end of February 200646. However,there has been no update from NCA on the statusof the above.

The set-up time for establishing telecom connectiv-ity, although decreasing as a result of investment ininfrastructure and competition in the telecom mar-ket, continues to be high in Ghana. According tothe discussions between Hewitt consultants andInternet Ghana—an ISP in Ghana—in January2006, telecom set-up time in Ghana is high. Ittakes three days to establish an E1 link, 14 days toachieve last mile linkage, and two weeks to obtain acommercial landline connection.

Internet Connectivity

Internet connections are also slow. Most ISPs receivedata at an average speed of 2Mbits/sec and run it to

44 BusyInternet45 Source: http://www.itweb.co.za/sections/telecoms/2000/0008021031.asp, http://www.balancingact-africa.com/news/back/balancing-act-145.html46 Ministry of Communications, Ghana: Meet the Press Briefing January 24 2006, Speech of Minister of Communication



Internet (Users and ISPs)

By the end of 2004, there were more than1,000,000 Internet users in Ghana, as cited in thestatistics published by the MoC. The users are amix of dial-up accounts, Internet cafes, schools,and universities. It is also estimated that there willbe about 50,000-60,000 Internet cafes in Ghana bythe end of 2005 (up from 750 in 2003)44.

Almost 100 new ISPs were licensed in 2004, bring-ing the total to 163. Broadband ADSL serviceswere introduced in 2003. Two-way satellite-basedInternet services using very small aperture terminals(VSAT) to connect directly to the United States orEurope or other parts of the world have also beenadopted. These are not dependent on the monop-oly telecom operator for their international band-width. There are currently more than 170 VSAToperators in Ghana.

VoIP Access

VoIP has emerged as a cost efficient technology fortelecommunication. It is increasingly being usedby ITES-BPO companies in established offshoredestinations. There have been few reports45 of thegovernment, in association with the NationalCommunications Authority (NCA), shutting downcompanies suspected of using VoIP technology.Moreover, the government has since clarified thestatus for VoIP usage by ITES-BPO companies in thecountry. NCA issues licenses that allow ITES-BPOcompanies to employ VoIP in their operations.This proactive measure on the part of the govern-ment and the telecom regulator will provide signifi-cant encouragement and cost-competitiveness tothe sector in Ghana.

3.2.1.2 Quality of Telecom and InternetServices

Telecommunications

The quality of domestic telecommunication services,particularly the fixed line network, is a continuingcause for concern. Faults per 100 mainline per yearare about 67.4 in Ghana, higher than most estab-lished offshore locations, such as China (3.49),

the Philippines (5.20) and Mexico (1.70). On aregional basis also, all comparator countries(Egypt, South Africa, Nigeria, Senegal, Botswana,and Mauritius) reported lower faults per 100 main-line per year.

Mobile connectivity is very strong within andaround Accra. However, the quality of service inmobile telephony outside of Accra to key centerssuch as Sekondi-Takoradi, Kumasi, and Tamale isstill not adequate.

Service Level Agreements (SLAs), which will helpdefine and sustain a desired level of quality ofservice, are also not defined clearly for serviceproviders. However, NCA has taken some steps onthis issue. NCA has been requested to publish thequality of service standards as spelled out in theoperating licenses of all telecom service providers(i.e. define SLAs) for telecom service providers. Inhis speech in January 2006, the minister of com-munications said that, since December 2004, theNCA has had the responsibility for evaluating theperformance of the service providers, in the area ofissuing licences to replace authorizations, as record-ed in their respective Network ManagementSystems. The evaluation process has since com-menced to cover the period January 2005 toDecember 2005. It is expected that the NCA willmake the results and sanctions if any, publiclyavailable by the end of February 200646. However,there has been no update from NCA on the statusof the above.

The set-up time for establishing telecom connectiv-ity, although decreasing as a result of investment ininfrastructure and competition in the telecom mar-ket, continues to be high in Ghana. According tothe discussions between Hewitt consultants andInternet Ghana—an ISP in Ghana—in January2006, telecom set-up time in Ghana is high. Ittakes three days to establish an E1 link, 14 days toachieve last mile linkage, and two weeks to obtain acommercial landline connection.

Internet Connectivity

Internet connections are also slow. Most ISPs receivedata at an average speed of 2Mbits/sec and run it to

44 BusyInternet45 Source: http://www.itweb.co.za/sections/telecoms/2000/0008021031.asp, http://www.balancingact-africa.com/news/back/balancing-act-145.html46 Ministry of Communications, Ghana: Meet the Press Briefing January 24 2006, Speech of Minister of Communication



subscribers at an average speed of less than1Kbit/Sec. Customer support is also inadequate withsome ISPs having no support at all for their clients.

Uptime of telecom link is also below the estab-lished ITES-BPO industry standard in Ghana.Based on our discussions with ITES-BPO vendorsand telecom service providers across various estab-lished and emerging offshore destinations, a mini-mum uptime of 99.5–99.95 percent is required foran ITES-BPO operation. This is achieved throughan optic fiber link with multiple last mile connec-tivity. The satellite link is used as a backup only.However, our discussions with ITES-BPO operatorsand telecom service providers in Ghana indicatethat the telecom uptime is only about 95 percentin Ghana47.

Our discussions with telecom experts indicate thatconnectivity through submarine cable continues to bethe most effective and cost-efficient way of establish-ing connectivity for an IT/ITES operation. Use oflaser technology, which is similar to wireless/ radioconnectivity, is not used due to limitations in itsfeatures. Laser technology is preferable for short-dis-tances, and operates on line-of-sight principle where-in the connectivity gets interrupted if a physicalobject comes in the way of two connecting points. Asa result, this technology is not applicable and appro-priate for deployment in an IT/ITES operation.

3.2.1.3 Cost of Telecom ServicesLack of competition in the international telecom-munications sector, and limited availability ofbandwidth has resulted in high telecom costs inGhana. The bandwidth cost for a full-circuit E1line between Accra and Portugal is US$7,000 permonth for Ghana Internet Service ProvidersAssociation (GISPA) members and US$10,000 fornon-members. This price is charged by GhanaTelecom, the sole provider of E1 in Ghana.

This is higher than the approximate US$6,000 permonth for full-circuit connectivity between theUnited States and most established offshoring des-tinations including India, China, Philippines,Mexico and Romania.48 E1 line costs on the SAT-3

cable between Portugal and other regional Africancountries are also lower than the prevailing pricesin Ghana. The following table compares the fullcircuit E1 line costs from various offshore locationsto the United States:

The prices for satellite communication for the sameE1 capacity are 30–50 percent higher than the E1line cost. However the quality of a satellite link isaffected due to congestion and latency.

For consumers, high prices for Internet and teleph-ony along with unsatisfactory customer support arecause of serious concern. For instance, a 128 Kbpsbroadband connection from InternetGhana ispriced at US$60 a month. For higher speeds theprice is substantially more. A dial-up throughBusyInternet costs around US$1.30 per hour.However, service providers cite high infrastructurecosts including a very high rate of interest.52 as thereasons for high telecom costs in Ghana.

Figure 3.2.1.3.1 Country com-parison of full circuit E1 costs49

47 Interview with Mr. Edwin Provencal, General Manager, Exzeed, the contact centre of Ghana Telecom and executives from Busy Internet, an Internet ServiceProvider in Ghana.

48 Quotes received from service providers in India49 Hewitt Associates and World Bank50 Mauritius Telecom, Indian Telecom Service Providers, Ghana Telecom51 E1 link for Mauritius is from Mauritius to France52 In 2006, bank interest rate in Ghana varies from 13%–19 % depending on the project.

Full-circuit E1 Line CostCountry (in $/month) to US50

Mauritius51 12,600

Ghana 10,000

South Africa 9,000

Senegal 9,000

Nigeria 8,200

Egypt 7,600

India 6,000

China 6,000

Philippines 6,000

Romania 6,000

Mexico 6,000

Botswana NA



subscribers at an average speed of less than1Kbit/Sec. Customer support is also inadequate withsome ISPs having no support at all for their clients.

Uptime of telecom link is also below the estab-lished ITES-BPO industry standard in Ghana.Based on our discussions with ITES-BPO vendorsand telecom service providers across various estab-lished and emerging offshore destinations, a mini-mum uptime of 99.5–99.95 percent is required foran ITES-BPO operation. This is achieved throughan optic fiber link with multiple last mile connec-tivity. The satellite link is used as a backup only.However, our discussions with ITES-BPO operatorsand telecom service providers in Ghana indicatethat the telecom uptime is only about 95 percentin Ghana47.

Our discussions with telecom experts indicate thatconnectivity through submarine cable continues to bethe most effective and cost-efficient way of establish-ing connectivity for an IT/ITES operation. Use oflaser technology, which is similar to wireless/ radioconnectivity, is not used due to limitations in itsfeatures. Laser technology is preferable for short-dis-tances, and operates on line-of-sight principle where-in the connectivity gets interrupted if a physicalobject comes in the way of two connecting points. Asa result, this technology is not applicable and appro-priate for deployment in an IT/ITES operation.

3.2.1.3 Cost of Telecom ServicesLack of competition in the international telecom-munications sector, and limited availability ofbandwidth has resulted in high telecom costs inGhana. The bandwidth cost for a full-circuit E1line between Accra and Portugal is US$7,000 permonth for Ghana Internet Service ProvidersAssociation (GISPA) members and US$10,000 fornon-members. This price is charged by GhanaTelecom, the sole provider of E1 in Ghana.

This is higher than the approximate US$6,000 permonth for full-circuit connectivity between theUnited States and most established offshoring des-tinations including India, China, Philippines,Mexico and Romania.48 E1 line costs on the SAT-3

cable between Portugal and other regional Africancountries are also lower than the prevailing pricesin Ghana. The following table compares the fullcircuit E1 line costs from various offshore locationsto the United States:

The prices for satellite communication for the sameE1 capacity are 30–50 percent higher than the E1line cost. However the quality of a satellite link isaffected due to congestion and latency.

For consumers, high prices for Internet and teleph-ony along with unsatisfactory customer support arecause of serious concern. For instance, a 128 Kbpsbroadband connection from InternetGhana ispriced at US$60 a month. For higher speeds theprice is substantially more. A dial-up throughBusyInternet costs around US$1.30 per hour.However, service providers cite high infrastructurecosts including a very high rate of interest.52 as thereasons for high telecom costs in Ghana.

Figure 3.2.1.3.1 Country com-parison of full circuit E1 costs49

47 Interview with Mr. Edwin Provencal, General Manager, Exzeed, the contact centre of Ghana Telecom and executives from Busy Internet, an Internet ServiceProvider in Ghana.

48 Quotes received from service providers in India49 Hewitt Associates and World Bank50 Mauritius Telecom, Indian Telecom Service Providers, Ghana Telecom51 E1 link for Mauritius is from Mauritius to France52 In 2006, bank interest rate in Ghana varies from 13%–19 % depending on the project.

Full-circuit E1 Line CostCountry (in $/month) to US50

Mauritius51 12,600

Ghana 10,000

South Africa 9,000

Senegal 9,000

Nigeria 8,200

Egypt 7,600

India 6,000

China 6,000

Philippines 6,000

Romania 6,000

Mexico 6,000

Botswana NA



To increase ICT penetration as well as developGhana as a competitive ITES-BPO destination,proactive measures will need to be adopted toreduce the cost of services for business/commercialusage as well as consumers.

3.2.2 Power3.2.2.1 Availability of PowerGhana is pursuing an aggressive program toenhance its electricity supplies by encouragingforeign investment in private power generationprojects and strengthening its transmission anddistribution networks. Ghana’s electricity generationcapacity of 5.36 billion kilowatt-hrs is more thanits consumption of 5.08 billion kilowatt-hrs,indicating no major shortage of power generationcapacity in the aggregate.

The VRA is the main organization responsible forproviding Ghana with its electricity needs. In thepast, this predominantly meant hydro-generationfrom the Akosombo Dam, which holds the world’slargest artificial body of water. Recently, it has alsomeant buying electricity, either from abroad orfrom private power producers and then distributingit across the country.

The discovery of natural gas offshore also bodeswell for the future. The development of the WestAfrican Gas Pipeline—an international gas pipelinelinking Ghana with Nigeria, Togo, and Benin—isalso set to transform the local power market.Analysts predict that the pipeline could slash thecost of natural gas and reduce the cost of thermalpower in the Ghanaian market by up to one-third.However, there is no clear timeline defined for thereduction in costs, which will depend on theprogress of the project.

3.2.2.2 Quality of Power SupplyOur interactions with ITES incumbents in Ghanarevealed that the stability/reliability of power wasan issue. Power supply fluctuates between 240–290V,and businesses that require reliable sources ofpower with high uptime usually have to set uptheir own generators and transformers to ensureuninterrupted steady power. For instance, Ghana-based BusyInternet, the largest technology incubatorin Africa, has installed a backup generator and a

huge battery to ensure uninterrupted power. Thecompany has also installed a transformer to dealwith the power fluctuations. This is a significantadditional cost for businesses. The government isaware of this problem, but is unlikely to solve itthrough privatization alone. The Ministry ofEnergy is taking the following steps to address thisissue53: ■ The Takoradi power station is to be expanded

with the addition of a 110-MW steam compo-nent in 2008. Currently, funding arrangementsare being concluded with the InternationalFinance Corporation (IFC) and other donors.The construction of the plant will commence bythe end of the year. The cost of the project isestimated at US$220 million.

■ The Ministry of Energy and the VRA havelaunched a tender process to build a 300-MWthermal power plant in Tema. The bids weresent in February 2005 and project implementa-tion is to start in late 2006. The plant is to becommissioned for commercial operation in2008/9. Subsequently, more 200-MW addi-tional power plants are to be added every2–3 years.

■ The 400-MW Bui hydro plant is to be financedby the Chinese government for additionalgeneration.

■ The government will build 330 KV Aboadze-Tema transmission lines to improve the securityof the power supply to the Accra-Tema area.The tendering is in process and project imple-mentation is to start in 2006. The line will becompleted in (2007) at a cost of US$60 million.

■ The Kumasi-Sunyani 161-KV transmission lineis being built at cost of US$30 million.Scheduled for completion in 2006/7, it will sup-port and improve the security of power supplyto northern Ghana.

■ ECG distribution system upgrades are beingimplemented with a government loan of US$15million from the World Bank. ECG has com-pleted the first phase (13 out of 26 substations)of a system control and data acquisition(SCADA) project in Accra/Tema, which has sig-nificantly improved fault detection and restora-tion times for the ECG network.

■ Further rehabilitation of ECG’s network is beingimplemented with a loan of US$30 millionfrom the Fortis Bank of the Netherlands.

53 Source: http://www.ghana.gov.gh/dexadd/ power-failure02.pdf



To increase ICT penetration as well as developGhana as a competitive ITES-BPO destination,proactive measures will need to be adopted toreduce the cost of services for business/commercialusage as well as consumers.

3.2.2 Power3.2.2.1 Availability of PowerGhana is pursuing an aggressive program toenhance its electricity supplies by encouragingforeign investment in private power generationprojects and strengthening its transmission anddistribution networks. Ghana’s electricity generationcapacity of 5.36 billion kilowatt-hrs is more thanits consumption of 5.08 billion kilowatt-hrs,indicating no major shortage of power generationcapacity in the aggregate.

The VRA is the main organization responsible forproviding Ghana with its electricity needs. In thepast, this predominantly meant hydro-generationfrom the Akosombo Dam, which holds the world’slargest artificial body of water. Recently, it has alsomeant buying electricity, either from abroad orfrom private power producers and then distributingit across the country.

The discovery of natural gas offshore also bodeswell for the future. The development of the WestAfrican Gas Pipeline—an international gas pipelinelinking Ghana with Nigeria, Togo, and Benin—isalso set to transform the local power market.Analysts predict that the pipeline could slash thecost of natural gas and reduce the cost of thermalpower in the Ghanaian market by up to one-third.However, there is no clear timeline defined for thereduction in costs, which will depend on theprogress of the project.

3.2.2.2 Quality of Power SupplyOur interactions with ITES incumbents in Ghanarevealed that the stability/reliability of power wasan issue. Power supply fluctuates between 240–290V,and businesses that require reliable sources ofpower with high uptime usually have to set uptheir own generators and transformers to ensureuninterrupted steady power. For instance, Ghana-based BusyInternet, the largest technology incubatorin Africa, has installed a backup generator and a

huge battery to ensure uninterrupted power. Thecompany has also installed a transformer to dealwith the power fluctuations. This is a significantadditional cost for businesses. The government isaware of this problem, but is unlikely to solve itthrough privatization alone. The Ministry ofEnergy is taking the following steps to address thisissue53: ■ The Takoradi power station is to be expanded

with the addition of a 110-MW steam compo-nent in 2008. Currently, funding arrangementsare being concluded with the InternationalFinance Corporation (IFC) and other donors.The construction of the plant will commence bythe end of the year. The cost of the project isestimated at US$220 million.

■ The Ministry of Energy and the VRA havelaunched a tender process to build a 300-MWthermal power plant in Tema. The bids weresent in February 2005 and project implementa-tion is to start in late 2006. The plant is to becommissioned for commercial operation in2008/9. Subsequently, more 200-MW addi-tional power plants are to be added every2–3 years.

■ The 400-MW Bui hydro plant is to be financedby the Chinese government for additionalgeneration.

■ The government will build 330 KV Aboadze-Tema transmission lines to improve the securityof the power supply to the Accra-Tema area.The tendering is in process and project imple-mentation is to start in 2006. The line will becompleted in (2007) at a cost of US$60 million.

■ The Kumasi-Sunyani 161-KV transmission lineis being built at cost of US$30 million.Scheduled for completion in 2006/7, it will sup-port and improve the security of power supplyto northern Ghana.

■ ECG distribution system upgrades are beingimplemented with a government loan of US$15million from the World Bank. ECG has com-pleted the first phase (13 out of 26 substations)of a system control and data acquisition(SCADA) project in Accra/Tema, which has sig-nificantly improved fault detection and restora-tion times for the ECG network.

■ Further rehabilitation of ECG’s network is beingimplemented with a loan of US$30 millionfrom the Fortis Bank of the Netherlands.

53 Source: http://www.ghana.gov.gh/dexadd/ power-failure02.pdf



■ Additional US$200 million is being sourced tomeet critical investments in the ECG networkfor the next five years.

■ In another recent development, the Volta RiverAuthority opened bids for two projects for powersupply improvements in two sub-stations in theVolta Region. The projects involve upgradingtransformer capacities at Ho and Asikpe, andforming plans to upgrade transformer capacitiesin 11 other bulk supply stations.

3.2.2.3 Cost of PowerThe cost of electricity (US$0.05 per kilowatt-hr)in Ghana is lower than in most countries in theregion and abroad (China is the only country witha lower power tariff of US$0.04 per kilowatt-hr).African countries, including Nigeria, Mauritius,Senegal, and other international competitors suchas India, Mexico, and the Philippines have higherpower tariffs in comparison to Ghana. However,the government is planning to raise electricityprices. Ghana wants all state utilities, including thepower and water sectors, to operate on a full cost-recovery basis. The ability to charge realistic marketprices is a major step forward in attracting freshinvestment capital into the electricity sector.

3.2.3 Real Estate3.2.3.1 Availability of Real Estate for ITES-BPOThe availability of office complexes suitable forlarge-scale ITES- BPO operations (i.e. in excessof 500 employees) is currently low in Ghana. Thecommercial space options do not include ‘ready-built’ complexes or ‘built-to-order’ complexes tosuit the specific organizational requirements ofthe clients.

International ITES-BPO complexes require design,systems, and value-added services tuned to suit the24X7 operation requirements for these companies.ITES-BPO companies require facilities and ameni-ties such as a food court, health club, and ATMsfor the occupants of the complex. Additional safetysystems should include 24-hours close circuit tele-vision security in common areas and modern fire-detection and suppression systems. Ready-to-move‘Grade A’ real estate with such specifications is notadequately available in Ghana.

A ready-made commercial complex is available atSilver Star Towers in Accra, which is also a desig-nated Free Zone area approved by the Ghana FreeZone Board. The Real Estate developer is free tomarket this to any incumbent who possesses therequisite free zone permission. However, a prospec-tive incumbent has found it unsuitable even for asmall 100-seat facility because its physical demarca-tion makes it unsuitable for any incumbent wishingto have its own ‘build-to-suit’ office space. GhanaHouse, a commercial property also provides officespace, but has been fully occupied.54

SSNIT, the investment organization of the socialsecurity funds is also developing real estate com-mercial complexes for offices in and around Accra.The Ministry of Communications has been dis-cussing the possibility of SSNIT developing officestructures of international class for prospectiveITES-BPO companies in Ghana. The governmentis also encouraging real estate development throughthe public-private partnership route.

IT parks are non existent in Ghana. However, theseareas have been earmarked for setting upTechnology Parks in the future: Tema (50 acres);Kumasi, and the University of Ghana (50 acres).

In Tema, the development of the park is underwayand is a joint initiative of the Ministry ofCommunications and the Ministry of Trade,Industry, Private Sector Development andPresidential Special Initiatives. However, no publicservices (power, telecom, water, or other utilities) areavailable at any of these designated areas.

The Ghana Free Zone Board admits that the lackof suitable real estate is largely due to the absenceof large commercial real estate developers. In thisrespect, the government should undertake proactivemeasures towards developing parks and real estatethrough joint public–private partnerships. It shouldalso provide financial incentives for private realestate development for the ITES-BPO sector.

Government construction of bonded warehouses orfreight stations, where goods and equipment can bestored and purchased by companies on productionof requisite custom duties exemptions is a positive

54 As of January 2006 - Ghana visit by consultants from Hewitt Associates



■ Additional US$200 million is being sourced tomeet critical investments in the ECG networkfor the next five years.

■ In another recent development, the Volta RiverAuthority opened bids for two projects for powersupply improvements in two sub-stations in theVolta Region. The projects involve upgradingtransformer capacities at Ho and Asikpe, andforming plans to upgrade transformer capacitiesin 11 other bulk supply stations.

3.2.2.3 Cost of PowerThe cost of electricity (US$0.05 per kilowatt-hr)in Ghana is lower than in most countries in theregion and abroad (China is the only country witha lower power tariff of US$0.04 per kilowatt-hr).African countries, including Nigeria, Mauritius,Senegal, and other international competitors suchas India, Mexico, and the Philippines have higherpower tariffs in comparison to Ghana. However,the government is planning to raise electricityprices. Ghana wants all state utilities, including thepower and water sectors, to operate on a full cost-recovery basis. The ability to charge realistic marketprices is a major step forward in attracting freshinvestment capital into the electricity sector.

3.2.3 Real Estate3.2.3.1 Availability of Real Estate for ITES-BPOThe availability of office complexes suitable forlarge-scale ITES- BPO operations (i.e. in excessof 500 employees) is currently low in Ghana. Thecommercial space options do not include ‘ready-built’ complexes or ‘built-to-order’ complexes tosuit the specific organizational requirements ofthe clients.

International ITES-BPO complexes require design,systems, and value-added services tuned to suit the24X7 operation requirements for these companies.ITES-BPO companies require facilities and ameni-ties such as a food court, health club, and ATMsfor the occupants of the complex. Additional safetysystems should include 24-hours close circuit tele-vision security in common areas and modern fire-detection and suppression systems. Ready-to-move‘Grade A’ real estate with such specifications is notadequately available in Ghana.

A ready-made commercial complex is available atSilver Star Towers in Accra, which is also a desig-nated Free Zone area approved by the Ghana FreeZone Board. The Real Estate developer is free tomarket this to any incumbent who possesses therequisite free zone permission. However, a prospec-tive incumbent has found it unsuitable even for asmall 100-seat facility because its physical demarca-tion makes it unsuitable for any incumbent wishingto have its own ‘build-to-suit’ office space. GhanaHouse, a commercial property also provides officespace, but has been fully occupied.54

SSNIT, the investment organization of the socialsecurity funds is also developing real estate com-mercial complexes for offices in and around Accra.The Ministry of Communications has been dis-cussing the possibility of SSNIT developing officestructures of international class for prospectiveITES-BPO companies in Ghana. The governmentis also encouraging real estate development throughthe public-private partnership route.

IT parks are non existent in Ghana. However, theseareas have been earmarked for setting upTechnology Parks in the future: Tema (50 acres);Kumasi, and the University of Ghana (50 acres).

In Tema, the development of the park is underwayand is a joint initiative of the Ministry ofCommunications and the Ministry of Trade,Industry, Private Sector Development andPresidential Special Initiatives. However, no publicservices (power, telecom, water, or other utilities) areavailable at any of these designated areas.

The Ghana Free Zone Board admits that the lackof suitable real estate is largely due to the absenceof large commercial real estate developers. In thisrespect, the government should undertake proactivemeasures towards developing parks and real estatethrough joint public–private partnerships. It shouldalso provide financial incentives for private realestate development for the ITES-BPO sector.

Government construction of bonded warehouses orfreight stations, where goods and equipment can bestored and purchased by companies on productionof requisite custom duties exemptions is a positive

54 As of January 2006 - Ghana visit by consultants from Hewitt Associates



move. However this initiative is still in the processof being finalized.

3.2.3.2 Quality of Real EstateThere are currently no international real estate con-sultants operating in Ghana. Our interactions withincumbents in Ghana indicated that adherence toservice standards and customer service orientationis low among local infrastructure service providers.

Our interactions with industry experts also revealedthat real estate ownership and title procedures arecumbersome and unclear due to presence of cus-tomary laws. The legal system has not yet evolvedto cover this loophole/lacuna.

To alleviate such concerns, Ghana may simplifyregulatory procedures pertaining to land and realestate ownership.

3.2.3.3 Real Estate CostsReal estate is fairly expensive in Ghana as comparedwith other regional ITES-BPO destinations. Asindicated by one of the ITES incumbents, realestate costs can reach as high as 60 percent of totalcosts as compared to 40 percent of total costs atlocations outside of Ghana.

Moreover, incumbents in Ghana indicated that dueto lack of scalable option, constructing their ownbuilding was the only viable option available to pri-vate sector companies establishing or expandingoperations in Ghana. Moreover, the governmentprovides fiscal incentives to real estate developersthrough Ghana Investment Promotion Centre byway of tax holidays.

3.2.4 Transport3.2.4.1 DomesticThere are approximately 30,000 km of classifiedroads in Ghana, 15,000 km of these are trunkroads and the remainder are feeder roads. There isa good road network between Accra and the maintowns. Most primary roads are paved and wellmaintained; however, roads outside the major citiesare in poor condition.

Between 1987 and 1998, as part of its EconomicRecovery Program (ERP), Ghana undertook three

transportation projects for improving economicallyimportant roads and initiating maintenance programsto prevent deterioration. The projects weredesigned to promote commercial management ofroads, increase the capacity of the private domesticcontracting industry, introduce labor-based con-struction methods, and promote intermediatemeans of rural transport. The government ofGhana continues to focus on developing the trans-port sector. In the budget for year 2005, a totalamount of Cedi 2,974.1 billion (approximatelyUS$328 million) was earmarked for road sectordevelopment and maintenance. These initiativeshave improved the condition of the urban trans-portation network, although rural transportationinfrastructure is still weak.

The government has also undertaken the followingsteps to improve domestic transport infrastructure:■ Modernizing transit programs–Most recently,

Accra has appealed to the Global EnvironmentalFacility (GEF) and the Institute of TransportationDevelopment Policy (ITDP) to help realize mod-ern Bus Rapid Transit (BRT) corridors and cycle-ways similar to those in Curitiba, Brazil andBogotá, Columbia. If Accra is successful, it willhave the first of such systems in Africa.

■ Developing an ‘Urban Transport Policy’ withthe objective of:➤ making transport operations safe, efficient,

and economically viable;➤ ensuring transport services are effective and

satisfy the needs of transport users;➤ ensuring sustained growth in the transport

industry through adequate investments; and➤ strengthening the transport linkages with

neighboring countries.

Figure 3.2.4.1.1 U.S. State Department rankings onGhana’s transport system55

Parameter Ranking

Safety of Public Transport Fair

Urban Road Conditions/ Maintenance Good

Rural Road Conditions/ Maintenance Poor

Availability of Roadside Assistance Poor

55 Ghana Consular Information Sheet June 2004



move. However this initiative is still in the processof being finalized.

3.2.3.2 Quality of Real EstateThere are currently no international real estate con-sultants operating in Ghana. Our interactions withincumbents in Ghana indicated that adherence toservice standards and customer service orientationis low among local infrastructure service providers.

Our interactions with industry experts also revealedthat real estate ownership and title procedures arecumbersome and unclear due to presence of cus-tomary laws. The legal system has not yet evolvedto cover this loophole/lacuna.

To alleviate such concerns, Ghana may simplifyregulatory procedures pertaining to land and realestate ownership.

3.2.3.3 Real Estate CostsReal estate is fairly expensive in Ghana as comparedwith other regional ITES-BPO destinations. Asindicated by one of the ITES incumbents, realestate costs can reach as high as 60 percent of totalcosts as compared to 40 percent of total costs atlocations outside of Ghana.

Moreover, incumbents in Ghana indicated that dueto lack of scalable option, constructing their ownbuilding was the only viable option available to pri-vate sector companies establishing or expandingoperations in Ghana. Moreover, the governmentprovides fiscal incentives to real estate developersthrough Ghana Investment Promotion Centre byway of tax holidays.

3.2.4 Transport3.2.4.1 DomesticThere are approximately 30,000 km of classifiedroads in Ghana, 15,000 km of these are trunkroads and the remainder are feeder roads. There isa good road network between Accra and the maintowns. Most primary roads are paved and wellmaintained; however, roads outside the major citiesare in poor condition.

Between 1987 and 1998, as part of its EconomicRecovery Program (ERP), Ghana undertook three

transportation projects for improving economicallyimportant roads and initiating maintenance programsto prevent deterioration. The projects weredesigned to promote commercial management ofroads, increase the capacity of the private domesticcontracting industry, introduce labor-based con-struction methods, and promote intermediatemeans of rural transport. The government ofGhana continues to focus on developing the trans-port sector. In the budget for year 2005, a totalamount of Cedi 2,974.1 billion (approximatelyUS$328 million) was earmarked for road sectordevelopment and maintenance. These initiativeshave improved the condition of the urban trans-portation network, although rural transportationinfrastructure is still weak.

The government has also undertaken the followingsteps to improve domestic transport infrastructure:■ Modernizing transit programs–Most recently,

Accra has appealed to the Global EnvironmentalFacility (GEF) and the Institute of TransportationDevelopment Policy (ITDP) to help realize mod-ern Bus Rapid Transit (BRT) corridors and cycle-ways similar to those in Curitiba, Brazil andBogotá, Columbia. If Accra is successful, it willhave the first of such systems in Africa.

■ Developing an ‘Urban Transport Policy’ withthe objective of:➤ making transport operations safe, efficient,

and economically viable;➤ ensuring transport services are effective and

satisfy the needs of transport users;➤ ensuring sustained growth in the transport

industry through adequate investments; and➤ strengthening the transport linkages with

neighboring countries.

Figure 3.2.4.1.1 U.S. State Department rankings onGhana’s transport system55

Parameter Ranking

Safety of Public Transport Fair

Urban Road Conditions/ Maintenance Good

Rural Road Conditions/ Maintenance Poor

Availability of Roadside Assistance Poor

55 Ghana Consular Information Sheet June 2004



3.2.4.2 InternationalThe Kotoka International Airport serves as thedomestic link between Accra and other domesticcities — Sekondi-Takoradi, Kumasi, andTamale. Ghana’s two main ports are Tema (nearAccra) and Takoradi, which are both relativelymodern. Rail links exist from both these ports toKumasi.

In 1990, the government spent US$12 million toimprove Accra’s international facilities. With 7,000incoming flights and 3,000 outgoing flights a year,flight and passenger arrivals in Ghana is still lowerthan in Kenya and South Africa.

3.3 ENVIRONMENTThe external and internal business, economic, andpolitical environment of a country greatly impactsinvestment in the offshoring industry. Under thisparameter we consider both the external environ-ment, which refers to the government and otherrelated administrative bodies, and the internal envi-ronment which refers to the country’s economy, itsmarkets, political and regulatory environment, andintellectual property laws.

This section analyzes Ghana’s internal and externalenvironments.

Summary

Infrastructure: Key Strengths and Challenges for Ghana

Strengths

■ Partial liberalization of the telecom sector.

■ Rise in Internet usage and penetration.

■ Increase in teledensity driven by rapid growth in mobile telephony.

■ Initiatives to introduce cost-effective technologies such as VoIP.

■ Government support for real estate development by providing fiscal incentives to developers.

Challenges

■ Cost of telecom services is high due to insufficient bandwidth and lack of competition in international telecommunication segment.

■ Limited telecom connectivity in the interiors (beyond Accra) and high set-up time to establish last mile linkage.

■ Quality of telecom service unsatisfactory – high fault rates, below-standard link uptime and inadequate customer support.

■ Non-availability of adequate ‘Grade A’ ITES suitable real estate. Concept of ‘shell’ buildings, though envisioned, currently absent. High

real estate rental rates.

■ Real estate ownership and title procedures are cumbersome and unclear.

■ Technology parks are currently in planning stage and unavailable.

3.3.1 Economic and InvestmentScenarioOver the last three years, Ghana’s real GDP growthhas averaged at about 5.2 percent, ahead of thedeveloped countries and the world economy, and itis expected that this growth rate will be maintainedgoing forward. Interest and inflation rates have fall-en significantly over the last couple of years.56

Ghana is increasingly viewed as an attractive invest-ment destination with a free-market economy, and

as a country that is committed to private sector leddevelopment, continuing economic reforms, andimproving its macroeconomic environment. Recentdivestments have encouraged multinationals,medium- and small-size foreign companies, as wellas Ghanaian nationals residing overseas to expandtheir business interests in Ghana.57

As a result of its stable political and macro economicrecord, Ghana’s sovereign ratings have been revised toB+ from B in March 2005 by Fitch Ratings, indicatinga positive environment for FDI in the country.

56 Interest rates from 25% to 14% and inflation from 23% to 14% over 2002 – 2005 (Aug); Source: Data Bank Limited57 Coca-Cola, Heinz, Coleman, Caterpillar, Unilever, Guinness, M&W Pump, IBM, Lazare Kaplan, Deloitte & Touche, AT&T, Southwestern Bell, Pryor,

McClendon & Counts, Eveready are organizations investing or expanding investments in Ghana.



3.2.4.2 InternationalThe Kotoka International Airport serves as thedomestic link between Accra and other domesticcities — Sekondi-Takoradi, Kumasi, andTamale. Ghana’s two main ports are Tema (nearAccra) and Takoradi, which are both relativelymodern. Rail links exist from both these ports toKumasi.

In 1990, the government spent US$12 million toimprove Accra’s international facilities. With 7,000incoming flights and 3,000 outgoing flights a year,flight and passenger arrivals in Ghana is still lowerthan in Kenya and South Africa.

3.3 ENVIRONMENTThe external and internal business, economic, andpolitical environment of a country greatly impactsinvestment in the offshoring industry. Under thisparameter we consider both the external environ-ment, which refers to the government and otherrelated administrative bodies, and the internal envi-ronment which refers to the country’s economy, itsmarkets, political and regulatory environment, andintellectual property laws.

This section analyzes Ghana’s internal and externalenvironments.

Summary

Infrastructure: Key Strengths and Challenges for Ghana

Strengths

■ Partial liberalization of the telecom sector.

■ Rise in Internet usage and penetration.

■ Increase in teledensity driven by rapid growth in mobile telephony.

■ Initiatives to introduce cost-effective technologies such as VoIP.

■ Government support for real estate development by providing fiscal incentives to developers.

Challenges

■ Cost of telecom services is high due to insufficient bandwidth and lack of competition in international telecommunication segment.

■ Limited telecom connectivity in the interiors (beyond Accra) and high set-up time to establish last mile linkage.

■ Quality of telecom service unsatisfactory – high fault rates, below-standard link uptime and inadequate customer support.

■ Non-availability of adequate ‘Grade A’ ITES suitable real estate. Concept of ‘shell’ buildings, though envisioned, currently absent. High

real estate rental rates.

■ Real estate ownership and title procedures are cumbersome and unclear.

■ Technology parks are currently in planning stage and unavailable.

3.3.1 Economic and InvestmentScenarioOver the last three years, Ghana’s real GDP growthhas averaged at about 5.2 percent, ahead of thedeveloped countries and the world economy, and itis expected that this growth rate will be maintainedgoing forward. Interest and inflation rates have fall-en significantly over the last couple of years.56

Ghana is increasingly viewed as an attractive invest-ment destination with a free-market economy, and

as a country that is committed to private sector leddevelopment, continuing economic reforms, andimproving its macroeconomic environment. Recentdivestments have encouraged multinationals,medium- and small-size foreign companies, as wellas Ghanaian nationals residing overseas to expandtheir business interests in Ghana.57

As a result of its stable political and macro economicrecord, Ghana’s sovereign ratings have been revised toB+ from B in March 2005 by Fitch Ratings, indicatinga positive environment for FDI in the country.

56 Interest rates from 25% to 14% and inflation from 23% to 14% over 2002 – 2005 (Aug); Source: Data Bank Limited57 Coca-Cola, Heinz, Coleman, Caterpillar, Unilever, Guinness, M&W Pump, IBM, Lazare Kaplan, Deloitte & Touche, AT&T, Southwestern Bell, Pryor,

McClendon & Counts, Eveready are organizations investing or expanding investments in Ghana.



For the ITES-BPO industry, which requires a rela-tively shorter gestation period to set up operations,geopolitical safety offered by Ghana will add anotherdimension in country’s attractiveness.

3.3.2 General Law and OrderSituationGhana offers a relatively stable and predictablepolitical environment for investors. There is noindication, at present, that the level of political riskin Ghana will change markedly over the near term.In terms of geo-political risks, it is one of the moststable countries with no known calamities or politi-cal upheaval in the recent past. The region is notafflicted by terrorism or any unfriendly actsfrom/to its neighboring countries.

Based on our interviews, the Ghana’s safety andstability is vouched for by expatriates who prefer tocommute from Ghana to other neighbouringcountries for their daily work.

3.3.3 Business EnvironmentGhana has established itself as one of the primebusiness centers in the West African region, withthe reputation of being the leading distributioncenter to nearby markets of Senegal, Nigeria, Mali,Chad, and Niger.

The ECOWAS58 protocol on trade has greatlyenhanced Ghana’s status as an economic force inthe sub-region and its trading access to otherAfrican nations, strengthening its position as “Thegateway to West Africa” for foreign business.

Ghana’s commitments to World TradeOrganization’s General Agreements on Trade inServices (GATS), in which various service sectors,including banking, financial services (excludinginsurance), basic telecommunications etc., havebeen opened up, and the continuing consultationsto commit more sectors to GATS, is a positivemove towards enhancing the business environmentin Ghana.

