Outsourcing Business In Nigeria: Why Can't It Work? - Business - Nairaland
Nairaland Forum / Nairaland / General / Business / Outsourcing Business In Nigeria: Why Can't It Work? (7864 Views)
Igbos Are Blamed For Substandard Goods In Nigeria: Why / I Need A Partner In An Hr Outsourcing Business That Is Worth N700,000 Monthly / Any tips on setting-up a KNOWLEDGE PROCESS OUTSOURCING business? (2) (3) (4)
| Outsourcing Business In Nigeria: Why Can't It Work? by Lax75(m): 5:30pm On May 08, 2009 |
I've always wondered about the outsourcing business, and why only countries like India, Brazil etc are the main hubs for America's outsourcing services. We have brilliant people in Nigeria and there is a high opportunity cost in my opinion, for not taking advantage of this line of business. Can you point out some reasons why outsourcing would not work in Nigeria. |
| Re: Outsourcing Business In Nigeria: Why Can't It Work? by Tstark(m): 9:27pm On May 08, 2009 |
Una get steady power supply? What company in their right minds will want to jump from frying pan to fire? All those countries you mentioned have steady power supply period. |
| Re: Outsourcing Business In Nigeria: Why Can't It Work? by lucabrasi(m): 11:38pm On May 09, 2009 |
i disagree with the power assertion,though not entirely,however i think it has a lot to do with our political leadership and their penchant for arbitrarily disobeying laws,many international businesses will have seen what happened to the vaswanis after they were deported all of a sudden even though they have businesses worth billions of naira here,the second reason in my opinion is the bad rep we have in the international business arena |
| Re: Outsourcing Business In Nigeria: Why Can't It Work? by debosky(m): 11:46pm On May 09, 2009 |
lucabrasi: I disagree - those guys were crooks. People will look and see the likes of Churchgate operating according to the law and flourishing and the numerous Israeli, Italian and Arab construction companies working successfully. No genuine businessmen have been run out of the country as far as I know, so that shouldn't be an impediment. Our main flaw is lack of organisation - we can't organise ourselves and put forward proposals to these companies abroad to get some chunk of that business. This is coupled with reliability issues - we lack reliable IT (telephony and internet) facilities which are needed to continually liaise with foreign companies for business purposes. Imagine trying to run a customer support centre and the Nitel gateway goes down because of some strike and you're disconnected? One more thing - the lack of true development parks/ Industrial clusters. If we had well run industrial estates or business clusters where these companies could set up shop (with necessary infrastructure), there would be a greater likelihood to invest. Image comes into it, but it is the lack of the items above that I think are mitigating against us. |
| Re: Outsourcing Business In Nigeria: Why Can't It Work? by SapeleGuy: 11:58pm On May 09, 2009 |
Tstark is right on the money here. Everything hinges on the power issue. There are enough tax breaks and incentives for businesses to come to the country and build their own business parks if they want to. Outsourcing is done to save money, so adding generator and diesel costs to your other overheads defeats the object. |
| Re: Outsourcing Business In Nigeria: Why Can't It Work? by promise72(m): 1:27am On May 10, 2009 |
Sorry to break it to you guys. NIGERIANS ARE BY AND LARGE LAZY PEOPLE. Especially back home. We dont have problem working 2-3jobs overseas but not at home. Dishonestly is also the name of the game. A Yoruba proverb say that "oga ta, oga ko ta, owo alaru a pe". Loosly meaning "Irrespective of the masters prospect, the servant will get paid" Many people operate by that mentality unfortunately. They have forgotten that the fate of the master and the servant are intertwined. Once again, we are very lazy people. And yes, the power issue too. |
| Re: Outsourcing Business In Nigeria: Why Can't It Work? by Lax75(m): 4:04am On May 10, 2009 |
Interesting, So far from everyone's input: (1) Power issues - energy infrastructure (2) Telecommunications issues - Telecom infrastructure (3) Lack of proper town planning (4) Poor work ethics (5) Political issues Yep, these are enough to scare foreign investors off from our shores. Pity, because if you think about it, in terms of outsourcing "services" it would have been nice if manufacturers like Nike, Reebok etc could set up factories in Nigeria and we could all see "made in nigeria" on their products. We are actually closer to the US than the Asian countries (from the east coast anyways). So much money we are losing from this opportunity cost. |
| Re: Outsourcing Business In Nigeria: Why Can't It Work? by TouaregV8(m): 2:23pm On May 10, 2009 |
