Uganda government to subsidize BPO sector's bandwidth

Uganda's nascent BPO (business process outsourcing) sector could get a much needed shot in the arm if the government goes ahead with plans to subsidize the sector's bandwidth costs.

"We are going to intervene to provide cheap bandwidth, even as the submarine cables come, and that is something we are working on," said Godfrey Kibuuka, communications and broadcasting director in the Ministry of ICT.

"It will be an interim arrangement before a total solution is found, because as government, we want to play a role in a sector that we know has the potential that has not been tapped yet," Kibuuka said at a meeting to discuss the ministry's BPO strategy paper, which is up for approval.

While connectivity in Uganda has recently improved, high bandwidth costs continue to stall the progression of Uganda's 30 BPO players, who focus mainly on contact call and data centers, software development and data entry.

The new strategy, however, aims to make Uganda a preferred BPO destination in East and Central Africa by offering such incentives as tax holidays and low-cost fiber-optic connectivity.

Members of the local BPO industry have called on the government to focus on promoting BPO locally, first and foremost.

"The key thing is there are certain things that can be done right away if this sector is to take off," said George Kalisa, who runs a call center. "We need to start local. Let us create a local industry. Let us learn what we are going to export, and if we achieve that, then we will be able to export a better service."

"We cannot think of serving the Americans when we cannot do it at home," added Badru Ntege, who runs a virtual human resources firm. "If we manage to serve users' needs here, then we will be sure that we can do it efficiently and effectively."

Heeding such suggestions, the Ministry of ICT plans to organize a meeting of Uganda's top 100 taxpayers to interest them in local BPO services.

The ministry also called on the BPO industry to form an umbrella body that will enable the government to better interact with the sector's members.

"We would like to see this happen within the shortest time possible," said Jimmy Pat Samanya, permanent secretary in the Ministry of ICT. "We are not going to force you, but we want to encourage you to come together... In our view, an association will help the industry share, interface and also move forward in a more measured way."