Expert Canvasses Outsourcing, Says It Contributes Significantly To Nigeria’s GDP

Group Managing Director/CEO, ICS Outsourcing, Dr. Peter Akindeju, has called on relevant authorities to deliberately institutionalise outsourcing practices as they contribute more than half of the country’s gross domestic product (GDP).

Akindeju, who heads the HR and business processing company, said this at a press conference in commemoration of 30 years of excellence in outsourcing services in Nigeria.

According to him, outsourcing is a crucial aspect of Nigeria’s economy, which contributes significantly to the country’s GDP, and despite its importance, it is often misunderstood and undervalued.

There is hardly any endeavour you can mention in any economy in which outsourcing is not involved. It is embedded in virtually every sector of the economy, including aviation, manufacturing, power, oil and gas, and healthcare, with estimates suggesting its contribution exceeds half of Nigeria’s GDP.

Akindeju, highlighting the sector’s impact on the economy, citing examples from India and the Philippines, said, “Many people do not know how critical outsourcing is to an economy. Its GDP contribution to the economy is enormous.

“If you look at other economies of the world, India at some point used outsourcing to pivot their country from a third-world generation country to what we call a second or even first-generation country right now. Also, look at the Philippines; they have taken similar initiatives.

“So we just don’t call it outsourcing in this part of the world. What is outsourcing? Something you could have done by yourself, which you give to another party to handle for you for a fee.”

Speaking on the wrong notion that people nursed outsourcing and casualisation in the country, Dr Akindeju said, “We are not unaware that there are charlatans out there that give a bad name to the practice. But outsourcing is a noble profession and is practised all over the world.

“I have seen outsourcing in a situation where an outsourced staff is earning more than professional core staff. So the salary you earn as an outsourcer has nothing to do with whether you are outsourced or not. It’s the value you are contributing that determines the value you get in return. The only difference is that they may not work with us but are in the field working with clients.”

Speaking on the company’s impact as it has created job opportunities for over 70,000 Nigerians from inception across all tribes, she added, “We are not just reflecting on 30 years of accomplishments; we are excitedly looking towards a bright future ahead. With a strong focus on innovation and customer-centric solutions. We are ready to continue our growth and success.”