Ghana also has a time zone advantage with respectto doing business with countries such as the UnitedStates and the United Kingdom. Ghana follows the

GMT standard providing `real-time’ offshoringcapability to companies in the United Kingdom. Italso offers the United States a good “time fit”; witha 4–7 hour difference depending on the time zone,and has a 5–7 hour difference with countries inAsia. These compatible time zones can allow for“follow the sun” processing and business continuitysupport, in conjunction with outsourcers in Asia.

However, international perceptions of overall region-al geopolitical instability may continue to have anadverse effect on Ghana. Perceptions include fearsthat the influx of refugees from some of the neigh-bors such as Liberia and Ivory Coast to Ghana maybring disease and strife, which could have harmfuleffects on Ghana’s people and economy.

3.3.3.1 Financial Environment andInfrastructureThere has been a significant improvement in theoverall economic environment with respect tointerest rates and inflation. However, Ghana stillsuffers from high interest rates of over 14 percent,a high inflation rate at 13.88 percent and an artifi-cially strong Cedi.

Interest rates are extremely high as compared toprime rates such as the LIBOR. The LIBOR 1-yearrate, for example, is 5.3 percent, whereas theGhana prime rate is approximately 14 percent.Domestic entrepreneurs as well as foreign investorswill therefore be highly discouraged to borrow fromthe domestic market.

Ghana’s debt and the corresponding debt servicinglevels are also significantly high.59 As a result, allo-cation of resources to capital intensive infrastruc-ture such as telecom connectivity, education, etc,which are important for establishing a strong ITES-BPO industry, seem to be suffering.

The lack of a well-developed financial servicesinfrastructure or a strong private business commu-nity further leads to the absence of the typical busi-ness network, which comprises (technology) vendors,resource agencies, consulting companies, andfacilities suppliers. This can be another deterrentfor smaller or risk-averse investors.

58 The Economic Community of West African States59 In a recent development Ghana’s debt levels have been released by the International Development Association IDA of the World Bank, the International

Monetary Fund and the African Development Fund



For the ITES-BPO industry, which requires a rela-tively shorter gestation period to set up operations,geopolitical safety offered by Ghana will add anotherdimension in country’s attractiveness.

3.3.2 General Law and OrderSituationGhana offers a relatively stable and predictablepolitical environment for investors. There is noindication, at present, that the level of political riskin Ghana will change markedly over the near term.In terms of geo-political risks, it is one of the moststable countries with no known calamities or politi-cal upheaval in the recent past. The region is notafflicted by terrorism or any unfriendly actsfrom/to its neighboring countries.

Based on our interviews, the Ghana’s safety andstability is vouched for by expatriates who prefer tocommute from Ghana to other neighbouringcountries for their daily work.

3.3.3 Business EnvironmentGhana has established itself as one of the primebusiness centers in the West African region, withthe reputation of being the leading distributioncenter to nearby markets of Senegal, Nigeria, Mali,Chad, and Niger.

The ECOWAS58 protocol on trade has greatlyenhanced Ghana’s status as an economic force inthe sub-region and its trading access to otherAfrican nations, strengthening its position as “Thegateway to West Africa” for foreign business.

Ghana’s commitments to World TradeOrganization’s General Agreements on Trade inServices (GATS), in which various service sectors,including banking, financial services (excludinginsurance), basic telecommunications etc., havebeen opened up, and the continuing consultationsto commit more sectors to GATS, is a positivemove towards enhancing the business environmentin Ghana.

Ghana also has a time zone advantage with respectto doing business with countries such as the UnitedStates and the United Kingdom. Ghana follows the

GMT standard providing `real-time’ offshoringcapability to companies in the United Kingdom. Italso offers the United States a good “time fit”; witha 4–7 hour difference depending on the time zone,and has a 5–7 hour difference with countries inAsia. These compatible time zones can allow for“follow the sun” processing and business continuitysupport, in conjunction with outsourcers in Asia.

However, international perceptions of overall region-al geopolitical instability may continue to have anadverse effect on Ghana. Perceptions include fearsthat the influx of refugees from some of the neigh-bors such as Liberia and Ivory Coast to Ghana maybring disease and strife, which could have harmfuleffects on Ghana’s people and economy.

3.3.3.1 Financial Environment andInfrastructureThere has been a significant improvement in theoverall economic environment with respect tointerest rates and inflation. However, Ghana stillsuffers from high interest rates of over 14 percent,a high inflation rate at 13.88 percent and an artifi-cially strong Cedi.

Interest rates are extremely high as compared toprime rates such as the LIBOR. The LIBOR 1-yearrate, for example, is 5.3 percent, whereas theGhana prime rate is approximately 14 percent.Domestic entrepreneurs as well as foreign investorswill therefore be highly discouraged to borrow fromthe domestic market.

Ghana’s debt and the corresponding debt servicinglevels are also significantly high.59 As a result, allo-cation of resources to capital intensive infrastruc-ture such as telecom connectivity, education, etc,which are important for establishing a strong ITES-BPO industry, seem to be suffering.

The lack of a well-developed financial servicesinfrastructure or a strong private business commu-nity further leads to the absence of the typical busi-ness network, which comprises (technology) vendors,resource agencies, consulting companies, andfacilities suppliers. This can be another deterrentfor smaller or risk-averse investors.

58 The Economic Community of West African States59 In a recent development Ghana’s debt levels have been released by the International Development Association IDA of the World Bank, the International

Monetary Fund and the African Development Fund



Moreover, there is extreme difficulty in gettingaccurate and country-related business informationin a timely manner. This is an important require-ment for investors who want to compare Ghana aswith other international destinations on key eco-nomic and demographic statistics in order to sup-port their business case for investment in thecountry. Our past experience with ITES-BPOinvestors has shown that they are especially strin-gent on this requirement due to the fluid natureof this market.

However, possibly encouraged by the improvingmacro-economic scenario (of falling interest andinflation rates) and the presence of an encouragingand supportive government, investors are increas-ingly looking at Ghana in a positive light. A recentUSAID –funded research indicated that privatefinancial flows to Ghana from Europe, the UnitedStates, and Canada increased rapidly over the pastfew years. In 2005, total private remittancesexceeded $4 billion dollars, with individual remit-tances contributing over a third of the total.

Moreover, the overall geopolitical threat profile ofGhana is ranked as extremely low by all incumbentson account of a stable democracy, negligiblecommunal tension, and low susceptibility to naturaldisasters such as earthquakes, floods, or typhoons.

The government has displayed its commitment tothe ITES-BPO industry in particular by identify-ing it as one of the focus sectors for developmentand attainment of its Millennium DevelopmentGoals.

The government has also emphasized ‘private sectorcompetitiveness’ as one of the three strategic pillarsof its Growth and Poverty Reduction Strategy(GPRS II) for the period 2006–09. To ensure thatthe financial sector responds effectively to the needsof the private sector, financial sector reforms will beencouraged. This will include the continuousimplementation, monitoring, and evaluation of theFinancial Sector Strategic Plan (FINSSP). Emphasishas also been placed on monetary policy manage-ment. Venture Capital funds will be instituted tostrengthen the financial environment for imple-menting the GPRS II.

3.3.3.2 Business TransparencyGhana is committed to bridging the credibility gapwith the public by placing considerable informa-tion on government policies in the public domain.In a survey conducted by the United NationsEconomic Commission for Africa, 84 percent ofthe Expert Panel respondents believed that thegovernment fully or mostly respects the rule oflaw—an affirmation of support for the existence ofgood governance in Ghana.60

Ghana is not a signatory to the OECD Conventionon Combating Bribery. It has, however, taken stepsto amend laws on public financial administrationand public procurement. The public procurementlaw, passed in January 2004, seeks to harmonizepublic procurement guidelines used in the countryand also ensure it conforms WTO standards. Thenew law aims to improve accountability, value formoney, transparency, and efficiency in the use ofpublic resources.

In 1998, Ghana also established an anti-corruptioninstitution, called the Serious Fraud Office (SFO),to investigate corrupt practices involving bothprivate and public institutions.

An Office of Accountability has been establishedto oversee the performance of senior governmentfunctionaries.61

Consequently, corruption in Ghana is somewhatless prevalent than in other countries in the region.A 2005 Transparency International global corrup-tion ranking placed Ghana 65th out of 158 coun-tries in the ‘Corruptions Perceptions Index.’ Ghanaalso ranked as the fifth least corrupt country in theSub-Saharan region following Botswana, Namibia,Mauritius, and South Africa. This is an improve-ment from 2003 where Ghana ranked 70 out of133 countries.

3.3.3.3 Protection of Intellectual Property

Protection of intellectual property is an evolvingarea of law. Although there is no specific law pro-tecting intellectual property, the governmentappears to be focusing on this aspect, especially

60 Source:http://www.uneca.org/dpmd/publications/countryprofiles/Ghana-Final.pdf61 Source: http://accra.usembassy.gov/wwwhinformationaboutghana.html



Moreover, there is extreme difficulty in gettingaccurate and country-related business informationin a timely manner. This is an important require-ment for investors who want to compare Ghana aswith other international destinations on key eco-nomic and demographic statistics in order to sup-port their business case for investment in thecountry. Our past experience with ITES-BPOinvestors has shown that they are especially strin-gent on this requirement due to the fluid natureof this market.

However, possibly encouraged by the improvingmacro-economic scenario (of falling interest andinflation rates) and the presence of an encouragingand supportive government, investors are increas-ingly looking at Ghana in a positive light. A recentUSAID –funded research indicated that privatefinancial flows to Ghana from Europe, the UnitedStates, and Canada increased rapidly over the pastfew years. In 2005, total private remittancesexceeded $4 billion dollars, with individual remit-tances contributing over a third of the total.

Moreover, the overall geopolitical threat profile ofGhana is ranked as extremely low by all incumbentson account of a stable democracy, negligiblecommunal tension, and low susceptibility to naturaldisasters such as earthquakes, floods, or typhoons.

The government has displayed its commitment tothe ITES-BPO industry in particular by identify-ing it as one of the focus sectors for developmentand attainment of its Millennium DevelopmentGoals.

The government has also emphasized ‘private sectorcompetitiveness’ as one of the three strategic pillarsof its Growth and Poverty Reduction Strategy(GPRS II) for the period 2006–09. To ensure thatthe financial sector responds effectively to the needsof the private sector, financial sector reforms will beencouraged. This will include the continuousimplementation, monitoring, and evaluation of theFinancial Sector Strategic Plan (FINSSP). Emphasishas also been placed on monetary policy manage-ment. Venture Capital funds will be instituted tostrengthen the financial environment for imple-menting the GPRS II.

3.3.3.2 Business TransparencyGhana is committed to bridging the credibility gapwith the public by placing considerable informa-tion on government policies in the public domain.In a survey conducted by the United NationsEconomic Commission for Africa, 84 percent ofthe Expert Panel respondents believed that thegovernment fully or mostly respects the rule oflaw—an affirmation of support for the existence ofgood governance in Ghana.60

Ghana is not a signatory to the OECD Conventionon Combating Bribery. It has, however, taken stepsto amend laws on public financial administrationand public procurement. The public procurementlaw, passed in January 2004, seeks to harmonizepublic procurement guidelines used in the countryand also ensure it conforms WTO standards. Thenew law aims to improve accountability, value formoney, transparency, and efficiency in the use ofpublic resources.

In 1998, Ghana also established an anti-corruptioninstitution, called the Serious Fraud Office (SFO),to investigate corrupt practices involving bothprivate and public institutions.

An Office of Accountability has been establishedto oversee the performance of senior governmentfunctionaries.61

Consequently, corruption in Ghana is somewhatless prevalent than in other countries in the region.A 2005 Transparency International global corrup-tion ranking placed Ghana 65th out of 158 coun-tries in the ‘Corruptions Perceptions Index.’ Ghanaalso ranked as the fifth least corrupt country in theSub-Saharan region following Botswana, Namibia,Mauritius, and South Africa. This is an improve-ment from 2003 where Ghana ranked 70 out of133 countries.

3.3.3.3 Protection of Intellectual Property

Protection of intellectual property is an evolvingarea of law. Although there is no specific law pro-tecting intellectual property, the governmentappears to be focusing on this aspect, especially

60 Source:http://www.uneca.org/dpmd/publications/countryprofiles/Ghana-Final.pdf61 Source: http://accra.usembassy.gov/wwwhinformationaboutghana.html



with regards to the development of the ICT industryand ITES-BPO sector.

Ghana is a member of the World IntellectualProperty Organization (WIPO) and the English-speaking African Regional Industrial PropertyOrganization (ESARIPO). The courts have beenproactive in the protection of intellectual propertyrights. Steps are being taken to implement theWTO-TRIPS (Trade-Related Aspects ofIntellectual Property Rights) Agreement. AllTRIPS-compliant legislation, except the copyrightbill, has been passed by Parliament.

Patents (Product and Process): Patent registrationin Ghana presents no serious problems for foreignrights holders. Fees for registration vary accordingto the nature of the patent, but local and foreignapplicants pay the same rate.

Copyrights: Enforcement of foreign copyrightsmay be pursued in the Ghanaian courts, but fewsuch cases have actually been filed in recent years.The bootlegging of computer software62 is anexample of copyright infringement taking placelocally. There is no data available to quantify thecommercial impact of this practice.

3.3.3.4 Cyber Security LawsThe presence of stringent and comprehensiveCyber security laws and Cyber legislation hasbecome a prerequisite for foreign investment. Inthis respect, Ghana has already devised its e-legisla-tion policy and this is in the process of beingpassed by the government.

3.3.3.5 ITES-BPO PolicyBy promoting ICT in general in all spheres, withthe assistance of the World Bank and theMultilateral Investment Guarantee Agency(MIGA), Ghana requires a coordinated approach tothe development of the ICT/ ITES-BPO sector.The Ministry of Trade and Industry-Ghana FreeZones Board (GFZB), Ghana InvestmentPromotion Center (GIPC), the Ghana ExportPromotion Council (GEPC), and the MoC are allinvolved in promoting the industry.

While GFZB is the implementing agency for pro-viding benefits to exporters, including ITES-BPO,

GEPC is tasked with promoting Ghana’s non-traditional products in international markets.However, there is an absence of a common frame-work or strategy linking all of the agencies togetherfor a unified and coordinated approach for devel-oping and promoting the ICT/ ITES-BPO sector.

Moreover, the GFZB promotional material/handoutsand GEPC Act does not provide for any specificprovisions or incentives for the ITES-BPO sector.The ICT4AD policy also does not provide for anyinitiatives which will help cater to the uniquerequirements and needs of the ITES-BPO industry.There is also no separate measurement of the per-formance of the ITES-BPO sector, which is currentlycovered within non-traditional exports. There istherefore a possible lack of understanding of thepotential of the sector and its unique requirements.

There is also a lack of a unified agency dedicated tothe development of the ITES-BPO sector, its poli-cies, and necessary infrastructure. For example,Mauritius has set up a BPO Secretariat at theBoard of Investment to promote the developmentof the ITES-BPO industry in Mauritius and is thesole agency responsible for its development andpromotion.

3.3.4 Tax and Regulatory EnvironmentThe tax and regulatory provisions with regards tolabor laws, tax, and fiscal measures, as well as for-eign investment are largely favorable for the ITES-BPO industry.

3.3.4.1 Company SetupAll companies intending to do business in Ghanaare required to incorporate under the CompaniesCode, 1963 with the Registrar General. The incor-poration certificate is made available within a fort-night, subject to submitting complete requisitedocuments.

3.3.4.2 Labor and Employment LawIndustries in Ghana are governed by The LabourAct, 2003 in respect of its employment law. Some ofthe statutes are highly favorable for the ITES-BPOindustry, such as allowing shift work and night timework for both genders (the only exception being forwomen who are pregnant).

62 Source: www.bustpatents.com



with regards to the development of the ICT industryand ITES-BPO sector.

Ghana is a member of the World IntellectualProperty Organization (WIPO) and the English-speaking African Regional Industrial PropertyOrganization (ESARIPO). The courts have beenproactive in the protection of intellectual propertyrights. Steps are being taken to implement theWTO-TRIPS (Trade-Related Aspects ofIntellectual Property Rights) Agreement. AllTRIPS-compliant legislation, except the copyrightbill, has been passed by Parliament.

Patents (Product and Process): Patent registrationin Ghana presents no serious problems for foreignrights holders. Fees for registration vary accordingto the nature of the patent, but local and foreignapplicants pay the same rate.

Copyrights: Enforcement of foreign copyrightsmay be pursued in the Ghanaian courts, but fewsuch cases have actually been filed in recent years.The bootlegging of computer software62 is anexample of copyright infringement taking placelocally. There is no data available to quantify thecommercial impact of this practice.

3.3.3.4 Cyber Security LawsThe presence of stringent and comprehensiveCyber security laws and Cyber legislation hasbecome a prerequisite for foreign investment. Inthis respect, Ghana has already devised its e-legisla-tion policy and this is in the process of beingpassed by the government.

3.3.3.5 ITES-BPO PolicyBy promoting ICT in general in all spheres, withthe assistance of the World Bank and theMultilateral Investment Guarantee Agency(MIGA), Ghana requires a coordinated approach tothe development of the ICT/ ITES-BPO sector.The Ministry of Trade and Industry-Ghana FreeZones Board (GFZB), Ghana InvestmentPromotion Center (GIPC), the Ghana ExportPromotion Council (GEPC), and the MoC are allinvolved in promoting the industry.

While GFZB is the implementing agency for pro-viding benefits to exporters, including ITES-BPO,

GEPC is tasked with promoting Ghana’s non-traditional products in international markets.However, there is an absence of a common frame-work or strategy linking all of the agencies togetherfor a unified and coordinated approach for devel-oping and promoting the ICT/ ITES-BPO sector.

Moreover, the GFZB promotional material/handoutsand GEPC Act does not provide for any specificprovisions or incentives for the ITES-BPO sector.The ICT4AD policy also does not provide for anyinitiatives which will help cater to the uniquerequirements and needs of the ITES-BPO industry.There is also no separate measurement of the per-formance of the ITES-BPO sector, which is currentlycovered within non-traditional exports. There istherefore a possible lack of understanding of thepotential of the sector and its unique requirements.

There is also a lack of a unified agency dedicated tothe development of the ITES-BPO sector, its poli-cies, and necessary infrastructure. For example,Mauritius has set up a BPO Secretariat at theBoard of Investment to promote the developmentof the ITES-BPO industry in Mauritius and is thesole agency responsible for its development andpromotion.

3.3.4 Tax and Regulatory EnvironmentThe tax and regulatory provisions with regards tolabor laws, tax, and fiscal measures, as well as for-eign investment are largely favorable for the ITES-BPO industry.

3.3.4.1 Company SetupAll companies intending to do business in Ghanaare required to incorporate under the CompaniesCode, 1963 with the Registrar General. The incor-poration certificate is made available within a fort-night, subject to submitting complete requisitedocuments.

3.3.4.2 Labor and Employment LawIndustries in Ghana are governed by The LabourAct, 2003 in respect of its employment law. Some ofthe statutes are highly favorable for the ITES-BPOindustry, such as allowing shift work and night timework for both genders (the only exception being forwomen who are pregnant).

62 Source: www.bustpatents.com



There are no restrictions on the issuance of workand residence permits to Free Zone investors andemployees subject to immigration rules. Some ofthe provisions, such as employing disabled persons,termination on grounds of non-performance, or at-will employments, will be viewed positively by themultinational corporations.

The only major concern cited by incumbents hasbeen an active unionism practice that can be deter-rent for foreign investors.

3.3.4.3 Direct Taxation and IncentivesGhana offers several fiscal incentives on income taxand concessional custom duties for new set-ups,which is important for developing the sector.However, incentives are not specific to ITES-BPObut applicable generally to non-traditional exports.Free Zone status is granted to organizations basedon minimum specified export from its total rev-enue during the year.

For establishments in the designated Free Zones,Ghana has one of the most competitive tax incen-tives, with a tax holiday for the first 10 years fromthe start of operations and 8 percent thereafter.This is better than Ireland, which has a rate of12 percent.

The government has also signed Double TaxationAgreements (DTA)63 with two countries only atpresent: France and United Kingdom. AnotherDTA has been signed (but not ratified) with theRepublic of Germany. It has also concluded (butyet to sign and ratify) these agreements withBelgium, Italy, and Yugoslavia.64 These can be usedas marketing points to position Ghana as an attrac-tive destination for ITES-BPO investments.

3.4 CLUSTERSA cluster is a concentration of companies and sub-industries in a geographic region that are intercon-nected by the industry they serve and the productsthey produce. It includes specialized suppliers,service providers, and associated institutions.Clusters help increase productivity by improvedaccess to an efficient supplier base and to focusedmarket, technical and competitive information,and by matching products to meet customer needsand in the breadth and scale which attracts buyersand investors.

In the ITES-BPO context, a cluster would implyrecruitment agencies, training firms, transportation,

63 Double Taxation Agreements seek to avoid double taxation imposed on the earnings of investors who are residents of one country but work in or estab-lish operations in a second country. Under DTA, the earnings of such foreign investors are only taxed in the country of residence and are not applicablefor taxes in the country of operation.

64 Source: http://www.gipc.org.gh/IPA-Information.asp?hdnGroupID=3&hdnLevelID=3

Summary

Environment - Key Strengths and Challenges for Ghana

Strengths

■ Investor-friendly policies and provision of incentives to encourage foreign investment.

■ Time zone advantage – Can provide ‘real-time’ support for Europe since it is in GMT time zone; good ‘time-fit’ with the United States

with a four to seven hour difference.

■ Stable geopolitical environment.

Challenges

■ Inflation and interest rates are high – financial environment does not encourage domestic entrepreneurship.

■ Provisions for incentives are in accordance with GIPC and GZFB. No special incentives for ITES industry.

■ Lack of a common framework linking government agencies for developing ITES.

■ Perceived prevalence of unionism.

■ Data protection and security laws yet to be notified. (This is expected in 2006-2007).



There are no restrictions on the issuance of workand residence permits to Free Zone investors andemployees subject to immigration rules. Some ofthe provisions, such as employing disabled persons,termination on grounds of non-performance, or at-will employments, will be viewed positively by themultinational corporations.

The only major concern cited by incumbents hasbeen an active unionism practice that can be deter-rent for foreign investors.

3.3.4.3 Direct Taxation and IncentivesGhana offers several fiscal incentives on income taxand concessional custom duties for new set-ups,which is important for developing the sector.However, incentives are not specific to ITES-BPObut applicable generally to non-traditional exports.Free Zone status is granted to organizations basedon minimum specified export from its total rev-enue during the year.

For establishments in the designated Free Zones,Ghana has one of the most competitive tax incen-tives, with a tax holiday for the first 10 years fromthe start of operations and 8 percent thereafter.This is better than Ireland, which has a rate of12 percent.

The government has also signed Double TaxationAgreements (DTA)63 with two countries only atpresent: France and United Kingdom. AnotherDTA has been signed (but not ratified) with theRepublic of Germany. It has also concluded (butyet to sign and ratify) these agreements withBelgium, Italy, and Yugoslavia.64 These can be usedas marketing points to position Ghana as an attrac-tive destination for ITES-BPO investments.

3.4 CLUSTERSA cluster is a concentration of companies and sub-industries in a geographic region that are intercon-nected by the industry they serve and the productsthey produce. It includes specialized suppliers,service providers, and associated institutions.Clusters help increase productivity by improvedaccess to an efficient supplier base and to focusedmarket, technical and competitive information,and by matching products to meet customer needsand in the breadth and scale which attracts buyersand investors.

In the ITES-BPO context, a cluster would implyrecruitment agencies, training firms, transportation,

63 Double Taxation Agreements seek to avoid double taxation imposed on the earnings of investors who are residents of one country but work in or estab-lish operations in a second country. Under DTA, the earnings of such foreign investors are only taxed in the country of residence and are not applicablefor taxes in the country of operation.

64 Source: http://www.gipc.org.gh/IPA-Information.asp?hdnGroupID=3&hdnLevelID=3

Summary

Environment - Key Strengths and Challenges for Ghana

Strengths

■ Investor-friendly policies and provision of incentives to encourage foreign investment.

■ Time zone advantage – Can provide ‘real-time’ support for Europe since it is in GMT time zone; good ‘time-fit’ with the United States

with a four to seven hour difference.

■ Stable geopolitical environment.

Challenges

■ Inflation and interest rates are high – financial environment does not encourage domestic entrepreneurship.

■ Provisions for incentives are in accordance with GIPC and GZFB. No special incentives for ITES industry.

■ Lack of a common framework linking government agencies for developing ITES.

■ Perceived prevalence of unionism.

■ Data protection and security laws yet to be notified. (This is expected in 2006-2007).



catering, office support, real estate maintenance,security, general office supplies and such other con-nected firms. Clusters are critical for the growth ofthe industry in any region. They also generateemployment in the region. Based on the experiencefrom developed offshoring destinations, it is esti-mated that for every one ITES-BPO employee, thecluster generates about four jobs.

This section covers prevalence of ITES-BPO sup-port clusters in Ghana, and also includes a sectionon expatriate amenities with details on living con-ditions for the expatriate population in Ghana.

3.4.1 Training FirmsTraining of current and future employees is key tothe development of the ITES-BPO sector. Forexample, voice and accent, cross-culture sensitiza-tion, soft skills, basic and advanced computer oper-ating skills, transcription etc., are some of the basicskills necessary for working in the ITES-BPOsector. Training institutions help enhance skills ofcurrent employees and of those who aspire to workfor the ITES-BPO sector.

In Ghana, the government has introduced few ITand ITES-BPO specific trainings. The privatesector has also established institutes that impartsector-specific trainings.

3.4.1.1 Government-funded Training

Institutes/Initiatives■ Ghana Multimedia Centre

➤ Ghana Multimedia Centre (GMC) offerstraining for medical transcription. GMCconducts this training in two shifts in Accra.It also conducts trainings for data entry andcall centre skills. Currently the center has 25seats, and operates in two shifts, therebyimparting training to 50 students. It plans toincrease the per shift capacity to 50, andoffer training to 100 students across twoshifts.65

➤ GMC is planning to add three more centers.It also plans to have tie ups with variousother institutions like NIIT, IPMC, GhanaTelecom University, Ghana University etc.,for meeting the training needs.

■ Ghana-India Kofi Annan Centre of Excellencein ICT (AITI-KACE)➤ AITI-KACE offers courses in programming,

software, and basic computing skills to coverkey concepts of computing. The courseincludes seven modules. An ICDL certifica-tion is awarded after each module is cleared.

➤ AITI-KACE’s ICT4D work provides supportto the MoCs’ program of launching commu-nity information centers in every district inGhana.

➤ A special project the i2CAP (I too can pro-gramme) builds programming skills amongstudents in Senior Secondary Schools.66

■ Ghana Institute of Management and PublicAdministration (GIMPA) ➤ GIMPA offers executive MBA courses as well

as graduate programs in Management,Accounting, Economics, Banking, etc. Thereis also an intention to develop courses specificto IT/ITES in the near future.

➤ All these programs are recognized by theNational Accreditation Board. GIMPA is alsoplanning to go regional and set up e-learningprograms

■ Ghana Telecom University College➤ Ghana Telecom University College, former-

ly Ghana Telecom Training Centre, is a partof Ghana Telecom and currently imparts thecall centre training for Exzeed CompanyLtd., a subsidiary of Ghana Telecom. Dr.Osei Darkwa, the college head, indicatedthat the college plans to expand its opera-tions to become a full fledged training cen-ter for ITES-BPO contact centers forGhana.

3.4.1.2 Private training InstitutesInternational training providers such as NIIT andAptech have opened centers in Ghana and are plan-ning to expand their coverage beyond key urbancenters.■ NIIT operates four centers in Ghana. They are

located in Accra, Takoradi, Achimota andKumasi.

■ Intercom Programming and ManufacturingCompany Limited (IPMC), with expertise in ITand networking equipment is providing both

65 Interview with GMC66 Source: http://www.aiti-kace.com.gh/index.php?option=com-content&task=view&id=41&Itemid=66



catering, office support, real estate maintenance,security, general office supplies and such other con-nected firms. Clusters are critical for the growth ofthe industry in any region. They also generateemployment in the region. Based on the experiencefrom developed offshoring destinations, it is esti-mated that for every one ITES-BPO employee, thecluster generates about four jobs.

This section covers prevalence of ITES-BPO sup-port clusters in Ghana, and also includes a sectionon expatriate amenities with details on living con-ditions for the expatriate population in Ghana.

3.4.1 Training FirmsTraining of current and future employees is key tothe development of the ITES-BPO sector. Forexample, voice and accent, cross-culture sensitiza-tion, soft skills, basic and advanced computer oper-ating skills, transcription etc., are some of the basicskills necessary for working in the ITES-BPOsector. Training institutions help enhance skills ofcurrent employees and of those who aspire to workfor the ITES-BPO sector.

In Ghana, the government has introduced few ITand ITES-BPO specific trainings. The privatesector has also established institutes that impartsector-specific trainings.

3.4.1.1 Government-funded Training

Institutes/Initiatives■ Ghana Multimedia Centre

➤ Ghana Multimedia Centre (GMC) offerstraining for medical transcription. GMCconducts this training in two shifts in Accra.It also conducts trainings for data entry andcall centre skills. Currently the center has 25seats, and operates in two shifts, therebyimparting training to 50 students. It plans toincrease the per shift capacity to 50, andoffer training to 100 students across twoshifts.65

➤ GMC is planning to add three more centers.It also plans to have tie ups with variousother institutions like NIIT, IPMC, GhanaTelecom University, Ghana University etc.,for meeting the training needs.

■ Ghana-India Kofi Annan Centre of Excellencein ICT (AITI-KACE)➤ AITI-KACE offers courses in programming,

software, and basic computing skills to coverkey concepts of computing. The courseincludes seven modules. An ICDL certifica-tion is awarded after each module is cleared.

➤ AITI-KACE’s ICT4D work provides supportto the MoCs’ program of launching commu-nity information centers in every district inGhana.

➤ A special project the i2CAP (I too can pro-gramme) builds programming skills amongstudents in Senior Secondary Schools.66

■ Ghana Institute of Management and PublicAdministration (GIMPA) ➤ GIMPA offers executive MBA courses as well

as graduate programs in Management,Accounting, Economics, Banking, etc. Thereis also an intention to develop courses specificto IT/ITES in the near future.

➤ All these programs are recognized by theNational Accreditation Board. GIMPA is alsoplanning to go regional and set up e-learningprograms

■ Ghana Telecom University College➤ Ghana Telecom University College, former-

ly Ghana Telecom Training Centre, is a partof Ghana Telecom and currently imparts thecall centre training for Exzeed CompanyLtd., a subsidiary of Ghana Telecom. Dr.Osei Darkwa, the college head, indicatedthat the college plans to expand its opera-tions to become a full fledged training cen-ter for ITES-BPO contact centers forGhana.

3.4.1.2 Private training InstitutesInternational training providers such as NIIT andAptech have opened centers in Ghana and are plan-ning to expand their coverage beyond key urbancenters.■ NIIT operates four centers in Ghana. They are

located in Accra, Takoradi, Achimota andKumasi.

■ Intercom Programming and ManufacturingCompany Limited (IPMC), with expertise in ITand networking equipment is providing both

65 Interview with GMC66 Source: http://www.aiti-kace.com.gh/index.php?option=com-content&task=view&id=41&Itemid=66



academic and professional training. It also pro-vides training in specific skills need by call cen-ters, such as data entry and computing.

■ Cisco, Microsoft and HP have also/are in theprocess of setting up academies and programslinked to some of the government’s objective ofICT proliferation to the weaker sections/ruralareas of society.

Our interactions with training providers and indus-try incumbents in Ghana revealed that privateinstitutions are mainly providing training related toIT and networking skills. Trainings specifically inthe fields of ITES-BPO are not available in Ghana.Hence, incumbents have to invest heavily in in-house training, leading to high costs, mismatch insupply and demand of skills within the individualorganization, and lack of talent pool creation with-in the industry as a whole.

Going forward, we believe that the course curricu-lum training programs geared for the ITES-BPOsector should be standardized and aligned with theskills requirement of the market.

3.4.2 Search FirmsRecruitment firms play an important role in thenew economy. Increasingly, companies are awarethat talent is the predominant investment andhence the need to align HR solutions to increasetheir profitability. Such awareness has led to thedevelopment of specialized agencies that helporganizations in finding the right people for thedesired skills.

In the ITES-BPO sector, the role of recruiters iscritical, particularly when companies need toramp up their headcount within tight timelines.Recruitment firms are also advantageous for jobseekers by acting as an interface between theclients and the job seekers. Recruitment agenciesalso play an important role in promoting theindustry. By positioning this industry as an attrac-tive career opportunity and by interacting withpeople in the industry, a high degree of aware-ness of the ITES-BPO sector is created. This inturn creates a demand pull into the ITES-BPOindustry.

An organized recruitment sector is absent inGhana. But there are some local recruitment agen-cies, such as Reach Select, L’aine Services, Psychon

HR operating in Ghana, and few global consultan-cies such as PricewaterhouseCoopers, KPMG, andDeloitte that provide recruitment services on alimited scale.

Our interactions with ITES-BPO incumbents inGhana indicated that recruitment is primarily donethrough newspapers advertisements, and the typicaltalent sourcing time is around two months.Recruitment tools such as databases are absent. Theabsence of such databases impedes efficient, timely,and cost-effective hiring for the people-intensiveITES industry.

3.4.3 Other Service ProvidersFinancers/Venture Capitalists—Access to capitalon investment-friendly terms and conditions wouldprovide a boost to the small and medium localentrepreneurs who want to set up an ITES/BPOoperation. In this respect, Ghana has received fund-ing and financing from international sources, suchas bilateral and multilateral donor agencies.

Consultants, Developers, Vendors—The typicalbusiness network consisting of vendors, suppliers,consulting firms, etc. is not well established inGhana. In areas where such a network exists, theservices provided are basic in nature. For instance,real estate consultants, developers and architectsoffer services that are primitive in comparison toreal estate offered at some of the other establishedoffshore locations. We believe real estate devel-opers and builders need to move up the valuechain and offer services that are in line with worldstandards.

Technology Incubators—Incubation as an inter-vention for enabling small-size companies to beginand sustain operation is also developing in Ghana.In 2005, BusyInternet, the largest privately ownedICT center in Ghana, launched its IncubationProgram with support from the World Bank, andspecial funding from the government of Japan. Theincubation service provides new start-up businesseswith facilities such as physical space, shared services,business and legal advice, and sometimes financialinputs to assist them in starting operations. It alsocontinues to provide assistance until the companiesstabilize and develop the capacity to operate in acompetitive business environment. The public sector,Ghana Multimedia Centre, also provides similarincubation services to start-ups in Ghana.



academic and professional training. It also pro-vides training in specific skills need by call cen-ters, such as data entry and computing.

■ Cisco, Microsoft and HP have also/are in theprocess of setting up academies and programslinked to some of the government’s objective ofICT proliferation to the weaker sections/ruralareas of society.

Our interactions with training providers and indus-try incumbents in Ghana revealed that privateinstitutions are mainly providing training related toIT and networking skills. Trainings specifically inthe fields of ITES-BPO are not available in Ghana.Hence, incumbents have to invest heavily in in-house training, leading to high costs, mismatch insupply and demand of skills within the individualorganization, and lack of talent pool creation with-in the industry as a whole.

Going forward, we believe that the course curricu-lum training programs geared for the ITES-BPOsector should be standardized and aligned with theskills requirement of the market.

3.4.2 Search FirmsRecruitment firms play an important role in thenew economy. Increasingly, companies are awarethat talent is the predominant investment andhence the need to align HR solutions to increasetheir profitability. Such awareness has led to thedevelopment of specialized agencies that helporganizations in finding the right people for thedesired skills.

In the ITES-BPO sector, the role of recruiters iscritical, particularly when companies need toramp up their headcount within tight timelines.Recruitment firms are also advantageous for jobseekers by acting as an interface between theclients and the job seekers. Recruitment agenciesalso play an important role in promoting theindustry. By positioning this industry as an attrac-tive career opportunity and by interacting withpeople in the industry, a high degree of aware-ness of the ITES-BPO sector is created. This inturn creates a demand pull into the ITES-BPOindustry.

An organized recruitment sector is absent inGhana. But there are some local recruitment agen-cies, such as Reach Select, L’aine Services, Psychon

HR operating in Ghana, and few global consultan-cies such as PricewaterhouseCoopers, KPMG, andDeloitte that provide recruitment services on alimited scale.

Our interactions with ITES-BPO incumbents inGhana indicated that recruitment is primarily donethrough newspapers advertisements, and the typicaltalent sourcing time is around two months.Recruitment tools such as databases are absent. Theabsence of such databases impedes efficient, timely,and cost-effective hiring for the people-intensiveITES industry.

3.4.3 Other Service ProvidersFinancers/Venture Capitalists—Access to capitalon investment-friendly terms and conditions wouldprovide a boost to the small and medium localentrepreneurs who want to set up an ITES/BPOoperation. In this respect, Ghana has received fund-ing and financing from international sources, suchas bilateral and multilateral donor agencies.

Consultants, Developers, Vendors—The typicalbusiness network consisting of vendors, suppliers,consulting firms, etc. is not well established inGhana. In areas where such a network exists, theservices provided are basic in nature. For instance,real estate consultants, developers and architectsoffer services that are primitive in comparison toreal estate offered at some of the other establishedoffshore locations. We believe real estate devel-opers and builders need to move up the valuechain and offer services that are in line with worldstandards.

Technology Incubators—Incubation as an inter-vention for enabling small-size companies to beginand sustain operation is also developing in Ghana.In 2005, BusyInternet, the largest privately ownedICT center in Ghana, launched its IncubationProgram with support from the World Bank, andspecial funding from the government of Japan. Theincubation service provides new start-up businesseswith facilities such as physical space, shared services,business and legal advice, and sometimes financialinputs to assist them in starting operations. It alsocontinues to provide assistance until the companiesstabilize and develop the capacity to operate in acompetitive business environment. The public sector,Ghana Multimedia Centre, also provides similarincubation services to start-ups in Ghana.


3.4.4 Expatriate AmenitiesThe existence of expatriate oriented infrastructureand amenities is an important factor as a supportcluster for the ITES industry. The suitability of alocation to support an expatriate population is eval-uated by following factors. Ghana has certain posi-tives and areas of development (depicted as ‘+’ and‘–’ in the following section) with respect to facili-ties for expatriates:

■ Infrastructure➤ Housing

� Housing for expatriates is concentratedaround the embassies or suburbs near theairport.� Large colonial-style houses with yardsand housing within walled compounds areused.

➤ Transportation and commuting time� Public transport infrastructure isaffordable but not world standard.� Road network is congested and com-muting time may range from 10–15 minutesto an hour or more, depending on thedistance.

➤ International connectivity� Accra is a 6–8 hour flight from Europewith direct flights from London,Amsterdam, Milan, and Frankfurt.