Gentlemen, I hope you don't mind me crashing your party. I am very curious to explore the belief that Nigerians are lazy, especially back home. |
| Re: Outsourcing Business In Nigeria: Why Can't It Work? by Thadude(m): 4:06pm On May 10, 2009 |
I disagree with the notion that Nigerians are lazy, 5% of the population being lazy can not speak for 95% of the people. If Nigerians are lazy who made them lazy or who make them look lazy?, the GOVT! 2-3 jobs oversea with the enabling environment you should add. Where will the 2-3 jobs emerge from in Nigeria where there is no power to power the industries. Or banks wont give out loans with reasonable interest rate or without administrative clogging to those with ideas that can create small scale business and put people to work. Secondly, the pay system in Nigeria is bad, it doesnt give the workers the ability to put in their best and earn more for hard work. Like in most countries where pay is calculated on hourly basis. Nigerian industries/govt should introduce hourly pay rate, which is easy by breaking the current salary down to an hourly rate. Automatic salary is cheating to workers and industries/govt, workers who dont turn up for work in a day under clumsy excuse of illness without doctor's report get auto salary. Workers who work hard and over time dont earn extra. Workers who come 30mins late get auto salary. Workers who come 10mins early become discourage and tend to follow suit. So our system is a pull back on hardwork. |
| Re: Outsourcing Business In Nigeria: Why Can't It Work? by Tats(m): 7:55pm On May 10, 2009 |
Apart from other issues listed above, stability is very key. For instance, how would you explain to the companies you are managing a part of their business that your workers did not turn up for work because of a Riot or some other sillly reason? No foreign company wants to hear that as they will loose their customers very quickly due to non delivery of goods or services. Trust is also very key. Many foreigners and countries virtually do not trust we Nigerians anymore because of the acts of many fraudsters and their illicit activities. When you are handling some type of outsourcing which is not related to manufacturing, you are entrusted with critical business and customer data such as bank account details, payment card details, addresses, date of brith, e.t.c. Nobody will risk putting such information in our hands! That said, we have very skilled people, can train more and are capable of handling outsourcing if you consider the knowledge perspective. We need to put our acts together in other areas such as infrastructure, discipline, stability and we would be good to go. Maybe we can "rebrand" ourselves when we have done all this, but not before!! |
| Re: Outsourcing Business In Nigeria: Why Can't It Work? by osasp(m): 8:19pm On May 10, 2009 |
Tha_dude:well said |
| Re: Outsourcing Business In Nigeria: Why Can't It Work? by promise72(m): 8:32pm On May 10, 2009 |
Tha_dude: Excuse is only good for people making 'em. |
| Re: Outsourcing Business In Nigeria: Why Can't It Work? by royalicon(m): 9:14pm On May 10, 2009 |
Unstable Power supply Political Instability Acute fuel scarcity Incessant Strike Bad Leadership / Political Thuggery Bad roads & other Infrastructure , All these among others are some of the issues that is affecting us in this country generally, not only in the outsourcing business. If they are not affecting the business or the organisation directly, its gulping a huge percentage of the gross profit. e.g Telecommunication Industries can only tell how much they use to power their transmission masts (running generator for 24hrs on daily basis), Secure private security for these equipments and the offices in general. Think about Banks, Power for the ATM machines and other equipments. Even on one-man-business basis. Regular power supply is one of the major key, Transporting your products and/or delivering services timely on good roads, fuel availability as at when needed without fear of armed robbery is of paramount importance to make way ahead. If u have been to the CBD in Abuja, just imagine the infrastructures (though not 100% compare to developed nation) to be the same nationwide, then we will be aiming high, have some reasonable % of inviting foreign investors even to be their representatives. You cannot repesents any reasonable international business where the above mentioned points are still in place. GOD BLESS NIGERIA, and her true leaders that have real vision for her development. |
| Re: Outsourcing Business In Nigeria: Why Can't It Work? by hackney(m): 9:16pm On May 10, 2009 |
