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Why your next hire should be in Africa

Why your next hire should be in Africa

Labor shortages aren’t new, but the current one has substantially affected the local economy, with the current labor shortage continuing to increase, along with rising unemployment rates as employers struggle to hire and fill understaffed workplaces. 



The continuing labor supply shortage has led to higher labor costs, steeper inflation, and supply chain disruptions severely impacting many industries. All of this adds up to one thing: Workers might not be coming back anytime soon. They’re demanding higher pay, more safety measures, and better benefits. 


Thus, organizations must start taking proactive measures to address these labor shortages.  The top two options are automation and outsourcing.  SALIX Data has been a trusted local provider of these solutions for hundreds of companies in Greater Cincinnati for over 20 years. 


Business Process Outsourcing (BPO) is an effective tool for businesses trying to streamline their business processes by employing third-party vendors to fulfill essential but non-primary business functions. This in turn allows for high quality outputs with quick turnaround times at a low cost. 


Today, outsourcing is not just confined to call centers. Companies increasingly outsource their IT, Finance, and HR operations to cut costs and concentrate on their primary business operations.  


The preferred outsourcing locations historically have been Asia and Latin America. Now that these areas’ economies are expanding and their populations are aging, labor in these areas is more expensive and less desirable to businesses searching for distant workers who can work efficiently. With its enormous population of educated people, SALIX has been able to develop a world-class outsourcing center in Africa that is providing 20% cost savings over some of the other traditional outsourcing hubs such as India. 


Why businesses have to think about outsourcing to Africa  


With a median age of just under 18 years, Africa is the youngest continent in the world. In the coming years, a sizable portion of Africa’s population will enter the labor force, entering a more competitive labor market.  


Due to the enormous number of youthful, working-aged people and the continent’s improved access to high quality education, a pool of potential employees is created for businesses wishing to outsource. Africa is a perfect location to provide businesses with human capital because of the labor pool and the region’s affordable wages. 


4 Key Benefits



1. Cost Savings 


In this day and age of the competitive world, every other company needs to be mindful of its bottom line. 


Being a hub of developing nations, the labor costs are naturally much lower than the more industrialized countries around the globe, which tend to have elevated salary rates. 


On top of this, the cost of living is also relatively lower. Since the economic climate influences the world, a place that readily offers lower costs like Africa is undoubtedly becoming an attractive alternative for companies seeking cost-effective options. 



2. Young and Skilled Talent Pool 


Africa’s young population is key to its sustainable economic growth. With over 70% of the population under 30 years of age, Africa is teeming with youthful enthusiasm.  


With a large share of this skilled young population joining the workforce, Africa is evolving into a competitive labor market. However, the abundance of skilled labor has led to a consistent unemployment crisis in the continent.  


The African Development Bank reports that for the 10 million to 12 million youth who enter the workforce in Africa each year, only 3 million formal jobs are created annually.  


This large population of youth and an increasing unemployment crisis within the continent creates a pool of skilled employees for international companies looking to outsource.  



3. Competency 


Did you know? The overall unemployment rate of Africa presently sits at 30.8%. The nation’s BPO industry, as such, delivers a relatively lower barrier to employment opportunities.  


It is a desirable option for an impressive number of young adults who are ambitious and eager to get a headstart in their careers at an early age. Known and revered for their exceptional and perfectionist work ethic, it is undoubtedly highly appealing as an alternative location for US companies to outsource specific functions or entire operations. 



4. An Opportunity for Impact Sourcing 


Progressive and socially conscious organizations can create a positive social impact by setting up a team in Africa. 


It enables them to hire and provide development opportunities to young Africans, who otherwise have limited career prospects. This opportunity could give the local talent a platform to grow and bring their skills to the marketplace.  


With this kind of exposure, these youths can help bring about social and economic transformation in their communities and the continent. This way, African offshoring helps companies meet their impact sourcing goals and be a part of the continent’s growth story. 




Businesses need to rethink their strategies and return to the drawing board because attracting talent and cost-cutting are now essential to staying in business. Africa is gradually becoming a serious competitor in the well-established outsourcing industry. 


By outsourcing to Africa, you can create more employment on the continent while benefiting from the readily available skilled labor offered. 



How Can SALIX Help? 


SALIX is a regional leader in business process outsourcing. For over 20 years, SALIX Data has helped over 2,500 customers streamline their business operations, saving them time and money.  


Our customers gain the benefit of creative solutions that leverage both cutting-edge technology and dedicated people to deliver exceptional results at a fraction of the cost.  


Learn more about our outsourcing capabilities here


Give your business the savings and flexibility it needs to succeed in today’s competitive business environment by utilizing SALIX’s Business Process Outsourcing Solutions. Contact us today to set up an introductory appointment with a Business Process Expert. 

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