■ Amenities➤ Medical facilities

� Tropical illnesses like malaria, yellowfever, cholera, and typhoid are commonin Ghana.� Medical facilities are not world class.Basic/primary healthcare facilities areavailable at private clinics but health carefor advanced illnesses is limited.

➤ Education facilities� There are several education facilitiesserving the expatriate population. In addi-tion to community schools, educationoptions for expatriates include the GhanaInternational School, American School,Swiss School, and the French School.�/� The quality of education impartedat these schools is satisfactory. Primaryschool education is considered to be ofreasonable standard but there are concernsabout the quality of academic standards atthe secondary level and higher levels.

➤


Entertainment options (shopping areas,clubs, restaurants)

� There are several restaurants servingvarious cuisines in Accra. Some restau-rants have adopted European hygienestandards.� The beach is located about half anhour away from Accra city and is popularamong the expatriates.

➤ Cost of living� Cost of living is not very high inGhana.

➤ Hotel Amenities�There are more than half a dozen 4- and5-star hotels in Ghana.

An analysis of the current prevalence of support clus-ters in Ghana indicates that clusters are not yet wellestablished in Ghana, primarily due to the low scaleof the ITES/BPO industry. Since there is an interde-pendent relationship between support clusters andthe ITES/BPO industry, we believe that as the ITESindustry develops scale in Ghana, support clusterswill also develop going forward. According to Hewittestimates, for every one job created in the ITESindustry, four jobs are created in areas that act as asupport cluster for the ITES industry. In addition,development of training clusters, which impart requi-site vocational/job-relevant trainings to the potentialworkforce, enable talent capacity building in a coun-try. As a result, growth in the support industry fostersand sustains the growth of the ITES/BPOindustry.

3.5 INCUMBENTSIncumbents refer to the ITES-BPO businesses thatare already established and operating in the loca-tion. Established businesses can provide immenseinsight about what works and what doesn’t withinthe sector and the country. Their insights on why aparticular location was selected and the experienceof doing business in that location are extremelyvaluable inputs for investors in search of new desti-nations in which to do business.

3.5.1 ITES Companies in GhanaThe size of the ITES-BPO industry in Ghana isvery small. The sector employed approximately


3.4.4 Expatriate AmenitiesThe existence of expatriate oriented infrastructureand amenities is an important factor as a supportcluster for the ITES industry. The suitability of alocation to support an expatriate population is eval-uated by following factors. Ghana has certain posi-tives and areas of development (depicted as ‘+’ and‘–’ in the following section) with respect to facili-ties for expatriates:

■ Infrastructure➤ Housing

� Housing for expatriates is concentratedaround the embassies or suburbs near theairport.� Large colonial-style houses with yardsand housing within walled compounds areused.

➤ Transportation and commuting time� Public transport infrastructure isaffordable but not world standard.� Road network is congested and com-muting time may range from 10–15 minutesto an hour or more, depending on thedistance.

➤ International connectivity� Accra is a 6–8 hour flight from Europewith direct flights from London,Amsterdam, Milan, and Frankfurt.

■ Amenities➤ Medical facilities

� Tropical illnesses like malaria, yellowfever, cholera, and typhoid are commonin Ghana.� Medical facilities are not world class.Basic/primary healthcare facilities areavailable at private clinics but health carefor advanced illnesses is limited.

➤ Education facilities� There are several education facilitiesserving the expatriate population. In addi-tion to community schools, educationoptions for expatriates include the GhanaInternational School, American School,Swiss School, and the French School.�/� The quality of education impartedat these schools is satisfactory. Primaryschool education is considered to be ofreasonable standard but there are concernsabout the quality of academic standards atthe secondary level and higher levels.

➤


Entertainment options (shopping areas,clubs, restaurants)

� There are several restaurants servingvarious cuisines in Accra. Some restau-rants have adopted European hygienestandards.� The beach is located about half anhour away from Accra city and is popularamong the expatriates.

➤ Cost of living� Cost of living is not very high inGhana.

➤ Hotel Amenities�There are more than half a dozen 4- and5-star hotels in Ghana.

An analysis of the current prevalence of support clus-ters in Ghana indicates that clusters are not yet wellestablished in Ghana, primarily due to the low scaleof the ITES/BPO industry. Since there is an interde-pendent relationship between support clusters andthe ITES/BPO industry, we believe that as the ITESindustry develops scale in Ghana, support clusterswill also develop going forward. According to Hewittestimates, for every one job created in the ITESindustry, four jobs are created in areas that act as asupport cluster for the ITES industry. In addition,development of training clusters, which impart requi-site vocational/job-relevant trainings to the potentialworkforce, enable talent capacity building in a coun-try. As a result, growth in the support industry fostersand sustains the growth of the ITES/BPOindustry.

3.5 INCUMBENTSIncumbents refer to the ITES-BPO businesses thatare already established and operating in the loca-tion. Established businesses can provide immenseinsight about what works and what doesn’t withinthe sector and the country. Their insights on why aparticular location was selected and the experienceof doing business in that location are extremelyvaluable inputs for investors in search of new desti-nations in which to do business.

3.5.1 ITES Companies in GhanaThe size of the ITES-BPO industry in Ghana isvery small. The sector employed approximately



2,200 people in January 2006, and the total seatcapacity is expected to increase to 3,000 seats byJune 2006. The Ghana-based facility of AffiliatedComputer Services (ACS), with operations andpeople employed worldwide, accounts for thelargest share of the total capacity in Ghana.67 Thefollowing are brief profiles of some of the currentand past incumbents in Ghana:

3.5.1.1 Current IncumbentsAffiliated Computer Services (ACS), a premierprovider of business process and information tech-nology outsourcing solutions, set up a 40,000square-foot office complex in Accra, Ghana. ACScommenced operations in mid-2001 with a work-force of 200 people. Since then, ACS has increasedits workforce nearly ten fold, and currently employsover 2,000 people.

ABM Links Ghana Company Ltd. was set up inFebruary 2006 at Cape Coast, a four-hour drivefrom Ghana’s capital, Accra. ABM is promoted byMr. Bossman Hammond, an erstwhile facility headat ACS. ABM plans to set up a voice-based callcenter, data entry operations and medical transcrip-tion facilities, and will have a capacity of 600 seats.The company is in the early stages of operation andspecific details on the number of candidates under-going training are not available.

The decision by ABM Links to establish its officesin Cape Coast, and not in Accra—which is consid-ered the established business center in Ghana—wasdriven with the objective of tapping talent availablein the Cape Coast region. Cape Coast has some ofthe best senior secondary schools in Ghana, andthe Cape Coast University is also source of freshtalent. Cape Coast also has a number of collegesand polytechnics, all producing employable talentfor the industry. Further, ABM will also be able tocapture the local floating population and offerthem the advantage of local employment.

Mary Greenslade Information Services Ltd.set-up in Accra, Ghana, is a subsidiary of MaryGreenslade USA. The company provides medicaltranscription facilities. It also has a call center andemploys 60 people. Mary Greenslade is promotedby Sammy Crabbe, an erstwhile senior manager atACS.

Global Response Ghana MG Ltd. opened acontact center at Accra. Its operations are expectedto commence in mid-2006. The company plans torecruit 500 employees and will provide medicaltranscription services.

Rising Data Solutions was established in 2001with a 12-seat sales and marketing contact pilot

Summary

Clusters: Key Strengths and Challenges for Ghana

Strengths

■ Support clusters for ITES-BPO facilities have the potential to grow rapidly.

■ Initiatives have been undertaken to introduce ITES-BPO training.

■ Expatriate amenities for infrastructure, stay. and travel is available.

■ Incubation facilities are available both from the private and public sector.

Challenges

■ Private sector training institutes primarily provide training in IT and networking skills. No ITES-specific training program in place, though

are envisioned.

■ Absence of efficient databases with recruitment firms impact timely and cost-efficient hiring.

■ Real estate consultants, developers, architects are not in line with international standards.

■ Absence of an active industry association to promote the interests of the industry. This however has been proposed.

67 Interview with Mary Greenslade



2,200 people in January 2006, and the total seatcapacity is expected to increase to 3,000 seats byJune 2006. The Ghana-based facility of AffiliatedComputer Services (ACS), with operations andpeople employed worldwide, accounts for thelargest share of the total capacity in Ghana.67 Thefollowing are brief profiles of some of the currentand past incumbents in Ghana:

3.5.1.1 Current IncumbentsAffiliated Computer Services (ACS), a premierprovider of business process and information tech-nology outsourcing solutions, set up a 40,000square-foot office complex in Accra, Ghana. ACScommenced operations in mid-2001 with a work-force of 200 people. Since then, ACS has increasedits workforce nearly ten fold, and currently employsover 2,000 people.

ABM Links Ghana Company Ltd. was set up inFebruary 2006 at Cape Coast, a four-hour drivefrom Ghana’s capital, Accra. ABM is promoted byMr. Bossman Hammond, an erstwhile facility headat ACS. ABM plans to set up a voice-based callcenter, data entry operations and medical transcrip-tion facilities, and will have a capacity of 600 seats.The company is in the early stages of operation andspecific details on the number of candidates under-going training are not available.

The decision by ABM Links to establish its officesin Cape Coast, and not in Accra—which is consid-ered the established business center in Ghana—wasdriven with the objective of tapping talent availablein the Cape Coast region. Cape Coast has some ofthe best senior secondary schools in Ghana, andthe Cape Coast University is also source of freshtalent. Cape Coast also has a number of collegesand polytechnics, all producing employable talentfor the industry. Further, ABM will also be able tocapture the local floating population and offerthem the advantage of local employment.

Mary Greenslade Information Services Ltd.set-up in Accra, Ghana, is a subsidiary of MaryGreenslade USA. The company provides medicaltranscription facilities. It also has a call center andemploys 60 people. Mary Greenslade is promotedby Sammy Crabbe, an erstwhile senior manager atACS.

Global Response Ghana MG Ltd. opened acontact center at Accra. Its operations are expectedto commence in mid-2006. The company plans torecruit 500 employees and will provide medicaltranscription services.

Rising Data Solutions was established in 2001with a 12-seat sales and marketing contact pilot

Summary

Clusters: Key Strengths and Challenges for Ghana

Strengths

■ Support clusters for ITES-BPO facilities have the potential to grow rapidly.

■ Initiatives have been undertaken to introduce ITES-BPO training.

■ Expatriate amenities for infrastructure, stay. and travel is available.

■ Incubation facilities are available both from the private and public sector.

Challenges

■ Private sector training institutes primarily provide training in IT and networking skills. No ITES-specific training program in place, though

are envisioned.

■ Absence of efficient databases with recruitment firms impact timely and cost-efficient hiring.

■ Real estate consultants, developers, architects are not in line with international standards.

■ Absence of an active industry association to promote the interests of the industry. This however has been proposed.

67 Interview with Mary Greenslade



center located in Accra. It later diversified intomedical transcription services. In April 2006, itannounced that it will be scaling up operationsover the next few months. According to its CEOKarim Morsli over the next two years, the companyhopes to employ over a thousand agents handlingphone queries from the United States and GreatBritain.68 The firm has also recruited at least twonew clients from the travel and financial servicesindustries within the United States. Mr. KwameBonsu, one of the promoters of Rising DataSolutions, said that the third party operationsshould be preceded by clear contracts and servicelevel agreements, and clear metrics on quality assur-ance. Lack of the above was a major reason whyRising Data has not yet scaled up operations.

Moreover, there are other small ITES-BPO compa-nies servicing the domestic market. Exzeed, a sub-sidiary of Ghana Telecom and Areeba are domesticcall centers, currently servicing the Ghanaian mar-ket, have expressed interest in expanding theiroperations to service the international market aswell. Exzeed has 165 seats and Areeba has 60 seats,which will possibly be ramped up to 100 seats. Webelieve this a growth opportunity for the ITES-BPO industry in Ghana, since it will provide animpetus to the international service capability ofthe domestic ITES-BPO industry in Ghana.

In addition to the above-mentioned incumbents,the government also indicated that players such as

Platinum were entering the international ITES-BPO provider’s arena while some other players haveexited from the industry.69

3.5.1.2 ITES-BPO Industry AssociationA key reason that the ITES-BPO industry has notflourished in Ghana, despite the presence of a largeplayer like ACS since 2000, is the absence of atrade body that can act as a catalyst for the growthof the industry and facilitate trade and business insoftware and services. The Outsourcing Associationof Ghana is currently not functioning as anITES-BPO industry association, since it largelycomprises of suppliers to the ITES-BPO industry(network providers, telecoms, etc.) than ITES-BPOincumbents.

We believe a central association/agency must be setup, comprised of ITES/BPO incumbents and otherstakeholders. The primary objectives of this associa-tion will be to partner with the government andwith global stakeholders in promoting the industryin global markets; promoting the industry clusters;providing benefits through partnership with thegovernment in line with the evolving requirementsof the sector; and devising strategies to upgrade thetalent pool.

It may be useful to look at the OutsourcingAssociation of Ghana and evaluate whether this canbe used as the recommended ITES-BPO industryassociation, after due modification and diligence.

TABLE 3.5.1.1.1 Existing ITES-BPO incumbents in Ghana

S.No Incumbent Name Third Party/Captive Export/Domestic

1 Affiliated Computer Services (ACS) Third Party Export

2 ABM Links Ghana Company Limited Third Party Export

3 Mary Greenslade Information Services Ltd Third Party Export

4 Global Response Ghana MG Ltd Third Party Export

5 Rising Data Solutions Third Party Export

6 ExZeed Company Ltd Third Party Domestic

7 Scancom Limited (Areeba) Captive Domestic

68 Press article69 Supra Telecom, a US-based telephone customer service centre started in Accra with a staff of 70 people, but closed down due to bankruptcy of the parent

company in USA. An erstwhile senior manager at Supra Telecom, in an interview, does not attribute the closure of business as a reflection of the businessenvironment in Ghana. He is upbeat on the advantages offered by Ghana, although he acknowledges that Ghana will have to address its infrastructureproblems to become a successful offshoring destination.



center located in Accra. It later diversified intomedical transcription services. In April 2006, itannounced that it will be scaling up operationsover the next few months. According to its CEOKarim Morsli over the next two years, the companyhopes to employ over a thousand agents handlingphone queries from the United States and GreatBritain.68 The firm has also recruited at least twonew clients from the travel and financial servicesindustries within the United States. Mr. KwameBonsu, one of the promoters of Rising DataSolutions, said that the third party operationsshould be preceded by clear contracts and servicelevel agreements, and clear metrics on quality assur-ance. Lack of the above was a major reason whyRising Data has not yet scaled up operations.

Moreover, there are other small ITES-BPO compa-nies servicing the domestic market. Exzeed, a sub-sidiary of Ghana Telecom and Areeba are domesticcall centers, currently servicing the Ghanaian mar-ket, have expressed interest in expanding theiroperations to service the international market aswell. Exzeed has 165 seats and Areeba has 60 seats,which will possibly be ramped up to 100 seats. Webelieve this a growth opportunity for the ITES-BPO industry in Ghana, since it will provide animpetus to the international service capability ofthe domestic ITES-BPO industry in Ghana.

In addition to the above-mentioned incumbents,the government also indicated that players such as

Platinum were entering the international ITES-BPO provider’s arena while some other players haveexited from the industry.69

3.5.1.2 ITES-BPO Industry AssociationA key reason that the ITES-BPO industry has notflourished in Ghana, despite the presence of a largeplayer like ACS since 2000, is the absence of atrade body that can act as a catalyst for the growthof the industry and facilitate trade and business insoftware and services. The Outsourcing Associationof Ghana is currently not functioning as anITES-BPO industry association, since it largelycomprises of suppliers to the ITES-BPO industry(network providers, telecoms, etc.) than ITES-BPOincumbents.

We believe a central association/agency must be setup, comprised of ITES/BPO incumbents and otherstakeholders. The primary objectives of this associa-tion will be to partner with the government andwith global stakeholders in promoting the industryin global markets; promoting the industry clusters;providing benefits through partnership with thegovernment in line with the evolving requirementsof the sector; and devising strategies to upgrade thetalent pool.

It may be useful to look at the OutsourcingAssociation of Ghana and evaluate whether this canbe used as the recommended ITES-BPO industryassociation, after due modification and diligence.

TABLE 3.5.1.1.1 Existing ITES-BPO incumbents in Ghana

S.No Incumbent Name Third Party/Captive Export/Domestic

1 Affiliated Computer Services (ACS) Third Party Export

2 ABM Links Ghana Company Limited Third Party Export

3 Mary Greenslade Information Services Ltd Third Party Export

4 Global Response Ghana MG Ltd Third Party Export

5 Rising Data Solutions Third Party Export

6 ExZeed Company Ltd Third Party Domestic

7 Scancom Limited (Areeba) Captive Domestic

68 Press article69 Supra Telecom, a US-based telephone customer service centre started in Accra with a staff of 70 people, but closed down due to bankruptcy of the parent

company in USA. An erstwhile senior manager at Supra Telecom, in an interview, does not attribute the closure of business as a reflection of the businessenvironment in Ghana. He is upbeat on the advantages offered by Ghana, although he acknowledges that Ghana will have to address its infrastructureproblems to become a successful offshoring destination.



This association is envisioned to be similar toindustry associations in other offshore destina-tions, such as the National Association ofSoftware and Service Companies (NASSCOM),the trade body and the chamber of commerce ofthe IT software and services industry in India.Other industry associations include Calling theCape, in South Africa; Call Centre Council ofSingapore; and Contact Federation Philippines,Inc. (CFPI).

3.5.2 Incidence of Captives70

The incidence of captives is currently low inGhana. ACS is the largest incumbent with a head-count of over 2,000. There is no other large inter-national ITES-BPO company that has establishedits captive operations in Ghana. ITES-BPO experts

acknowledge that Ghana needs to attract captivesto build internal capacities and spur balancedgrowth of the ITES industry.

Captives also contribute to the service provisioningmaturity of the industry by introducing best prac-tices and knowledge exchange. In the absence oflarge established captives in Ghana, local or smallentrepreneurs have not been exposed to thedynamics and challenges of the ITES-BPOindustry. As a result, several new start-ups havefaced issues on account of service quality, workplanning, and productivity.

3.5.3 Ability to ScaleThe limited availability of tertiary graduates is oneof the areas identified as a key challenge to a fast-

National Association of Software and Service Companies (NASSCOM)

NASSCOM is a not-for-profit trade body of IT software and service companies in India. It was set up to facilitate business and trade insoftware and services and to encourage advancement of research in software technology.

NASSCOM’s Aims and Objectives

The primary objective of NASSCOM is to act as a catalyst for the growth of the software driven IT industry in India. Other goalsinclude facilitation of trade and business in software and services; encouragement and advancement of research; propagation of educa-tion and employment; enabling the growth of the Indian economy and provide compelling business benefits to global economies byglobal sourcing.

NASSCOM’s Strategy to Achieve its Objectives

NASSCOM has adopted a seven-fold strategy to achieve its aims and objectives listed above:

■ Partner with the government of India and state governments to formulate IT policies and legislation. Partner with global stakeholdersfor promoting the industry in global markets.

■ Strive for a thought leadership position and deliver world-class research and strategic inputs for the industry and its stakeholders.

■ Encourage members to uphold world class quality standards.

■ Strive to uphold intellectual property rights of its members.

■ Strengthen the brand equity of India as a premier global sourcing destination.

■ Expand the quantity and quality of the talent pool in India.

■ Continuous engagement with all member companies and stakeholders to devise strategies to achieve shared aspirations for theindustry and the country.

NASSCOM’s Contribution towards Growth in Indian Industry

NASSCOM has been a pioneer in the growth of the Indian IT/ITES industry. Since its inception, it has grown significantly and currentlyhas over 950 companies as its member, cumulatively accounting for 95 percent of the revenues of the software industry in India.

In its early days, NASSCOM, under the leadership of Dewang Mehta lobbied, fought and worked with the government for the benefit ofthe IT industry. It took initiatives on income-tax exemptions, reduction in peak software duties, and even initiated extensive awareness-building on the potential of the Indian IT industry. It organized more than 100 international seminars around the world, which resulted inmore than 150 formal joint ventures and strategic alliances being signed. Since then NASSCOM’s contribution and support to the growthof IT/ITES industry has been exemplary. Today, it helps the Indian IT/ITES industry through its information dissemination, awareness gener-ation and brand building activities.




This association is envisioned to be similar toindustry associations in other offshore destina-tions, such as the National Association ofSoftware and Service Companies (NASSCOM),the trade body and the chamber of commerce ofthe IT software and services industry in India.Other industry associations include Calling theCape, in South Africa; Call Centre Council ofSingapore; and Contact Federation Philippines,Inc. (CFPI).

3.5.2 Incidence of Captives70

The incidence of captives is currently low inGhana. ACS is the largest incumbent with a head-count of over 2,000. There is no other large inter-national ITES-BPO company that has establishedits captive operations in Ghana. ITES-BPO experts

acknowledge that Ghana needs to attract captivesto build internal capacities and spur balancedgrowth of the ITES industry.

Captives also contribute to the service provisioningmaturity of the industry by introducing best prac-tices and knowledge exchange. In the absence oflarge established captives in Ghana, local or smallentrepreneurs have not been exposed to thedynamics and challenges of the ITES-BPOindustry. As a result, several new start-ups havefaced issues on account of service quality, workplanning, and productivity.

3.5.3 Ability to ScaleThe limited availability of tertiary graduates is oneof the areas identified as a key challenge to a fast-

National Association of Software and Service Companies (NASSCOM)

NASSCOM is a not-for-profit trade body of IT software and service companies in India. It was set up to facilitate business and trade insoftware and services and to encourage advancement of research in software technology.

NASSCOM’s Aims and Objectives

The primary objective of NASSCOM is to act as a catalyst for the growth of the software driven IT industry in India. Other goalsinclude facilitation of trade and business in software and services; encouragement and advancement of research; propagation of educa-tion and employment; enabling the growth of the Indian economy and provide compelling business benefits to global economies byglobal sourcing.

NASSCOM’s Strategy to Achieve its Objectives

NASSCOM has adopted a seven-fold strategy to achieve its aims and objectives listed above:

■ Partner with the government of India and state governments to formulate IT policies and legislation. Partner with global stakeholdersfor promoting the industry in global markets.

■ Strive for a thought leadership position and deliver world-class research and strategic inputs for the industry and its stakeholders.

■ Encourage members to uphold world class quality standards.

■ Strive to uphold intellectual property rights of its members.

■ Strengthen the brand equity of India as a premier global sourcing destination.

■ Expand the quantity and quality of the talent pool in India.

■ Continuous engagement with all member companies and stakeholders to devise strategies to achieve shared aspirations for theindustry and the country.

NASSCOM’s Contribution towards Growth in Indian Industry

NASSCOM has been a pioneer in the growth of the Indian IT/ITES industry. Since its inception, it has grown significantly and currentlyhas over 950 companies as its member, cumulatively accounting for 95 percent of the revenues of the software industry in India.

In its early days, NASSCOM, under the leadership of Dewang Mehta lobbied, fought and worked with the government for the benefit ofthe IT industry. It took initiatives on income-tax exemptions, reduction in peak software duties, and even initiated extensive awareness-building on the potential of the Indian IT industry. It organized more than 100 international seminars around the world, which resulted inmore than 150 formal joint ventures and strategic alliances being signed. Since then NASSCOM’s contribution and support to the growthof IT/ITES industry has been exemplary. Today, it helps the Indian IT/ITES industry through its information dissemination, awareness gener-ation and brand building activities.




paced growth of the ITES-BPO industry in Ghana.The capacity constraints of public universities andpolytechnics in Ghana restrict tertiary enrolmentlevels in Ghana, and as the industry gains momen-tum in the future, there may be a shortage of terti-

ary level educated workforce. However, the floatingpopulation created as a result of the high drop-outrate at successive levels of pre-tertiary education, isa potential talent pool that ITES-BPO companiescan tap into for low-end ITES-BPO segment.

Summary

Incumbents: Key Strengths and Challenges for Ghana

Strengths

■ Presence of ACS, a global ITES company, which has increased its headcount nearly ten fold since 2001.

Challenges

■ Low levels of incumbent presence.

■ No significant presence of captives.

■ Inability to attract other players despite presence of ACS.

■ Absence of formal linkage with other established ITES destination impacting the knowledge gain within industry.



paced growth of the ITES-BPO industry in Ghana.The capacity constraints of public universities andpolytechnics in Ghana restrict tertiary enrolmentlevels in Ghana, and as the industry gains momen-tum in the future, there may be a shortage of terti-

ary level educated workforce. However, the floatingpopulation created as a result of the high drop-outrate at successive levels of pre-tertiary education, isa potential talent pool that ITES-BPO companiescan tap into for low-end ITES-BPO segment.

Summary

Incumbents: Key Strengths and Challenges for Ghana

Strengths

■ Presence of ACS, a global ITES company, which has increased its headcount nearly ten fold since 2001.

Challenges

■ Low levels of incumbent presence.

■ No significant presence of captives.

■ Inability to attract other players despite presence of ACS.

■ Absence of formal linkage with other established ITES destination impacting the knowledge gain within industry.



Suggested Roadmap to Success as an ITES-BPO Destination . 57

4 SUGGESTEDROADMAP TOSUCCESS AS AN ITES-BPODESTINATION

4.1 RECOMMENDEDAPPROACH FOR GHANA

4.1.1 Ghana’s “National ITES-BPOOffer” or Value PropositionBased on our experience and understanding of theITES-BPO market at large, its dynamics and

potential, we have defined three possible `value dis-ciplines71, that we believe a country could adopt tobuild its unique positioning and strategy in theITES-BPO market. These are:■ Scale/volume play■ Niche/product leadership■ Operational excellence

Ghana’s current capabilities, its latent strengths,hindering weaknesses, and market perception arethe crux to our determining “Niche/ProductLeadership” as Ghana’s “National ITES-BPO Offer”based on the concept of sustainable competitiveadvantage.

4.1.2 Market Opportunities for GhanaThe extremely dynamic and ever expanding nature ofthe global ITES-BPO industry is creating new para-digms of business and opportunity. Concepts anddefinitions are continually being challenged as marketplayers redefine the boundaries of ITES-BPO.

In addition to the large number of established mar-ket opportunities where there is already considerable

Figure 4.1.1.1 Ghana’s “national ITES-BPO offer”72

Niche/Product Leadership

ëUnlocking íValue

‘Unlocking’ Value

Scale/Volume Play

Operational Excellence

� Focus on productivity enhancements and process rationalization

� Best-in class infrastructure



� Operate in a particular Niche/Develop ëproduct leadershipí

� Set quality standards

� Operate in a particular Niche/Develop ‘product leadership’


� Drive volumes through complete value chain of services and through large customer base

� Price efficiencies



Kick-Start Future Play

71 Adapted from the `Treacy and Wieserma Model of Value discipline’72 Source: Hewitt Research



4 SUGGESTEDROADMAP TOSUCCESS AS AN ITES-BPODESTINATION

4.1 RECOMMENDEDAPPROACH FOR GHANA

4.1.1 Ghana’s “National ITES-BPOOffer” or Value PropositionBased on our experience and understanding of theITES-BPO market at large, its dynamics and

potential, we have defined three possible `value dis-ciplines71, that we believe a country could adopt tobuild its unique positioning and strategy in theITES-BPO market. These are:■ Scale/volume play■ Niche/product leadership■ Operational excellence

Ghana’s current capabilities, its latent strengths,hindering weaknesses, and market perception arethe crux to our determining “Niche/ProductLeadership” as Ghana’s “National ITES-BPO Offer”based on the concept of sustainable competitiveadvantage.

4.1.2 Market Opportunities for GhanaThe extremely dynamic and ever expanding nature ofthe global ITES-BPO industry is creating new para-digms of business and opportunity. Concepts anddefinitions are continually being challenged as marketplayers redefine the boundaries of ITES-BPO.

In addition to the large number of established mar-ket opportunities where there is already considerable

Figure 4.1.1.1 Ghana’s “national ITES-BPO offer”72

Niche/Product Leadership

ëUnlocking íValue

‘Unlocking’ Value

Scale/Volume Play

Operational Excellence





� Operate in a particular Niche/Develop ëproduct leadershipí


� Operate in a particular Niche/Develop ‘product leadership’






Kick-Start Future Play

71 Adapted from the `Treacy and Wieserma Model of Value discipline’72 Source: Hewitt Research



momentum and competition, there exist variousrapidly evolving and latent opportunities that lateentrants can adopt and exploit.

Moreover, different countries have adopted differ-ent growth models for development of their ITESsector to exploit potential opportunities and estab-lish a global footprint. Ireland for example, had adeveloped IT industry that was leveraged. It pro-vided impetus to the international companies toset up operations in Ireland. This strong exportorientation is explained by the fact that about halfof Irish indigenous software firms are engaged inthe development and sale of niche products in sec-tors such as banking and finance, telecommunica-tions and computer/Internet-based training. Thisin turn has led to development of a strong ITESindustry in Ireland backed up by FDI oriented

policies, skilled workforce, and a highly developedlow cost telecommunication infrastructure.

India, on the other hand developed its domesticindustry based on the successes of a strongexport-oriented IT and ITES sector. The domes-tic industry for BPO/ITES in India is a morerecent phenomenon based on the governmentpolicies and availability of high communicationsinfrastructure and the needed human capacity.

While Ghana currently has two domestic incum-bents serving the domestic market, as evident fromTable 3.5.1.1.1., these incumbents have set up callcenters arising out of business necessity to serve thetelecom customers. The other sectors such as bank-ing, financial services, and insurance have not yetfollowed the lead. There can be a large potential,

Regional Shared ServicesCentre for West Africa

Primary Offshoring hub forMedical Transcription, Coding,Billing and Data Processing(Entry, Conversion and Transfer)work

■ Business “Gateway to West Africa” in its position as the leading distribution center tonearby markets.

■ Stable and peaceful economy, a contrast to some countries in the region.■ Improving macro-economic situation and business sector functioning. ■ Free market economy with an emphasis and commitment towards private sector led development.■ Positive investment climate with attractive incentives to investment.■ Positive perception with the world business community; a number of MNCs and NGOs setting-

up regional HQs in Ghana due to better quality of life, peaceful law-and-order situation, etc.These include Nestle, Microsoft, the Population Council and the American Embassy.

■ Increased economic cooperation and coordination with the region through ECOWAS andWAMU treaties.

■ Experience in delivering these services.■ Critical mass available to expand.■ Low complexity, low infrastructure (relative to voice processes) intensive work; enable small home-

grown entrepreneur participation.■ Typically high-volume work; with demonstrated expertise will enable quick employment in large

numbers. ■ Most other African ITES-BPO destinations focusing on voice processes; clear opportunity in non-

voice for the region.■ Established destinations not able to sustain cost arbitrage for such work as they move up the

value chain.

Niche area Drivers

Sub-Contracting Hub forEstablished ITES-BPO locations

■ Mature destinations plagued by escalating salary levels, high attrition rates. ■ Movement up the value-chain leading these countries to focus on mid-high level work.■ Established destinations such as India, Philippines, and China looking to subcontract work like

data entry, data conversion, and data processing to more cost effective destinations due to nonsustenance of the cost arbitrage for making low end work, where margins are thin.

■ Increasing requirements by clients to have global footprints to mitigate country and region spe-cific risks

Complementing South AfricanITES-BPO operations

■ South Africa is the largest economy in Africa, and also the most established in the ITES-BPO market. ■ Significant pool of highly-skilled workers but plagued by high emigration and low appetite for

working a 24*7 shift.■ Labor market perceived by businesses to be relatively inflexible. ■ Not competitive on salary cost aspect when compared with destinations in Asia and East Europe. ■ Focus on voice—contact center processes.■ Ghana seen as a familiar and secure business center by South African businesses; hub for South

African companies seeking to do business in West Africa with more than forty SA companies doingbusiness in Ghana.73

73 Source: SA Institute of International Affairs (SAIIA) survey. This includes AngloGold, whose merger with Ghana's Ashanti created the world's second-largest gold mining company, food retailer Shoprite, brewer SABMiller, and a number of smaller companies involved mostly in the supply of goods.



momentum and competition, there exist variousrapidly evolving and latent opportunities that lateentrants can adopt and exploit.

Moreover, different countries have adopted differ-ent growth models for development of their ITESsector to exploit potential opportunities and estab-lish a global footprint. Ireland for example, had adeveloped IT industry that was leveraged. It pro-vided impetus to the international companies toset up operations in Ireland. This strong exportorientation is explained by the fact that about halfof Irish indigenous software firms are engaged inthe development and sale of niche products in sec-tors such as banking and finance, telecommunica-tions and computer/Internet-based training. Thisin turn has led to development of a strong ITESindustry in Ireland backed up by FDI oriented

policies, skilled workforce, and a highly developedlow cost telecommunication infrastructure.

India, on the other hand developed its domesticindustry based on the successes of a strongexport-oriented IT and ITES sector. The domes-tic industry for BPO/ITES in India is a morerecent phenomenon based on the governmentpolicies and availability of high communicationsinfrastructure and the needed human capacity.

While Ghana currently has two domestic incum-bents serving the domestic market, as evident fromTable 3.5.1.1.1., these incumbents have set up callcenters arising out of business necessity to serve thetelecom customers. The other sectors such as bank-ing, financial services, and insurance have not yetfollowed the lead. There can be a large potential,

Regional Shared ServicesCentre for West Africa

Primary Offshoring hub forMedical Transcription, Coding,Billing and Data Processing(Entry, Conversion and Transfer)work

■ Business “Gateway to West Africa” in its position as the leading distribution center tonearby markets.

■ Stable and peaceful economy, a contrast to some countries in the region.■ Improving macro-economic situation and business sector functioning. ■ Free market economy with an emphasis and commitment towards private sector led development.■ Positive investment climate with attractive incentives to investment.■ Positive perception with the world business community; a number of MNCs and NGOs setting-

up regional HQs in Ghana due to better quality of life, peaceful law-and-order situation, etc.These include Nestle, Microsoft, the Population Council and the American Embassy.

■ Increased economic cooperation and coordination with the region through ECOWAS andWAMU treaties.

■ Experience in delivering these services.■ Critical mass available to expand.■ Low complexity, low infrastructure (relative to voice processes) intensive work; enable small home-

grown entrepreneur participation.■ Typically high-volume work; with demonstrated expertise will enable quick employment in large

numbers. ■ Most other African ITES-BPO destinations focusing on voice processes; clear opportunity in non-

voice for the region.■ Established destinations not able to sustain cost arbitrage for such work as they move up the

value chain.

Niche area Drivers

Sub-Contracting Hub forEstablished ITES-BPO locations

■ Mature destinations plagued by escalating salary levels, high attrition rates. ■ Movement up the value-chain leading these countries to focus on mid-high level work.■ Established destinations such as India, Philippines, and China looking to subcontract work like

data entry, data conversion, and data processing to more cost effective destinations due to nonsustenance of the cost arbitrage for making low end work, where margins are thin.

■ Increasing requirements by clients to have global footprints to mitigate country and region spe-cific risks

Complementing South AfricanITES-BPO operations

■ South Africa is the largest economy in Africa, and also the most established in the ITES-BPO market. ■ Significant pool of highly-skilled workers but plagued by high emigration and low appetite for

working a 24*7 shift.■ Labor market perceived by businesses to be relatively inflexible. ■ Not competitive on salary cost aspect when compared with destinations in Asia and East Europe. ■ Focus on voice—contact center processes.■ Ghana seen as a familiar and secure business center by South African businesses; hub for South

African companies seeking to do business in West Africa with more than forty SA companies doingbusiness in Ghana.73

73 Source: SA Institute of International Affairs (SAIIA) survey. This includes AngloGold, whose merger with Ghana's Ashanti created the world's second-largest gold mining company, food retailer Shoprite, brewer SABMiller, and a number of smaller companies involved mostly in the supply of goods.



Figure 4.1.3.1.1 ITES-BPO processes

Better SkillsGenerating ScaleOperationalexcellenceBest practicesProcessimprovementHigherProductivityConduciveenvironmentSubcontracting

Individual

Process

Functional

Lower WagesService level 24x7 CapabilityNetwork availabilityNetwork Reliability Capturing low hanging fruitsPilot Process

Wing-To-Wingservice delivery Better PlatformsComplex FunctionCenters of ExcellenceQualityCertificationsBest in class

qualityMaintaining Cost arbitrageHighest Value Added

Short term Focus (0–2 Years)

Medium term Focus (2–5 Years)

Long term Focus (5–10 Years)

Activities outsourced

Process outsourced

Function outsourced

Success factors

Success factors

Success factors

once the financial sector and the requisite infra-structure develops.

Based on the value proposition that we havedefined for Ghana, we have identified the followingmarket opportunities or niches for the country asan ITES destination. Ghana will be looking toattract both third-party service providers as well ascaptive organizations. Captive organizations espe-cially will be critical towards adding to the serviceprovisioning maturity of the industry.

4.1.3 Target Market Segments in ITES-BPO 4.1.3.1 ITES-BPO ProcessesProcesses in the ITES-BPO can be broadly classi-fied under three categories: Individual; ProcessLevel and Functional.

Individual: Individual level involves National andInternational companies outsourcing/offshoringspecific activities and associated positions to con-tract employees. It is usually done to gain special

managerial or technical skills for short or mediumduration projects.

Process: Process level outsourcing/offshoringinvolves a specific business process such as BackOffice/Data Processing, Data Conversion,Medical Transcription, Customer ContactServices, Help desk and Recruitment, to an exter-nal provider who specializes in these processes orto its independent business unit (captive) at a dif-ferent location.

Functional: Functional level outsourcing/offshoring involves entire functions such asAccounting, Payroll, Knowledge Services, BusinessResearch, and Technical Helpdesk to an externalorganization (third party) or its independent busi-ness unit (captive) at a different location.

Our experience in working with organizationsengaged in offshoring has led us to observe a trendin countries with regards to the shift in the off-shoring services from less-complex to high-endactivities, as the country’s ITES-BPO industrymatures.



Figure 4.1.3.1.1 ITES-BPO processes

Better SkillsGenerating ScaleOperationalexcellenceBest practicesProcessimprovementHigherProductivityConduciveenvironmentSubcontracting

Individual

Process

Functional

Lower WagesService level 24x7 CapabilityNetwork availabilityNetwork Reliability Capturing low hanging fruitsPilot Process

Wing-To-Wingservice delivery Better PlatformsComplex FunctionCenters of ExcellenceQualityCertificationsBest in class

qualityMaintaining Cost arbitrageHighest Value Added

Short term Focus (0–2 Years)

Medium term Focus (2–5 Years)

Long term Focus (5–10 Years)

Activities outsourced

Process outsourced

Function outsourced

Success factors

Success factors

Success factors

once the financial sector and the requisite infra-structure develops.

Based on the value proposition that we havedefined for Ghana, we have identified the followingmarket opportunities or niches for the country asan ITES destination. Ghana will be looking toattract both third-party service providers as well ascaptive organizations. Captive organizations espe-cially will be critical towards adding to the serviceprovisioning maturity of the industry.