You want all your company related info (customer details) sold for pennies in the yahoo market  Wait 90yrs by when it is slightly likely that we are more structured,security-viable and fairly stable peace-wise. Also hopefully by then the govt (or whatever they are called now) will have a record of who lives where so that checks/traces can be made. Also i have to admit that nigerians are a bit on the lazy side unless only when their jobs are directly at stake; Picture a scenario where you have hired workers/labourers. Can you honestly say that you can imagine them working hard to get the job done properly if they know they will be paid either way? I simply think that its not in their ethics at all. i think we should start with not deceiving ourselves on such matters. Nigerian workers have no concept of creating a good image for the FUTURE esp if its not their company/business (rubbish customer service that shout at customers every minute) ; coupled with the culture of complete rudeness,loudness and the i-am-only-concerned-with-now mentality. One Old OGA in UBA HQ still dey shout 'useless idiot' to a staff in front of everybody (in a nut-shell) |
| Re: Outsourcing Business In Nigeria: Why Can't It Work? by Igwe9(m): 9:29pm On May 10, 2009 |
promise72:Sorry promise 72, No employer in Nigeria will allow you to take up another job even after working hour.  Who sees a job to talk of two.  |
| Re: Outsourcing Business In Nigeria: Why Can't It Work? by arogbowei: 10:46pm On May 10, 2009 |
All the reasons given above are why outsourcing is out of it for now, but in future if our infrastructures are in place, why not. I shudder (recoil) when i hear people say we are lazy. Nigerians are not lazy. Promise72, was probably in Nigeria before traveling abroad. If we were lazy he would not have been able to adapt automatically to holding a job, not to talk of 3 jobs. No jobs for Nigerians. Here you have to be extremely creative to hold more than one , but over there the jobs have been, or are being created for any hard working person. Give Nigerians similar opportunities and see what happens. Some persons here in Naija, yours' sincerely inclusive are holding more than 2 jobs at the moment. Nigerians are not lazy. I am constantly touched by the staying power of the Nigerian woman, give her very little and she will still get something done. Give us power, road, security, leadership and see what happens next. we will overtake this countries in outsourcing. Oga ta Oga o ta owo Alaaru a pe. That proverb is synonymous with all cultures. |
| Re: Outsourcing Business In Nigeria: Why Can't It Work? by naijaking1: 11:44pm On May 10, 2009 |
promise72: I agree with you 100% this time. Nigerians are lazy, lazy, lazzzzyyy  I know, because I have worked in Nigeria and in the US. However, Nigerians are not genetically born lazy, they just acquire that habit as a coping mechanism. Historically dating back to a time we were fighting for independence. One of the civil disobedience tactics was truancy, tardiness, vandalism, bribery, etc. These were tools employed to bring down the whiteman, unfortunately, after the whiteman left, we've turned that tools against ourselves. Naturally, we're not lazy, but even the workplace arrangement of most goverment offices have been designed and promoted to crank out the most minimium output. The people that work hard are not recognized, some may even be fired, but it's those lazy people with strong behind the scene connections that make it to the top. Please if you have never travelled outside, and have no yardstick to compare, there is no need doubting what you don't know. Compare to many other countries: Brazil, India, Indonesia, and now Ghana, you don't need to be told that our lazy culture has kept us behind the A-ball. |
| Re: Outsourcing Business In Nigeria: Why Can't It Work? by promise72(m): 11:53pm On May 10, 2009 |
An average Nigerian, when employed is busy (on the first day) calculating "What he/she can get out of the business". I no wan serve oga 4ever. When the same employee is not even trying to put in his/her dues. The demise of the business is also the end of the employee. No doubt. May be its in the culture or so, i dont know. A culture that will allow a tenant to owe to 2-3years without getting kicked out. So he/she is not even budgeting rent in monthly funds. Na so so beg beg. Try that here in the States and see how fast the Marshals will be at ur door locking you out. When i say we are lazy. I mean it. Consider this: An oga of a company hires a driver to drive to/from work. Driver gets oga to work in the morning nothing to do. He only lays down the seat and sleep until oga is ready to go again next 8hrs!!!. why even get a driver? Here i rest. |
| Re: Outsourcing Business In Nigeria: Why Can't It Work? by naijaking1: 12:18am On May 11, 2009 |
Igwe.:You know, that's another retrogressive law that has since outlived its usefulness. If you work as teacher from 7am to 5 pm, there is no reason why you cannot work as a gas station attendant from 7pm to 11pm if you like. Who sees a job, maybe people are looking in wrong places. My relatives are busy looking for 8-5pm bank, governemnt, and oil company jobs; while refusing to start their own companies, because it's dirty or degrading. |
