BPO’s top in services export

Business Process Outsourcing is Kenya’s number one export service, according to a survey released on Thursday.

The survey, carried out by the World Bank and Export Promotion Council, says the export turnover for BPO’s is 90 per cent, compared to others like insurance, legal and engineering services.

“This figure was found to be considerably high when compared to other leading services’ exporters, such as accounting and ICT, with an average of 20 per cent of exports turnover,” read a section of the report.

On the other hand, engineering, insurance and legal services reported low percentage turnover in exports.

The survey-assessed Kenya’s export potential and supply capacities in selected professional services.

However, Kenyan export services are still small compared to other competing international countries.

This creates a non-competitive advantage of the local sectors over its foreign peers.

But the international rise in demand of theses services still assures them of a lifeline.

“Exporting services’ firms were found to have some form of international network or affiliation that increased their propensity to acquire international work,” noted the survey.

Within the region, the reduction of non-tariff barriers due to the ongoing talks to integrate the EAC markets has been critical to their growth.

This is also evident by results showing that most of the services were exported within the community and to the United Kingdom and the USA.

While marketing strategies plays a critical role in the selling of the services, the survey pointed out that government has played a small role.

“The government’s foreign offices and trade attaches in Kenyan embassies are not proactive,” it noted.

Generally, the export of services still surfers from costly market developments, especially for small-and-medium-sized business.

Marketing constraints due to prohibition in advertising is also a hindrance for services like accounting and architecture as well as legal sectors.

“The survey has revealed a unique characteristic, that we use to exploit the depth of export business within the region,” said Mr Maurice Abuom, general manager of EPC.