4.1.3 Target Market Segments in ITES-BPO 4.1.3.1 ITES-BPO ProcessesProcesses in the ITES-BPO can be broadly classi-fied under three categories: Individual; ProcessLevel and Functional.

Individual: Individual level involves National andInternational companies outsourcing/offshoringspecific activities and associated positions to con-tract employees. It is usually done to gain special

managerial or technical skills for short or mediumduration projects.

Process: Process level outsourcing/offshoringinvolves a specific business process such as BackOffice/Data Processing, Data Conversion,Medical Transcription, Customer ContactServices, Help desk and Recruitment, to an exter-nal provider who specializes in these processes orto its independent business unit (captive) at a dif-ferent location.

Functional: Functional level outsourcing/offshoring involves entire functions such asAccounting, Payroll, Knowledge Services, BusinessResearch, and Technical Helpdesk to an externalorganization (third party) or its independent busi-ness unit (captive) at a different location.

Our experience in working with organizationsengaged in offshoring has led us to observe a trendin countries with regards to the shift in the off-shoring services from less-complex to high-endactivities, as the country’s ITES-BPO industrymatures.



Therefore, upcoming offshoring delivery spots aretargeted by organizations for outsourcing non-coreprocesses at individual and process level. Outsourcingof functional processes is more selective and based onthe potential of the offshoring destination in scal-ing up operations coupled with the availability ofrequisite skill sets and presence of adequate trainingfacilities in the country.

The following are a few examples of evolved andevolving offshore destination substantiating the factthat these destinations initially captured low-hang-ing fruits74 and eventually moved to functionallevel outsourcing.

India: Offshore services provided by India haveevolved over a period of time starting with the lesser

and CRM, legal transcription support, KnowledgeProcess Outsourcing (KPO), and Financial ProcessOutsourcing (FPO). The key point in India to noteis that ITES-BPO grew as an offshoot of IT servicesoutsourcing, which gave investors confidence inIndia’s capability on all fronts.

The Philippines: The Philippines has progressedfrom providing voice-based contact center servicesto financial and accounting processing services andanimation services. Over time, Philippines hasmatured in the global ITES-BPO market placewith several U.S. companies setting up their captiveunits or offshoring work to third party providers.U.S. companies have been the primary investors,essentially because of historical links with the coun-try, one of the factors for confidence in Philippines.

74 Data entry, Data processing, Medical Transcription

■ ITES-BPO recognised as a priority industry for the government (evendeclared essential services); led to key changes i.e., enabling regu-lations such as Shops & Establishments Act, IT policies etc.

■ Government invested in the industry (e.g., financial incentives, set upprocess improvement).

■ High performing private sector industry association (NASSCOM).■ Effective public-private partnerships between the government and the

industry helped drive key initiatives e.g., talent development by rollout of National Assessment of Competence with active participationfrom the federal states and universities; changing the status of region-al engineering colleges to national status where the funding agencyis now that of the Central Government; increasing the number of fun-damental research institutions from one to three

■ Anchor MNCs (e.g., GE, HSBC, American express) championedIndia

■ Government involvement a must-have to kickstartthe growth of the industry for aspects that cannotbe undertaken by the private sector alone

■ Develop a consolidated industry approach to tar-geted marketing efforts

■ A strong industry association can pro-activelywork with the government on key front end andback end initiatives

■ Ghana will need to invest in attracting top cap-tives and third party providers (windfall financialincentives etc.)

■ Ghana should also develop and implement aninvestment promotion strategy for the ITES-BPOsector

Key success factors-India Lessons for Ghana

complex ITES-BPO activities such as simple dataentry, data processing, data conversion, medicaltranscription, voice and non voice based contactcenter. Over the years India has evolved to provid-ing high-end processes such as customer analytics

Malaysia: Currently an upcoming player in thefield, it is building its infrastructure to garner busi-ness for the future. Malaysia, having significantITES-BPO capability, is putting most of its energiesto be at the receiving end of IT and ITES-BPO jobs.

■ Significant government support to grow ITES-BPOindustry

■ Supported deregulation of key industries and services.■ Set up dedicated agencies e.g., BOI (Department

of Trade and Industry).■ Government task force (ITECC) was formed to over-

see and update national ICT strategy■ Enabling regulations (100 percent foreign ownership

except for 4–5 industries, 50 year leasing options etc.)■ Developed dedicated economic zones to drive eco-

nomic growth (PEZA)

■ Government is committed to private sector led economic growth. ■ ITES-BPO industry association has to actively promote Ghana’s

capability at regional, national and international forums.■ Attracting foreign investments is likely to require favorable regula-

tions and making sector-specific task force to tackle individualissues (e.g., foreign ownership).

■ Leverage cultural affinity with specific source markets (e.g., UKand USA.)

■ Set up a dedicated government body such as the ITES-BPO secre-tariat that will work in collaboration with the Industry Associationas well as coordinate the regulatory, developmental, and promo-tional efforts for the industry on behalf of the government.

Key success factors Lessons for Ghana



Therefore, upcoming offshoring delivery spots aretargeted by organizations for outsourcing non-coreprocesses at individual and process level. Outsourcingof functional processes is more selective and based onthe potential of the offshoring destination in scal-ing up operations coupled with the availability ofrequisite skill sets and presence of adequate trainingfacilities in the country.

The following are a few examples of evolved andevolving offshore destination substantiating the factthat these destinations initially captured low-hang-ing fruits74 and eventually moved to functionallevel outsourcing.

India: Offshore services provided by India haveevolved over a period of time starting with the lesser

and CRM, legal transcription support, KnowledgeProcess Outsourcing (KPO), and Financial ProcessOutsourcing (FPO). The key point in India to noteis that ITES-BPO grew as an offshoot of IT servicesoutsourcing, which gave investors confidence inIndia’s capability on all fronts.

The Philippines: The Philippines has progressedfrom providing voice-based contact center servicesto financial and accounting processing services andanimation services. Over time, Philippines hasmatured in the global ITES-BPO market placewith several U.S. companies setting up their captiveunits or offshoring work to third party providers.U.S. companies have been the primary investors,essentially because of historical links with the coun-try, one of the factors for confidence in Philippines.

74 Data entry, Data processing, Medical Transcription

■ ITES-BPO recognised as a priority industry for the government (evendeclared essential services); led to key changes i.e., enabling regu-lations such as Shops & Establishments Act, IT policies etc.

■ Government invested in the industry (e.g., financial incentives, set upprocess improvement).

■ High performing private sector industry association (NASSCOM).■ Effective public-private partnerships between the government and the

industry helped drive key initiatives e.g., talent development by rollout of National Assessment of Competence with active participationfrom the federal states and universities; changing the status of region-al engineering colleges to national status where the funding agencyis now that of the Central Government; increasing the number of fun-damental research institutions from one to three

■ Anchor MNCs (e.g., GE, HSBC, American express) championedIndia

■ Government involvement a must-have to kickstartthe growth of the industry for aspects that cannotbe undertaken by the private sector alone

■ Develop a consolidated industry approach to tar-geted marketing efforts

■ A strong industry association can pro-activelywork with the government on key front end andback end initiatives

■ Ghana will need to invest in attracting top cap-tives and third party providers (windfall financialincentives etc.)

■ Ghana should also develop and implement aninvestment promotion strategy for the ITES-BPOsector

Key success factors-India Lessons for Ghana

complex ITES-BPO activities such as simple dataentry, data processing, data conversion, medicaltranscription, voice and non voice based contactcenter. Over the years India has evolved to provid-ing high-end processes such as customer analytics

Malaysia: Currently an upcoming player in thefield, it is building its infrastructure to garner busi-ness for the future. Malaysia, having significantITES-BPO capability, is putting most of its energiesto be at the receiving end of IT and ITES-BPO jobs.

■ Significant government support to grow ITES-BPOindustry

■ Supported deregulation of key industries and services.■ Set up dedicated agencies e.g., BOI (Department

of Trade and Industry).■ Government task force (ITECC) was formed to over-

see and update national ICT strategy■ Enabling regulations (100 percent foreign ownership

except for 4–5 industries, 50 year leasing options etc.)■ Developed dedicated economic zones to drive eco-

nomic growth (PEZA)

■ Government is committed to private sector led economic growth. ■ ITES-BPO industry association has to actively promote Ghana’s

capability at regional, national and international forums.■ Attracting foreign investments is likely to require favorable regula-

tions and making sector-specific task force to tackle individualissues (e.g., foreign ownership).

■ Leverage cultural affinity with specific source markets (e.g., UKand USA.)

■ Set up a dedicated government body such as the ITES-BPO secre-tariat that will work in collaboration with the Industry Associationas well as coordinate the regulatory, developmental, and promo-tional efforts for the industry on behalf of the government.




■ Favorable government policies to boost services andprivate sector organizations, such as Sacccom,76

ContactinGauteng77 and CallingtheCape78 that haverepresentatives and close working relationship withthe state to coordinate and promote investments in thecountry.

■ Ghana has to establish a regional association for promotingand attracting companies to its respective locations. Theregional alliance will have to be in the form of complimentingwork that is currently being done in South Africa, as has beenrecommended in the investment promotion strategy forGhana. In this regards, the lead will have to be taken by theindustry body and the BPO Secretariat.


Malaysia is also coming up as an excellent destina-tion for India for subcontracting work or as analternative destination other than India andPhilippines for international companies. Listedbelow are success factors for Malaysia.

South Africa: As shown in the internationalbenchmarking study, South Africa is the leadingdestination in the region. Though a late entrant inthe ITES-BPO space, it is ramping up quickly. Astrong domestic call center industry helped SouthAfrica in attracting large multinationals to set uptheir captive centers in the country. Moving fromdomestic telemarketing, companies are now doingmore process-oriented, complex services in voiceand non-voice services.

■ Strong government commitment to drive growth inthe industry (MSC75 Bill of Guarantees is a commit-ment from the government to provide financial andnon financial incentives and, globally competitivetelecom tariff to those companies enjoying MSC sta-tus.

■ Attractive financial and non financial incentives forMSC-status companies.

■ Developed first comprehensive framework for cyberlaws.

■ Successfully established MDC as a one stop invest-ment agency.

■ Launched a series of initiatives on knowledge build-ing and infrastructure development.

■ While the MSC was set up for the multimedia indus-try, the enablers developed are starting to attractITES-BPO operation’s

■ A stable economy that is service-based or transitioning from man-ufacturing to services provides the most appropriate environmentfor attracting FDI in IT and ITES space. Ghana, which is at thistransition stage, has to fully utilize this opportunity.

■ Government involvement a must-have to kick-start the growth ofthe industry.

■ Establish a dedicated government body such as the ITES-BPOsecretariat, which should also host a dedicated InvestmentPromotion Cell that promotes foreign investment in the ITES-BPOsector.

■ Giving promotional incentive for companies setting base inGhana.

■ Inability to implement talent initiatives can inhibit growth of ITES-BPO investments and should therefore be a priority.


75 Multi media Super Corridor. For further details refer http://www.msc.com.my/76 South African Contact Centre Community77 ContactInGauteng is a not for profit Company focussed on providing industry players with assisting Gauteng call centres to compete globally and become

a preferred national call centre destination78 CallingtheCape is a nonprofit agency dedicated to the development of the contact center and business process outsourcing industry in Cape Town, South Africa

Mauritius: Mauritius has been providing low-endIT and back-office services to international companies,including hosting of disaster recovery centers of theIndian IT companies such as Infosys and Wipro. ItsITES-BPO sector is going through a process ofdiversification with the emergence of sectors like

multimedia, on-line education, website develop-ment and Disaster Recovery. Gradually, the countryhas moved to providing high-end application sup-port, maintenance and help desk support services.Investment projects in the area of software develop-ment and value added projects in medical and legalwork are being offshored to Mauritius owing to itshigh talent quality, high quality of math and scienceeducation and English proficiency.

Romania: Though a late entrant in the ITES-BPOdomain, the destination has progressed very rapidlyfrom providing contact center and data processingservices to technical support and financial servicessupport owing to its strong technical knowledge base.Indian IT major Wipro Technologies is setting up a

250-seat offshoring facility in Bucharest, Romania.This (Wipro) facility will provide technical engineer-ing and support, and will enable Romania to attractsubcontracting work from Indian and Russian firmsthat have the major share in high-end technical engi-neering market. Though sub-contracting is not the



■ Favorable government policies to boost services andprivate sector organizations, such as Sacccom,76

ContactinGauteng77 and CallingtheCape78 that haverepresentatives and close working relationship withthe state to coordinate and promote investments in thecountry.

■ Ghana has to establish a regional association for promotingand attracting companies to its respective locations. Theregional alliance will have to be in the form of complimentingwork that is currently being done in South Africa, as has beenrecommended in the investment promotion strategy forGhana. In this regards, the lead will have to be taken by theindustry body and the BPO Secretariat.


Malaysia is also coming up as an excellent destina-tion for India for subcontracting work or as analternative destination other than India andPhilippines for international companies. Listedbelow are success factors for Malaysia.

South Africa: As shown in the internationalbenchmarking study, South Africa is the leadingdestination in the region. Though a late entrant inthe ITES-BPO space, it is ramping up quickly. Astrong domestic call center industry helped SouthAfrica in attracting large multinationals to set uptheir captive centers in the country. Moving fromdomestic telemarketing, companies are now doingmore process-oriented, complex services in voiceand non-voice services.

■ Strong government commitment to drive growth inthe industry (MSC75 Bill of Guarantees is a commit-ment from the government to provide financial andnon financial incentives and, globally competitivetelecom tariff to those companies enjoying MSC sta-tus.

■ Attractive financial and non financial incentives forMSC-status companies.

■ Developed first comprehensive framework for cyberlaws.

■ Successfully established MDC as a one stop invest-ment agency.

■ Launched a series of initiatives on knowledge build-ing and infrastructure development.

■ While the MSC was set up for the multimedia indus-try, the enablers developed are starting to attractITES-BPO operation’s

■ A stable economy that is service-based or transitioning from man-ufacturing to services provides the most appropriate environmentfor attracting FDI in IT and ITES space. Ghana, which is at thistransition stage, has to fully utilize this opportunity.

■ Government involvement a must-have to kick-start the growth ofthe industry.

■ Establish a dedicated government body such as the ITES-BPOsecretariat, which should also host a dedicated InvestmentPromotion Cell that promotes foreign investment in the ITES-BPOsector.

■ Giving promotional incentive for companies setting base inGhana.

■ Inability to implement talent initiatives can inhibit growth of ITES-BPO investments and should therefore be a priority.


75 Multi media Super Corridor. For further details refer http://www.msc.com.my/76 South African Contact Centre Community77 ContactInGauteng is a not for profit Company focussed on providing industry players with assisting Gauteng call centres to compete globally and become

a preferred national call centre destination78 CallingtheCape is a nonprofit agency dedicated to the development of the contact center and business process outsourcing industry in Cape Town, South Africa

Mauritius: Mauritius has been providing low-endIT and back-office services to international companies,including hosting of disaster recovery centers of theIndian IT companies such as Infosys and Wipro. ItsITES-BPO sector is going through a process ofdiversification with the emergence of sectors like

multimedia, on-line education, website develop-ment and Disaster Recovery. Gradually, the countryhas moved to providing high-end application sup-port, maintenance and help desk support services.Investment projects in the area of software develop-ment and value added projects in medical and legalwork are being offshored to Mauritius owing to itshigh talent quality, high quality of math and scienceeducation and English proficiency.

Romania: Though a late entrant in the ITES-BPOdomain, the destination has progressed very rapidlyfrom providing contact center and data processingservices to technical support and financial servicessupport owing to its strong technical knowledge base.Indian IT major Wipro Technologies is setting up a

250-seat offshoring facility in Bucharest, Romania.This (Wipro) facility will provide technical engineer-ing and support, and will enable Romania to attractsubcontracting work from Indian and Russian firmsthat have the major share in high-end technical engi-neering market. Though sub-contracting is not the



main positioning of Romania, the Indian IT majorhas chosen Romania as a gateway to Europe as apart of its future plans.

4.1.3.2 ITES-BPO Market SegmentsHewitt’s experience in working with the companiesoffshoring their work in various countries has ledus to develop the “Hewitt ITES-BPO MarketSegments Matrix.” This matrix is comprehensiveand covers a gamut of ITES-BPO functions cater-ing to this sector.

The following section identifies in greaterdetail the key segments that Ghana shoulddevelop in the short (0–2 years) and medium-terms (3–5 years).

4.1.3.3 Identification of ITES-BPO Opportunitiesfor Ghana in Short- and Medium-TermsMaintaining Ghana’s momentum and share of thisglobal opportunity will depend on its ability to cre-ate and make available a growing and appropriatelyskilled pool of talent. As highlighted in Chapter 2,Ghana is placed fifth as an offshoring destinationin Africa, after South Africa, Mauritius, Egypt, andBotswana. Ghana’s high growth aspirations demandthat adequate actions need to be taken to improveoverall infrastructure and employable populationready for ITES -BPO jobs.

After analyzing Ghana’s key strengths and opportu-nities (as detailed in Chapters 2 and 3) and takinginto consideration the country examples citedabove, we have mapped Ghana’s existing capabili-ties to Hewitt’s Market Segment Matrix in theITES space. We have also designed a futureroadmap for the short and medium terms based oncapabilities Ghana possesses under people, infra-structure, environment and existing incumbents,indicating success factors for each.

Most evolved destinations for ITES services startedwith performing low-end services like data entryand have thereafter scaled to data processing, med-ical transcription, and customer contact centers.We also recommend that Ghana focus on individ-ual and process levels in the short and mediumterms.

Ghana has to concenterate on basic activities with-in each function listed under industry verticals.Industry verticals have been shortlisted based onGhana`s inherent capability and future potentialof these sectors in providing high informationturnover, which will require lot of data entry, dataprocessing, and document translation in electronicformats.

The industry verticals which we have identified forGhana are as follows:

Insurance Industry: Nearly 20 insurance compa-nies operate in Ghana today. ACS also sells dataprocessing services to insurance companies in theUnited States. It started operations in 2000, andnow employs sizable Ghanaians for claim process-ing and data entry. The presence of domestic insur-ance companies coupled with ACS being a strongincumbent in the Insurance vertical will help inshowcasing Ghana’s current capability, domainexpertise and manpower availability for doingInsurance process.

Forecast: Size of Market � US$25 - 35 Billion79

Banking and Finance: Ghana has a sophisticatedbanking and finance environment, an advancedfinancial system comprising a Central Bank (Bankof Ghana), 11 commercial banks, 5 merchantbanks, 3 developmental banks and 123 rural unitbanks. The majority of the estimated addressableITES-BPO market globally, US$35 - 40 billion80

out of $140 billion is in the Retail Banking space,comprising data entry, rule based data processing.Based on the inherent capability of raw talent andrequisite managerial skill in the banking andfinance sectors in Ghana, national and internation-al banking organizations have an option to out-source their back office or move shared services setups to Ghana.

Forecast: Size of Market � US$ 35 - 40 Billion81

Telecommunications: With large-scale telecomprivatization and reforms, scalable telecom infra-structure, experienced players with technical know-how and capability are entering Ghana`s telecommarket. Companies such as ExZeed are operating

79 Source: Nasscom -Mckinsey - 2005 report 80 Source: Nasscom-McKinsey-2005 report81 Source: Nasscom-McKinsey-2005 report



main positioning of Romania, the Indian IT majorhas chosen Romania as a gateway to Europe as apart of its future plans.

4.1.3.2 ITES-BPO Market SegmentsHewitt’s experience in working with the companiesoffshoring their work in various countries has ledus to develop the “Hewitt ITES-BPO MarketSegments Matrix.” This matrix is comprehensiveand covers a gamut of ITES-BPO functions cater-ing to this sector.

The following section identifies in greaterdetail the key segments that Ghana shoulddevelop in the short (0–2 years) and medium-terms (3–5 years).

4.1.3.3 Identification of ITES-BPO Opportunitiesfor Ghana in Short- and Medium-TermsMaintaining Ghana’s momentum and share of thisglobal opportunity will depend on its ability to cre-ate and make available a growing and appropriatelyskilled pool of talent. As highlighted in Chapter 2,Ghana is placed fifth as an offshoring destinationin Africa, after South Africa, Mauritius, Egypt, andBotswana. Ghana’s high growth aspirations demandthat adequate actions need to be taken to improveoverall infrastructure and employable populationready for ITES -BPO jobs.

After analyzing Ghana’s key strengths and opportu-nities (as detailed in Chapters 2 and 3) and takinginto consideration the country examples citedabove, we have mapped Ghana’s existing capabili-ties to Hewitt’s Market Segment Matrix in theITES space. We have also designed a futureroadmap for the short and medium terms based oncapabilities Ghana possesses under people, infra-structure, environment and existing incumbents,indicating success factors for each.

Most evolved destinations for ITES services startedwith performing low-end services like data entryand have thereafter scaled to data processing, med-ical transcription, and customer contact centers.We also recommend that Ghana focus on individ-ual and process levels in the short and mediumterms.

Ghana has to concenterate on basic activities with-in each function listed under industry verticals.Industry verticals have been shortlisted based onGhana`s inherent capability and future potentialof these sectors in providing high informationturnover, which will require lot of data entry, dataprocessing, and document translation in electronicformats.

The industry verticals which we have identified forGhana are as follows:

Insurance Industry: Nearly 20 insurance compa-nies operate in Ghana today. ACS also sells dataprocessing services to insurance companies in theUnited States. It started operations in 2000, andnow employs sizable Ghanaians for claim process-ing and data entry. The presence of domestic insur-ance companies coupled with ACS being a strongincumbent in the Insurance vertical will help inshowcasing Ghana’s current capability, domainexpertise and manpower availability for doingInsurance process.

Forecast: Size of Market � US$25 - 35 Billion79

Banking and Finance: Ghana has a sophisticatedbanking and finance environment, an advancedfinancial system comprising a Central Bank (Bankof Ghana), 11 commercial banks, 5 merchantbanks, 3 developmental banks and 123 rural unitbanks. The majority of the estimated addressableITES-BPO market globally, US$35 - 40 billion80

out of $140 billion is in the Retail Banking space,comprising data entry, rule based data processing.Based on the inherent capability of raw talent andrequisite managerial skill in the banking andfinance sectors in Ghana, national and internation-al banking organizations have an option to out-source their back office or move shared services setups to Ghana.

Forecast: Size of Market � US$ 35 - 40 Billion81

Telecommunications: With large-scale telecomprivatization and reforms, scalable telecom infra-structure, experienced players with technical know-how and capability are entering Ghana`s telecommarket. Companies such as ExZeed are operating

79 Source: Nasscom -Mckinsey - 2005 report 80 Source: Nasscom-McKinsey-2005 report81 Source: Nasscom-McKinsey-2005 report



TABL

E 4.

1.3.

2.1

ITES

-BPO

mar

ket s

egm

ents

ITES

-BPO

Mar

ket S

egm

ents

Sect

ors

Bank

ing

Insu

ranc

eFi

nanc

e &

Acc

ount

sTe

leco

mH

ealth

car

eH

uman

Res

ourc

e

Func

tion

Back

offi

ce/

Dat

aPr

oces

sing

■Bi

lling

quer

y■

Dat

a ve

rific

atio

n■

Che

ck p

roce

ssin

g■

Cre

dit m

anag

emen

t■

Invo

ice

proc

essin

g■

Gen

eral

acc

ount

ing

■Fi

xed

asse

t acc

ount

ing

■Lo

an p

roce

ssin

g■

Mor

tgag

e pr

oces

sing

■Lo

an p

roce

ssin

g■

Cla

ims

proc

essin

g/ad

judi

catio

n■

App

licat

ion

proc

essin

g■

Und

erw

ritin

g■

Forb

eara

nce

■C

ashi

erin

g■

Doc

umen

t ind

exin

g &

ve

rific

atio

n

■A

ccou

nt p

ayab

le■

Acc

ount

rece

ivab

le■

T& E

reim

burs

emen

t■

Payr

oll

■In

voic

e pr

oces

sing

■A

ccou

nt re

conc

iliat

ion

■Fi

xed

asse

t acc

ount

ing

■Fu

lfillm

ent

■A

ssur

ance

■O

rder

man

agem

ent

■In

voic

e pr

oces

sing

■Bi

lling

■In

stalla

tion

serv

ice

man

agem

ent

■M

edic

al re

cord

s■

Tran

scrip

tion

■Tr

ansla

tion

■In

voic

e pr

oces

sing

■M

edic

al b

illing

■

HM

O m

embe

r m

anag

emen

t■

Pre-

adju

dica

tion

■C

RO

■Be

nefit

adm

in■

Tim

e an

d at

tend

ance

■Em

ploy

ee d

ata

man

agem

ent

■C

ompe

nsat

ion

adm

in■

Dev

elop

men

t & tr

aini

ng■

Leav

e tra

ckin

g■

Payr

oll

invo

ice

proc

essin

g

Cus

tom

erC

onta

ctSe

rvic

es

■In

boun

d cu

stom

er

serv

ices

■O

utbo

und

cred

it ca

rdac

quisi

tion

■Te

lem

emar

ketin

g■

Prod

uct i

nqui

ries

■C

olle

ctio

ns■

Cre

dit c

ard

up s

ell

■In

boun

d cu

stom

er

serv

ices

■Te

lem

emar

ketin

g■

Cus

tom

er s

ervi

ce■

Hel

p de

sk■

Skip

trac

ing

■Po

licy

rene

wal

cal

ls

■In

boun

d su

ppor

t■

Tele

mem

arke

ting

■Pr

oduc

t inq

uirie

s■

Col

lect

ions

■A

ccou

nt m

anag

emen

t■

Inbo

und

supp

ort

■Te

lem

emar

ketin

g■

Prod

uct i

nqui

ries

■C

olle

ctio

ns■

Sale

cha

nnel

sup

port

■Se

rvic

e ac

tivat

ion

■In

boun

d su

ppor

t■

Tele

mem

arke

ting

■Pr

oduc

t inq

uirie

s

■In

boun

d pa

yrol

l sup

port

■Te

lem

emar

ketin

g■

Col

lect

ions

■Em

ploy

ee p

osta

l sup

-po

rt

Know

ledg

eSe

rvic

es/A

nal

ytics

■Ri

sk a

nd c

redi

t rat

ings

anal

ysis

■Po

rtfol

io a

nd in

dex

anal

ysis

■Ec

onom

ic/

Indu

stry/

Com

pany

pro

files

■M

arke

t res

earc

h &

anal

ysis

■Pr

ovid

ing

polic

y illu

strat

ion

■Po

licy

Adm

inist

ratio

n■

Indu

stry

Rese

arch

■Pr

oduc

t Des

ign

and

pric

ing

■M

arke

t res

earc

h &

an

alys

is

■Ec

onom

ic/

Indu

stry/

Com

pany

pro

files

■Bu

dget

& fo

reca

st■

Cap

ital p

lann

ing

■M

arke

t res

earc

h &

anal

ysis

■Ec

onom

ic/

Indu

stry/

Com

pany

pr

ofile

s■

Pric

e pl

ans

■M

arke

ting

cam

paig

ns

■Pa

tent

filin

g■

Hea

lth e

cono

mic

s■

Com

petit

ive

inte

lligen

ce■

Dat

a m

inin

g,se

quen

ce/

struc

ture

anal

ysis

■M

arke

t res

earc

h &

anal

ysis

■Ec

onom

ic/

Indu

stry/

Com

pany

pro

files

■M

arke

t res

earc

h &

anal

ysis

■C

ompe

nsat

ion

ben

ch-

mar

king

■

HR

audi

ts

(con

tinue

d)



TABL

E 4.

1.3.

2.1

ITES

-BPO

mar

ket s

egm

ents

ITES

-BPO

Mar

ket S

egm

ents

Sect

ors

Bank

ing

Insu

ranc

eFi

nanc

e &

Acc

ount

sTe

leco

mH

ealth

car

eH

uman

Res

ourc

e

Func

tion

Back

offi

ce/

Dat

aPr

oces

sing

■Bi

lling

quer

y■

Dat

a ve

rific

atio

n■

Che

ck p

roce

ssin

g■

Cre

dit m

anag

emen

t■

Invo

ice

proc

essin

g■

Gen

eral

acc

ount

ing

■Fi

xed

asse

t acc

ount

ing

■Lo

an p

roce

ssin

g■

Mor

tgag

e pr

oces

sing

■Lo

an p

roce

ssin

g■

Cla

ims

proc

essin

g/ad

judi

catio

n■

App

licat

ion

proc

essin

g■

Und

erw

ritin

g■

Forb

eara

nce

■C

ashi

erin

g■

Doc

umen

t ind

exin

g &

ve

rific

atio

n

■A

ccou

nt p

ayab

le■

Acc

ount

rece

ivab

le■

T& E

reim

burs

emen

t■

Payr

oll

■In

voic

e pr

oces

sing

■A

ccou

nt re

conc

iliat

ion

■Fi

xed

asse

t acc

ount

ing

■Fu

lfillm

ent

■A

ssur

ance

■O

rder

man

agem

ent

■In

voic

e pr

oces

sing

■Bi

lling

■In

stalla

tion

serv

ice

man

agem

ent

■M

edic

al re

cord

s■

Tran

scrip

tion

■Tr

ansla

tion

■In

voic

e pr

oces

sing

■M

edic

al b

illing

■

HM

O m

embe

r m

anag

emen

t■

Pre-

adju

dica

tion

■C

RO

■Be

nefit

adm

in■

Tim

e an

d at

tend

ance

■Em

ploy

ee d

ata

man

agem

ent

■C

ompe

nsat

ion

adm

in■

Dev

elop

men

t & tr

aini

ng■

Leav

e tra

ckin

g■

Payr

oll

invo

ice

proc

essin

g

Cus

tom

erC

onta

ctSe

rvic

es

■In

boun

d cu

stom

er

serv

ices

■O

utbo

und

cred

it ca

rdac

quisi

tion

■Te

lem

emar

ketin

g■

Prod

uct i

nqui

ries

■C

olle

ctio

ns■

Cre

dit c

ard

up s

ell

■In

boun

d cu

stom

er

serv

ices

■Te

lem

emar

ketin

g■

Cus

tom

er s

ervi

ce■

Hel

p de

sk■

Skip

trac

ing

■Po

licy

rene

wal

cal

ls

■In

boun

d su

ppor

t■

Tele

mem

arke

ting

■Pr

oduc

t inq

uirie

s■

Col

lect

ions

■A

ccou

nt m

anag

emen

t■

Inbo

und

supp

ort

■Te

lem

emar

ketin

g■

Prod

uct i

nqui

ries

■C

olle

ctio

ns■

Sale

cha

nnel

sup

port

■Se

rvic

e ac

tivat

ion

■In

boun

d su

ppor

t■

Tele

mem

arke

ting

■Pr

oduc

t inq

uirie

s

■In

boun

d pa

yrol

l sup

port

■Te

lem

emar

ketin

g■

Col

lect

ions

■Em

ploy

ee p

osta

l sup

-po

rt

Know

ledg

eSe

rvic

es/A

nal

ytics

■Ri

sk a

nd c

redi

t rat

ings

anal

ysis

■Po

rtfol

io a

nd in

dex

anal

ysis

■Ec

onom

ic/

Indu

stry/

Com

pany

pro

files

■M

arke

t res

earc

h &

anal

ysis

■Pr

ovid

ing

polic

y illu

strat

ion

■Po

licy

Adm

inist

ratio

n■

Indu

stry

Rese

arch

■Pr

oduc

t Des

ign

and

pric

ing

■M

arke

t res

earc

h &

an

alys

is

■Ec

onom

ic/

Indu

stry/

Com

pany

pro

files

■Bu

dget

& fo

reca

st■

Cap

ital p

lann

ing

■M

arke

t res

earc

h &

anal

ysis

■Ec

onom

ic/

Indu

stry/

Com

pany

pr

ofile

s■

Pric

e pl

ans

■M

arke

ting

cam

paig

ns

■Pa

tent

filin

g■

Hea

lth e

cono

mic

s■

Com

petit

ive

inte

lligen

ce■

Dat

a m

inin

g,se

quen

ce/

struc

ture

anal

ysis

■M

arke

t res

earc

h &

anal

ysis

■Ec

onom

ic/

Indu

stry/

Com

pany

pro

files

■M

arke

t res

earc

h &

anal

ysis

■C

ompe

nsat

ion

ben

ch-

mar

king

■

HR

audi

ts

(con

tinue

d)



Busin

ess

Rese

arch

Serv

ices

Tech

Sup

port

■D

ata

min

ing/

mod

elin

g■

Stat

istic

al a

naly

sis■

Mar

ket d

ata

repo

rting

ana

lysis

■Po

rtfol

io a

naly

sis■

Equi

ty re

sear

ch■

Fina

ncia

l Ana

lysis

■IT

Ser

vice

m

anag

emen

t■

PC S

uppo

rt■

Man

agem

ent o

fin

form

atio

n sy

stem

s■

Net

wor

k su

ppor

t■

Serv

ices

for h

oste

dap

plic

atio

ns

■D

ata

min

ing/

mod

elin

g■

Stat

istic

al a

naly

sis■

Mar

ket d

ata

repo

rting

ana

lysis

■Po

rtfol

io a

naly

sis

■D

ata

min

ing/

mod

elin

g■

Stat

istic

al a

naly

sis■

Mar

ket d

ata

repo

rt-in

g an

alys

is■

Portf

olio

ana

lysis

■Fi

nanc

ial a

naly

sis

■IT

Ser

vice

m

anag

emen

t■

PC s

uppo

rt■

Man

agem

ent o

fin

form

atio

n sy

stem

s■

Serv

ices

for

hoste

d ap

plic

atio

n

■D

ata

min

ing/

mod

elin

g■

Stat

istic

al a

naly

sis■

Mar

ket d

ata

repo

rting

ana

lysis

■H

elp

Des

k■

PC s

uppo

rt■

App

licat

ion

supp

ort

■Pr

oble

m

reso

lutio

n

■D

ata

min

ing/

m

odel

ing

■St

atist

ical

ana

lysis

■Pr

icin

g■

Mar

ket d

ata

repo

rt-in

g an

alys

is

■Te

chni

cal h

elpd

esk

■PC

sup

port

■IT

Hel

p de

sk s

upor

t■

MIS

■N

etw

ork

mgm

t■

Serv

ices

for

hoste

d ap

plic

atio

n

■D

ata

min

ing/

m

odel

ing

■St

atist

ical

ana

lysis

■M

arke

t dat

a re

porti

ng a

naly

sis

■IT

ser

vice

m

anag

emen

t■

PC s

uppo

rt■

Man

agem

ent o

fin

form

atio

n sy

stem

s■

Net

wor

k su

ppor

t■

Proc

ess

flow

man

-ag

emen

t

■IT

ser

vice

mgm

■PC

sup

port

■M

anag

emen

t of

info

rmat

ion

syste

ms

■N

etw

ork

supp

ort

■Pr

oces

s flo

w m

gm



Busin

ess

Rese

arch

Serv

ices

Tech

Sup

port

■D

ata

min

ing/

mod

elin

g■

Stat

istic

al a

naly

sis■

Mar

ket d

ata

repo

rting

ana

lysis

■Po

rtfol

io a

naly

sis■

Equi

ty re

sear

ch■

Fina

ncia

l Ana

lysis

■IT

Ser

vice

m

anag

emen

t■

PC S

uppo

rt■

Man

agem

ent o

fin

form

atio

n sy

stem

s■

Net

wor

k su

ppor

t■

Serv

ices

for h

oste

dap

plic

atio

ns

■D

ata

min

ing/

mod

elin

g■

Stat

istic

al a

naly

sis■

Mar

ket d

ata

repo

rting

ana

lysis

■Po

rtfol

io a

naly

sis

■D

ata

min

ing/

mod

elin

g■

Stat

istic

al a

naly

sis■

Mar

ket d

ata

repo

rt-in

g an

alys

is■

Portf

olio

ana

lysis

■Fi

nanc

ial a

naly

sis

■IT

Ser

vice

m

anag

emen

t■

PC s

uppo

rt■

Man

agem

ent o

fin

form

atio

n sy

stem

s■

Serv

ices

for

hoste

d ap

plic

atio

n

■D

ata

min

ing/

mod

elin

g■

Stat

istic

al a

naly

sis■

Mar

ket d

ata

repo

rting

ana

lysis

■H

elp

Des

k■

PC s

uppo

rt■

App

licat

ion

supp

ort

■Pr

oble

m

reso

lutio

n

■D

ata

min

ing/

m

odel

ing

■St

atist

ical

ana

lysis

■Pr

icin

g■

Mar

ket d

ata

repo

rt-in

g an

alys

is

■Te

chni

cal h

elpd

esk

■PC

sup

port

■IT

Hel

p de

sk s

upor

t■

MIS

■N

etw

ork

mgm

t■

Serv

ices

for

hoste

d ap

plic

atio

n

■D

ata

min

ing/

m

odel

ing

■St

atist

ical

ana

lysis

■M

arke

t dat

a re

porti

ng a

naly

sis

■IT

ser

vice

m

anag

emen

t■

PC s

uppo

rt■

Man

agem

ent o

fin

form

atio

n sy

stem

s■

Net

wor

k su

ppor

t■

Proc

ess

flow

man

-ag

emen

t

■IT

ser

vice

mgm

■PC

sup

port

■M

anag

emen

t of

info

rmat

ion

syste

ms

■N

etw

ork

supp

ort

■Pr

oces

s flo

w m

gm



the contact center for Ghana Telecom. With entryof more private players in the sector, opportunitiessuch as data processing, contact center operations,order fulfillment, inbound support, telemarketingand service activation will be outsourced to nation-al or international players.

Forecast: Size of Market � US$ 1199 Billion82

Health care: Medical transcription (MT) is theprocess of converting a health care provider’s dictat-ed (or less frequently, handwritten) notes into accu-rate, readable records. The Medical Transcriptionindustry has huge potential of generating employ-ment, going by the trends of established destina-tions like India, which initially started in this nichesegment and moved to process and functional off-shoring. Its large pool of English-speaking andcomputer-literate graduate workforce can cater tothe growing demand of professionals for medicaltranscription services. Training institutes such asNIIT, Aptech, Kofi Anan Centre of Excellence, andGhana Multimedia Centre are building Ghana`scurrent and future capabilities in MT services.Present MT capability of Ghana has the potentialof becoming an anchor for attracting more maturedinternational players in this space.

Forecast: Size of Market � US$15 billion

Human Resources: HR processes are divided intwo parts–strategic and transactional. Most of theU.S. companies are outsourcing transactional HRprocesses that involve service lines such as payroll,time and attendance, leave tracking, employee datamanagement, relocation, etc. HR tasks are mini-mally complex, allowing basic keyboarding skills,and rule-based processing in enterprise solutions(People Soft, SAP) to be done with ease. In light ofGhana’s e–governance initiative, significant depart-mental paperwork is currently being translated andconverted to electronic formats (including employ-ee records, land records, etc). This presents adomestic opportunity for the development of HRprocess outsourcing.

