With the digital economy’s increasing demand for speedy data-processing and real-time call services, outsourcing sectors in Asia and Africa have boomed over the last 15 years.
While India and the Philippines are go-tos in markets like the US and the UK, Madagascar has become a major player in French-speaking markets, where countries like Morocco and Senegal have long-dominated.
Fastest net in the East
Per Quartz, there were only a few business processing and outsourcing (BPO) companies in Madagascar in 2005. But since the arrival of cable internet in 2009, the number has ballooned to 233.
(Fun fact: Madagascar has the fastest internet in Africa — even faster than some first world countries such as the UK, France, and Canada.)
Join 1.5m+ professionals getting The Hustle daily news brief
Business and tech news in 5 minutes or less
And with speed comes an influx of new business and the demand for a healthy infrastructure around their employees.
Taking notes from Morocco
Morocco has set the standard in the BPO sector for competitive salaries, social benefits (pensions, health insurance), extensive on-the-job training, and advocating for women hires.
But, Madagascar is also 50% cheaper than Morocco, encouraging many companies in competing areas to migrate to the distant island-neighbor — Hmmm, kind of like the number of Silicon Valley startups flocking to the Midwest...
In Madagascar, BPO salaries start at $130 a month (nearly 3x the minimum wage)… not bad for a country with 75% of its citizens living on less than $1.90 a day.