Outsourcing in Africa: How do the interactions between providers, multinationals, and the state lead to the evolution of the BPO industry?

Abstract We explore the evolution of Africa’s business process outsourcing (BPO) industry. In so doing, we seek to derive policy and managerial implications on how African suppliers can grow become more attractive foreign multinational corporations (MNCs). discuss insights from literature clusters these evolve. Our conceptual arguments are supported by a case study Kenyan BPO cluster through three broad stages: embryonic, early, developmental. argue that this has been hampered factors including small sometimes informal nature local suppliers, reluctance multinationals make long-term commitments, intermittent devotion government supporting clusters. Accordingly, suggest direct indirect initiatives industry toward mature stage, increase knowledge spillovers formalization levels, improve working conditions.