Globally, McKinsey & Company predicts a US$20billion opportunity in HRO services including cus-tomer interaction services in HR. Ghana should

target small and medium enterprises in the U.S.and U.K. markets for offshoring their HR serviceto companies in Ghana.

Forecast: Size of Market = US$20 Billion83

The following illustration depicts the service sectorsand functions within each sector that Ghanashould focus on in the short and medium term. Asmentioned earlier, Ghana will be looking to attractboth third-party service providers as well as captiveorganizations. Captive organizations especially willbe critical towards adding to the service provision-ing maturity of the industry as well as bringing ininternational standards of productivity and efficiencyof processes.

4.1.3.4 Short-term Opportunities (0–2 years)The ITES-BPO market consists of several seg-ments, each with its own skill and infrastructurerequirements. Some high-end segments, such asbusiness research and analytics, require special skillsthat are in short supply in Ghana. Other segments,including call centers and technical support, requirereal-time interface with the end customer. Ghanahas the greatest opportunities with current infra-structure and incumbent capability in market seg-ments requiring people-intensive processes, lesstraining time, and basic skills such as keyboardingand computer literacy.

These processes comprise those that are less com-plex in nature and have basic skill requirements,including data conversion, data entry, data processing,medical transcription, coding, and billing.

The following tables include definition of variousservices, opportunities for Ghana and critical suc-cess factors for respective processes.

4.1.3.5 Medium-term (3–5 years)These processes comprise customer support services(voice/email/chat), which can be started in parallelwith short-term opportunities as Ghana continuesto build the process knowledge in the specifiedareas. The key opportunities within each servicearea have been highlighted in blue.

82 Source: sccie.ucsc.edu/documents/workshops/global-it/2003/Aggarwal.pdf83 Source: McKinsey & Company



the contact center for Ghana Telecom. With entryof more private players in the sector, opportunitiessuch as data processing, contact center operations,order fulfillment, inbound support, telemarketingand service activation will be outsourced to nation-al or international players.

Forecast: Size of Market � US$ 1199 Billion82

Health care: Medical transcription (MT) is theprocess of converting a health care provider’s dictat-ed (or less frequently, handwritten) notes into accu-rate, readable records. The Medical Transcriptionindustry has huge potential of generating employ-ment, going by the trends of established destina-tions like India, which initially started in this nichesegment and moved to process and functional off-shoring. Its large pool of English-speaking andcomputer-literate graduate workforce can cater tothe growing demand of professionals for medicaltranscription services. Training institutes such asNIIT, Aptech, Kofi Anan Centre of Excellence, andGhana Multimedia Centre are building Ghana`scurrent and future capabilities in MT services.Present MT capability of Ghana has the potentialof becoming an anchor for attracting more maturedinternational players in this space.

Forecast: Size of Market � US$15 billion

Human Resources: HR processes are divided intwo parts–strategic and transactional. Most of theU.S. companies are outsourcing transactional HRprocesses that involve service lines such as payroll,time and attendance, leave tracking, employee datamanagement, relocation, etc. HR tasks are mini-mally complex, allowing basic keyboarding skills,and rule-based processing in enterprise solutions(People Soft, SAP) to be done with ease. In light ofGhana’s e–governance initiative, significant depart-mental paperwork is currently being translated andconverted to electronic formats (including employ-ee records, land records, etc). This presents adomestic opportunity for the development of HRprocess outsourcing.

Globally, McKinsey & Company predicts a US$20billion opportunity in HRO services including cus-tomer interaction services in HR. Ghana should

target small and medium enterprises in the U.S.and U.K. markets for offshoring their HR serviceto companies in Ghana.

Forecast: Size of Market = US$20 Billion83

The following illustration depicts the service sectorsand functions within each sector that Ghanashould focus on in the short and medium term. Asmentioned earlier, Ghana will be looking to attractboth third-party service providers as well as captiveorganizations. Captive organizations especially willbe critical towards adding to the service provision-ing maturity of the industry as well as bringing ininternational standards of productivity and efficiencyof processes.

4.1.3.4 Short-term Opportunities (0–2 years)The ITES-BPO market consists of several seg-ments, each with its own skill and infrastructurerequirements. Some high-end segments, such asbusiness research and analytics, require special skillsthat are in short supply in Ghana. Other segments,including call centers and technical support, requirereal-time interface with the end customer. Ghanahas the greatest opportunities with current infra-structure and incumbent capability in market seg-ments requiring people-intensive processes, lesstraining time, and basic skills such as keyboardingand computer literacy.

These processes comprise those that are less com-plex in nature and have basic skill requirements,including data conversion, data entry, data processing,medical transcription, coding, and billing.

The following tables include definition of variousservices, opportunities for Ghana and critical suc-cess factors for respective processes.

4.1.3.5 Medium-term (3–5 years)These processes comprise customer support services(voice/email/chat), which can be started in parallelwith short-term opportunities as Ghana continuesto build the process knowledge in the specifiedareas. The key opportunities within each servicearea have been highlighted in blue.

82 Source: sccie.ucsc.edu/documents/workshops/global-it/2003/Aggarwal.pdf83 Source: McKinsey & Company



Figure 4.1.3.3.1 Target ITES-BPO segments for Ghana


Dat

a C

onve

rsio

nD

ata

Ent

ryM

edic

al T

rans

crip

tion

Shar

ed S

ervi

ces

Fun

ctio

n



HumanResources



processing• Loan


processing


processing



payable• Account


processing


management








processing

Cus

tom

er S

uppo

rt

Serv

ices

(Voi

ce/

E-M

ail)


Fun

ctio

ns

Medium

Term



Short Term

OpportunitiesFor Ghana

■ As highlighted in Chapter 3, the drop-out rate from senior secondary schools is almost 40 percent inGhana because of highly competitive entry into tertiary institutions. Therefore, there is a labor pool that ispassing out from secondary school and not enrolling in further education. This creates a large availablelabor pool for conducting low-end data entry and data processing work, which can be made employablewith requisite short training in basic computer literacy.

■ Infrastructure requirement for data entry work is minimal, and Ghana can easily tap into this market with itsexisting infrastructure.

■ Subcontracting of jobs is common. Smaller companies may start by providing services to a larger compa-ny, which can focus on providing more value-added services, or building a portfolio of accounts.

■ Worldwide forecast Data Processing, Data Conversion: Gartner Group forecast for “TransactionProcessing Services” Worldwide: 1999 - US$27.7 billion, 2001—US$37.8 billion, 2004 - US$67.9,2005 – US$81.48 billion; CAGR 1991–2004 = 19.3 percent

Service Data entry and data processing without exception handling

Process Definition Data processing is a broad category that involves capturing, manipulating, and sorting data from different sources.Data processing services consist of keying data from manually filled and scanned forms, preparing databases andintegrating them. These processes require no decision from the operator and client interface is minimal.

ProcessSuccessFactors

■ Accuracy, efficiency, and timeliness■ Ability to dedicate resources to client’s needs.■ 100 percent uptime of facilities.■ 100 percent availability of data.■ Privacy and security of client data.

Opportunity forGhana

■ Utilize the workforce pool that is passing out from secondary schools and not enrolling in further edu-cation for conducting low-end data entry and data processing work.

■ Subcontract data entry work from established outsourcing destinations such as India, which are moving toprovisioning of more high end ITES-BPO services.

■ Infrastructure requirement for data conversion is not complex, and Ghana can easily tap into this market withits existing infrastructure.

Service Data conversion

Process Definition ■ This process involves conversion of physical and manual records such as text, maps, images into digitalforms such as data files, video and audio.

■ Digitization helps organizations in long term preservation of documents, archiving of documents, enablingcustomized access to information for taking business decisions and information sharing. Some applicationsof conversion technology include: research journals, company annual reports, legacy documents, cata-logues, promotion brochures, training and educational manuals.



Figure 4.1.3.3.1 Target ITES-BPO segments for Ghana

Vertical Based ServicesD

ata

Con

vers

ion

Dat

a E

ntry

Med

ical

Tra

nscr

ipti

onSh

ared

Ser

vice

s F

unct

ion



HumanResources



processing• Loan


processing


processing



payable• Account


processing


management








processing

Cus

tom

er S

uppo

rt

Serv

ices

(Voi

ce/

E-M

ail)


Fun

ctio

ns

Medium

Term



Short Term

OpportunitiesFor Ghana

■ As highlighted in Chapter 3, the drop-out rate from senior secondary schools is almost 40 percent inGhana because of highly competitive entry into tertiary institutions. Therefore, there is a labor pool that ispassing out from secondary school and not enrolling in further education. This creates a large availablelabor pool for conducting low-end data entry and data processing work, which can be made employablewith requisite short training in basic computer literacy.

■ Infrastructure requirement for data entry work is minimal, and Ghana can easily tap into this market with itsexisting infrastructure.

■ Subcontracting of jobs is common. Smaller companies may start by providing services to a larger compa-ny, which can focus on providing more value-added services, or building a portfolio of accounts.

■ Worldwide forecast Data Processing, Data Conversion: Gartner Group forecast for “TransactionProcessing Services” Worldwide: 1999 - US$27.7 billion, 2001—US$37.8 billion, 2004 - US$67.9,2005 – US$81.48 billion; CAGR 1991–2004 = 19.3 percent

Service Data entry and data processing without exception handling

Process Definition Data processing is a broad category that involves capturing, manipulating, and sorting data from different sources.Data processing services consist of keying data from manually filled and scanned forms, preparing databases andintegrating them. These processes require no decision from the operator and client interface is minimal.

ProcessSuccessFactors

■ Accuracy, efficiency, and timeliness■ Ability to dedicate resources to client’s needs.■ 100 percent uptime of facilities.■ 100 percent availability of data.■ Privacy and security of client data.

Opportunity forGhana

■ Utilize the workforce pool that is passing out from secondary schools and not enrolling in further edu-cation for conducting low-end data entry and data processing work.

■ Subcontract data entry work from established outsourcing destinations such as India, which are moving toprovisioning of more high end ITES-BPO services.

■ Infrastructure requirement for data conversion is not complex, and Ghana can easily tap into this market withits existing infrastructure.


Process Definition ■ This process involves conversion of physical and manual records such as text, maps, images into digitalforms such as data files, video and audio.

■ Digitization helps organizations in long term preservation of documents, archiving of documents, enablingcustomized access to information for taking business decisions and information sharing. Some applicationsof conversion technology include: research journals, company annual reports, legacy documents, cata-logues, promotion brochures, training and educational manuals.



Process SuccessFactors

■ Extremely low margin for errors.■ Quick turnaround time.■ Adherence to specified SLAs.


Opportunities forGhana

■ Large population of senior secondary school graduates that can be trained and made employable, in addi-tion to graduates and medical professionals.

■ There is pressure to outsource medical transcription in order to further reduce the cost of operations in U.S.and European countries.

■ Opportunity of low-end medical transcription work getting outsourced from countries such as India and maturedestinations to cost-effective destinations.

■ Increasing cost of insurance and health care in the U.S. and Europe, which is driving offshoring of these processes.■ Time zone advantage, since time zone is very critical for such processes.

ProcessDefinition

Medical Transcription process include:■ Maintaining basic hospital data.■ Member management.■ Recording data and medical procedures for research. ■ Maintaining records for various purposes such as insurance.

Service Medical transcription

ProcessSuccess Factors

■ Direct relationships with end customers (hospitals and health care groups). ■ Faster turnaround with maintaining highest standard of quality.■ Workforce to understand medical terminology.■ Additional value added through continuous process improvement and lowering cost of delivery.

Opportunities ForGhana

■ High English-speaking population.■ Labor shortages and rising wages in India, Ireland, and other preferred call center locations is driving off-

shoring of such processes to cheaper destinations that have good English-speaking skills. Ghana can alsoattract small and medium-size enterprises (SME’s) that are evaluating offshoring their contact center functions,in order to ease the pressures on the bottom line.

■ Strategic location time difference is key for voice based process: UK, France can be on real time basis.■ As per McKinsey & Company, worldwide addressable market for customer services is $33 billion.

Service Customer services (contact center/e-mail/chat)

Process Definition Call center is a place of doing business by phone that combines a centralized database with an automatic calldistribution system. Type of jobs:

■ Inbound contact center.■ Telemarketing. ■ Credit collections and up-sell■ Help desks, both internal and external. ■ Reservation centers for airlines and hotels. ■ Catalogue retailers. ■ Product inquiries.


■ Ability to scale-up operations of any national and international player.■ Ability to dedicate resources to client’s needs.■ 100 percent uptime of facilities/connection.■ 100 percent availability of supporting data.■ Privacy and security of information (payroll, etc.).

4.1.3.6 Long-term (> 5 years) These comprise high-end processses requiring spe-cialized skill sets and are highly complex in nature.Ghana’s progression to these processes is dependenton growth of the overall ITES-BPO industry in theshort term and medium term, coupled with overalldevelopment of the talent pool that can cater tothese high-end processes.

4.2 STRATEGICRECOMMENDATIONSThe niche areas and market segments identifiedabove comprise the demand-side factors that mustbe developed by Ghana’s ITES-BPO industry. Most




■ Extremely low margin for errors.■ Quick turnaround time.■ Adherence to specified SLAs.


Opportunities forGhana

■ Large population of senior secondary school graduates that can be trained and made employable, in addi-tion to graduates and medical professionals.

■ There is pressure to outsource medical transcription in order to further reduce the cost of operations in U.S.and European countries.

■ Opportunity of low-end medical transcription work getting outsourced from countries such as India and maturedestinations to cost-effective destinations.

■ Increasing cost of insurance and health care in the U.S. and Europe, which is driving offshoring of these processes.■ Time zone advantage, since time zone is very critical for such processes.

ProcessDefinition

Medical Transcription process include:■ Maintaining basic hospital data.■ Member management.■ Recording data and medical procedures for research. ■ Maintaining records for various purposes such as insurance.

Service Medical transcription

ProcessSuccess Factors

■ Direct relationships with end customers (hospitals and health care groups). ■ Faster turnaround with maintaining highest standard of quality.■ Workforce to understand medical terminology.■ Additional value added through continuous process improvement and lowering cost of delivery.

Opportunities ForGhana

■ High English-speaking population.■ Labor shortages and rising wages in India, Ireland, and other preferred call center locations is driving off-

shoring of such processes to cheaper destinations that have good English-speaking skills. Ghana can alsoattract small and medium-size enterprises (SME’s) that are evaluating offshoring their contact center functions,in order to ease the pressures on the bottom line.

■ Strategic location time difference is key for voice based process: UK, France can be on real time basis.■ As per McKinsey & Company, worldwide addressable market for customer services is $33 billion.

Service Customer services (contact center/e-mail/chat)

Process Definition Call center is a place of doing business by phone that combines a centralized database with an automatic calldistribution system. Type of jobs:

■ Inbound contact center.■ Telemarketing. ■ Credit collections and up-sell■ Help desks, both internal and external. ■ Reservation centers for airlines and hotels. ■ Catalogue retailers. ■ Product inquiries.


■ Ability to scale-up operations of any national and international player.■ Ability to dedicate resources to client’s needs.■ 100 percent uptime of facilities/connection.■ 100 percent availability of supporting data.■ Privacy and security of information (payroll, etc.).

4.1.3.6 Long-term (> 5 years) These comprise high-end processses requiring spe-cialized skill sets and are highly complex in nature.Ghana’s progression to these processes is dependenton growth of the overall ITES-BPO industry in theshort term and medium term, coupled with overalldevelopment of the talent pool that can cater tothese high-end processes.

4.2 STRATEGICRECOMMENDATIONSThe niche areas and market segments identifiedabove comprise the demand-side factors that mustbe developed by Ghana’s ITES-BPO industry. Most



■ Absence of linkages betweeneducation and market needs

■ Low IT literacy; absence of ITfocus in the curriculum

■ Low PC penetration in education

■ Shortage of local, middlelevel, and supervisory talent

■ Deficits in technical, high-endtalent

Enhance Employability and Basic Industry Readiness Skills

■ Set up an ITES-BPO Vocational Training Expert from members within the industry andeducational experts to review and comment upon the set of uniform skill standards sug-gested by Hewitt for the targeted ITES-BPO sectors (refer Section 4.6 of this document fordetails). This will also ensure industry involvement and buy-in into the process early on.

■ Based on the uniform skill standards adopted, develop a standard National Level ITES-BPO Skills Assessment, Certification and Training Program in conjunction with the ITES-BPO Vocational Training Expert group. This framework will assess potential candidateson certain pre-set skill requirements and provide a score that can be used by prospec-tive employers to judge capability and thus reduce some of the costs associated with in-house recruitment assessment. This framework will also allow students to judge their apti-tude for the industry and also their training needs. This assessment framework should bemade available at subsidized costs across the country; a cost-sharing model can bearrived at between the industry and the government.

■ Benchmark and review educational syllabus at primary, secondary, and tertiary levelswith that of leading international institutions by qualified assessors to ensure sufficientfocus on building language, analytical and IT skills (not just for the ITES-BPO sector butalso for the knowledge economy boom), ensuring alignment with the ITES uniform skillstandards.

■ On the basis of feedback and results from the initial/pilot deployment of the ITES-BPOAssessment and Certification Program and the pre-determined uniform skill standards,the ITES-BPO Vocational Training Expert Group should define curriculum guidelines forITES-BPO vocational and supplemental training.

■ As per these curriculum guidelines, the Expert Group should publish a set of well-established criteria in terms of academic curriculum, infrastructure, teaching faculty, andmethodology for Training Institutions in the private and public sectors that wish to pro-vide ITES-BPO training. To further ensure that quality standards are maintained by traininginstitutes, an accreditation policy should be introduced by the ITES-BPO VocationalTraining Expert Group. This accreditation must be obtained by the training institutes andrenewed on a periodic basis, after their competence has been tested by a review panelthat will be part of the Expert Group. Although the accreditation may not be made aprerequisite for private training organizations to operate in this space, public and gov-ernment-funded institutions must be encouraged to apply and receive this accreditation.

■ 0Institute a Skills Development Fund in collaboration with the industry to provide loans to stu-dents, young professionals, and marginal workers for `continuing education’ in ITES-BPO.

Increase PC Penetration in Education

■ Accelerate ongoing programs, such as the World Links efforts to establish computer labsin secondary schools increase student access to PCs.

■ Develop strategic collaborations with computer manufacturers such as Lenovo (IBM),Hewlett-Packard, Compaq and Acer to increase PC penetration with the development of aprototype low cost PC, (US$200-$250 per PC) and enhance availability of refurbishedPCs. Tax incentives can be allowed to these organizations to start assembling IT hardwareand network equipment locally, creating a pool of IT-skilled technicians and programmers.

Enable Educators to participate in the ITES-BPO movement

■ Make government procedures flexible for enabling teaching faculty to participate in“hands-on” experience in the ITES-BPO and IT environment through teacher externships,summer work programs, and consulting opportunities.

■ Set up institutes specifically dedicated for training teachers in IT and therefore increasingIT/PC proficiency in the overall education system.

■ Review educational syllabus at school and tertiary levels with a focus on building lan-guage, analytical, and computer skills.

Develop local, middle management, and technical capability for the industry

■ Promote the establishment of private business schools that would focus on offering busi-ness education relating to the management of IT and ITES-BPO organizations. Also,encourage GIMPA to offer such industry-linked courses. These should also be madeavailable as short duration, part-time courses, available through distance learning/ corre-spondence mode to enable professionals and workers to hone their skills for the industry.

■ Increase capacity of engineering institutions, degree colleges, polytechnics and otherspecialized teaching institutions to expand their intake for information technology courses.

(continued)

Developmental factors Our recommendations



■ Absence of linkages betweeneducation and market needs

■ Low IT literacy; absence of ITfocus in the curriculum

■ Low PC penetration in education

■ Shortage of local, middlelevel, and supervisory talent

■ Deficits in technical, high-endtalent

Enhance Employability and Basic Industry Readiness Skills

■ Set up an ITES-BPO Vocational Training Expert from members within the industry andeducational experts to review and comment upon the set of uniform skill standards sug-gested by Hewitt for the targeted ITES-BPO sectors (refer Section 4.6 of this document fordetails). This will also ensure industry involvement and buy-in into the process early on.

■ Based on the uniform skill standards adopted, develop a standard National Level ITES-BPO Skills Assessment, Certification and Training Program in conjunction with the ITES-BPO Vocational Training Expert group. This framework will assess potential candidateson certain pre-set skill requirements and provide a score that can be used by prospec-tive employers to judge capability and thus reduce some of the costs associated with in-house recruitment assessment. This framework will also allow students to judge their apti-tude for the industry and also their training needs. This assessment framework should bemade available at subsidized costs across the country; a cost-sharing model can bearrived at between the industry and the government.

■ Benchmark and review educational syllabus at primary, secondary, and tertiary levelswith that of leading international institutions by qualified assessors to ensure sufficientfocus on building language, analytical and IT skills (not just for the ITES-BPO sector butalso for the knowledge economy boom), ensuring alignment with the ITES uniform skillstandards.

■ On the basis of feedback and results from the initial/pilot deployment of the ITES-BPOAssessment and Certification Program and the pre-determined uniform skill standards,the ITES-BPO Vocational Training Expert Group should define curriculum guidelines forITES-BPO vocational and supplemental training.

■ As per these curriculum guidelines, the Expert Group should publish a set of well-established criteria in terms of academic curriculum, infrastructure, teaching faculty, andmethodology for Training Institutions in the private and public sectors that wish to pro-vide ITES-BPO training. To further ensure that quality standards are maintained by traininginstitutes, an accreditation policy should be introduced by the ITES-BPO VocationalTraining Expert Group. This accreditation must be obtained by the training institutes andrenewed on a periodic basis, after their competence has been tested by a review panelthat will be part of the Expert Group. Although the accreditation may not be made aprerequisite for private training organizations to operate in this space, public and gov-ernment-funded institutions must be encouraged to apply and receive this accreditation.

■ 0Institute a Skills Development Fund in collaboration with the industry to provide loans to stu-dents, young professionals, and marginal workers for `continuing education’ in ITES-BPO.

Increase PC Penetration in Education

■ Accelerate ongoing programs, such as the World Links efforts to establish computer labsin secondary schools increase student access to PCs.

■ Develop strategic collaborations with computer manufacturers such as Lenovo (IBM),Hewlett-Packard, Compaq and Acer to increase PC penetration with the development of aprototype low cost PC, (US$200-$250 per PC) and enhance availability of refurbishedPCs. Tax incentives can be allowed to these organizations to start assembling IT hardwareand network equipment locally, creating a pool of IT-skilled technicians and programmers.

Enable Educators to participate in the ITES-BPO movement

■ Make government procedures flexible for enabling teaching faculty to participate in“hands-on” experience in the ITES-BPO and IT environment through teacher externships,summer work programs, and consulting opportunities.

■ Set up institutes specifically dedicated for training teachers in IT and therefore increasingIT/PC proficiency in the overall education system.

■ Review educational syllabus at school and tertiary levels with a focus on building lan-guage, analytical, and computer skills.

Develop local, middle management, and technical capability for the industry

■ Promote the establishment of private business schools that would focus on offering busi-ness education relating to the management of IT and ITES-BPO organizations. Also,encourage GIMPA to offer such industry-linked courses. These should also be madeavailable as short duration, part-time courses, available through distance learning/ corre-spondence mode to enable professionals and workers to hone their skills for the industry.

■ Increase capacity of engineering institutions, degree colleges, polytechnics and otherspecialized teaching institutions to expand their intake for information technology courses.

(continued)

Developmental factors Our recommendations



Developmental factors Our recommendations Attract and retain skilled workers

■ Build awareness of the career opportunities in the ITES-BPO sectors by inviting industryplayers to hold seminars and meets at the senior school and college campuses.

■ Set up an ITES-BPO career counselling cell at a central location/university campus inthe main towns co-located with the ITES-BPO pre-employment testing centers.

■ Aggressively target and promote the opportunities in ITES-BPO in Ghana in `Diaspora’forums to encourage non-residents to return and invest/work in Ghana.

■ Bandwidth availability andcost constraints

■ Open market effectively; and intensify investment promotion in the telecom sector toensure effective competition and multi-provider situation.

■ Implement conscious policies for the growth of broadband in Ghana, including growthenablers such as fixing of ceiling tariff and government’s setting of strict annual broad-band penetration targets.

■ Along with a ceiling tariff, provide flexibility to the operators in the matter of offeringvarious tariff packages to different destinations within the given ceiling.

■ Provide infrastructure development assistance to telecom companies establishing infra-structure to provide services to ITES-BPO establishments within designated specialzones.

■ Encourage the deployment of cost-effective technologies such as VoIP for domestic aswell as international companies. VoIP technologies are far more cost-effective ways ofconducting business outside of their local area. Emerging markets aim to reduce tele-phone costs while increasing overall infrastructure flexibility.

■ Organizations derive value from use of IP phones in that it leads in the direction of con-vergence and also that IP phones typically use less bandwidth compared to traditionalphones (up to 15–20 percent). Hence the ROI for VOIP tends to be good.

■ Monitor prices at which services are offered and ensure that minimum SLAs areadhered to through the National Communication Authority.

■ As in the case of GISPA, reduce prices for its members, proactively encourage avail-ability of cost-competitive telecom services for the ITES-BPO industry.

■ Educate local real estate developers through forums and seminars on international stan-dards in real estate and office facilities. Invite international developers to participate andshare best practices in such meetings.

■ Provide rebates on prices of real estate that may be made available to ITES companies.This can be linked to the level of job creation achieved by the establishment in a givenperiod of time.

■ Provide privately funded parks with adequate land area at reduced prices.■ Simplify land deed and ownership procedures. ■ Provide incentives for international real estate developers to work in Ghana by providing

rebates, land area at reduced prices.■ Link current incentives provided to real estate developers to quality and timeliness and

aggressively market these to international developers.■ Review ICT Park Strategy and unify other ICT Park initiatives, including revisiting current

model of Tema Park Development. Also work towards providing availability of shells(public-sector led)

■ Develop ITES destinations in addition to Accra. Some viable options:

➤ Winneba - Winneba also has advantages such as availability of cheap, skilledlabor, although housing facilities are not readily available here.

➤ CapeCoast - Offers a high proximity to talent with good senior secondary schools,the Cape Coast University, and a number of colleges and polytechnics—all produc-ing employable talent for the industry. Need to make E1 link available.

➤ Kumasi - Site of Ghana’s only science and technology university; has availability ofskilled IT labor; International airport yet to be built here (projected completion date:2012). Need to make E1 link available.

■ Provide for development of adequate social infrastructure and facilities such as residen-tial colonies, banks, recreational facilities, around technology parks and free zones.

■ Poor availability of suitable real estate

■ Absence of internationaldevelopers

■ Slow progress on IT Parkdevelopment

■ Basic Infrastructure constraints

■ Effectively deregulate the power sector.■ Accelerate universal access to telecom in Ghana.■ Introduce stringent connectivity targets for providers to induce coverage in the rural and

isolated areas.■ To supplement investments by the state government and urban local bodies, permit

developers of private IT parks to invest in establishing high quality road connectivityfrom highways. Such roads would be transferred to developers by Urban LocalBodies and recovery of the investments of the developers would be adjusted againstthe property tax payable to the local bodies in future.

(continued)



Developmental factors Our recommendations Attract and retain skilled workers

■ Build awareness of the career opportunities in the ITES-BPO sectors by inviting industryplayers to hold seminars and meets at the senior school and college campuses.

■ Set up an ITES-BPO career counselling cell at a central location/university campus inthe main towns co-located with the ITES-BPO pre-employment testing centers.

■ Aggressively target and promote the opportunities in ITES-BPO in Ghana in `Diaspora’forums to encourage non-residents to return and invest/work in Ghana.

■ Bandwidth availability andcost constraints

■ Open market effectively; and intensify investment promotion in the telecom sector toensure effective competition and multi-provider situation.

■ Implement conscious policies for the growth of broadband in Ghana, including growthenablers such as fixing of ceiling tariff and government’s setting of strict annual broad-band penetration targets.

■ Along with a ceiling tariff, provide flexibility to the operators in the matter of offeringvarious tariff packages to different destinations within the given ceiling.

■ Provide infrastructure development assistance to telecom companies establishing infra-structure to provide services to ITES-BPO establishments within designated specialzones.

■ Encourage the deployment of cost-effective technologies such as VoIP for domestic aswell as international companies. VoIP technologies are far more cost-effective ways ofconducting business outside of their local area. Emerging markets aim to reduce tele-phone costs while increasing overall infrastructure flexibility.

■ Organizations derive value from use of IP phones in that it leads in the direction of con-vergence and also that IP phones typically use less bandwidth compared to traditionalphones (up to 15–20 percent). Hence the ROI for VOIP tends to be good.

■ Monitor prices at which services are offered and ensure that minimum SLAs areadhered to through the National Communication Authority.

■ As in the case of GISPA, reduce prices for its members, proactively encourage avail-ability of cost-competitive telecom services for the ITES-BPO industry.

■ Educate local real estate developers through forums and seminars on international stan-dards in real estate and office facilities. Invite international developers to participate andshare best practices in such meetings.

■ Provide rebates on prices of real estate that may be made available to ITES companies.This can be linked to the level of job creation achieved by the establishment in a givenperiod of time.

■ Provide privately funded parks with adequate land area at reduced prices.■ Simplify land deed and ownership procedures. ■ Provide incentives for international real estate developers to work in Ghana by providing

rebates, land area at reduced prices.■ Link current incentives provided to real estate developers to quality and timeliness and

aggressively market these to international developers.■ Review ICT Park Strategy and unify other ICT Park initiatives, including revisiting current

model of Tema Park Development. Also work towards providing availability of shells(public-sector led)

■ Develop ITES destinations in addition to Accra. Some viable options:

➤ Winneba - Winneba also has advantages such as availability of cheap, skilledlabor, although housing facilities are not readily available here.

➤ CapeCoast - Offers a high proximity to talent with good senior secondary schools,the Cape Coast University, and a number of colleges and polytechnics—all produc-ing employable talent for the industry. Need to make E1 link available.

➤ Kumasi - Site of Ghana’s only science and technology university; has availability ofskilled IT labor; International airport yet to be built here (projected completion date:2012). Need to make E1 link available.

■ Provide for development of adequate social infrastructure and facilities such as residen-tial colonies, banks, recreational facilities, around technology parks and free zones.

■ Poor availability of suitable real estate

■ Absence of internationaldevelopers

■ Slow progress on IT Parkdevelopment

■ Basic Infrastructure constraints

■ Effectively deregulate the power sector.■ Accelerate universal access to telecom in Ghana.■ Introduce stringent connectivity targets for providers to induce coverage in the rural and

isolated areas.■ To supplement investments by the state government and urban local bodies, permit

developers of private IT parks to invest in establishing high quality road connectivityfrom highways. Such roads would be transferred to developers by Urban LocalBodies and recovery of the investments of the developers would be adjusted againstthe property tax payable to the local bodies in future.

(continued)



country. Efforts are being made by all public andprivate agencies to create favorable pull factors forinvestosr. The key pull factors are in the form ofavailability of cheap and better or larger networktechnology, communications infrastructure, andbandwidth, which are prerequisites for services tobe managed and provided from remote locations.So long as a cheap workforce with the requisitelanguage abilities and skills can be found or creat-ed, this is an opportunity waiting to be exploitedby developing countries.

4.3 PROPOSED INDUSTRYBODIESAs mentioned earlier in this section, the ITES-BPOindustry in Ghana currently lacks the presence ofa unified, dedicated agency in the public sectordomain that can facilitate the development and

of the above-mentioned initiatives will be led bythe industry players themselves.

The government of Ghana, in collaboration withother industry stakeholders must also look towardsdeveloping the supply-side factors that involveaddressing concerns and challenges identified,through the International Benchmarking andCountry Analysis (Chapters 2 and 3), earlier in thereport. This section presents the key drivers thatneed to be addressed and subsequent recommenda-tions for initiatives to be undertaken.

It is important to note that ITES growth has with-stood the economic downturn in the early part ofthe 21st century.

Competing countries, especially in Asia, are going allout in attracting investments in the IT/ITES –BPOsector, spurred by the need to create higher levels ofemployment, and wealth for the region and the

■ Absence of coordination andcommon direction on ITES-BPO

■ Need for policy framework,measures and incentives cus-tomized of the requirements ofthe industry

■ Review and implement framework recommended by Hewitt to coordinate all efforts,agencies and funds.

■ Create a non-profit, autonomous agency, BPO Secretariat, under the MoC, for the over-all development and promotion of ITES in Ghana.

■ The BPO Secretariat’s responsibilities will span from policy recommendations on thedevelopment and regulatory requirements, investment promotion to providing ongoingsupport to the industry.

■ Develop and implement an investment promotion strategy- marketing Ghana as an ITES-BPO destination.

■ Formulate a facilitative ITES-BPO policy to provide for an enabling environment, includ-ing financial and fiscal incentives for promoting both domestic and foreign investmentsin the sector.

■ Re-position ITES-BPO/Services vis-à-vis agriculture and manufacturing sectors.■ Simplify set-up procedures and related regulations by providing single window clear-

ance and support for ITES-BPO investors.■ Develop a comprehensive economic policy package for facilitating growth of ITES-BPO.■ Introduce effective and comprehensive cyber and e-crime legislation for data protection

and security

■ Inability to leverage and pres-ence of ànchor’ client to growindustry

■ Absence of a proactive industryassociation

■ Lack of support to home-grownentrepreneurial set-ups

■ Lack of servicing provisioningmaturity

■ Absence of networking andknowledge sharing within theITES-BPO community

■ Facilitate the creation of an “ITES- BPO Industry Association,” an autonomous associa-tion, having membership of ITES companies in Ghana and promoting linkages andknowledge sharing among the incumbents. This association should be on the basis ofother successful industry associations such as NASSCOM (India), CITEM (Philippines)and SACCOM (South Africa).

■ Since an industry association (Outsourcing Association of Ghana) already exists it maybe useful to look at its current state and evaluate whether this can be used after due mod-ification and diligence.

■ Train ITES-BPO companies on quality and establishing a Global Delivery Model byadopting industry benchmarking systems to measure against global standards.

■ Conduct state sponsored events to recognize and reward outstanding achievements inthe ITES-BPO sector.

■ Compile and establish an English-language registry so ITES-BPO companies can easilyfind workers.

■ Develop a better enabling environment for small ITES-BPO businesses through training,incentive schemes, incubator centers, and access to venture capital.

■ Promote licensing of new medical transcription technologies developed in Ghana.■ Encourage, promote, and develop strong linkages and tie-ups with companies, industry

associations, and private education service providers in established destinations such asIndia and Philippines, and also regional hot-spots such as Mauritius and Egypt.



country. Efforts are being made by all public andprivate agencies to create favorable pull factors forinvestosr. The key pull factors are in the form ofavailability of cheap and better or larger networktechnology, communications infrastructure, andbandwidth, which are prerequisites for services tobe managed and provided from remote locations.So long as a cheap workforce with the requisitelanguage abilities and skills can be found or creat-ed, this is an opportunity waiting to be exploitedby developing countries.

4.3 PROPOSED INDUSTRYBODIESAs mentioned earlier in this section, the ITES-BPOindustry in Ghana currently lacks the presence ofa unified, dedicated agency in the public sectordomain that can facilitate the development and

of the above-mentioned initiatives will be led bythe industry players themselves.

The government of Ghana, in collaboration withother industry stakeholders must also look towardsdeveloping the supply-side factors that involveaddressing concerns and challenges identified,through the International Benchmarking andCountry Analysis (Chapters 2 and 3), earlier in thereport. This section presents the key drivers thatneed to be addressed and subsequent recommenda-tions for initiatives to be undertaken.

It is important to note that ITES growth has with-stood the economic downturn in the early part ofthe 21st century.

Competing countries, especially in Asia, are going allout in attracting investments in the IT/ITES –BPOsector, spurred by the need to create higher levels ofemployment, and wealth for the region and the

■ Absence of coordination andcommon direction on ITES-BPO

■ Need for policy framework,measures and incentives cus-tomized of the requirements ofthe industry

■ Review and implement framework recommended by Hewitt to coordinate all efforts,agencies and funds.

■ Create a non-profit, autonomous agency, BPO Secretariat, under the MoC, for the over-all development and promotion of ITES in Ghana.

■ The BPO Secretariat’s responsibilities will span from policy recommendations on thedevelopment and regulatory requirements, investment promotion to providing ongoingsupport to the industry.

■ Develop and implement an investment promotion strategy- marketing Ghana as an ITES-BPO destination.

■ Formulate a facilitative ITES-BPO policy to provide for an enabling environment, includ-ing financial and fiscal incentives for promoting both domestic and foreign investmentsin the sector.

■ Re-position ITES-BPO/Services vis-à-vis agriculture and manufacturing sectors.■ Simplify set-up procedures and related regulations by providing single window clear-

ance and support for ITES-BPO investors.■ Develop a comprehensive economic policy package for facilitating growth of ITES-BPO.■ Introduce effective and comprehensive cyber and e-crime legislation for data protection

and security

■ Inability to leverage and pres-ence of ànchor’ client to growindustry

■ Absence of a proactive industryassociation

■ Lack of support to home-grownentrepreneurial set-ups

■ Lack of servicing provisioningmaturity

■ Absence of networking andknowledge sharing within theITES-BPO community

■ Facilitate the creation of an “ITES- BPO Industry Association,” an autonomous associa-tion, having membership of ITES companies in Ghana and promoting linkages andknowledge sharing among the incumbents. This association should be on the basis ofother successful industry associations such as NASSCOM (India), CITEM (Philippines)and SACCOM (South Africa).

■ Since an industry association (Outsourcing Association of Ghana) already exists it maybe useful to look at its current state and evaluate whether this can be used after due mod-ification and diligence.

■ Train ITES-BPO companies on quality and establishing a Global Delivery Model byadopting industry benchmarking systems to measure against global standards.

■ Conduct state sponsored events to recognize and reward outstanding achievements inthe ITES-BPO sector.

■ Compile and establish an English-language registry so ITES-BPO companies can easilyfind workers.

■ Develop a better enabling environment for small ITES-BPO businesses through training,incentive schemes, incubator centers, and access to venture capital.

■ Promote licensing of new medical transcription technologies developed in Ghana.■ Encourage, promote, and develop strong linkages and tie-ups with companies, industry

associations, and private education service providers in established destinations such asIndia and Philippines, and also regional hot-spots such as Mauritius and Egypt.



promotion of the sector as well as that of therequired talent, and physical and regulatoryinfrastructures.

Moreover, the industry needs to build a proactiveindustry association to encourage knowledge sharingas well as providing industry incumbents with aforum through which they can communicate theirconcerns and lobby for facilitative grants and policies.

