7 reasons why international businesses are outsourcing to Rwanda

Why are businesses outsourcing to Rwanda?

Businesses are outsourcing to Rwanda for its growing talent pool, low costs, strong government support, and fast-improving tech infrastructure.

• Rwanda offers a young, eager, and largely bilingual workforce.
• The government backs the sector with tax breaks and training.
• Its time zone lines up well with Europe for easy teamwork.

Many companies rely on outsourcing to stay ahead. For years, the go-to spots were Latin America, Asia, and the Middle East.

However, fast growth in these regions has pushed up costs. So firms now look for cheaper remote staff elsewhere.

Rwanda has slowly become a real contender in the outsourcing sector. So is outsourcing to Rwanda worth it? This article explains why this small East African country is winning attention.

Understanding Rwanda’s BPO sector

Do you know why Rwanda’s BPO sector is the next big thing?

It grew because the government and business groups joined forces. As a result, the sector created thousands of jobs and changed many Rwandan lives.

Rwanda is now a global hub for Global Business Services (GBS). This sector covers services sold to companies abroad. Since 2021, fourteen firms have invested in Rwanda’s GBS sector, 500 jobs and employing a thousand people.

The government focuses on BPO and better ICT infrastructure to lift the economy. It also aims to create more jobs.

Why outsourcing to Rwanda is the next big thing

Like many developing countries, Rwanda has worked hard on its service sector. So here are seven reasons why outsourcing to Rwanda is worth a look.

1. Growing talent pool

Rwanda has a young workforce with huge potential. The World Bank reported that the country’s labor force was 4.56 million in 2022, with high unemployment at that time.

So these numbers point to many people who are keen to work. Given the chance, they are ready to build a stable career.

Talent moves fast today. So firms should tap this untapped pool while the industry stays competitive.

2. Strong government support

Much of Rwanda’s BPO and IT growth comes from partners and the state.

The Ministry of ICT and Innovation partnered with Harambee and GIZ. Both groups help tackle unemployment. Meanwhile, the government backs these efforts too.

For example, it offers tax breaks like exemptions from import duty, VAT, and corporate income tax. In addition, it grants extra work permits so firms can bring in training and management skills.

3. Reduced labor cost

In-house staff cost more than many firms expect. For example, hiring is slow and pricey, from sourcing to onboarding.

Training and development add even more cost. So what if the worker then quits? All that effort is lost.

Outsourcing can cut these costs. Low labor costs are a top reason for outsourcing to Rwanda. The minimum wage there is lower than in many developed countries.

4. Proximity to European countries

Europe and Africa share similar latitudes. As a result, Rwanda’s time zone suits European teams well.

There is no time gap with France, Belgium, or Italy. Meanwhile, Rwanda sits just an hour ahead of the UK and Ireland.

Time zones bring both challenges and perks in offshoring. In Rwanda’s case, the close overlap makes teamwork and chat easier.

5. World-class infrastructure

Rwanda is a well-known tech hub in Africa. So it draws investors and startup founders alike.

Its growing infrastructure makes it a hot spot for offshore work. In fact, heavy ICT investment has reshaped how business runs there.

So exploring tech solutions here is smart. Forward-looking firms can join Rwanda’s fresh, growing ecosystem.

6. Meaningful impact sourcing

Impact sourcing can change communities in big ways. In short, it is socially responsible outsourcing. Firms give steady jobs to people who struggle to find work.

So impact sourcing is like hitting two goals at once. You meet business needs while you help social and economic growth.

Rwanda has not yet tapped this fully. However, its focus on equal opportunity and green growth has won support from global leaders. So the future looks bright.

7. Bilingual workforce

Africa is a diverse and rich continent. In Rwanda, most BPO and IT staff speak English. Many also speak French, Swahili, and Kinyarwanda.

A bilingual workforce draws foreign investment and aid. In addition, it helps firms that want to outsource call center services and sales support.

List of services outsourced to Rwanda

Firms can outsource many services to Rwanda. So a local partner can help you grow through the services below.

Call center services

Call centers in Rwanda know that happy customers drive growth. They act as your front line for questions and complaints.

So they build strong customer ties through good service and quick replies. As a result, customers do not wait long for answers.

Common low-cost services include inbound and outbound calls, Interactive Voice Response (IVR), telemarketing, voice email ordering, and messaging.

Software development

Rwanda hosts several IT firms that build software. Many want to close the digital divide, the gap between those with internet access and those without.

So they work with businesses to learn their goals. Then they use tech to solve real problems.

Rwanda also trains skilled developers. Services include mobile apps, e-commerce, games, blockchain, and CMS. Custom work like Salesforce, Artificial Intelligence (AI), and the Internet of Things (IoT) is on the list too.

IT outsourcing

Mature markets have made older IT hubs pricey and crowded. Meanwhile, ICT drove Rwanda’s push toward digital growth.

So Rwanda offers many paths, from e-services and e-commerce to automation and app development. It also has a regional hub to train ICT pros and run research.

If the ICT sector keeps thriving, the upside is huge. As a result, it can lift the economy, create jobs, and draw new founders.

Rwanda in the wider African outsourcing scene

Rwanda is not the only rising star in Africa. For example, firms are also outsourcing to Kenya, where a booming tech scene is often called the “Silicon Savannah.”

Others look south. So many now consider outsourcing to South Africa for strong English skills and time-zone fit. West Africa is growing too, with more companies outsourcing to Nigeria.

Still, Rwanda stands out for its stability and clear plan. To see how a neighbor scaled up, read about Kenya’s outsourcing surge.

Frequently asked questions

Is outsourcing to Rwanda a good idea?

Yes, for many firms. Rwanda offers low costs, a bilingual workforce, and strong government support. Its time zone also fits European teams well.

What services can I outsource to Rwanda?

You can outsource call center work, software development, and IT services. Many firms also outsource sales support and back-office tasks.

Why is Rwanda good for European companies?

Rwanda shares a time zone with several European countries. As a result, teams can talk in real time with little delay. Many staff also speak both English and French.

How does the Rwandan government support outsourcing?

The government offers tax breaks and extra work permits. It also partners with groups like Harambee and GIZ to train workers and cut unemployment.

Is the workforce in Rwanda skilled enough for outsourcing?

Yes. Rwanda trains many ICT and BPO workers each year. Most speak English, and heavy tech investment keeps skills growing.

Key takeaways

• Outsourcing to Rwanda offers low costs and a young, eager workforce.
• Strong government support brings tax breaks and steady training.
• Rwanda’s time zone and bilingual staff suit European firms.
• Popular services include call centers, software, and IT support.
• Rwanda sits within a fast-growing African outsourcing scene.