| Re: Outsourcing Business In Nigeria: Why Can't It Work? by yommyuk: 12:22am On May 11, 2009 |
In regards to the subject matter, these are the setbacks that will not make it work in Nigeria 1. Credibility - We all know what the nigerian brand is - 419, corruption, basket mouth etc 2. Poor Infrastruture - there is no hiding from this one- even the politicians acknowledge this 3. Poor Work ethics - go to the banks or any ministry - the whole system is rubbish 4. bad business enviroment - na omo Ibo scenario is the order of the day 5. No proper financial and business regulation enforcement agencies - effc? is it working? 6. Scary Political Enviroment- just a little better than the Taliban regime 7-Security - on par with Iraq 8. Power supply - the worst in the world 9. Financial system - Grading F minus 10. IT systems - Rubbish - Just check PHB website- rubbish 11- Instability of Currency - Demand outstrips supply. This is just to name a few. The only business that will work in nigeria is Religion- Loveworld , Winner Chapel and Redeem church. Even that one self is fingers crossed  |
| Re: Outsourcing Business In Nigeria: Why Can't It Work? by Redman44(m): 12:27am On May 11, 2009 |
I absolutely agree with all that has been written on this thread on why outsourcing won't work in Nigeria. The infrastructure is that will enhance outsourcing of jobs is not available. Nigeria is utterly undeveloped when it comes to the availability of infrastructure. There are many roads and streets in Nigeria that still look the way they were 20 years ago. Many Nigerians find it difficult to change their thought process and that is why we are where we are as a Nation. Hardworking Nigerians are mocked daily while those with 'connections' get to the top easily. We need to fix the infrastructural problems of Nigeria first before thinking of calling on the developed to outsource their jobs here. Cheers. |
| Re: Outsourcing Business In Nigeria: Why Can't It Work? by Patengr(m): 4:36am On May 11, 2009 |
I agree with what most of the people are saying here. Here’s my take: 1. Political stability 2. Legal stability & enforcement – independence of judiciary 3. Highly skilled cheap workers – easily trainable 4. Infrastructure 5. Power All the factors I listed above and more do get considered when setting up a company but these factors do not all carry equal weight. The most important factor will have to be political stability. Any company that has more than a four-year plan would like to know that their existence could be guaranteed past the present administration. To many mixed messages coming from different sectors/subsequent govt. Legal stability then comes next – one would like to know what the laws are and how they’re enforced before planning some type of long-term investment. Do Judges tend to ignore the written law in favor of local companies? Do they enforce contracts fairly? Not having the needed infrastructure could also be a showstopper. Power on the other hand has an easy solution, the cost of which can easily be predicted and factored into the cost of doing business. The takeaway point is that businesses need stability and predictability in order to adequately plan to recoup their investment. Until then, there’s always a stable economy in Southeast Asia. |
| Re: Outsourcing Business In Nigeria: Why Can't It Work? by Nobody: 7:18am On May 11, 2009 |
Lax75: Who told you that Nigeria has brilliant people. Yeah, maybe we have "some" but most people are definitely not brilliant. If you define brilliance as the ability to pass exams or memorise 3 textbooks, then Nigerians are brilliant. Brilliance has to do with innovation and intuitive thinking which a lot of Nigerians lack. Businesses are in "business" for profit. Why would they eye Nigeria if the opportunities for profit don't exist. The price of diesel and maintaining generator sets is enough to chase anyone away. Why would you bring your business to Nigeria when you can get "cheaper" labor and reliable power supply in India. Lets talk about the real issue here : Technical know-how/education. Most of the oustsourcing being done in the world today is in the I.T industry. Whether you like it or not, the Indians have a good lead on I.T so it is only natural that businesses would head there. Nigeria still has a lot to catch up on in I.T. Why will anyone waste their time trying to play catch up when they can head straight to India. (I'm not saying the indians are the best because i've interacted with some of them who don't know what the heck they're doing). The point is that they are well established in the industry and companies will always head for them. |
| Re: Outsourcing Business In Nigeria: Why Can't It Work? by AjanleKoko: 7:40am On May 11, 2009 |