Therefore, while the government-sponsored agencywill focus on developing the supply side factorssuch as talent, infrastructure, policy environment,etc., the industry association will be a body createdindependently and in the private sector domain.The association will in turn develop the demandside areas and aid in directing the industry trends,needs, and requirements for Ghana’s ITES-BPOindustry.

In this section we provide a recommended struc-ture for these bodies as well as key roles andresponsibilities proposed for them.

4.3.1 ITES-BPO SecretariatCurrently, the Ghana Free Zone Board and theGhana Investment Promotion Centre (GIPC)have been promoting FDI in Ghana. While theFree Zone Board is entrusted with facilitating theentry of exporters, GIPC on the other hand isresponsible for promoting non-exporters. However,admittedly, there is no single agency entrusted with

promotion of all types of FDI within the ITES-BPO sector. For example, Mauritius has set up aBPO Secretariat under the Board of Investment topromote the development of the ITES-BPO indus-try in Mauritius and this is the sole agency respon-sible for its development and promotion.

The government of Ghana should set up an ITES-BPO Secretariat as a unified body responsible forthe overall development and promotion of theITES-BPO sector in Ghana. This would demon-strate its commitment to market reforms, and giveit greater credibility and visibility in the interna-tional and national business communities.

It is recommended that the BPO Secretariat beconstituted as an autonomous or semi-autonomousinstitution under the MoCs. The Head of theSecretariat should be recruited from the private sec-tor supported with a staff comprised of peoplefrom the private sector, as well as those with experi-ence in policymaking.

The steering committee of the Secretariat will haverepresentatives from various related ministries suchas the MoCs, Ministry of Trade, Industry, privatesector development and Presidential SpecialInitiatives including that from GIPC and GFZB,Ministry of Finance and Economic Planning,Ministry of Manpower, Development andEmployment, Ministry of Education, Science andSports, Ministry of Energy, etc.

Figure 4.3.1.1 ITES-BPO secretariat structure

Ministry of Communication

ITES/BPOSecretariatSteering Committee

Members from:• Ministry of Private Sector

Development

• Ministry of Manpower Development

• Ministry of Industry

• Ministry of Trade & Industry

• Ghana Outsourcing Association

Head of Secretariat

Staff

Proposed Structure for ITES/BPO Secretariat



promotion of the sector as well as that of therequired talent, and physical and regulatoryinfrastructures.

Moreover, the industry needs to build a proactiveindustry association to encourage knowledge sharingas well as providing industry incumbents with aforum through which they can communicate theirconcerns and lobby for facilitative grants and policies.

Therefore, while the government-sponsored agencywill focus on developing the supply side factorssuch as talent, infrastructure, policy environment,etc., the industry association will be a body createdindependently and in the private sector domain.The association will in turn develop the demandside areas and aid in directing the industry trends,needs, and requirements for Ghana’s ITES-BPOindustry.

In this section we provide a recommended struc-ture for these bodies as well as key roles andresponsibilities proposed for them.

4.3.1 ITES-BPO SecretariatCurrently, the Ghana Free Zone Board and theGhana Investment Promotion Centre (GIPC)have been promoting FDI in Ghana. While theFree Zone Board is entrusted with facilitating theentry of exporters, GIPC on the other hand isresponsible for promoting non-exporters. However,admittedly, there is no single agency entrusted with

promotion of all types of FDI within the ITES-BPO sector. For example, Mauritius has set up aBPO Secretariat under the Board of Investment topromote the development of the ITES-BPO indus-try in Mauritius and this is the sole agency respon-sible for its development and promotion.

The government of Ghana should set up an ITES-BPO Secretariat as a unified body responsible forthe overall development and promotion of theITES-BPO sector in Ghana. This would demon-strate its commitment to market reforms, and giveit greater credibility and visibility in the interna-tional and national business communities.

It is recommended that the BPO Secretariat beconstituted as an autonomous or semi-autonomousinstitution under the MoCs. The Head of theSecretariat should be recruited from the private sec-tor supported with a staff comprised of peoplefrom the private sector, as well as those with experi-ence in policymaking.

The steering committee of the Secretariat will haverepresentatives from various related ministries suchas the MoCs, Ministry of Trade, Industry, privatesector development and Presidential SpecialInitiatives including that from GIPC and GFZB,Ministry of Finance and Economic Planning,Ministry of Manpower, Development andEmployment, Ministry of Education, Science andSports, Ministry of Energy, etc.

Figure 4.3.1.1 ITES-BPO secretariat structure

Ministry of Communication

ITES/BPOSecretariatSteering Committee

Members from:• Ministry of Private Sector

Development

• Ministry of Manpower Development

• Ministry of Industry

• Ministry of Trade & Industry

• Ghana Outsourcing Association

Head of Secretariat

Staff

Proposed Structure for ITES/BPO Secretariat



Key responsibilities of the ITES-BPO Secretariatis proposed as follows:■ Develop cooperation with all relevant agencies

and ministries in the government to ensure thesupport and involvement of the government atall levels as well as facilitate communication andfeedback between investors and the government.

■ Ensure development of necessary infrastruc-ture with regards to telecommunications, realestate, power, technology parks, etc.

■ Provide investment facilitation services, bothbefore and after investment. These servicesinclude facilitation of business registrationprocesses, site visits, and post-investmentreview and feedback. Services also couldinclude provision of real estate, necessaryinformation related to Ghana’s business envi-ronment, and legal advice.

■ Create a positive international image ofGhana as an attractive location for ITES-BPO investment through sustained marketingand promotion activities. These activities canbe conducted through a specializedInvestment Promotion Cell (IPC) that can beformed under the aegis of the Secretariat.

■ Supervise the creation and implementation ofthe ITES-BPO Policy for Ghana.

■ Develop and introduce certifications and indus-try standards so as to provide for qualityenhancement of the industry as a whole.

■ Liaise with international governments,embassies, multilateral agencies, other foreigngovernment officials and bodies.

4.3.2 ITES-BPO Industry AssociationOne of the major reasons why the IT/ ITES-BPOindustry has not flourished despite the presence ofACS since 2000, is the absence of a trade/industrybody that can act as a catalyst for the growth of theindustry, including providing encouragement andadvancement of research, propagating educationand employment, and creating a platform forindustry incumbents to collectively share theirexperiences and voice concerns.

In India, NASSCOM has played an integral role indeveloping and facilitating the growth of the ITservices and ITES/BPO industry. The association isan independent, national level body with membersfrom all leading ITES organizations in India. It hassuccessfully lobbied with the government and gov-ernment agencies on behalf of the industry as well

as established various industry standards.

We recommend that the government of Ghanaencourage the formation of an ITES-BPO industryassociation. The objectives of such an associationwould be to partner with the government and glob-al and domestic stakeholders to promote the indus-try in global markets, and devise strategies toupgrade the talent pool. This association wouldwork closely with the proposed ITES-BPOSecretariat.

Since an industry association (OutsourcingAssociation of Ghana) already exists, it may beuseful to look at its current state and evaluatewhether this can be used after due modificationand diligence.

Recommended structure for the ITES– BPOIndustry Association: ■ The Industry Association should be an inde-

pendent, private sector organization.■ The association should include a Board compris-

ing members from leading industry incumbents. ■ Primary membership should only be provided to

ITES-BPO industry organizations. These pri-mary members will have voting rights withinthe association.

■ Secondary membership may be granted to rep-resentatives from cluster organizations such astraining firms, catering units, etc. However,these members should not be granted any votingrights.

■ The association should also employ a full timeCEO and staff to conduct the day-to-day opera-tions of the association. The CEO must behired based on a competitive recruitment andselection process. The staff should be have req-uisite competencies for business focus in termsof industry development to address all chal-lenges proactively with BPO Secretariat.

Hewitt has identified the following roles for anITES-BPO Industry Association:■ Providing a forum for industry players. One

of the primary roles of an industry association isto provide a forum to industry players so thatthey may lobby for development of necessaryinfrastructure and required changes in existingregulatory policies.

■ Attracting venture capital funds and nonresident Ghanaians. The industry association,



Key responsibilities of the ITES-BPO Secretariatis proposed as follows:■ Develop cooperation with all relevant agencies

and ministries in the government to ensure thesupport and involvement of the government atall levels as well as facilitate communication andfeedback between investors and the government.

■ Ensure development of necessary infrastruc-ture with regards to telecommunications, realestate, power, technology parks, etc.

■ Provide investment facilitation services, bothbefore and after investment. These servicesinclude facilitation of business registrationprocesses, site visits, and post-investmentreview and feedback. Services also couldinclude provision of real estate, necessaryinformation related to Ghana’s business envi-ronment, and legal advice.

■ Create a positive international image ofGhana as an attractive location for ITES-BPO investment through sustained marketingand promotion activities. These activities canbe conducted through a specializedInvestment Promotion Cell (IPC) that can beformed under the aegis of the Secretariat.

■ Supervise the creation and implementation ofthe ITES-BPO Policy for Ghana.

■ Develop and introduce certifications and indus-try standards so as to provide for qualityenhancement of the industry as a whole.

■ Liaise with international governments,embassies, multilateral agencies, other foreigngovernment officials and bodies.

4.3.2 ITES-BPO Industry AssociationOne of the major reasons why the IT/ ITES-BPOindustry has not flourished despite the presence ofACS since 2000, is the absence of a trade/industrybody that can act as a catalyst for the growth of theindustry, including providing encouragement andadvancement of research, propagating educationand employment, and creating a platform forindustry incumbents to collectively share theirexperiences and voice concerns.

In India, NASSCOM has played an integral role indeveloping and facilitating the growth of the ITservices and ITES/BPO industry. The association isan independent, national level body with membersfrom all leading ITES organizations in India. It hassuccessfully lobbied with the government and gov-ernment agencies on behalf of the industry as well

as established various industry standards.

We recommend that the government of Ghanaencourage the formation of an ITES-BPO industryassociation. The objectives of such an associationwould be to partner with the government and glob-al and domestic stakeholders to promote the indus-try in global markets, and devise strategies toupgrade the talent pool. This association wouldwork closely with the proposed ITES-BPOSecretariat.

Since an industry association (OutsourcingAssociation of Ghana) already exists, it may beuseful to look at its current state and evaluatewhether this can be used after due modificationand diligence.

Recommended structure for the ITES– BPOIndustry Association: ■ The Industry Association should be an inde-

pendent, private sector organization.■ The association should include a Board compris-

ing members from leading industry incumbents. ■ Primary membership should only be provided to

ITES-BPO industry organizations. These pri-mary members will have voting rights withinthe association.

■ Secondary membership may be granted to rep-resentatives from cluster organizations such astraining firms, catering units, etc. However,these members should not be granted any votingrights.

■ The association should also employ a full timeCEO and staff to conduct the day-to-day opera-tions of the association. The CEO must behired based on a competitive recruitment andselection process. The staff should be have req-uisite competencies for business focus in termsof industry development to address all chal-lenges proactively with BPO Secretariat.

Hewitt has identified the following roles for anITES-BPO Industry Association:■ Providing a forum for industry players. One

of the primary roles of an industry association isto provide a forum to industry players so thatthey may lobby for development of necessaryinfrastructure and required changes in existingregulatory policies.

■ Attracting venture capital funds and nonresident Ghanaians. The industry association,



with its domain knowledge coupled withcountry fact sheets and linkages with theITES-BPO Secretariat should target venturecapitalists outside Ghana to ensure necessaryfunds flow into the country. The advantage ofventure capitalists is that they can assist innetworking, management, and marketingsupport as well.

■ Developing associations with overseas clusters.As the representative industry body for the ITES-BPO industry in Ghana, the association candevelop alliances with overseas associations such asDubai International City Intellect Incorporated,members of Computing Services and SoftwareAssociation (CSSA), Federation of ElectronicsIndustry (FEI), Information TechnologyAssociation of America, Singapore InformationTechnology Federation, Irish Software Associationetc. Such associations will help both the ITES-BPO Secretariat and the industry incumbents inGhana gather market intelligence on potentialinvestors as well as conduct awareness and promo-tion campaigns for Ghana.

■ Organizing events. The Association can alsoorganize regular industry events such as confer-ences, seminars and workshops on specificITES-BPO related topics at the national and

international levels with the dual objectives ofpromoting the industry in the domestic labormarket as well as with international customers.

■ Developing HR capacity. While the govern-ment will play an active role in developing theinfrastructure for educational and training insti-tutions, Ghana Outsourcing Association willneed to promote the softer aspects of HR capac-ity building in ITES-BPO, such as:➤ facilitating industry-academia partnerships

and discussion forums to gain insights on themanpower requirements of the ITES-BPOsector;

➤ conducting regular studies and surveys inde-pendently and with business intelligence togain insights on the existing pool of knowl-edge professionals and future requirements ofthe industry in Ghana and across the globe;

➤ highlighting the concerns of the ITES-BPOworkforce development scenario by bringingthe industry and academia on one platformto outline solutions to the HR challengesfaced by ITES-BPO organizations;

➤ coordinating with ITES-BPO Secretariat todraw a strategic roadmap for making the cur-rent education system relevant to the needsof the industry;

Figure 4.3.2.1 ITES-BPO association structure

Board Members

CEO

Staff

Primary MembershipIndustry Incumbents*Granted Voting Rights

Secondary MembershipCluster Organizations**

No Voting Rights Granted

Proposed Structure for ITES/BPO Industry Association

To be from ITES/BPOindustry only

Should be an independent,full time employee basedon competitive selection

*Refers to ITES/BPO industry only**Refers to support industries such as training institutions, system integrators, etc

CEO

Staff



with its domain knowledge coupled withcountry fact sheets and linkages with theITES-BPO Secretariat should target venturecapitalists outside Ghana to ensure necessaryfunds flow into the country. The advantage ofventure capitalists is that they can assist innetworking, management, and marketingsupport as well.

■ Developing associations with overseas clusters.As the representative industry body for the ITES-BPO industry in Ghana, the association candevelop alliances with overseas associations such asDubai International City Intellect Incorporated,members of Computing Services and SoftwareAssociation (CSSA), Federation of ElectronicsIndustry (FEI), Information TechnologyAssociation of America, Singapore InformationTechnology Federation, Irish Software Associationetc. Such associations will help both the ITES-BPO Secretariat and the industry incumbents inGhana gather market intelligence on potentialinvestors as well as conduct awareness and promo-tion campaigns for Ghana.

■ Organizing events. The Association can alsoorganize regular industry events such as confer-ences, seminars and workshops on specificITES-BPO related topics at the national and

international levels with the dual objectives ofpromoting the industry in the domestic labormarket as well as with international customers.

■ Developing HR capacity. While the govern-ment will play an active role in developing theinfrastructure for educational and training insti-tutions, Ghana Outsourcing Association willneed to promote the softer aspects of HR capac-ity building in ITES-BPO, such as:➤ facilitating industry-academia partnerships

and discussion forums to gain insights on themanpower requirements of the ITES-BPOsector;

➤ conducting regular studies and surveys inde-pendently and with business intelligence togain insights on the existing pool of knowl-edge professionals and future requirements ofthe industry in Ghana and across the globe;

➤ highlighting the concerns of the ITES-BPOworkforce development scenario by bringingthe industry and academia on one platformto outline solutions to the HR challengesfaced by ITES-BPO organizations;

➤ coordinating with ITES-BPO Secretariat todraw a strategic roadmap for making the cur-rent education system relevant to the needsof the industry;

Figure 4.3.2.1 ITES-BPO association structure

Board Members

CEO

Staff

Primary MembershipIndustry Incumbents*Granted Voting Rights

Secondary MembershipCluster Organizations**

No Voting Rights Granted

Proposed Structure for ITES/BPO Industry Association

To be from ITES/BPOindustry only

Should be an independent,full time employee basedon competitive selection

*Refers to ITES/BPO industry only**Refers to support industries such as training institutions, system integrators, etc

CEO

Staff



■ helping to roll out common skill set require-ments, certification programs; and

■ evolving Intellectual Property Regulationrequirements for the industry through itsdomain knowledge and industry interactions.

4.4 ITES-BPO POLICYFRAMEWORK

4.4.1 Need for a separate ITES-BPOPolicyIn 2003, the MoC issued a policy for the overallICT sector. The objective of this ICT forAccelerated Development (ICT4AD) policy is “toengineer an ICT led socio-development processwith the potential to transform Ghana into amiddle income information-rich, knowledge-basedand technology-driven economy and society.” TheICT4AD policy outlined some of the initial stepsbeing adopted by the government of Ghana toincrease the ICT competitiveness of the country.

With ITES-BPO now being identified as one ofthe priority sectors that will help drive the econom-ic growth and prosperity of Ghana and enable it toachieve its economic goals as outlined under itsMillennium Development Goals, there is need foran integrated ITES-BPO policy with concurrentattention to infrastructure development, FDImobilization, incentives for development, educa-tion and regulation. The policy is also a statementof intent to investors and stakeholders, detailingthe focus of a country or government towards

provide an enabling environment for addressingthe needs and priorities of the ITES-BPO sector.

4.4.2 Key Policy Areas RecommendedTo be effective, any comprehensive governingindustry policy will need to take into considerationthe current requirements of the sector with regardsto resources and infrastructure, as well as allow forflexibility to respond to a dynamic and rapidlychanging environment.

Some of the prominent ITES-BPO countries thathave outlined a policy framework for the industryinclude India and Philippines. In the Philippinesthe ITES-BPO policy has been defined at a nation-al level. In India, various state governments havetaken the initiatives in providing ITES-BPO poli-cies for their states. This is in addition to the ICTpolicy that would exist at both the state and centralgovernment levels.

Based on our experience in such emerging andestablished ITES-BPO destinations, and keeping inmind the key drivers and stakeholders involved inthe ITES-BPO industry, Ghana will need to createa favorable policy infrastructure addressing theissues outlined in the next page.■ Development Initiatives. These will provide

for any changes required in the country’s exist-ing education and labor policies as well asinclude initiatives that will help create a favor-able working environment and contributetowards talent development.

■ Economic Incentives. These incentives willinclude provisions regarding FDI investment,

Figure 4.4.2.1 Key ITES-BPO policy areas

Key Policy Areas

ITES Policy

EconomicIncentives

InfrastructureDevelopment

Guidelines

DevelopmentInitiatives

Data andInformation

Security



■ helping to roll out common skill set require-ments, certification programs; and

■ evolving Intellectual Property Regulationrequirements for the industry through itsdomain knowledge and industry interactions.

4.4 ITES-BPO POLICYFRAMEWORK

4.4.1 Need for a separate ITES-BPOPolicyIn 2003, the MoC issued a policy for the overallICT sector. The objective of this ICT forAccelerated Development (ICT4AD) policy is “toengineer an ICT led socio-development processwith the potential to transform Ghana into amiddle income information-rich, knowledge-basedand technology-driven economy and society.” TheICT4AD policy outlined some of the initial stepsbeing adopted by the government of Ghana toincrease the ICT competitiveness of the country.

With ITES-BPO now being identified as one ofthe priority sectors that will help drive the econom-ic growth and prosperity of Ghana and enable it toachieve its economic goals as outlined under itsMillennium Development Goals, there is need foran integrated ITES-BPO policy with concurrentattention to infrastructure development, FDImobilization, incentives for development, educa-tion and regulation. The policy is also a statementof intent to investors and stakeholders, detailingthe focus of a country or government towards

provide an enabling environment for addressingthe needs and priorities of the ITES-BPO sector.

4.4.2 Key Policy Areas RecommendedTo be effective, any comprehensive governingindustry policy will need to take into considerationthe current requirements of the sector with regardsto resources and infrastructure, as well as allow forflexibility to respond to a dynamic and rapidlychanging environment.

Some of the prominent ITES-BPO countries thathave outlined a policy framework for the industryinclude India and Philippines. In the Philippinesthe ITES-BPO policy has been defined at a nation-al level. In India, various state governments havetaken the initiatives in providing ITES-BPO poli-cies for their states. This is in addition to the ICTpolicy that would exist at both the state and centralgovernment levels.

Based on our experience in such emerging andestablished ITES-BPO destinations, and keeping inmind the key drivers and stakeholders involved inthe ITES-BPO industry, Ghana will need to createa favorable policy infrastructure addressing theissues outlined in the next page.■ Development Initiatives. These will provide

for any changes required in the country’s exist-ing education and labor policies as well asinclude initiatives that will help create a favor-able working environment and contributetowards talent development.

■ Economic Incentives. These incentives willinclude provisions regarding FDI investment,

Figure 4.4.2.1 Key ITES-BPO policy areas

Key Policy Areas

ITES Policy

EconomicIncentives

InfrastructureDevelopment

Guidelines

DevelopmentInitiatives

Data andInformation

Security



fiscal and tax incentives, financial assistance,etc., for both domestic and international com-panies and help promote Ghana as an attractiveinvestment destination.

■ Infrastructure Development Guidelines.These guidelines will address issues andconcerns pertaining to availability and devel-opment of necessary infrastructure withintelecommunications, real estate, power andtransportation. The policy will also provideguidelines on minimum service level agreementsand pricing of infrastructure facilities as wellas provide for incentives to the developers ofinfrastructure.

■ Data and Information Security Provisions.These provisions will include laws governing datasecurity and privacy. Such regulation is a keyrequirement of both the IT and ITES-BPO indus-tries. If regulations are passed that would makethese issues enforceable, it would enhance Ghana’sstatus as a location to conduct ITES services.

4.4.3 Essential Policy ElementsIn light of the above, we recommend that theITES-BPO policy framework for Ghana have thefollowing components:■ A clearly defined objective that will help make

Ghana the preferred destination for domesticand foreign investments in the ITES-BPOindustry among emerging countries within theAfrican region.

■ Definition of the services that fall under ITES-BPO, which in turn will define the scope ofgovernance for the Policy.

■ Identification of key agencies and governmentdepartments that will be involved in regulating,supporting, or framing the design or implemen-tation of the policy and its components.

■ Provisions to ensure implementation of develop-ment initiatives provided under the policy,including➤ education and training reforms and incentives,➤ industry law provisions, such as allowing

ITES-BPO establishments to function 365days a year and run a three-shift operation;and

➤ labor law exemptions.

■ Economic incentives that are provided underthe policy, including ➤ facilitative investment provisions, which will

allow foreign investors in ITES-BPO fast

track clearance of proposals; single windowclearance facilities and simplified customclearance procedures;

➤ fiscal and tax Incentives, including preferen-tial bank loans and subsidized interest ratesfor ITES-BPO investors;

➤ trade pomotion incentives, such as state-sponsored events for the ITES-BPO sector;

➤ incubation/pre-operational assistance; and➤ intellectual property development.

■ Infrastructure Development Guidelines, includ-ing those of:➤ development of suitable real estate, special

economic zones/ technology parks,➤ telecommunications, ➤ power,➤ transportation; and➤ social infrastructure.

■ Data and information security provisions thatwill be essential for the development of theITES-BPO industry.

4.5 TECHNOLOGY PARKFRAMEWORK

4.5.1 Introduction to Technology ParksA prerequisite for the development and growth ofthe IT and ITES sectors is the availability of facilita-tive infrastructure. To this effect, countries world-wide have initiated several projects around the cre-ation of technology parks or ICT Parks that provideorganisations and employees a development-friendlyenvironment and therefore encourage the formationand growth of businesses in the IT and ITES sector.

The concept of technology parks was developedduring the 1970s, in order to facilitate technologytransfer from the public research community to theprivate sector as well as to enhance entrepreneur-ship culture among the scientific sector. Accordingto a definition from the International Associationof Science Parks, “Technology parks stimulateand manage the flow of knowledge and technolo-gy among universities, R&D institutions, compa-nies, and markets; they facilitate the creationand growth of innovation-based companiesthrough incubation and spin-off processes; andthey provide other value-added services togetherwith high-quality space and facilities.’”



fiscal and tax incentives, financial assistance,etc., for both domestic and international com-panies and help promote Ghana as an attractiveinvestment destination.

■ Infrastructure Development Guidelines.These guidelines will address issues andconcerns pertaining to availability and devel-opment of necessary infrastructure withintelecommunications, real estate, power andtransportation. The policy will also provideguidelines on minimum service level agreementsand pricing of infrastructure facilities as wellas provide for incentives to the developers ofinfrastructure.

■ Data and Information Security Provisions.These provisions will include laws governing datasecurity and privacy. Such regulation is a keyrequirement of both the IT and ITES-BPO indus-tries. If regulations are passed that would makethese issues enforceable, it would enhance Ghana’sstatus as a location to conduct ITES services.

4.4.3 Essential Policy ElementsIn light of the above, we recommend that theITES-BPO policy framework for Ghana have thefollowing components:■ A clearly defined objective that will help make

Ghana the preferred destination for domesticand foreign investments in the ITES-BPOindustry among emerging countries within theAfrican region.

■ Definition of the services that fall under ITES-BPO, which in turn will define the scope ofgovernance for the Policy.

■ Identification of key agencies and governmentdepartments that will be involved in regulating,supporting, or framing the design or implemen-tation of the policy and its components.

■ Provisions to ensure implementation of develop-ment initiatives provided under the policy,including➤ education and training reforms and incentives,➤ industry law provisions, such as allowing

ITES-BPO establishments to function 365days a year and run a three-shift operation;and

➤ labor law exemptions.

■ Economic incentives that are provided underthe policy, including ➤ facilitative investment provisions, which will

allow foreign investors in ITES-BPO fast

track clearance of proposals; single windowclearance facilities and simplified customclearance procedures;

➤ fiscal and tax Incentives, including preferen-tial bank loans and subsidized interest ratesfor ITES-BPO investors;

➤ trade pomotion incentives, such as state-sponsored events for the ITES-BPO sector;

➤ incubation/pre-operational assistance; and➤ intellectual property development.

■ Infrastructure Development Guidelines, includ-ing those of:➤ development of suitable real estate, special

economic zones/ technology parks,➤ telecommunications, ➤ power,➤ transportation; and➤ social infrastructure.

■ Data and information security provisions thatwill be essential for the development of theITES-BPO industry.

4.5 TECHNOLOGY PARKFRAMEWORK

4.5.1 Introduction to Technology ParksA prerequisite for the development and growth ofthe IT and ITES sectors is the availability of facilita-tive infrastructure. To this effect, countries world-wide have initiated several projects around the cre-ation of technology parks or ICT Parks that provideorganisations and employees a development-friendlyenvironment and therefore encourage the formationand growth of businesses in the IT and ITES sector.

The concept of technology parks was developedduring the 1970s, in order to facilitate technologytransfer from the public research community to theprivate sector as well as to enhance entrepreneur-ship culture among the scientific sector. Accordingto a definition from the International Associationof Science Parks, “Technology parks stimulateand manage the flow of knowledge and technolo-gy among universities, R&D institutions, compa-nies, and markets; they facilitate the creationand growth of innovation-based companiesthrough incubation and spin-off processes; andthey provide other value-added services togetherwith high-quality space and facilities.’”



While some countries have technology parks devel-oped and managed by governments, current trendsshow public-private partnerships. The technologyparks usually offer excellent infrastructure and pro-vide incubation facilities that assist new businessesto get established (obtain approvals, equipment,high quality broadband connections, conferencerooms etc).The Software Technology Parks of India,for example offer business incubation facilities fordevelopment and growth of new firms. Most parksseek to attract “anchor” one or two large foreignmultinationals firms which, in turn, attract supplierfirms and, eventually, national imitator firms.

This close proximity strengthens the functioning ofthe industry through greater collaboration amongthe different stakeholders.

It is important to bear in mind that technologyparks must be regarded as one of the elements ortools to promote and develop an industry/segmentor to achieve certain goals and objectives. creationof technology parks by itself cannot be the only factorif attracting investments or developing an industry.The presence of a technology park requires the pres-ence of other elements, such as high-speed Internetconnections, availability of requisite talent, attractivefiscal and regulatory environment etc.

4.5.2 Developing IT/Technology ParksIn this context, taking into account the uniquerequirements of the IT/ITES industry, some of thekey components for developing IT/ TechnologyPark infrastructure in Ghana are provided below.

4.5.3 Essential Elements forIT/Technology Park DevelopmentSimilar to outlining a policy for the ITES-BPOindustry, a development framework for the devel-opment of IT/technology parks will involve:

■ defining the value proposition for the Techparks, which in turn will determine the benefitsand facilities to be developed;

■ ensuring that the locations allocated for suchdevelopment meet the necessary requirements

Under the Multimedia Super Corridor (MSC) Project of Malaysia,the Malaysian government has equipped core areas in the MSCMalaysia with high-capacity global telecommunications and logis-tics networks. The MSC Malaysia is also supported by securecyber laws, strategic policies; and a range of financial and non-financial incentives for investors84 in the form of pioneer status, -100 percent exemption from taxable statutory income for a peri-od of five years for the first round, a 100-percent Investment TaxAllowance (ITA), duty free imports, availability of the services of aone stop shop, globally competitive telecommunication tariffs, etc.

While technology parks are primarily property-basedinitiatives, they also support a business network andact as catalysts for local development, knowledgetransfer and employment. More specifically, technol-ogy parks offer a concerted development ofIT/ITES-BPO companies, training institutions,transportation services, catering services, social infra-structure, in close proximity to each other.

84 http://www.msc.com.my/msc/msc.asp

FIGURE 4.5.2.1 Key components of developing IT/technology parks

Develop Policyand Strategies

InvestmentPromotion

TechnologyTransfer

Provide FinancialServices

SkillsDevelopment

FacilitiesDevelopment

ConceptualizationPlanning

and DesignEstablishment and Capacity

Building

Operation andManagement

Monitoring and Continuous

Improvement



While some countries have technology parks devel-oped and managed by governments, current trendsshow public-private partnerships. The technologyparks usually offer excellent infrastructure and pro-vide incubation facilities that assist new businessesto get established (obtain approvals, equipment,high quality broadband connections, conferencerooms etc).The Software Technology Parks of India,for example offer business incubation facilities fordevelopment and growth of new firms. Most parksseek to attract “anchor” one or two large foreignmultinationals firms which, in turn, attract supplierfirms and, eventually, national imitator firms.

This close proximity strengthens the functioning ofthe industry through greater collaboration amongthe different stakeholders.

It is important to bear in mind that technologyparks must be regarded as one of the elements ortools to promote and develop an industry/segmentor to achieve certain goals and objectives. creationof technology parks by itself cannot be the only factorif attracting investments or developing an industry.The presence of a technology park requires the pres-ence of other elements, such as high-speed Internetconnections, availability of requisite talent, attractivefiscal and regulatory environment etc.

4.5.2 Developing IT/Technology ParksIn this context, taking into account the uniquerequirements of the IT/ITES industry, some of thekey components for developing IT/ TechnologyPark infrastructure in Ghana are provided below.

4.5.3 Essential Elements forIT/Technology Park DevelopmentSimilar to outlining a policy for the ITES-BPOindustry, a development framework for the devel-opment of IT/technology parks will involve:

■ defining the value proposition for the Techparks, which in turn will determine the benefitsand facilities to be developed;

■ ensuring that the locations allocated for suchdevelopment meet the necessary requirements

Under the Multimedia Super Corridor (MSC) Project of Malaysia,the Malaysian government has equipped core areas in the MSCMalaysia with high-capacity global telecommunications and logis-tics networks. The MSC Malaysia is also supported by securecyber laws, strategic policies; and a range of financial and non-financial incentives for investors84 in the form of pioneer status, -100 percent exemption from taxable statutory income for a peri-od of five years for the first round, a 100-percent Investment TaxAllowance (ITA), duty free imports, availability of the services of aone stop shop, globally competitive telecommunication tariffs, etc.

While technology parks are primarily property-basedinitiatives, they also support a business network andact as catalysts for local development, knowledgetransfer and employment. More specifically, technol-ogy parks offer a concerted development ofIT/ITES-BPO companies, training institutions,transportation services, catering services, social infra-structure, in close proximity to each other.

84 http://www.msc.com.my/msc/msc.asp

FIGURE 4.5.2.1 Key components of developing IT/technology parks

Develop Policyand Strategies

InvestmentPromotion

TechnologyTransfer

Provide FinancialServices

SkillsDevelopment

FacilitiesDevelopment

ConceptualizationPlanning

and DesignEstablishment and Capacity

Building

Operation andManagement

Monitoring and Continuous

Improvement



with regards to area, connectivity, and proximityto cluster institutions;

■ defining the tenant profile for the parks;■ providing for development of the necessary

infrastructure such as real estate, telecommuni-cations, power, and energy and transportation;

■ developing a business incubation and assistancecell that will especially encourage domesticentrepreneurship; and

■ creating a management and administrationauthority that will supervise and provide forongoing development of the park.

In general, technology parks have the following basics:■ High-quality and adequate infrastructures

(excellent quality of buildings, buildings with‘plug and play’ options, high quality telephoneand internet communications and transporta-tion accesses, good location and amenities.

■ Good common services (business center amenities,security conference areas, food courts or cafeteria,security, parking space for employees and visitors).

■ Incubation offerings to develop domesticenterprises.

Eastern European countries in general offer aneducated labor force, talented and trained profes-sionals, and a moderate cost of talent. LatinAmerica has services capabilities but across asmaller set of competencies. For example, inMexico, which is culturally compatible withAmerica, its weak English language skill sets keepsmany offshore players away. In Asia, what worksin India’s favor is its large pool of educated andtalented labor, advanced educational system, lan-guage competency that help it to offer broadrange of services in ITES-BPO and IT.

Ghana offers good English speaking talent, moder-ate costs, but limited professional capabilities,restricting its ability to offer a broad range of serv-ices to prospective offshore company. The volumeof graduate output is a cause for concern in themedium and long run.

In line with our recommendations in Section 4.2,we have provided below an assessment of the skillsets required.

HITEC City, located in Hyderabad in Andhra Pradesh, is located on 151 acres with 5 million square feet of office space. It is being builtin a phased manner at a cost of USD$375 million with 50 percent on developed space (i.e. ready to occupy on a ‘Shell concept’ andmulti-tenanted buildings) and 50 percent as independent campuses, built to customer specification. It is marketed and maintained by L&TInfocity Ltd., a joint venture of Indian engineering giant Larsen & Toubro Limited (which owns 89 percent of the venture) and the balance bystate-owned corporation.

The Andhra Pradesh government has designated 5,000 acres (20 square kilometeres) around Hitec City as “Cyberabad” in order to givea boost to the development of IT infrastructure.The state has built roads, public works, and utilities. It also has a hotel, a shopping complex,and a medical center. Housing for employees is in the process of being developed by the private sector.

In technology, it offers high speed connection to the Internet through fiber optic cables with communication links to the world. It has telephony,video conferencing, and satellite service. These services are provided by government agencies, such as STPI.

It already houses such tenants as Microsoft, UBS, Dell, HSBC, Accenture, IBM, GE Capital, Toshiba, Amazon, and Oracle.

In the context of Ghana, based on the experienceof Asian countries, especially India and China,the government needs to play a catalytic role indeveloping technology parks. While the countryhas medical transcription ITES centers, develop-ing technology parks will aid and boost theprospects of attracting FDI in other areas ofITES.

4.6 SKILLS SETS FOR ITES-BPOEach country has its own distinct abilities andcapabilities based on distinctive sets of skills,which affect their latent market opportunities.

4.6.1 Skill SetsThere are two types of skill sets- basic and job-related. Typically, basic skills are acquired by theworkforce prior to employment. They consist of lit-eracy, problem-solving, numerical reasoning andwritten communication. Occupational or job-related skills required by workers are those neces-sary to perform a specific job or function. In thecontext of ITES-BPO or any other industry forthat matter, both skills are required.

In order to address the talent skill requirements ofthe ITES-BPO sector, it is essential for Ghana tohave an understanding of the specific qualifications



with regards to area, connectivity, and proximityto cluster institutions;

■ defining the tenant profile for the parks;■ providing for development of the necessary

infrastructure such as real estate, telecommuni-cations, power, and energy and transportation;

■ developing a business incubation and assistancecell that will especially encourage domesticentrepreneurship; and

■ creating a management and administrationauthority that will supervise and provide forongoing development of the park.

In general, technology parks have the following basics:■ High-quality and adequate infrastructures

(excellent quality of buildings, buildings with‘plug and play’ options, high quality telephoneand internet communications and transporta-tion accesses, good location and amenities.

■ Good common services (business center amenities,security conference areas, food courts or cafeteria,security, parking space for employees and visitors).

■ Incubation offerings to develop domesticenterprises.

Eastern European countries in general offer aneducated labor force, talented and trained profes-sionals, and a moderate cost of talent. LatinAmerica has services capabilities but across asmaller set of competencies. For example, inMexico, which is culturally compatible withAmerica, its weak English language skill sets keepsmany offshore players away. In Asia, what worksin India’s favor is its large pool of educated andtalented labor, advanced educational system, lan-guage competency that help it to offer broadrange of services in ITES-BPO and IT.

Ghana offers good English speaking talent, moder-ate costs, but limited professional capabilities,restricting its ability to offer a broad range of serv-ices to prospective offshore company. The volumeof graduate output is a cause for concern in themedium and long run.

In line with our recommendations in Section 4.2,we have provided below an assessment of the skillsets required.

HITEC City, located in Hyderabad in Andhra Pradesh, is located on 151 acres with 5 million square feet of office space. It is being builtin a phased manner at a cost of USD$375 million with 50 percent on developed space (i.e. ready to occupy on a ‘Shell concept’ andmulti-tenanted buildings) and 50 percent as independent campuses, built to customer specification. It is marketed and maintained by L&TInfocity Ltd., a joint venture of Indian engineering giant Larsen & Toubro Limited (which owns 89 percent of the venture) and the balance bystate-owned corporation.

The Andhra Pradesh government has designated 5,000 acres (20 square kilometeres) around Hitec City as “Cyberabad” in order to givea boost to the development of IT infrastructure.The state has built roads, public works, and utilities. It also has a hotel, a shopping complex,and a medical center. Housing for employees is in the process of being developed by the private sector.

In technology, it offers high speed connection to the Internet through fiber optic cables with communication links to the world. It has telephony,video conferencing, and satellite service. These services are provided by government agencies, such as STPI.

It already houses such tenants as Microsoft, UBS, Dell, HSBC, Accenture, IBM, GE Capital, Toshiba, Amazon, and Oracle.

In the context of Ghana, based on the experienceof Asian countries, especially India and China,the government needs to play a catalytic role indeveloping technology parks. While the countryhas medical transcription ITES centers, develop-ing technology parks will aid and boost theprospects of attracting FDI in other areas ofITES.

4.6 SKILLS SETS FOR ITES-BPOEach country has its own distinct abilities andcapabilities based on distinctive sets of skills,which affect their latent market opportunities.

4.6.1 Skill SetsThere are two types of skill sets- basic and job-related. Typically, basic skills are acquired by theworkforce prior to employment. They consist of lit-eracy, problem-solving, numerical reasoning andwritten communication. Occupational or job-related skills required by workers are those neces-sary to perform a specific job or function. In thecontext of ITES-BPO or any other industry forthat matter, both skills are required.

In order to address the talent skill requirements ofthe ITES-BPO sector, it is essential for Ghana tohave an understanding of the specific qualifications



and skills required for different ITES-BPO workthat is offshored across the globe.

In the following sections (4.6.3) Hewitt has identi-fied requirements and subsequently drawn a skill—qualification matrix that can be applied for dataprocessing and contact centers based on Hewitt’sexperience in working with the ITES-BPO sector.Processes have been classified as basic, medium,and high-end based on their complexity and thequalifications required for performing theseprocess. The more complex tasks under ITES-BPOare expected to require post-graduate qualificationsor other certifications in addition to standard grad-uate degrees.

For example, while a typical back-office dataentry/processing employee would need to be agraduate or a mature SSS3 in any stream, anemployee in the high end area such as DefinedBenefits processing would need to be at least agraduate or post-graduate in a specialized area.However, people with specific graduate degreequalifications may be better suited for specificfunctions. For example, a chartered accountant orchartered financial analyst may be better qualifiedto support remote accounting services or creditassessment support for a client. The person mayalso be required to undergo additional certifica-tion if required by the regulations of the clientcountry. However, for the data entry supportwork of maintaining customer database orattending queries, a Bachelors degree may be suf-ficient.

4.6.2 Current Position of Basic Skills in Ghana Schools do not offer computer classes. Hence, aSSS3 graduate does not possess any form of com-puter literacy, though there may be a few exceptionsin the private domain. Computers are not usedwidely in the tertiary level, though attempts arebeing made to introduce them in all courses in thecolleges.

English is spoken widely and is the main mediumof instruction in schools and colleges. Skills such ascommunication and listening are behavioral.Problem solving and numerical abilities will beavailable in most students having elective mathe-matics or accounting in school.

4.6.3 ITES-BPO Functions andCorresponding Skills RequirementsIn this section we have provided the skill-setrequirements for the identified opportunities (BackOffice/Data Processing and Customer ContactServices) in the short and medium term as well asthe universal skills required for Ghana’s ITES-BPOindustry in the long term.

The skill requirements are based on HewittAssociates’ interactions with a large number ofITES-BPO players in India and abroad, to under-stand current recruitment practices, attrition andskills required for the sector.

From the above table it is clear that the backoffice/data processing function, as well as theCustomer Contact Services Functions require com-paratively low-end skills while the other functionsrequire significant value add and specialized skillsets to be developed.

Given the status of the current educational systemand the existing skill sets in Ghana, the country’sITES-BPO industry can only support the low-endsegments, coupled with requisite training in basicPC proficiency and other areas.

4.6.4 Review of Current TrainingPrograms in GhanaHewitt has reviewed a training program, on a sam-ple basis, currently being run in the GhanaMultimedia Centre, Accra. Some of the changesthat may be introduced are as follows:■ Medical transcription training should include

listening skills for phonetics for the U.S./U.K.accents.

■ Call center training should be reinforced withcross-cultural behavior expectations and basicunderstanding of telecom technology such asIVR, call delivery etc.

These comments are preliminary and based oninterviews only.

4.6.5 Development of Skills for FutureWhile educational reform in Ghana would addressthe gaps in current skill sets in the pre /tertiaryeducation vis-à-vis the vocational requirements,especially on introduction of computer literacy, the



and skills required for different ITES-BPO workthat is offshored across the globe.

In the following sections (4.6.3) Hewitt has identi-fied requirements and subsequently drawn a skill—qualification matrix that can be applied for dataprocessing and contact centers based on Hewitt’sexperience in working with the ITES-BPO sector.Processes have been classified as basic, medium,and high-end based on their complexity and thequalifications required for performing theseprocess. The more complex tasks under ITES-BPOare expected to require post-graduate qualificationsor other certifications in addition to standard grad-uate degrees.

For example, while a typical back-office dataentry/processing employee would need to be agraduate or a mature SSS3 in any stream, anemployee in the high end area such as DefinedBenefits processing would need to be at least agraduate or post-graduate in a specialized area.However, people with specific graduate degreequalifications may be better suited for specificfunctions. For example, a chartered accountant orchartered financial analyst may be better qualifiedto support remote accounting services or creditassessment support for a client. The person mayalso be required to undergo additional certifica-tion if required by the regulations of the clientcountry. However, for the data entry supportwork of maintaining customer database orattending queries, a Bachelors degree may be suf-ficient.

4.6.2 Current Position of Basic Skills in Ghana Schools do not offer computer classes. Hence, aSSS3 graduate does not possess any form of com-puter literacy, though there may be a few exceptionsin the private domain. Computers are not usedwidely in the tertiary level, though attempts arebeing made to introduce them in all courses in thecolleges.

English is spoken widely and is the main mediumof instruction in schools and colleges. Skills such ascommunication and listening are behavioral.Problem solving and numerical abilities will beavailable in most students having elective mathe-matics or accounting in school.

4.6.3 ITES-BPO Functions andCorresponding Skills RequirementsIn this section we have provided the skill-setrequirements for the identified opportunities (BackOffice/Data Processing and Customer ContactServices) in the short and medium term as well asthe universal skills required for Ghana’s ITES-BPOindustry in the long term.

The skill requirements are based on HewittAssociates’ interactions with a large number ofITES-BPO players in India and abroad, to under-stand current recruitment practices, attrition andskills required for the sector.

From the above table it is clear that the backoffice/data processing function, as well as theCustomer Contact Services Functions require com-paratively low-end skills while the other functionsrequire significant value add and specialized skillsets to be developed.

Given the status of the current educational systemand the existing skill sets in Ghana, the country’sITES-BPO industry can only support the low-endsegments, coupled with requisite training in basicPC proficiency and other areas.

4.6.4 Review of Current TrainingPrograms in GhanaHewitt has reviewed a training program, on a sam-ple basis, currently being run in the GhanaMultimedia Centre, Accra. Some of the changesthat may be introduced are as follows:■ Medical transcription training should include

listening skills for phonetics for the U.S./U.K.accents.

■ Call center training should be reinforced withcross-cultural behavior expectations and basicunderstanding of telecom technology such asIVR, call delivery etc.

These comments are preliminary and based oninterviews only.

4.6.5 Development of Skills for FutureWhile educational reform in Ghana would addressthe gaps in current skill sets in the pre /tertiaryeducation vis-à-vis the vocational requirements,especially on introduction of computer literacy, the



industry clusters on training have a significant roleto play. The growth of current training organiza-tions is limited, but the same will develop as thesector matures in Ghana.

The immediate requirement for Ghana is toimprove the skill of its floating population which,along with the graduates, can meet the short- andmedium-term requirements of the industry. In themedium term, it is expected that the ITES-BPOsector has the potential to employ 16,000 -24,000

people on reasonable estimate. At an ambitiousestimate, the number can go up to 36,00085.

4.7 THE FUTURE

4.7.1 Need to prioritizeIn order to achieve its objectives, Ghana will have totackle and address the developmental activities in aparallel, rather than sequential form. While developing

ITES-BPO Functions Activities Basic skill requirements

■ Fluent spoken English

■ Verbal ability

■ Keyboard skills

■ Listening skills

■ Numerical and analytical ability

■ Concentration and accuracy

Back Office/ Data Processing ■ Data entry

■ Data processing

■ Document management


■ Good communication skills

■ Keyboard skills


■ Problem solving skills

Customer Contact Services ■ Customer services

■ Collections

■ Telemarketing

■ Sales Support

■ Strong technical and analytical

skills

■ Excellent oral and writing skills

■ Team and project management

skills



Knowledge Services/ Analytics ■ Analysis

■ Decision support

■ Consulting Services

■ R&D and engineering design

■ Strong domain skills


skills



skills



Business Research ■ Specialized industry data analysis

■ Data mining

■ Strong technical skills

■ Fluent spoken English and decision

making skills

■ Business knowledge

Technical Support ■ Technology support

■ Application support

■ Networking support

■ Identified Market Opportunities for Ghana in Short and Medium Term

85 Refer to Chapter 5.1



industry clusters on training have a significant roleto play. The growth of current training organiza-tions is limited, but the same will develop as thesector matures in Ghana.

The immediate requirement for Ghana is toimprove the skill of its floating population which,along with the graduates, can meet the short- andmedium-term requirements of the industry. In themedium term, it is expected that the ITES-BPOsector has the potential to employ 16,000 -24,000

people on reasonable estimate. At an ambitiousestimate, the number can go up to 36,00085.

4.7 THE FUTURE

4.7.1 Need to prioritizeIn order to achieve its objectives, Ghana will have totackle and address the developmental activities in aparallel, rather than sequential form. While developing

ITES-BPO Functions Activities Basic skill requirements


■ Verbal ability

■ Keyboard skills


■ Numerical and analytical ability

■ Concentration and accuracy

Back Office/ Data Processing ■ Data entry

■ Data processing

■ Document management


■ Good communication skills

■ Keyboard skills



Customer Contact Services ■ Customer services

■ Collections

■ Telemarketing

■ Sales Support


skills



skills



Knowledge Services/ Analytics ■ Analysis

■ Decision support

■ Consulting Services

■ R&D and engineering design

■ Strong domain skills


skills



skills



Business Research ■ Specialized industry data analysis

■ Data mining

■ Strong technical skills

■ Fluent spoken English and decision

making skills

■ Business knowledge

Technical Support ■ Technology support

■ Application support

■ Networking support

■ Identified Market Opportunities for Ghana in Short and Medium Term

85 Refer to Chapter 5.1



HR capacity will be an ongoing process, based onthe progression and development and the require-ments of the industry, development of IT/ITES pol-icy and its implementation by the BPO Secretariat isclosely linked for the current and future develop-ment of the industry. The telecommunication infra-structure, once addressed in the short and mediumrun, will be expected to apply market corrections,again based on the industry requirements and vol-umes. Once these initiatives are addressed, it will be

easier for Ghana to roll out the technology park ini-tiatives and move up in the value chain. It must bestressed that theses initiatives are the tools to meetthe objective of developing the industry.

In order to move up the value chain from the currentmedical transcription ITES-BPO to other processes,Ghana will have to prioritize its developmental initia-tives. The direction that it needs to achieve is visuallydepicted in the above figure 4.7.1.1.

Figure 4.7.1.1 Issues to be addressed for reaching the destination

Short term Medium term Long term

Time line

Act

ivit

ies

prio

riti

zed

Develop ongoing human resources capacity building/skill sets

Develop and implement IT/ITES policy

Address Technology Parks/Real Estate Availability

Address telecommunication infrastructure issues

Develop BPO Secretariat & Industry Association



HR capacity will be an ongoing process, based onthe progression and development and the require-ments of the industry, development of IT/ITES pol-icy and its implementation by the BPO Secretariat isclosely linked for the current and future develop-ment of the industry. The telecommunication infra-structure, once addressed in the short and mediumrun, will be expected to apply market corrections,again based on the industry requirements and vol-umes. Once these initiatives are addressed, it will be

easier for Ghana to roll out the technology park ini-tiatives and move up in the value chain. It must bestressed that theses initiatives are the tools to meetthe objective of developing the industry.

In order to move up the value chain from the currentmedical transcription ITES-BPO to other processes,Ghana will have to prioritize its developmental initia-tives. The direction that it needs to achieve is visuallydepicted in the above figure 4.7.1.1.

Figure 4.7.1.1 Issues to be addressed for reaching the destination

Short term Medium term Long term

Time line

Act

ivit

ies

prio

riti

zed

Develop ongoing human resources capacity building/skill sets

Develop and implement IT/ITES policy

Address Technology Parks/Real Estate Availability

Address telecommunication infrastructure issues

Develop BPO Secretariat & Industry Association




Investment Promotion Strategy . 83

5 INVESTMENTPROMOTIONSTRATEGY

5.1 PURPOSE OFINVESTMENT PROMOTIONPrivate venture is a major force driving globalization,and is acting as a potent mechanism for growth.Cross-border investments have more than doubledover the last decade alone. Emerging economiesfrom Asia have shown that private sector investmentis one of the primary means of increasing employ-ment, resulting in sustained poverty reduction.

The presence of a conducive and enabling businessenvironment is one of the most important factorsinfluencing such private sector investments, particularlywhen the competition among countries to attractinvestments is intense. Herein, governments play avital role in encouraging private sector investment byproviding an enabling environment and infrastructure.

Investment promotion provides an important mech-anism for communicating the benefits of investingin a country to potential investors, and assisting theinvestors in implementing their projects. Studies offoreign investment decisions show that even thelargest firms do not systematically search for thebest environment for investment opportunities.Rather, such a search is often a response to prob-lems from the external environment.

Towards this effect, governments have adopted differ-ent models for attracting investments into their coun-try, taking into consideration the overall developmentobjectives as well as comparative advantages offered.

5.2 Recommended InvestmentPromotion StrategyIn developing an investment promotion strategy, itis first necessary to determine the pillars of invest-ment promotion and define a vision for the plan.

Accordingly the vision of the InvestmentPromotion Strategy for Ghana would be: “Tomake Ghana a preferred destination for domesticand foreign investments in the ITES industry(for the identified niches or market segments),amongst emerging destinations across the worldand specifically within the African continent.”

Ghana’s IP plan should focus on promotingthe country as an attractive location for for-eign investors and domestic entrepreneursthrough:■ image-building aimed at foreign investors

with the objective of dispelling any pre-con-ceived notions about the investment climatein the region and especially in Ghana;

■ highlighting advantages of Ghana as a des-tination and the progressive initiativesbeing undertaken by the government withregards to incentives, exemptions, and facil-ities offered to investors, infrastructuredevelopment, as well as efforts towards talentdevelopment;

■ providing up-to-date information on regula-tions, initiatives, incentives and facilitiesoffered such as the technology parks (inprogress), free-zone initiatives for domesticand foreign investors, and incubation assis-tance to domestic investors; and

■ leveraging existing promotion efforts forother industry sectors (as well as channels).

Promoting Ghana as an attractive destination forthe ITES sector, presumes that the requisite humanresources, infrastructure and the supporting environ-ment are already in place. This will be the key tothe success of any promotion strategy and relatedactivities.

5.3 Components of ProposedInvestment Promotion StrategyHaving prepared the vision of the investment pro-motion as well as identifying the key area, the nextstep is to map out the implementation strategy.

Hewitt’s proposed promotion plan is grounded onthe specific needs, culture, and business opportuni-ties in Ghana.

Specifically, we have detailed the following as keycomponents of a comprehensive investment pro-motion plan:



5 INVESTMENTPROMOTIONSTRATEGY

5.1 PURPOSE OFINVESTMENT PROMOTIONPrivate venture is a major force driving globalization,and is acting as a potent mechanism for growth.Cross-border investments have more than doubledover the last decade alone. Emerging economiesfrom Asia have shown that private sector investmentis one of the primary means of increasing employ-ment, resulting in sustained poverty reduction.

The presence of a conducive and enabling businessenvironment is one of the most important factorsinfluencing such private sector investments, particularlywhen the competition among countries to attractinvestments is intense. Herein, governments play avital role in encouraging private sector investment byproviding an enabling environment and infrastructure.

Investment promotion provides an important mech-anism for communicating the benefits of investingin a country to potential investors, and assisting theinvestors in implementing their projects. Studies offoreign investment decisions show that even thelargest firms do not systematically search for thebest environment for investment opportunities.Rather, such a search is often a response to prob-lems from the external environment.

Towards this effect, governments have adopted differ-ent models for attracting investments into their coun-try, taking into consideration the overall developmentobjectives as well as comparative advantages offered.

5.2 Recommended InvestmentPromotion StrategyIn developing an investment promotion strategy, itis first necessary to determine the pillars of invest-ment promotion and define a vision for the plan.

Accordingly the vision of the InvestmentPromotion Strategy for Ghana would be: “Tomake Ghana a preferred destination for domesticand foreign investments in the ITES industry(for the identified niches or market segments),amongst emerging destinations across the worldand specifically within the African continent.”

Ghana’s IP plan should focus on promotingthe country as an attractive location for for-eign investors and domestic entrepreneursthrough:■ image-building aimed at foreign investors

with the objective of dispelling any pre-con-ceived notions about the investment climatein the region and especially in Ghana;

■ highlighting advantages of Ghana as a des-tination and the progressive initiativesbeing undertaken by the government withregards to incentives, exemptions, and facil-ities offered to investors, infrastructuredevelopment, as well as efforts towards talentdevelopment;

■ providing up-to-date information on regula-tions, initiatives, incentives and facilitiesoffered such as the technology parks (inprogress), free-zone initiatives for domesticand foreign investors, and incubation assis-tance to domestic investors; and

■ leveraging existing promotion efforts forother industry sectors (as well as channels).

Promoting Ghana as an attractive destination forthe ITES sector, presumes that the requisite humanresources, infrastructure and the supporting environ-ment are already in place. This will be the key tothe success of any promotion strategy and relatedactivities.

5.3 Components of ProposedInvestment Promotion StrategyHaving prepared the vision of the investment pro-motion as well as identifying the key area, the nextstep is to map out the implementation strategy.

Hewitt’s proposed promotion plan is grounded onthe specific needs, culture, and business opportuni-ties in Ghana.

Specifically, we have detailed the following as keycomponents of a comprehensive investment pro-motion plan:



5.4 OWNERSHIP OF ITESINVESTMENT PROMOTIONIN GHANA - INVESTMENTPROMOTION CELL While the government outlines investment promo-tion strategies and initiatives, such efforts maybecome ineffective due to the lack of ownership bya single agency and lack of coordination betweenvarious ministries and agencies involved. In thisregard, most countries in the world have createdone-stop-shops or dedicated agencies for invest-ment promotion of their target sectors.

To this effect, we recommend creating anInvestment Promotion Cell under the proposedITES-BPO Secretariat by the government ofGhana. This cell will be responsible for developingand implementing all the investment promotionactivities for the ITES-BPO sector in Ghana.

5.4.1 Recommended Role of InvestmentPromotion Cell (IPC) The primary responsibility of the IPC will be todevelop, coordinate and implement investment pro-motion activities for the ITES-BPO sector in Ghana.The key responsibilities of the IPC would be to:■ create a positive international image of Ghana as

an attractive location for ITES-BPO investment;■ identify potential customers,■ build relationships with target customers,■ cooperate with other relevant organizations in

Ghana, such as the ITES-BPO industry associa-tion as well as public and private companies,

■ cooperate with investment promotion agenciesin the region and worldwide, and

■ facilitate communication and feedback betweeninvestors and the government.

5.4.2 Recommended OrganizationalStructure of the IPC The effectiveness of the IPC depends on its orga-nizational structure. The cell must be equipped toquickly respond to investors’ needs, adjust tochanging market conditions and possess autonomyto refine and implement the investment promo-tion strategy in the long term - activities that aremore typical of a private sector agency than of agovernment body. Hence the following organiza-tional structure is recommended for the IPC:

■ The IPC will be a specialized cell residingunder the proposed ITES-BPO Secretariat,which will be able to provide an adequatebudget for promotion and marketing. Thecreation of such a cell will be seen as ademonstration of the government’s commit-ment to the ITES-BPO sector. As a result, thegovernment could enjoy greater credibility andvisibility in the international and nationalbusiness community.

■ To deliver on its responsibilities, the IPC shouldbe staffed with people experienced in marketingand in the private sector. who have an under-standing of the structure and procedures of thegovernment in Ghana. Of critical importancewill be the head of this agency who should:➤ be a full time employee of the IPC,➤ come from the private sector and have a

background in marketing, and➤ be able to communicate effectively with

government officials and domestic and for-eign businesses.

■ It may be recalled that BPO secretariat wouldconsist of the steering committee which wouldinclude senior representatives from various min-istries such as Communication, Finance andEconomic Planning, Energy, and Education.The relationship between BPO Secretariat,under which the IPC would reside, should beformal and contain adequate knowledge basis toprovide inputs to investment policy advocacyfor Ghana

■ The IPC should work like a quasi-governmentalorganization, funded by the government but sepa-rated from the governmental departments. It should

FIGURE 5.3 Components of aninvestment promotion strategy

TargetMarket

Segments

Investment Promotion Cell

MarketingMessage

Key StrategicInitiatives

Marketing andPromotionActivities

Tools andMaterials



5.4 OWNERSHIP OF ITESINVESTMENT PROMOTIONIN GHANA - INVESTMENTPROMOTION CELL While the government outlines investment promo-tion strategies and initiatives, such efforts maybecome ineffective due to the lack of ownership bya single agency and lack of coordination betweenvarious ministries and agencies involved. In thisregard, most countries in the world have createdone-stop-shops or dedicated agencies for invest-ment promotion of their target sectors.

To this effect, we recommend creating anInvestment Promotion Cell under the proposedITES-BPO Secretariat by the government ofGhana. This cell will be responsible for developingand implementing all the investment promotionactivities for the ITES-BPO sector in Ghana.

5.4.1 Recommended Role of InvestmentPromotion Cell (IPC) The primary responsibility of the IPC will be todevelop, coordinate and implement investment pro-motion activities for the ITES-BPO sector in Ghana.The key responsibilities of the IPC would be to:■ create a positive international image of Ghana as

an attractive location for ITES-BPO investment;■ identify potential customers,■ build relationships with target customers,■ cooperate with other relevant organizations in

Ghana, such as the ITES-BPO industry associa-tion as well as public and private companies,

■ cooperate with investment promotion agenciesin the region and worldwide, and

■ facilitate communication and feedback betweeninvestors and the government.

5.4.2 Recommended OrganizationalStructure of the IPC The effectiveness of the IPC depends on its orga-nizational structure. The cell must be equipped toquickly respond to investors’ needs, adjust tochanging market conditions and possess autonomyto refine and implement the investment promo-tion strategy in the long term - activities that aremore typical of a private sector agency than of agovernment body. Hence the following organiza-tional structure is recommended for the IPC:

■ The IPC will be a specialized cell residingunder the proposed ITES-BPO Secretariat,which will be able to provide an adequatebudget for promotion and marketing. Thecreation of such a cell will be seen as ademonstration of the government’s commit-ment to the ITES-BPO sector. As a result, thegovernment could enjoy greater credibility andvisibility in the international and nationalbusiness community.

■ To deliver on its responsibilities, the IPC shouldbe staffed with people experienced in marketingand in the private sector. who have an under-standing of the structure and procedures of thegovernment in Ghana. Of critical importancewill be the head of this agency who should:➤ be a full time employee of the IPC,➤ come from the private sector and have a

background in marketing, and➤ be able to communicate effectively with

government officials and domestic and for-eign businesses.

■ It may be recalled that BPO secretariat wouldconsist of the steering committee which wouldinclude senior representatives from various min-istries such as Communication, Finance andEconomic Planning, Energy, and Education.The relationship between BPO Secretariat,under which the IPC would reside, should beformal and contain adequate knowledge basis toprovide inputs to investment policy advocacyfor Ghana

■ The IPC should work like a quasi-governmentalorganization, funded by the government but sepa-rated from the governmental departments. It should

FIGURE 5.3 Components of aninvestment promotion strategy

TargetMarket

Segments

Investment Promotion Cell

MarketingMessage

Key StrategicInitiatives

Marketing andPromotionActivities

Tools andMaterials



have the autonomy and budget to work for effectivemeasurement of results. This can also be done bycreating a not-for-profit “trust,” with BPO secretari-at /MoC as the sole trustee. This will also have thebenefit of creating an image of an independent bodyin all its interactions at various forums.

5.4.3 Measuring Performance of IPCMarketing is maturing as a result-driven disciplinethat is accountable for results. Though qualitatively,measurement will provide trends, it is important tohave targets for measurement. The targets will alsohelp provide direction to IPC and measure theeffectiveness of initiatives undertaken by the IPC.

Hewitt recommends that the following metricscould be used for IPC:■ Number of leads generated.■ Number of companies setting-up business.■ Investor conversion time from leads.■ Number of initial visits made by investors as a

result of image building.■ Number of jobs created.■ Value of FDI generated in a period.

The measurement metrics and related targets wouldneed to be reviewed constantly within the changing

landscape of investments in the country. For exam-ple, after three years, the focus could shift from imagebuilding to attracting larger volumes, more complexwork, getting into different sectors etc. This wouldrequire the metrics to be modified accordingly.

5.5 TARGET MARKETSEGMENTS To ensure that the marketing and promotion effortsare effective in reaching the appropriate audience,they should be in line with the overall industrydevelopment aims, targets and strategic focus.

As detailed in the main Study Report, we believeGhana could adopt a ‘niche/product leadership’positioning in the ITES-BPO market. Ghana’scurrent capabilities, its latent strengths, hinderingweakness and market perception are the crux toour determining ‘Niche/product leadership’ asGhana’s ‘National ITES-BPO Offer’ based on theconcept of sustainable competitive advantage.

Other emerging destinations, such as Singapore,have also identified a niche value proposition for itsIT/ ITES-BPO sectors, based on the inherent capa-bilities and strengths.

Similarly, based on the value proposition (mentionedabove) and the SWOT analysis for Ghana (provided in

FIGURE 5.4.2. Proposed structure of IPC

Ministry ofCommunication

ITES/BPOSecretariat

Chairman of IPC

Staff

InvestmentPromotion Cell

Proposed Structure of Investment Promotion Cell

Singapore – positioning as a safehub for sensitive activities

Singapore has adopted the approach of identifying a niche seg-ment and specific target areas for itself. It has positioned itself asa safe location for sensitive high-end activities, with a particularemphasis on business continuity, IP protection and data privacy.

Industry consultants believe that Singapore’s excellent educationand infrastructure, high ratings for economic and political stability,IP (Intellectual Property) security and aggressive government pro-motion of the ICT sector reinforce the country’s position as afavourite location for high-end and regional service functions.

Source: Press searches

the main study report), the recommended target verti-cals, markets, approach to be adopted and relevant tar-get customers within each niche area that Ghana shouldfocus on in the short and medium term,86 are as follows:

86 Please see detailed SWOT analysis, development of value proposition and target segments in Section 4



have the autonomy and budget to work for effectivemeasurement of results. This can also be done bycreating a not-for-profit “trust,” with BPO secretari-at /MoC as the sole trustee. This will also have thebenefit of creating an image of an independent bodyin all its interactions at various forums.

5.4.3 Measuring Performance of IPCMarketing is maturing as a result-driven disciplinethat is accountable for results. Though qualitatively,measurement will provide trends, it is important tohave targets for measurement. The targets will alsohelp provide direction to IPC and measure theeffectiveness of initiatives undertaken by the IPC.

Hewitt recommends that the following metricscould be used for IPC:■ Number of leads generated.■ Number of companies setting-up business.■ Investor conversion time from leads.■ Number of initial visits made by investors as a

result of image building.■ Number of jobs created.■ Value of FDI generated in a period.

The measurement metrics and related targets wouldneed to be reviewed constantly within the changing

landscape of investments in the country. For exam-ple, after three years, the focus could shift from imagebuilding to attracting larger volumes, more complexwork, getting into different sectors etc. This wouldrequire the metrics to be modified accordingly.

5.5 TARGET MARKETSEGMENTS To ensure that the marketing and promotion effortsare effective in reaching the appropriate audience,they should be in line with the overall industrydevelopment aims, targets and strategic focus.

As detailed in the main Study Report, we believeGhana could adopt a ‘niche/product leadership’positioning in the ITES-BPO market. Ghana’scurrent capabilities, its latent strengths, hinderingweakness and market perception are the crux toour determining ‘Niche/product leadership’ asGhana’s ‘National ITES-BPO Offer’ based on theconcept of sustainable competitive advantage.

Other emerging destinations, such as Singapore,have also identified a niche value proposition for itsIT/ ITES-BPO sectors, based on the inherent capa-bilities and strengths.

Similarly, based on the value proposition (mentionedabove) and the SWOT analysis for Ghana (provided in

FIGURE 5.4.2. Proposed structure of IPC

Ministry ofCommunication

ITES/BPOSecretariat

Chairman of IPC

Staff

InvestmentPromotion Cell

Proposed Structure of Investment Promotion Cell

Singapore – positioning as a safehub for sensitive activities

Singapore has adopted the approach of identifying a niche seg-ment and specific target areas for itself. It has positioned itself asa safe location for sensitive high-end activities, with a particularemphasis on business continuity, IP protection and data privacy.

Industry consultants believe that Singapore’s excellent educationand infrastructure, high ratings for economic and political stability,IP (Intellectual Property) security and aggressive government pro-motion of the ICT sector reinforce the country’s position as afavourite location for high-end and regional service functions.

Source: Press searches

the main study report), the recommended target verti-cals, markets, approach to be adopted and relevant tar-get customers within each niche area that Ghana shouldfocus on in the short and medium term,86 are as follows:

86 Please see detailed SWOT analysis, development of value proposition and target segments in Section 4



These verticals, markets, and customers will serveto be the target audience for Ghana’s investmentpromotion efforts and provide direction to theefforts of the Investment Promotion Cell.

Ireland’s IDA has adopted such a targeted invest-ment strategy over the years for various industrysectors in the country.

5.6 MARKETING MESSAGEHaving identified the target audience segments,the IPC will be required to define the key mes-sages and themes for the marketing and promotioncampaigns.

This message will be primarily driven by Ghana’scurrent competitive position among internationaland regional countries, as enumerated in theSWOT analysis included in the main report.

However, the messages will undergo refinementand revision on an ongoing basis to highlight thechanges and initiatives being introduced by Ghanawith regards to:■ demand-side factors, which include the target

market segments, niche areas to be targeted, andGhana’s value proposition for the ITES-BPOsector; and

■ supply-side factors, which comprise people,infrastructure, environment, incumbents andcluster organizations.

Accordingly, some of the key themes or messagesthat can be incorporated by Ghana for investmentpromotion include:

Figure 5.5.1 Target vertical, markets and customers

Approach andMarkets

Target Customers

Primary Hub forthe US & UK

Sub-ContractingHub for established

ITES locations,such as India,

Philippines

ComplementaryHub for South

African operations

Regional SharedServices Centre for

West Africa

• Large, Global Third Party players in the identified segments

• Parent organizations of large captives

• Industry and Trade associations

• ITES related Government agencies

• ECOWAS preferred hub

• Organizations with headquarters in the region

• Organizations with distribution centres in Ghana

• Large and medium South African organizations in the region

Medical Transcription, Coding, Billing, Data Processing and CustomerContact Processes

Target Verticals

• Large Third Party players such as AOL, CSC, Sykes, Dialogue UK, Global Telesales

• Parent organizations of captives such as Lufthansa, Budget Insurance, Old Mutual

• Industry and Trade associations—South African Contact Centre Community, and Calling the Cape

• Govt. agency -Department of Trade & Industry of SA

–

Back Office &Corporate Functions

Ireland – Targeted inward investmentstrategy

The targeted inward investment strategy of the IrelandDevelopment Authority (IDA) has become a best-practice modelfor other IPA’s (Investment Promotion Agencies).

Sector/industry specialists were recruited to develop the industry-based strategy and meet with potential investors. IrelandDevelopment Authority adopted a cluster-based targetingapproach, where target industries and companies were attractedto industrial clusters.

In the 1970s, the IDA focused on the electronics and pharmaceu-tical sector, and in the 1980s and 1990s it sought to developthe software and internationally-traded services.

From 2000 onwards, the industry focus has shifted to InformationTechnology, multi-media and e-business.

Source: IDA



These verticals, markets, and customers will serveto be the target audience for Ghana’s investmentpromotion efforts and provide direction to theefforts of the Investment Promotion Cell.

Ireland’s IDA has adopted such a targeted invest-ment strategy over the years for various industrysectors in the country.

5.6 MARKETING MESSAGEHaving identified the target audience segments,the IPC will be required to define the key mes-sages and themes for the marketing and promotioncampaigns.

This message will be primarily driven by Ghana’scurrent competitive position among internationaland regional countries, as enumerated in theSWOT analysis included in the main report.

However, the messages will undergo refinementand revision on an ongoing basis to highlight thechanges and initiatives being introduced by Ghanawith regards to:■ demand-side factors, which include the target

market segments, niche areas to be targeted, andGhana’s value proposition for the ITES-BPOsector; and

■ supply-side factors, which comprise people,infrastructure, environment, incumbents andcluster organizations.

Accordingly, some of the key themes or messagesthat can be incorporated by Ghana for investmentpromotion include:

Figure 5.5.1 Target vertical, markets and customers

Approach andMarkets

Target Customers

Primary Hub forthe US & UK

Sub-ContractingHub for established

ITES locations,such as India,

Philippines

ComplementaryHub for South

African operations

Regional SharedServices Centre for

West Africa

• Large, Global Third Party players in the identified segments

• Parent organizations of large captives

• Industry and Trade associations

• ITES related Government agencies

• ECOWAS preferred hub

• Organizations with headquarters in the region

• Organizations with distribution centres in Ghana

• Large and medium South African organizations in the region

Medical Transcription, Coding, Billing, Data Processing and CustomerContact Processes

Target Verticals

• Large Third Party players such as AOL, CSC, Sykes, Dialogue UK, Global Telesales

• Parent organizations of captives such as Lufthansa, Budget Insurance, Old Mutual

• Industry and Trade associations—South African Contact Centre Community, and Calling the Cape

• Govt. agency -Department of Trade & Industry of SA

–

Back Office &Corporate Functions

Ireland – Targeted inward investmentstrategy

The targeted inward investment strategy of the IrelandDevelopment Authority (IDA) has become a best-practice modelfor other IPA’s (Investment Promotion Agencies).

Sector/industry specialists were recruited to develop the industry-based strategy and meet with potential investors. IrelandDevelopment Authority adopted a cluster-based targetingapproach, where target industries and companies were attractedto industrial clusters.

In the 1970s, the IDA focused on the electronics and pharmaceu-tical sector, and in the 1980s and 1990s it sought to developthe software and internationally-traded services.

From 2000 onwards, the industry focus has shifted to InformationTechnology, multi-media and e-business.

Source: IDA



■ highlights of the overall economic growth of thecountry as well as the availability of key infra-structure, such as telecommunications band-width, technology parks or knowledge corridors;

■ availability and skills of the current workforceand the potential talent pool;

■ presence of a facilitative policy environment andproactive government; and

■ availability and relative competitive position interms of financial and fiscal investment incen-tives for foreign and domestic investors.

■ Presence of the ITES-BPO Secretariat, specifi-cally highlighting its role in providing a facilita-tive investment environment in Ghana.

■ Voice of existing international investors in theITES-BPO sector as well as across industries,e.g., Nestle, Microsoft, ACS, Cisco, Shell, etc.

5.7 KEY STRATEGICINITIATIVESIn addition to the marketing and promotionalcampaigns to be implemented, the IPC, along withthe ITES-BPO Secretariat, will be required tointroduce the key initiatives outlined below.

5.7.1 Image Building for GhanaAwareness and perceptions are key factors in theoffshoring decision-making process. Firms make

FIGURE 5.6.1 Defining the message

Ghana SWOTAnalysis

MessageDemandFactors

SupplyParameters

Def

inin

gM

essa

ge

RefiningMessage

RefiningMessage

Customers and Investors

investment decisions based on their market intelli-gence, peer information, and the image of the location.

Image and location marketing hence becomescritical for any country. For example, SouthAfrica is marketed as Africa’s “Preferred BPODestination.” This promotion was madethrough extensive promotional activity both bythe government as well as the private sectorincumbents, at several forums outside SouthAfrica. Today, because of these activities, SouthAfrica’s image has been considerably improvedfrom the initial perception of a “diamond-producing country” to an established “PreferredBPO Destination.”

Similarly, some initiatives towards image buildingfor Ghana will include:■ leveraging existing image building and industry

promotion efforts being conducted by the gov-ernment of Ghana;

■ creating an image of Ghana as an attractive loca-tion for ITES-BPO investment; and

■ identifying and building relationships withpotential customers.

5.7.2 Building Relationships and CollaborationRelationship building and collaborations withinternational bodies and investment agencies willbe essential for Ghana, especially in the initial



■ highlights of the overall economic growth of thecountry as well as the availability of key infra-structure, such as telecommunications band-width, technology parks or knowledge corridors;

■ availability and skills of the current workforceand the potential talent pool;

■ presence of a facilitative policy environment andproactive government; and

■ availability and relative competitive position interms of financial and fiscal investment incen-tives for foreign and domestic investors.

■ Presence of the ITES-BPO Secretariat, specifi-cally highlighting its role in providing a facilita-tive investment environment in Ghana.

■ Voice of existing international investors in theITES-BPO sector as well as across industries,e.g., Nestle, Microsoft, ACS, Cisco, Shell, etc.

5.7 KEY STRATEGICINITIATIVESIn addition to the marketing and promotionalcampaigns to be implemented, the IPC, along withthe ITES-BPO Secretariat, will be required tointroduce the key initiatives outlined below.

5.7.1 Image Building for GhanaAwareness and perceptions are key factors in theoffshoring decision-making process. Firms make

FIGURE 5.6.1 Defining the message

Ghana SWOTAnalysis

MessageDemandFactors

SupplyParameters

Def

inin

gM

essa

ge

RefiningMessage

RefiningMessage

Customers and Investors

investment decisions based on their market intelli-gence, peer information, and the image of the location.

Image and location marketing hence becomescritical for any country. For example, SouthAfrica is marketed as Africa’s “Preferred BPODestination.” This promotion was madethrough extensive promotional activity both bythe government as well as the private sectorincumbents, at several forums outside SouthAfrica. Today, because of these activities, SouthAfrica’s image has been considerably improvedfrom the initial perception of a “diamond-producing country” to an established “PreferredBPO Destination.”

Similarly, some initiatives towards image buildingfor Ghana will include:■ leveraging existing image building and industry

promotion efforts being conducted by the gov-ernment of Ghana;

■ creating an image of Ghana as an attractive loca-tion for ITES-BPO investment; and

■ identifying and building relationships withpotential customers.

5.7.2 Building Relationships and CollaborationRelationship building and collaborations withinternational bodies and investment agencies willbe essential for Ghana, especially in the initial



phase of investment promotion. (Ghana is alreadya member of World Bank’s MIGA; and GIPC is amember of World Association of InvestmentPromotion Agencies (WAIPA). Through thesebodies and organizations, Ghana’s ITES-BPOindustry and the IPC will be able to leverage theexisting goodwill of the former and ensure partici-pation in international forums and events organ-ized by them.■ Develop cooperation and build communication

with domestic and international governmentagencies and industry bodies to leverage theirexisting promotion efforts.

■ Liaise with Ghana’s High Commissions abroadto cultivate relationships within InternationalChambers of Commerce and internationalindustry associations.

■ Build a network through foreign embassies andconsulates present in Ghana and the WestAfrican region. This will again provide linkagesto similar groups and industry bodies in othercountries.

■ Leverage Ghana’s Diaspora community in pro-moting the country as an investment destination.

■ Participate in joint marketing exercises withinvestment promotion agencies within theregion. For instance, the proposed IPC mayliaise with the South African CommunicationAssociation (SACCOM) to participate in jointinvestment promotion seminars conducted inother countries.

■ Creating a regional alliance, in Africa, in theform of complimenting work that is currentlybeing done in South Africa.