Gents, A few facts you might not know about, or have never heard. Fact 1: Outsourcing from the West to Nigeria is already happening on a small-medium scale. RIM of the Blackberry fame has a development project outsourced to a Nigerian company based in Abeokuta. It's been running for at least 5 years now. Fact 2: There is actually an outsourced call center operation in Nigeria and Ghana, which handles traffic for clients in the US and Europe. Now to the topic proper. Infrastructure in Nigeria doesn't permit outsourcing on a large scale (manufacturing and services) to Nigeria; we don't have pervasive and reliable Internet access, and we don't have power at all. We do have the labour force, however I don't think we have a sufficiently trained workforce for services or manufacturing outsourcing. We don't have a large pool of skilled technicians in Nigeria to support a number of these industries, and we're already behind, so I doubt seriously that we will catch up with the likes of China, India and Brazil. What we should focus on in my view is Africa. Nigeria can become an outsourcing hub for both manufacturing and services for Africa, if we get the infrastructure in place. |
| Re: Outsourcing Business In Nigeria: Why Can't It Work? by Nobody: 8:10am On May 11, 2009 |
AjanleKoko: Good point with regards to Africa. The only problem is that other countries are/have already beaten us to it. Manufacturing industries are already leaving Nigeria for Ghana. Don't be surprised when you call customer service in Nigeria and the operator has a Ghanian accent!!! |
| Re: Outsourcing Business In Nigeria: Why Can't It Work? by oluwdashmi(f): 8:38am On May 11, 2009 |
promise72: I totally disagree with this statement. If you are lazy, it is better you speak for yourself and people around you, not generalising it. Nigerians (except you and the few you are indirectly referring to) are energetic, strong willed, rugged and smart people. |
| Re: Outsourcing Business In Nigeria: Why Can't It Work? by blacksta(m): 9:06am On May 11, 2009 |
We got the labour - but we lack the enabling environment for large scale outsourcing. Until infrastructure, infrastructure ,infrastructure, somehow happens in Nigeria - Forget it. The simply fact of the matter " Business are in it for profit". |
| Re: Outsourcing Business In Nigeria: Why Can't It Work? by Thor(m): 9:09am On May 11, 2009 |
Lazy people is at the root of the problem. That is why 419 comes from Nigeria, thousands of people sat in internet cafes all day sending their stupid mails and trying to steal and thieve their way through life rather than work for a living! |
| Re: Outsourcing Business In Nigeria: Why Can't It Work? by Emmacomng: 9:50am On May 11, 2009 |
Sorry, am just seeing it the order way, Lets put up ideas on how it can work. |
| Re: Outsourcing Business In Nigeria: Why Can't It Work? by netotse(m): 10:35am On May 11, 2009 |
na wa for all these ppl outside naija that keep on talking abt 419 and online scams. . .abeg we've heard enough already |
| Re: Outsourcing Business In Nigeria: Why Can't It Work? by yommyuk: 11:14am On May 11, 2009 |
Fact 1: Outsourcing from the West to Nigeria is already happening on a small-medium scale. RIM of the Blackberry fame has a development project outsourced to a Nigerian company based in Abeokuta. It's been running for at least 5 years now. @ajalenkoko - just for clarity Fact 1 - how many people are employed in this company that are of nigerian origin? In the Uk, when they say small scale that means any company with a turnover under £5.8 million PA. How does that translate in nigerian's business valuation? 100 MILLION naria? My brother let us be real. No serious minded Service business will invest in Nigeria. The reason why Telecom took off is because nowadays it is a neccesity of life and probably affordable. I read an article that analysed computer ownership in Nigeria. Less that 1% of the total population. And those/Most that have one use it for fraudlent activities.  I googled and searched for Websites in nigeria.  You will be amazed with what I came up with.My advise is that nigeria should stick with what it use to produce Pre-Oil boom days. Agriculture  . Malasyia did it with our Palm Oil Seed. |
| Re: Outsourcing Business In Nigeria: Why Can't It Work? by Fhemmmy: 12:56pm On May 11, 2009 |
why would anyone wanna outsource to a nation where? No constant electricty. Light depends on generator and gas is no readily available. People getting to work is crazy and roads are terrible. Accountability is messed up and no transparency. Political wahala is always ready for another showdown. Muslims and Christians are on each other throats. |
Sleeping With My Step-mum Seems To Be My Only Chance For Survival / What Are The Best Payment Gateways For Dropshipping? / Opportunities In The Chemical Business In Nigeria
(Go Up)
| Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health religion celebs tv-movies music-radio literature webmasters programming techmarket Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 104 |