5.8 SUGGESTEDMARKETING ANDPROMOTION ACTIVITIESConsiderable planning will be required in the use ofvarious tools and the channels of communication.The materials and tools which would be used willdepend on the forum where it is being presented aswell as on the target audience.

Hewitt recommends deploying the following cate-gory of promotion activities as part of the ITES-BPO Investment Promotion program:

5.8.1 Internet/Electronic PromotionThe Internet today is the most commonly accessedmedia for information and therefore offers greatpotential for establishing and keeping contact withprospective investors. Keeping this in mind, Ghanashould: ■ create a website for ITES-BPO in the country,■ create an Internet community of potential

investors,■ pursue e-mail direct marketing,■ send e-mail newsletters, and■ offer online services.

5.8.2 Direct MarketingWe recommend direct marketing for some keyprospects only, including the existing anchorclient—ACS. An account manager from the IPCshould typically be assigned to these key prospects.Typical activities that would be required include:■ listing of target companies/ agencies,■ identification of suitable contacts,■ development of mailing letter,■ follow-up by including on-site visits, if neces-

sary, and■ follow-up and support during investment phase.■ Pre-investment customer care.

5.8.3 Selected Investment/IndustryForumsIt is important to ensure participation in only rele-vant and focused forums as there is currently aplethora of such events. Some useful events andforums (mainly annual) that we would recom-mend are:■ Customer Management South Africa—This is a

director level conference providing strategies andtactics for marketing, sales. and customer serv-ice. This would be a useful event to get insightsinto the regional call center market and bestpractices and also showcase Ghana in the region.

■ Gartner Outsourcing Summit—This is a forum fordiscussing outsourcing strategies and objectives,and evaluating and selecting services providers.This event attracts global decision makers in theoffshoring space, and could be a good plat-form to promote Ghana as an upcoming ITESdestination.

■ Shared Services Conference—This event is inassociation with SBPOA (Shared Service andBusiness Process Outsourcing Association) andshould provide Ghana with useful information.



phase of investment promotion. (Ghana is alreadya member of World Bank’s MIGA; and GIPC is amember of World Association of InvestmentPromotion Agencies (WAIPA). Through thesebodies and organizations, Ghana’s ITES-BPOindustry and the IPC will be able to leverage theexisting goodwill of the former and ensure partici-pation in international forums and events organ-ized by them.■ Develop cooperation and build communication

with domestic and international governmentagencies and industry bodies to leverage theirexisting promotion efforts.

■ Liaise with Ghana’s High Commissions abroadto cultivate relationships within InternationalChambers of Commerce and internationalindustry associations.

■ Build a network through foreign embassies andconsulates present in Ghana and the WestAfrican region. This will again provide linkagesto similar groups and industry bodies in othercountries.

■ Leverage Ghana’s Diaspora community in pro-moting the country as an investment destination.

■ Participate in joint marketing exercises withinvestment promotion agencies within theregion. For instance, the proposed IPC mayliaise with the South African CommunicationAssociation (SACCOM) to participate in jointinvestment promotion seminars conducted inother countries.

■ Creating a regional alliance, in Africa, in theform of complimenting work that is currentlybeing done in South Africa.

5.8 SUGGESTEDMARKETING ANDPROMOTION ACTIVITIESConsiderable planning will be required in the use ofvarious tools and the channels of communication.The materials and tools which would be used willdepend on the forum where it is being presented aswell as on the target audience.

Hewitt recommends deploying the following cate-gory of promotion activities as part of the ITES-BPO Investment Promotion program:

5.8.1 Internet/Electronic PromotionThe Internet today is the most commonly accessedmedia for information and therefore offers greatpotential for establishing and keeping contact withprospective investors. Keeping this in mind, Ghanashould: ■ create a website for ITES-BPO in the country,■ create an Internet community of potential

investors,■ pursue e-mail direct marketing,■ send e-mail newsletters, and■ offer online services.

5.8.2 Direct MarketingWe recommend direct marketing for some keyprospects only, including the existing anchorclient—ACS. An account manager from the IPCshould typically be assigned to these key prospects.Typical activities that would be required include:■ listing of target companies/ agencies,■ identification of suitable contacts,■ development of mailing letter,■ follow-up by including on-site visits, if neces-

sary, and■ follow-up and support during investment phase.■ Pre-investment customer care.

5.8.3 Selected Investment/IndustryForumsIt is important to ensure participation in only rele-vant and focused forums as there is currently aplethora of such events. Some useful events andforums (mainly annual) that we would recom-mend are:■ Customer Management South Africa—This is a

director level conference providing strategies andtactics for marketing, sales. and customer serv-ice. This would be a useful event to get insightsinto the regional call center market and bestpractices and also showcase Ghana in the region.

■ Gartner Outsourcing Summit—This is a forum fordiscussing outsourcing strategies and objectives,and evaluating and selecting services providers.This event attracts global decision makers in theoffshoring space, and could be a good plat-form to promote Ghana as an upcoming ITESdestination.

■ Shared Services Conference—This event is inassociation with SBPOA (Shared Service andBusiness Process Outsourcing Association) andshould provide Ghana with useful information.



■ FT Global Outsourcing & Offshoring Conference:The United Kingdom is one of the key targetcountries for Ghana. This will be a very usefulevent for networking and understanding theU.K. market and also for showcasing Ghana’scapability and intent as an offshoring destina-tion for U.K. companies.

■ NASCCOM Strategy Summit—Stalwarts fromindustries around the world discuss trends and giveinsights into the industry’s future at this forum.Companies and professionals from Ghana caninteract with Indian and global players to learnbest practices from the ITES space in this forum.

■ Outsourcing World Summit—Organized by theInternational Association of outsourcing(IAOP), this summit brings together investors,providers, and the support industry.

■ Outsourcing & IT services Summti-To be organ-ized in April 2007 in London, this conferenceattracts investors and service providers.

■ Datamonitr—Provides good sources for confer-ences and events.

■ Australian Information Industry Association—Organizes conferences for investors, whichshould assist Ghana in obtaining internationalexposure and showcasing its capabilities.

■ International outsourcing forum—Organizesannual and periodic conferences. In the confer-ence, to be held in February 2007 at Singapore,senior executives from companies involved inthe automotive, aerospace, manufacturing,industrial products, telecom, construction, utili-ties, heavy machinery and semiconductors sec-tors will all be in attendance.87 The event willprovide an opportunity for senior buyer dele-gates from across Europe to meet with major IT& BPO suppliers from all over the world.

■ Outsourcing summits organized by CorbettAssociate—Will help Ghana expand its hori-zons and getting on the spot trends as well asanalyze its advantages for offshoring and futurepromotions.88

A Government of Ghana and infoDev Workshop on,“Improving Business Competitiveness and IncreasingEconomic Growth in Ghana: The Role of ICT-ITES”was hosted in partnership with the World Bank Groupin Accra in May 2006. Large, global, captive, andthird-party outsourcing organizations participated inthe event, as well as industry associations in other

87 http://www.tioforum.com/88 http://www.corbettassociates.com/events/default.asp

ITES destinations. Success of this event and of theindustry itself in Ghana in the coming year mayenable the government to host this forum as a regularfeature.

5.8.4 Selected AdvertisingEven though advertising can be quite expensive,we would recommend limited initial advertisingto increase awareness and build the right imagefor Ghana. These should be in the nature of“Image and Awareness campaigns” run at someof the specific events and forums mentionedabove, and in certain select print and onlinepublications.

5.8.5 Other Networking AvenuesHere are some other useful traditional and non-traditional avenues through which we would recom-mend spreading the ITES-BPO promotion messageand materials:■ Press■ Ghana’s High Commissions abroad, especially in

the target countries■ Foreign embassies/consulates in Ghana and in

West Africa■ Chambers of Commerce, Industry and Trade

Associations■ Offshoring consultants■ Ghana Diaspora community

5.9 MARKETING ANDPROMOTION TOOLS AND MATERIALS The promotion tools and materials used will needto be customized depending upon the investor cat-egory targeted. However, certain key materials thatwill be required for all categories are recommendedas follows:

5.9.1 Investor’s GuideIn addition to the Investor Guide prepared byGIPC for promotion of various sectors including agri-culture, fisheries, mining, tourism, agro-processingetc., we propose compilation of an ITES-BPO spe-cific Investor’s guide available in both brochure and



■ FT Global Outsourcing & Offshoring Conference:The United Kingdom is one of the key targetcountries for Ghana. This will be a very usefulevent for networking and understanding theU.K. market and also for showcasing Ghana’scapability and intent as an offshoring destina-tion for U.K. companies.

■ NASCCOM Strategy Summit—Stalwarts fromindustries around the world discuss trends and giveinsights into the industry’s future at this forum.Companies and professionals from Ghana caninteract with Indian and global players to learnbest practices from the ITES space in this forum.

■ Outsourcing World Summit—Organized by theInternational Association of outsourcing(IAOP), this summit brings together investors,providers, and the support industry.

■ Outsourcing & IT services Summti-To be organ-ized in April 2007 in London, this conferenceattracts investors and service providers.

■ Datamonitr—Provides good sources for confer-ences and events.

■ Australian Information Industry Association—Organizes conferences for investors, whichshould assist Ghana in obtaining internationalexposure and showcasing its capabilities.

■ International outsourcing forum—Organizesannual and periodic conferences. In the confer-ence, to be held in February 2007 at Singapore,senior executives from companies involved inthe automotive, aerospace, manufacturing,industrial products, telecom, construction, utili-ties, heavy machinery and semiconductors sec-tors will all be in attendance.87 The event willprovide an opportunity for senior buyer dele-gates from across Europe to meet with major IT& BPO suppliers from all over the world.

■ Outsourcing summits organized by CorbettAssociate—Will help Ghana expand its hori-zons and getting on the spot trends as well asanalyze its advantages for offshoring and futurepromotions.88

A Government of Ghana and infoDev Workshop on,“Improving Business Competitiveness and IncreasingEconomic Growth in Ghana: The Role of ICT-ITES”was hosted in partnership with the World Bank Groupin Accra in May 2006. Large, global, captive, andthird-party outsourcing organizations participated inthe event, as well as industry associations in other

87 http://www.tioforum.com/88 http://www.corbettassociates.com/events/default.asp

ITES destinations. Success of this event and of theindustry itself in Ghana in the coming year mayenable the government to host this forum as a regularfeature.

5.8.4 Selected AdvertisingEven though advertising can be quite expensive,we would recommend limited initial advertisingto increase awareness and build the right imagefor Ghana. These should be in the nature of“Image and Awareness campaigns” run at someof the specific events and forums mentionedabove, and in certain select print and onlinepublications.

5.8.5 Other Networking AvenuesHere are some other useful traditional and non-traditional avenues through which we would recom-mend spreading the ITES-BPO promotion messageand materials:■ Press■ Ghana’s High Commissions abroad, especially in

the target countries■ Foreign embassies/consulates in Ghana and in

West Africa■ Chambers of Commerce, Industry and Trade

Associations■ Offshoring consultants■ Ghana Diaspora community

5.9 MARKETING ANDPROMOTION TOOLS AND MATERIALS The promotion tools and materials used will needto be customized depending upon the investor cat-egory targeted. However, certain key materials thatwill be required for all categories are recommendedas follows:

5.9.1 Investor’s GuideIn addition to the Investor Guide prepared byGIPC for promotion of various sectors including agri-culture, fisheries, mining, tourism, agro-processingetc., we propose compilation of an ITES-BPO spe-cific Investor’s guide available in both brochure and



CD-ROM format. This sector-specific material willbe used for distribution in conferences, investmentmissions, and on the proposed website.

A standard investor’s guide available in bothbrochure and CD-ROM format will be one of themost critical promotion materials for the ITES sec-tor. It will be mandatory to develop and effectivelyutilize high quality brochures and CD-ROMS fordistribution in conferences, investment missionsand on the proposed website.

This investor guide may be used during the directmarketing process. However, given the high costsof production and postage, electronic versions ofthe guide may be made available on the websitewhile promotional material for road-shows, presen-tations at trade fairs, and other events may be avail-able in printed form.

The investment guide would need to provide conciseinformation on Ghana as an ITES-BPO destination,key advantages, upcoming developments, the businessenvironment, policies and incentives, and major regula-tions and agencies involved. A reference to the manyindustry studies done by international organizations inGhana and their sources would also be advisable. Theguide would have to be updated regularly and present allinformation without ambiguity and in a user-friendly,professional format. It would be useful to supplementthe investor guide with “how to” type brochures, such as“how to establish a company in Ghana,” “how to rentor buy an office,” and similar practical information.

5.9.2 Website for ITES-BPO in GhanaGiven the increasing prominence of the electronicmedium, creating a website for the ITES-BPO seg-ment in Ghana will be essential and integral to themarketing and promotion plan. Such a websiteshould include the following content:■ Current statistics for the ITES-BPO sector in

Ghana, including the profile of some of theprominent players that have established opera-tions in the country.

■ Testimonials from anchor players. ■ Key advantages offered by Ghana as an ITES-

BPO destination.■ A link to the ITES-BPO policy, which will fur-

ther provide the set of incentives and exemptionsoffered to investors; also link to the clearancesand set of compliance documents which wouldbe required by investors.

■ Reference to the incubation assistance which isprovided to domestic ITES-BPO entrepreneurs;information pertaining to the eligibility and selec-tion criteria for such assistance, as well as theoperational details of the incubation program.

■ Links to the prevailing and developingTechnology/ ITES Parks in Ghana.

■ Corporate climate, culture, and quality of life.■ Presentations, research/annual reports, and mar-

keting brochures, all downloadable.■ Information on the wider region.■ Latest news available as e-bulletins (these must

also be mailed regularly to all potential investors).■ Links to the various industry specific studies

conducted for Ghana. ■ Links and contact information of prevailing

industry associations and government agenciesrelevant to ITES-BPO in Ghana.

5.9.3 Standard presentation contentA standard presentation pack will need to be devel-oped for quick use in conferences, road-shows, andweb links. Although this is one tool that needs themaximum amount of customization as per targetsegment, a standard pack containing the followingkey content will be critical for quick turn-aroundand response: ■ Overview of the business and economic climate

of Ghana.■ Current statistics for the ITES-BPO sector in

Ghana including the profile of some of theprominent players that have established opera-tions in the country.


BPO destination.■ Exemptions and incentives offered. ■ Information on areas/technology parks being

developed for the ITES-BPO sector in Ghana.

5.10 CONCLUSIONAs the need arises for countries to distinguishthemselves while pitching for foreign investment,national and sectoral marketing and promotionplans acquire greater prominence. These plansare an integral part of a government’s strategy inpromoting the country as well as focus industrysectors.



CD-ROM format. This sector-specific material willbe used for distribution in conferences, investmentmissions, and on the proposed website.

A standard investor’s guide available in bothbrochure and CD-ROM format will be one of themost critical promotion materials for the ITES sec-tor. It will be mandatory to develop and effectivelyutilize high quality brochures and CD-ROMS fordistribution in conferences, investment missionsand on the proposed website.

This investor guide may be used during the directmarketing process. However, given the high costsof production and postage, electronic versions ofthe guide may be made available on the websitewhile promotional material for road-shows, presen-tations at trade fairs, and other events may be avail-able in printed form.

The investment guide would need to provide conciseinformation on Ghana as an ITES-BPO destination,key advantages, upcoming developments, the businessenvironment, policies and incentives, and major regula-tions and agencies involved. A reference to the manyindustry studies done by international organizations inGhana and their sources would also be advisable. Theguide would have to be updated regularly and present allinformation without ambiguity and in a user-friendly,professional format. It would be useful to supplementthe investor guide with “how to” type brochures, such as“how to establish a company in Ghana,” “how to rentor buy an office,” and similar practical information.

5.9.2 Website for ITES-BPO in GhanaGiven the increasing prominence of the electronicmedium, creating a website for the ITES-BPO seg-ment in Ghana will be essential and integral to themarketing and promotion plan. Such a websiteshould include the following content:■ Current statistics for the ITES-BPO sector in

Ghana, including the profile of some of theprominent players that have established opera-tions in the country.


BPO destination.■ A link to the ITES-BPO policy, which will fur-

ther provide the set of incentives and exemptionsoffered to investors; also link to the clearancesand set of compliance documents which wouldbe required by investors.

■ Reference to the incubation assistance which isprovided to domestic ITES-BPO entrepreneurs;information pertaining to the eligibility and selec-tion criteria for such assistance, as well as theoperational details of the incubation program.

■ Links to the prevailing and developingTechnology/ ITES Parks in Ghana.

■ Corporate climate, culture, and quality of life.■ Presentations, research/annual reports, and mar-

keting brochures, all downloadable.■ Information on the wider region.■ Latest news available as e-bulletins (these must

also be mailed regularly to all potential investors).■ Links to the various industry specific studies

conducted for Ghana. ■ Links and contact information of prevailing

industry associations and government agenciesrelevant to ITES-BPO in Ghana.

5.9.3 Standard presentation contentA standard presentation pack will need to be devel-oped for quick use in conferences, road-shows, andweb links. Although this is one tool that needs themaximum amount of customization as per targetsegment, a standard pack containing the followingkey content will be critical for quick turn-aroundand response: ■ Overview of the business and economic climate

of Ghana.■ Current statistics for the ITES-BPO sector in

Ghana including the profile of some of theprominent players that have established opera-tions in the country.


BPO destination.■ Exemptions and incentives offered. ■ Information on areas/technology parks being

developed for the ITES-BPO sector in Ghana.

5.10 CONCLUSIONAs the need arises for countries to distinguishthemselves while pitching for foreign investment,national and sectoral marketing and promotionplans acquire greater prominence. These plansare an integral part of a government’s strategy inpromoting the country as well as focus industrysectors.



In conclusion, to ensure the development and growthof an internationally focused industry such as ITES-BPO, the government of Ghana will need to put inplace an investment promotion plan that involves:

■ clearly defining the country’s position in themarket;

■ building a professional, result-oriented invest-ment promotion agency and empowering theagency to act as single point contact withinvestors;

■ creating an effective message based on currentcapabilities and strengths, and refining the same

on an ongoing basis with regards to changingdemand, supply factors;

■ investing in broad-based marketing activitiescomprising direct marketing, on line promotion,selected advertising;

■ undertaking initiatives towards image building,and developing and nurturing relationships withprivate sector investors and investment advisorycommunity; and

■ Ensuring effective and consistent internationalpromotional programs and materials, includingnewsletters, investment missions, and sectorspecific targeting activities.



In conclusion, to ensure the development and growthof an internationally focused industry such as ITES-BPO, the government of Ghana will need to put inplace an investment promotion plan that involves:

■ clearly defining the country’s position in themarket;

■ building a professional, result-oriented invest-ment promotion agency and empowering theagency to act as single point contact withinvestors;

■ creating an effective message based on currentcapabilities and strengths, and refining the same

on an ongoing basis with regards to changingdemand, supply factors;

■ investing in broad-based marketing activitiescomprising direct marketing, on line promotion,selected advertising;

■ undertaking initiatives towards image building,and developing and nurturing relationships withprivate sector investors and investment advisorycommunity; and

■ Ensuring effective and consistent internationalpromotional programs and materials, includingnewsletters, investment missions, and sectorspecific targeting activities.



Monitoring & Evaluation Indicators for ITES-BPO Industry in Ghana . 93

6 MONITORING & EVALUATIONINDICATORS FOR ITES-BPOINDUSTRY INGHANA

Having identified the opportunities in ITES-BPOfor Ghana as well as defining the necessary initia-tives to be undertaken by Ghana for ensuring thecountry is able to fully capitalize these opportuni-ties, it is important to track the progress of theindustry and its impact on the economy by estab-lishing an effective Monitoring and Evaluation(M&E) framework.

Based on some of the above requirements as well asour understanding of the ITES-BPO industry,Hewitt has proposed the following indicators thatmay be used as targets for Ghana’s for ITES-BPOsector:

■ Growth in total employment in ITES-BPOindustry.

■ Growth in employment of women in ITES-BPO industry.

■ Growth in senior management, middle manage-ment and junior level jobs.

■ Revenue Creation by ITES-BPO.

6.1 ITES-BPO WORKFORCEPROJECTIONSThe ITES-BPO industry can make a significantcontribution towards employment generation in acountry. However, the rate of growth for the indus-try is highly dependent on the level of institutionaland government support extended towards thedevelopment of the sector.

Another factor impacting the growth of the ITES-BPO industry is the relative stage of development ofthe ITES-BPO sector in a country. Based on ourexperience with regards to growth rates of compara-tively established ITES-BPO destinations, we canclassify the development of the ITES-BPO industryin three phases of growth.

Phase I can be defined as the initial period ofdevelopment, i.e., when the industry starts outfrom a small base and most of the growth is led byinternal initiatives. Most countries have witnessedgrowth rates of 60-70 percent in Phase I of thedevelopment of the industry.

Phase II refers to the phase of consolidation andorganized industry growth. Phase II assumes theavailability of the necessary institutional and sup-port infrastructure. The ITES-BPO industry ofcountries such as the Philippines can be classifiedunder Phase II of development, having achieved acertain level of scale. Growth of the industry inPhase II is highly dependent on access to anenabling external environment. In Phase II theindustry may witness an average annual growth ofaround 40 percent.

1. Job creation in ITES-BPO Sector with 1.1 Percentage annual increase in technical, operational,encouraged opportunities for women managerial level jobs

1.2 Percentage growth in positions held by women in technical,operational, managerial level jobs

2. Increase in export-led revenues in the 2.1 Percentage increase in export-led revenueITES-BPO sector

3. Business opportunities for local ITES-BPO businesses 3.1 Increase of employment in local ITES-BPO companies

The M&E indicators proposed by the world Bank included:



6 MONITORING & EVALUATIONINDICATORS FOR ITES-BPOINDUSTRY INGHANA

Having identified the opportunities in ITES-BPOfor Ghana as well as defining the necessary initia-tives to be undertaken by Ghana for ensuring thecountry is able to fully capitalize these opportuni-ties, it is important to track the progress of theindustry and its impact on the economy by estab-lishing an effective Monitoring and Evaluation(M&E) framework.

Based on some of the above requirements as well asour understanding of the ITES-BPO industry,Hewitt has proposed the following indicators thatmay be used as targets for Ghana’s for ITES-BPOsector:

■ Growth in total employment in ITES-BPOindustry.

■ Growth in employment of women in ITES-BPO industry.

■ Growth in senior management, middle manage-ment and junior level jobs.

■ Revenue Creation by ITES-BPO.

6.1 ITES-BPO WORKFORCEPROJECTIONSThe ITES-BPO industry can make a significantcontribution towards employment generation in acountry. However, the rate of growth for the indus-try is highly dependent on the level of institutionaland government support extended towards thedevelopment of the sector.

Another factor impacting the growth of the ITES-BPO industry is the relative stage of development ofthe ITES-BPO sector in a country. Based on ourexperience with regards to growth rates of compara-tively established ITES-BPO destinations, we canclassify the development of the ITES-BPO industryin three phases of growth.

Phase I can be defined as the initial period ofdevelopment, i.e., when the industry starts outfrom a small base and most of the growth is led byinternal initiatives. Most countries have witnessedgrowth rates of 60-70 percent in Phase I of thedevelopment of the industry.

Phase II refers to the phase of consolidation andorganized industry growth. Phase II assumes theavailability of the necessary institutional and sup-port infrastructure. The ITES-BPO industry ofcountries such as the Philippines can be classifiedunder Phase II of development, having achieved acertain level of scale. Growth of the industry inPhase II is highly dependent on access to anenabling external environment. In Phase II theindustry may witness an average annual growth ofaround 40 percent.

1. Job creation in ITES-BPO Sector with 1.1 Percentage annual increase in technical, operational,encouraged opportunities for women managerial level jobs

1.2 Percentage growth in positions held by women in technical,operational, managerial level jobs

2. Increase in export-led revenues in the 2.1 Percentage increase in export-led revenueITES-BPO sector

3. Business opportunities for local ITES-BPO businesses 3.1 Increase of employment in local ITES-BPO companies

The M&E indicators proposed by the world Bank included:



Phase III is the phase of relative maturity of theindustry in a country. The ITES-BPO sector inIndia can be classified under this stage. The coun-try has attained a clear leadership position withinthe industry globally and therefore built significantscale in terms of both number of employees andrevenues generated by the sector. In Phase III, theexpected average annual growth would be around35 percent.

Ghana’s ITES-BPO industry is currently at a nas-cent phase of growth, i.e. Phase I, with a workforceof around 2,200 employees. Over the last five years,the employee strength has increased by an impres-sive compounded annual growth rate (CAGR) ofover 80 percent, largely due to the fact that theindustry was starting out from a small base.However, as the size of the industry increases, it isunlikely that Ghana’s ITES-BPO sector will be ableto sustain this growth rate.

For the purpose of the analyses we are consider-ing 2005 as Y0. Projections have been providedfor the next five years. While some of the pro-posed initiatives enumerated in this report can beimplemented in the short term, impact of otherinitiatives will evident only over the mediumterm. The Government will also play a significantrole in facilitating the implementation of theserecommendations.

Taking into consideration both the parameters ofexpected government initiative and current stage of

development of the ITES-BPO industry, we haveprovided projections on the impact of the ITES-BPOindustry on job creation in Ghana. The projectionsmade are based on three scenarios:

■ S1: Realistic Growth ■ S2: Optimistic Growth ■ S3: Conservative Growth

These scenarios reflect the extent to which Ghanamobilizes and exploits the opportunity of growinginternational demand for ITES-BPO. The scenar-ios are not driven by scientific macro-economicmodeling; rather they are based on recent pastgrowth figures and on international trends in theindustry.

6.1.1 S1: Realistic GrowthA realistic growth scenario for Ghana’s ITES-BPO industry would assume a growth rate ofaround 60 percent for the next three years, i.e.till Y3, given that the industry is still at a com-paratively nascent stage of development andassuming that the government will be proactivein introducing favorable policies and ensuringthat investors have access to the necessary infra-structure and talent.

Post Y3, however, we believe that Ghana will movetowards a more modest growth rate of 40 percentas the industry achieves scale and enters the secondstage of development wherein it is competing withdestinations such as Philippines and South Africa.

Figure 6.1.1 ITES-BPO total employment projections for Ghana

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0Y0 Y3

16,565

24,727

36,910

9,011

2,200


9,0116,037

Y5

S1 S2 S3



Phase III is the phase of relative maturity of theindustry in a country. The ITES-BPO sector inIndia can be classified under this stage. The coun-try has attained a clear leadership position withinthe industry globally and therefore built significantscale in terms of both number of employees andrevenues generated by the sector. In Phase III, theexpected average annual growth would be around35 percent.

Ghana’s ITES-BPO industry is currently at a nas-cent phase of growth, i.e. Phase I, with a workforceof around 2,200 employees. Over the last five years,the employee strength has increased by an impres-sive compounded annual growth rate (CAGR) ofover 80 percent, largely due to the fact that theindustry was starting out from a small base.However, as the size of the industry increases, it isunlikely that Ghana’s ITES-BPO sector will be ableto sustain this growth rate.

For the purpose of the analyses we are consider-ing 2005 as Y0. Projections have been providedfor the next five years. While some of the pro-posed initiatives enumerated in this report can beimplemented in the short term, impact of otherinitiatives will evident only over the mediumterm. The Government will also play a significantrole in facilitating the implementation of theserecommendations.

Taking into consideration both the parameters ofexpected government initiative and current stage of

development of the ITES-BPO industry, we haveprovided projections on the impact of the ITES-BPOindustry on job creation in Ghana. The projectionsmade are based on three scenarios:

■ S1: Realistic Growth ■ S2: Optimistic Growth ■ S3: Conservative Growth

These scenarios reflect the extent to which Ghanamobilizes and exploits the opportunity of growinginternational demand for ITES-BPO. The scenar-ios are not driven by scientific macro-economicmodeling; rather they are based on recent pastgrowth figures and on international trends in theindustry.

6.1.1 S1: Realistic GrowthA realistic growth scenario for Ghana’s ITES-BPO industry would assume a growth rate ofaround 60 percent for the next three years, i.e.till Y3, given that the industry is still at a com-paratively nascent stage of development andassuming that the government will be proactivein introducing favorable policies and ensuringthat investors have access to the necessary infra-structure and talent.

Post Y3, however, we believe that Ghana will movetowards a more modest growth rate of 40 percentas the industry achieves scale and enters the secondstage of development wherein it is competing withdestinations such as Philippines and South Africa.

Figure 6.1.1 ITES-BPO total employment projections for Ghana

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0Y0 Y3

16,565

24,727

36,910

9,011

2,200


9,0116,037

Y5

S1 S2 S3



6.1.2 S2: Optimistic GrowthIn an optimistic growth scenario we would expectGhana’s ITES-BPO industry to grow at an annualaverage of 60 percent until Y5. Such a growth can beachieved if Ghana is able to establish itself as a lead-ing destination within the African region with regardsto ITES-BPO. Here Ghana will witness growth ratessimilar to that of Phase I of development, as thecountry is able to wrest away ITES-BPO businessfrom other destinations in the region and globally.

To achieve this position, Ghana and the responsibleindustry bodies will need to proactively promotethe country as an ITES-BPO investment destina-tion and ensure that the industry is equipped withstate-of-the-art infrastructure and offers highlyattractive investment incentives for foreign anddomestic ITES-BPO establishments.

6.1.3 S3: Conservative GrowthIn a conservative growth scenario we expectGhana’s ITES-BPO industry to grow by around40 percent annually until Y5. This is based on theassumption that Ghana is unable to distinguish

itself on the world stage from other regional com-petitors such as South Africa and Mauritius andtherefore witnesses only incremental growthwhich is characterized by the overall growth of thesector.

6.2 OTHER DEMOGRAPHICPROJECTIONS

6.2.1 Employment of WomenAs mentioned in the beginning of the report, oneof the most salient features and persistent trends inthe services industry is the increased feminizationof labor. Based on our understanding, the averagefemale-to-male ratio in Ghana is around 70:30.Going forward, this is likely to rationalize toaround 65:35—F:M as has been the case in estab-lished destinations such as India.

Given our total employment projections, the numberof women to be employed by Ghana’s ITES-BPOsector is as follows:

TABLE 6.1.1.1 Projections for ITES-BPO employment in Ghana—realisticgrowth

ITES Industry Indicators S1 - REALISTIC GROWTH

2001 (A) 2005 - Y0 Y3 (P) Y5 (P)

1 Employment

1.1 – Total Employment in ITES-BPO Companies 200 2,200 9,011 24,727

1.2 – Increase of Employment ITES-BPO Companies n/a 82% 1 60% 2 40% 2

Notes:-1 CAGR of no. of employees between 2001 - 20052 Refers to CAGR growth

TABLE 6.1.2.1 Projections for ITES-BPO employment in Ghana—optimisticgrowth

ITES Industry Indicators S2 - OPTIMISTC GROWTH

2001 (A) 2005 - Y0 Y3 (P) Y5 (P)

1 Employment



Notes:-1 CAGR of no. of employees between 2001–20052 Refers to CAGR growth



6.1.2 S2: Optimistic GrowthIn an optimistic growth scenario we would expectGhana’s ITES-BPO industry to grow at an annualaverage of 60 percent until Y5. Such a growth can beachieved if Ghana is able to establish itself as a lead-ing destination within the African region with regardsto ITES-BPO. Here Ghana will witness growth ratessimilar to that of Phase I of development, as thecountry is able to wrest away ITES-BPO businessfrom other destinations in the region and globally.

To achieve this position, Ghana and the responsibleindustry bodies will need to proactively promotethe country as an ITES-BPO investment destina-tion and ensure that the industry is equipped withstate-of-the-art infrastructure and offers highlyattractive investment incentives for foreign anddomestic ITES-BPO establishments.

6.1.3 S3: Conservative GrowthIn a conservative growth scenario we expectGhana’s ITES-BPO industry to grow by around40 percent annually until Y5. This is based on theassumption that Ghana is unable to distinguish

itself on the world stage from other regional com-petitors such as South Africa and Mauritius andtherefore witnesses only incremental growthwhich is characterized by the overall growth of thesector.

6.2 OTHER DEMOGRAPHICPROJECTIONS

6.2.1 Employment of WomenAs mentioned in the beginning of the report, oneof the most salient features and persistent trends inthe services industry is the increased feminizationof labor. Based on our understanding, the averagefemale-to-male ratio in Ghana is around 70:30.Going forward, this is likely to rationalize toaround 65:35—F:M as has been the case in estab-lished destinations such as India.

Given our total employment projections, the numberof women to be employed by Ghana’s ITES-BPOsector is as follows:

TABLE 6.1.1.1 Projections for ITES-BPO employment in Ghana—realisticgrowth

ITES Industry Indicators S1 - REALISTIC GROWTH

2001 (A) 2005 - Y0 Y3 (P) Y5 (P)

1 Employment



Notes:-1 CAGR of no. of employees between 2001 - 20052 Refers to CAGR growth

TABLE 6.1.2.1 Projections for ITES-BPO employment in Ghana—optimisticgrowth

ITES Industry Indicators S2 - OPTIMISTC GROWTH

2001 (A) 2005 - Y0 Y3 (P) Y5 (P)

1 Employment






6.2.2 Employment Projections by SkillLevelThe skill levels for the ITES sector can be broadlyclassified under the following:■ Junior management or operations, which

refers to the direct contributors in an ITES-BPO organization.

■ Middle management, which comprises theteam leaders, supervisors and shift managers.

■ Senior management, which includes the CEOand heads of the various administrative depart-ments and verticals.

The prevalent ratio within these levels is 6: 19: 75for Senior: Middle: Junior Management.Accordingly we can estimate the employment byskill for Ghana as follows:

6.3 REVENUE CREATION BY ITES-BPO Using the above projections on the employment tobe created by the ITES-BPO industry, we can esti-mate the revenues that will be generated by the sec-tor in Ghana. Note that there were no baselinesavailable for the current industry and therefore thesame have not been included in the above analysis.

Based on Hewitt’s estimation, the average revenuegeneration per full time employee per annum willbe US$20,000 (for a U.S. based voice/dataprocess). Incorporating this with the employmentprojections yields the following results:

TABLE 6.1.3.1 Projections for ITES-BPO employment in Ghana—conservativegrowth

ITES Industry Indicators S3 - CONSERVATIVE GROWTH

2001 (A) 2005 - Y0 Y3 (P) Y5 (P)

1 Employment




TABLE 6.2.1.1 Projections forwomen in ITES-BPO in Ghana

PROJECTIONS FOR WOMEN IN ITES

2005 - Y0 Y3 Y5

S1 1,540 5,857 16,073

S2 1,540 5,857 23,992

S3 1,540 3,924 10,767

TABLE 6.2.2.1 Projections for employment by skill—level

Y3 Y5

Junior Mgmt. Middle Mgmt. Senior Mgmt. Junior Mgmt. Middle Mgmt. Senior Mgmt.

S1 6,758 1,712 541 18,545 4,698 1,484

S2 6,758 1,712 541 27,683 7,013 2,215

S3 4,528 1,147 362 12,424 3,147 994

TABLE 6.3.1 Projections for ITES-BPO revenue generation in Ghana


USD Million Y3 Y5

S1 180.22 494.53

S2 180.22 738.20

S3 120.74 331.30



6.2.2 Employment Projections by SkillLevelThe skill levels for the ITES sector can be broadlyclassified under the following:■ Junior management or operations, which

refers to the direct contributors in an ITES-BPO organization.

■ Middle management, which comprises theteam leaders, supervisors and shift managers.

■ Senior management, which includes the CEOand heads of the various administrative depart-ments and verticals.

The prevalent ratio within these levels is 6: 19: 75for Senior: Middle: Junior Management.Accordingly we can estimate the employment byskill for Ghana as follows:

6.3 REVENUE CREATION BY ITES-BPO Using the above projections on the employment tobe created by the ITES-BPO industry, we can esti-mate the revenues that will be generated by the sec-tor in Ghana. Note that there were no baselinesavailable for the current industry and therefore thesame have not been included in the above analysis.

Based on Hewitt’s estimation, the average revenuegeneration per full time employee per annum willbe US$20,000 (for a U.S. based voice/dataprocess). Incorporating this with the employmentprojections yields the following results:

TABLE 6.1.3.1 Projections for ITES-BPO employment in Ghana—conservativegrowth

ITES Industry Indicators S3 - CONSERVATIVE GROWTH

2001 (A) 2005 - Y0 Y3 (P) Y5 (P)

1 Employment




TABLE 6.2.1.1 Projections forwomen in ITES-BPO in Ghana

PROJECTIONS FOR WOMEN IN ITES

2005 - Y0 Y3 Y5

S1 1,540 5,857 16,073

S2 1,540 5,857 23,992

S3 1,540 3,924 10,767

TABLE 6.2.2.1 Projections for employment by skill—level

Y3 Y5

Junior Mgmt. Middle Mgmt. Senior Mgmt. Junior Mgmt. Middle Mgmt. Senior Mgmt.

S1 6,758 1,712 541 18,545 4,698 1,484

S2 6,758 1,712 541 27,683 7,013 2,215

S3 4,528 1,147 362 12,424 3,147 994

TABLE 6.3.1 Projections for ITES-BPO revenue generation in Ghana


USD Million Y3 Y5

S1 180.22 494.53

S2 180.22 738.20

S3 120.74 331.30




About infoDev

infoDev is a partnership of international development agencies, coordinated and served by an expert Secretariathoused at the World Bank, one of its key donors and founders. It acts as a neutral convener of dialogue, and as acoordinator of joint action among bilateral and multilateral donors—supporting global sharing of information on ICT fordevelopment (ICT4D), and helping to reduce duplication of efforts and investments. infoDev also forms partnerships withpublic and private-sector organizations who are innovators in the field of ICT4D.

For more information visit www.infoDev.org or send an email to [email protected].



About infoDev

infoDev is a partnership of international development agencies, coordinated and served by an expert Secretariathoused at the World Bank, one of its key donors and founders. It acts as a neutral convener of dialogue, and as acoordinator of joint action among bilateral and multilateral donors—supporting global sharing of information on ICT fordevelopment (ICT4D), and helping to reduce duplication of efforts and investments. infoDev also forms partnerships withpublic and private-sector organizations who are innovators in the field of ICT4D.

For more information visit www.infoDev.org or send an email to [email protected].




www.infoDev.org

+ INNOVATION & ENTREPRENEURSHIP

www.infoDev.org

IMPRO

VING

BUSIN

ESS CO

MPETITIVEN

ESS AN

D IN

CREA

SING

ECO

NO

MIC

GRO

WTH

IN G

HA

NA


The Role of Information and Communication Technologies and ICT-Enabled Services

Documents

IMPROVING BUSINESS COMPETITIVENESS AND INCREASING ECONOMIC · iv . Improving Business Competitiveness and Increasing Economic Growth in Ghana 4.3 Proposed Industry Bodies 70 4.4 ITES-BPO